The Digital Business Ecosystem

The Digital Business Ecosystem

Edited by Angelo Corallo, Giuseppina Passiante and Andrea Prencipe

By bringing together elements of a radical new approach to the firm based on a biological metaphor of the ecosystem, this unique book extends the limits of existing theories traditionally used to investigate business networks.

Chapter 10: Tools and Frameworks for Digital Business Ecosystems

Erik Brynjolfsson, John Quimby, Glen Urban, David Verrill and Marshall Van Alstyne

Subjects: business and management, organisational innovation, organisation studies, strategic management, innovation and technology, organisational innovation


Erik Brynjolfsson, John Quimby, Glen Urban, Marshall Van Alstyne and David Verrill INTRODUCTION Companies using a business ecosystem approach in order to understand their environment and develop their strategies have had tremendous success. John Chambers explains how Cisco became the dominant global networking equipment provider through an active involvement in its ecosystem (Stauffer 2000). Moore (1996) describes the competition between Microsoft and Netscape as the competition for the Internet ecosystem dominance, while Iansiti and Levien (2004) explain the keystone role of IBM and Microsoft in the computing ecosystem. The ecosystem metaphor was developed by J.F. Moore, who described a business ecosystem as an economic community supported by a foundation of interacting organizations and individuals which co-evolve their capabilities and roles. This economic community produces goods and services of value to customers, who are themselves members of the ecosystem (Moore 1996). Business ecosystems include business and financial service companies, technological providers, regulatory agencies and makers of complementary products, as well as competitors and customers. Each business ecosystem needs an infrastructure supporting interaction and a knowledgeexchange mechanism. A digital business ecosystem could be defined as the eBusiness infrastructure enabling a business ecosystem, with each of the ecosystem players as participants. The digital business ecosystem is the space in which digital organizations interact, compete, collaborate and co-evolve around innovation, using eBusiness technology. Since its foundation in 1999, the mission of the MIT Center for eBusiness has been to be a leading academic source of innovation in management theory and practice for...

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