Mapping Business Ecosystems

About Ecosystems

Traditionally,peoplehaveseencompaniesasrivalswhobattleeachotherfordominanceandprofit.
Todaysorganizationsoperateinamorecomplexworld.Theycompeteandcooperateininnovativeand
unexpectedwaysandtheyneedeachotherinordertosurvive.Thisisthenewworldofbusiness
ecosystems.

Abusinessecosystemisadynamicstructureofinterconnectedorganizationsthatdependoneachother
formutualsurvival.

JamesF.Moore,whocoinedtheterm,explainsthatbusinessecosystemsincludethosetypically
consideredtobepartofacorporation:thoseinsidetheorganizationswallsplusdistributionchannels
anddirectsuppliers.Theyalsoincludetheextendedenterprise:directcustomers,standardsbodies,
suppliersofcomplementaryproducts,andsoon.Finally,theyincludethosewhocanhaveasignificant
effectonthecorebusinessbutwhoareoftenconsideredafterthoughtsorpeskyoutsiders:trade
associations,regulatorybodies,unions,investors,andsoon.

Ecosystemshaveintenseimplicationsforhowcompaniesplanforthefuture,andtheyignorethose
implicationsattheirownrisk.Learningaboutbusinessecosystemsandthetoolsandmethodologies
neededtosucceedwithinthesecomplexentitiescanhelporganizationsimproveeffectiveness,
managerisk,andbreakthroughtonewinnovations.

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Mapping Ecosystems

OurpreferredmethodofmappingbusinessecosystemsisbasedonVernaAlleesValueNetwork
Analysis(VNA)methodology.InVNA,thereareentitiesandtransactions.

Entitiesareindividuals,teams,groups,orcompanies.Examplesofentitiesare:

Individuals,suchasFunder,Sponsor,Lawyer
Groups,suchastheMarketingTeam,EngineeringDepartment,corporatelawyers,project
managersandallinvolvedinprocurement(inandoutoftheprocurementdepartment)
Providers,suchasvendors,contractors,andsuppliers
Customers,suchasendusers,clients,andresellers
Organizations,suchasindustryanalysts,mediaoutlets,andtheIRS

Transactionsareexchangesbetweenentitiesinanecosystem.Examplesoftransactionsinclude:

Payment Advice
Document Security
Equipment Feedback
Contract Approval
Schedule Criticism
Workbook Assurance

Transactionscanbetangible.Thesetransactionsaremandatedbythesystem.Theyrenecessaryfor
successfulproductorservicedelivery.

Theextras,activitiesthatarenotmandatedbythesystemandprovidedinordertoshareknowledge,
accelerateprogress,orsmoothdelivery,arecalledintangible.

Entitiesarerepresentedbycirclesonabusinessecosystemmap.Transactionsarerepresentedsolid
linesfortangibledeliverablesandbydottedlinesforintangibledeliverables.Arrowsshowthedirection
ofthetransaction.Eacharrowislabeledwiththespecificdeliverablepassedfromoneentitytothe
other.

TangibleDeliverable

Entity IntangibleDeliverable Entity

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Ebays Ecosystem Map

Heresanexampleofanecosystemmap.ThisimageshowsasimplifiedversioneBaysecosystem.

FromAllee,TheFutureofKnowledge

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Mapping Your Business Ecosystem

Mappingyourbusinessecosystemwilltakeabout30minutesifyoudoitalone.Mapsareusuallymore
completeandusefulwhendevelopedbyagroupofindividualswithdifferentviewsintohowthe
ecosystemoperates.Ifyougothisroute,allowatleastanhour.

1. Identifyroles.
Listatleast15rolesplayedinyourorganizationsecosystem.Dontworryaboutspecifics.Instead,
focusontypes.Forexample,rolesinBostonsdiningindustryincludesuppliers,distributors,
restaurants,governmentregulators,customers,andsoon.

2. Getspecific.
Writedownsomespecificexamplesofeachroletojogyourthinkingwhenyoureturntothemapin
thefuture.Forexample,youmightlistClioandUpstairsontheSquareasupscalerestaurants,
Russosasadistributor,andWalthamFarmsasalocalfarmer.

3. Beginyourecosystemmapbydrawingroles.
Startbydrawingonecircleforeachrole(NOTforeachspecificentity)onyourmap.Makesure
theresenoughroombetweenthem.Youmaywishtospacethosethatyoubelievehavemore
interactionsclosertogether.

