Ecosystem Development Overview

Business ecosystems are formed by large, loosely connected networks of entities. Like species in biological ecosystems, firms interact with each other in complex ways, and the health and performance of each firm is dependent on the health and performance of the whole. A “keystone” organization is one which serves as a hub for the other ecosystem members. By regulating the connections within the network and maintaining a predictable platform on which other network members can rely, keystones have an outsized effect on the performance of the entire system. Keystones have been shown to be critical factors in boosting the overall productivity of a network, increasing its robustness in the face of outside threats, and promoting innovation. By improving the health of the ecosystem in which they reside, keystones sustain their own existence. Similarly, poorly functioning ecosystem hubs can reduce the health of their ecosystems and even imperil the survival of themselves and every member of their network. When a keystone is suddenly removed from an ecosystem, a dramatic and chaotic reorganization ensues.

Firms, business units, technologies, and products all exhibit networks of interdependencies and ecosystem-like dynamics, and the details of the interactions at one level are often crucial for shaping the interactions at other levels.

Keystone Strategy Solutions

Keystone maps our clients' business ecosystems using innovative approaches and proven frameworks developed by experts including HBS Professors Marco Iansiti and Alan MacCormack. Our project teams apply a three phase methodology to Ecosystem Development - analysis, strategy and formalization. By performing qualitative and quantitative research, Keystone provides an in-depth analysis of the trends and health of each domain. The resulting "ecosystem strategy" generates value to the ecosystem and its participants and enables our clients to manage external resources, shape the structure of the external network, and maintain external health.

To learn more about the Ecosystem Development Practice contact info@keystonestrategy.com