Chapter 8: Digital Ecosystems

Most managers are now aware that companies compete within ecosystems and no longer within sectors. The ecosystem concept sees modern business as interdependent networks of entities that connect together to create and capture value (Williamson & De Meyer, 2012). The increasing digitisation, the subject of this book, especially through the pervasiveness of smartphones, the connectivity of clouds, the Internet of Things (IoT), 3D printing, and other technological tools, has further forced managers to focus on ecosystems not only as a way to improve efficiency, but also as a growth path (Niden & Spriggs, 2016). Digital technologies have created new interdependencies that are not only remodelling the roles within conventional value chains but which also carry complementary new inputs in an unprecedented context. Companies also recognise how their competitiveness, actions, and those of their rivals are interdependent and become aware of the need to carefully orchestrate relationships to be sustainable (Brandenburger & ­Nalebuff, 1995).