Digital Ecosystems are the Future of Business
Linas Beliūnas
Reinventing Finance 1% at a Time ?? | Scaling Digital Asset Infrastructure ?? | The only newsletter you need for Finance & Tech at ??linas.substack.com?? | Financial Technology | FinTech | Artificial Intelligence | AI
Today we live in the world of abundance. Abundance of information, data, opportunities and choices. The only thing that is scarce is time.
Therefore, nowadays businesses are competing for the most vital thing - attention. Which is harder and harder to get. But those who manage to get attention - thrive.
Businesses which provide fast, seamless and amazing customer experience win Big Time in the digital age. And here is where the ecosystems come into play.
Digital ecosystem: what is it
Digital ecosystem is not about selling your product or service via digital channels. Digital ecosystem is about making it easier for your customers to satisfy their needs. Make it seamless and frictionless.
Here's something to consider: such ecosystems today power seven of the world’s 12 largest companies by market capitalization (McKinsey). This is an incredible statistic, especially when you consider that some of the companies behind are less than two decades old. Think of Facebook, Google or Amazon here.
Note: if you want to learn how this change is disrupting the banking industry, follow the link here.
The emergence of platforms enable the new players to move easily and quickly across industry, it breaks the borders, and opens limitless scalability opportunities. Therefore, this is among the most disruptive changes the digital technology has brought to this world.
Digital ecosystems today power 7 of the world’s 12 largest companies by market capitalization.
One of the best examples as to how ecosystems are changing the way we consume and interact with the world could be found in China. Look no further than Tencent and its WeChat, which is probably the single app you need in China.
WeChat is a social network, a payment wallet, a media app, and much more. It is at the core of driving China's digital economy forward, and that's why China might become the first cashless economy in the world.
Note: more about China, and why cash is there becoming obsolete you can read here.
Ecosystem Economics
Traditional laws of supply and demand work differently in the ecosystem economics. The companies which build their platforms right are able scale quickly, reach nearly limitless customer base, and optimise their operations with the help of artificial intelligence, machine learning and cloud services.
Think here about Facebook which is the major media producer creating virtually no content of its own. Or Uber and Airbnb that provide you mobility-as-a-service, but own virtually no vehicles or real estate.
According to McKinsey, emerging set of digital ecosystems could account for more than $60 trillion in revenue by 2025, or more than 30% of global corporate revenue.
A Question for You
Times are changing. So as the businesses. In order to survive, incumbents have to adapt to new rules of the game, otherwise they might face some serious challanges.
Is your business ready? Think twice.
P.S. You might enjoy my earlier pieces as well:
?? FinTech Predictions for 2018
?? Blockchain Predictions for 2018
?? Bitcoin is NOT a Currency, and Never Will Be
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About: I am a business developer, sales professional, FinTech strategist, as well as cryptocurrency and blockchain enthusiast. I'm highly passionate about Financial Technology and Digital Innovation, and strongly believe that it will change the world for the better. Apart from my daily job at one of the leading alternative banking and payments providers in EEA, I'm an active member of FinTech community and a TechFin evangelist.
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Ex Starbucks Coffee, PepsiCo, Honeywell, Fiat, Yum Brands (KFC, Pizza Hut)
6 年Nice article on the platform economy / digital ecosystems; liked the insight : in today's times - information / associated data is abundant, whilst time is scarce - and if I may add - in yesterday's time (not too far back in human history) - time was abundant, while information was scarce.... There is thus - an inversion, so to speak -? which is accelerating rapidly, and also a major source of change / upheaval/ disruption in today's VUCA times......?
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6 年#CNXTech
Entrepreneur in recovery.
6 年Totally agree Linas Beliūnas The world of technology and technological needs is so now broad, and every niche so increasingly complex that to imagine that you're able to serve your customer's every need in any field is a fool's game. Even if you only intend to meet one need, your solution needs to integrate seamlessly with needs, functions, services on either side, or else be eschewed for the convenience of the first emergent ecosystem spanning your niche. The only solution is collaboration. The biggest challenge for existing empires will be adapting to provide the specialist services that are better served by niche specialists as from within an ecosystem. We've been hearing of the exponential increase in tech for a decade or so and it ain't slowing down... I think the coming decade will see a fair few giants topple.