How to Develop a Digital Ecosystem: a Practical Framework

Abstract

Throughout the modern industrial era, industries have generally been organised as linear value chains. This gave birth to the vertically integrated organisation, which was organised in such a way in order to control the entire value chain and achieve economies of scale, which in turn would create a significant competitive advantage. As digital technologies continue gaining adoption, they start enabling new ways of organising how value is created. This transition means moving from value chains to digital ecosystems. This is giving way to new industry giants, which rely on the strength of their digital ecosystems to attain market dominance. However, there is still limited knowledge of digital ecosystems: how they are created, how they work and, importantly, how organisations beyond digital giants can approach digital ecosystems. Based on literature review and expert surveys and interviews, this piece puts forward a practical framework for both established organisations and entrepreneurs to better understand, plan and navigate the new paradigm of digital ecosystems.

Keywords

• Digitization,