"entrepreneurs-of-the-world-unite-in-eco-systems"
"The success stories from Google’s android, Apple’s iphone, Nokia’s fall and ARM challenging Intel all point in one direction, namely that busines models organized around a more or less open innovation ecosystem are becoming the winning recipe within so far the global information and communication technology industries."
"Eco-systems seem more like ‘black holes in the universe’. Once formed they can continue to grow by absorbing additional matter."
I strongly agree with this.
In the longer term, the more open eco-systems will most likely outperform the more closed eco-systems. E.g. In the battle between Apple's iOS and Google's Android, we can clearly see that the more open Android is gaining market share from Apple and in the smartphones, has already overtaken Apple.
The benefit of a more open ecosystem comes from a few areas:
- More open, basically gives someone more choices, and people love to have choices.
- More open often also means cheaper or free and a competitor needs to add a lot of value to win from free.
- Working in an innovation ecosystem gives access to more innovation power than one could afford with only internal innovation, and what is even more important, with less risks if something goes wrong with one of the partners in the innovation ecosystem.
The disadvantage of an open ecosystem lies in the fact that if there is no "intermediary" party in the ecosystem, that the ecosystem will miss its ability to work in a concerted manner. E.g. Android is so open that it has become difficult to assure full compatibility between the availabe apps and the many devices available.
Open innovation does also exist in non IT sectors. E.g. Most big Pharma companies today are depending on innovation from outside their own organization to complement their internal product pipeline.
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