What are the main advantages of Ecosystem Architecture?


To get a deeper understanding of the main advantages of Ecosystem Architecture, let’s first focus on the concept of business ecosystem. A business ecosystem is a network of organizations—including suppliers, distributors, customers, competitors, government agencies, and so on—involved in the delivery of a specific product or service through both competition and cooperation. Each entity in the ecosystem affects – and is affected by – the others, creating a constantly evolving relationship in which each entity must be flexible and adaptable in order to survive as in a biological ecosystem.

Ecosystem architecture illustrates the design and structure of a business ecosystem that actors create value (value proposition) and interact with others (business models) to complete four value flows within a defined ecosystem boundary. The five values are:

  • Value of goods: the basic products of an economic system that consist of tangible consumable items (products) and tasks performed by individuals (service).
  • Monetary value: the amount of value an item or a service has in relation to if it is sold for cash to a buyer.
  • Value of information: data that has been processed, organized, structured or presented to make it useful in a given context.
  • Value of data: raw, unorganized measurements and facts that need to be processed to become useful.
  • Intangible value: something that exists but cannot be exactly described, or given an exact value.

Ecosystems and Competition

Ecosystems create strong barriers to entry for new competition, as potential entrants not only have to duplicate or better the core product, but they must also compete against the entire system of independent complementing businesses and suppliers that form the network.

You should aim to become a part of a business ecosystem applicable to your enterprise, if you are not part of one already. Being a part of a business ecosystem provides you with mechanisms to leverage technology, achieve excellence in research and business competence, and compete effectively against other companies. Some other goals of a business ecosystem include:

  • Driving new collaborations to address rising social and environmental challenges
  • Harnessing creativity and innovation to lower the cost of production or allow members to reach new customers
  • Accelerating the learning process to effectively collaborate and share insights, skills, expertise, and knowledge
  • Creating new ways to address fundamental human needs and desires

It is for these reasons that in today’s rapidly changing business world, a company creates its own ecosystem or comes up with a way to join an existing ecosystem by providing an advantage that is currently lacking in that ecosystem.

Contact Canvas•Africa to help with you with establishing the ecosystem applicable to you.

What are the main advantages of Ecosystem Architecture?
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