4. Tellthestory.
Tellthestoryofhowrolesinteractintheecosystem.Startwiththecustomer.Whodoesthe
customergotoforservice?Whatdotheyrequest?Thenwhathappens?Howaretherequests
fulfilled?Whosinvolved?Asyoutellthestory,drawarrowsbetweenentitiestoshowtheflowof
transactionsthroughtheecosystem.Sinceyourestartingwiththecustomer,thefirstlineshould
travelfromthecustomertoanotherentity.Remembertolabellineswiththeirdeliverable.

5. Analyzeyourecosystem.
Lookatyourecosystemmapandanalyzewhatyousee.Ifyougetstuck,trythesequestions:

Howmuchreciprocityistherebetweenroles?Aresomerolesgivingmuchmorethanreceiving?
Areothersreceivingmorethantheyregiving?
Dospecificrolesprovideresources,work,and/orsustenanceforothersintheecosystem?How
dependentisyourcompanyontheseroles?Howstablearethecompaniesthatfilltheseroles?
Whatpartdoesyourcompanyplayintheecosystem?Doesitprovidealowcost,commodity
servicethatcaneasilybereplacedbysomeoneelse?Doesitfightforlimitedresourceswith
manyothercompanies?Doesitsetthepaceforotherentities?

6. Useyourecosystemmap.
Hereareafewwaysyourecosystemmapcanbehelpful:
Orientingnewemployeestoyourcompany/department.
Demonstratingthevalueofapotentialpartnershiptoothersinyourcompanyorecosystem.
Givingyouaquickviewoftheenvironmentyouneedtomonitorfordisruptivechangesand
opportunities.

617.395.8396
maya@partneringresources.com
www.partneringresources.com
Learn More

Thistoolprovidesonlyabriefoverviewofbusinessecosystems.Tolearnmore,trytheseresources:

Adler,R.W.&Hiromoto,T.(2012).AmoebaManagement:LessonsFromJapansKyocera.MITSloan
ManagementReview.Availableathttp://bit.ly/PXyblK20
Allee,V.(2003).TheFutureofKnowledge:IncreasingProsperitythroughValueNetworks.Availableat
http://amzn.to/UJ5olB.
Allee,V.&Schwabe,O.(2011).ValueNetworksandCollaboration.
[http://www.valuenetworksandcollaboration.com].
Hurst,D.L.(2012).WhyWalmartIsLikeaForest.Strategy+business.Availableathttp://bit.ly/T5JeIU.
Iansiti,M.&Levien,R.(2004).TheKeystoneAdvantage.Availableathttp://amzn.to/TahUi3.
Iansiti,M.&Levien,R.(2004).StrategyasEcology,HarvardBusinessReview.Availableat
http://bit.ly/Pf5RiL.
Moore,J.F.(1993).PredatorsandPrey:ANewEcologyofCompetition.HarvardBusinessReview.
Availableathttp://hvrd.me/QPp06g.
Moore,J.F.(1997).TheDeathofCompetition:LeadershipandStrategyintheAgeofBusiness
Ecosystems.Availableathttp://amzn.to/Uo1t32.
Townsend,M.(2009).PlanningYourBusinessStrategyintheCorporateEcosystem.CIO.com.Available
athttp://bit.ly/DqzDf.

Take the Next Step

Contactustolearnmoreabouthowwecanhelpyourcompanyworkmoreeffectivelywithinits
businessecosystem.

617.395.8396
maya@partneringresources.com
www.partneringresources.com
Value Mapping Definitions

Value Networks Tangible Deliverables

a set of roles and interactions that generate a mandated, concrete services and activities that go
specific business, economic, or social good into providing a service

Equipment repairs in a Afterschool programs for high statement of work

electrical utility school students
Medicare system Customer Project manager
Property & casualty North Atlantic fishing requirements
insurance Pharmaceutical industry
development
report code quality check test scenario test results assessment

Roles Intangible Deliverables

Roles are the hats people wear while engaged in Extra services and activities that build relationships
the value network or keep things running smoothly

advice
Developer Architect
Problem solver Customer Project manager
Customer
feedback

Designer Sponsor Technical expert

thank you heads up tips explanation inside knowledge

Its not a deliverable if...

It cant be delivered from one to another
It isnt a noun
No one can be held accountable for it
You cant tell when its been received