MIT Sloan Management Review Article on How Business Ecosystems Rise (and Often Fall)
- 10m
- Hen Lotan, Julien Legrand, Martin Reeves, Michael G. Jacobides
- MIT Sloan Management Review
- 2019
Ecosystems are not easy to build or sustain, but new research identifies three critical windows in their life cycle and the corresponding actions that lead to success at each stage.
Ecosystems are increasingly popular, fueled by the success of iconic examples such as Google, Apple, Facebook, and Amazon. Yet confusion about them abounds, and many commonly held beliefs about ecosystems simply aren’t true. To objectively analyze several key details about ecosystems — such as how often they succeed, how important it is to be first, and how long they take to pay off — we conducted a quantitative study of ecosystems over the past four decades. The results show that ecosystems tend to follow one of four paths during their life cycle. Moreover, there are three critical windows during which actions by management can have a disproportionate effect on long-term success.
About the Author
Martin Reeves (@martinkreeves) is global director of the BCG Henderson Institute and a senior partner in BCG’s New York office. Hen Lotan is a principal at BCG and an ambassador at the BCG Henderson Institute. Julien Legrand is a senior associate at BCG and an ambassador at the BCG Henderson Institute. Michael G. Jacobides (@jacobides) is a professor of strategy and entrepreneurship at the London Business School.
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MIT Sloan Management Review Article on How Business Ecosystems Rise (and Often Fall)
