Ecosystems are competitive tools to capture opportunities within the landscape of industry convergence.
Not too long ago, playing fields were neat. Bordered. Companies stayed within prescribed industry lines, rarely venturing outside of them.
But digital technology has changed all that—lowering entry and exit barriers to digitally contestable markets, like paying (think of Apple Pay) or getting around a city (like BMW’s DriveNow).
The increased complexity and potential of markets like these is requiring companies to make and execute corporate strategy differently. Welcome to the age of the ecosystems.