Ecosystems boost revenues from innovation initiatives

Abstract

Purpose Ecosystem partnerships are driving a dramatic change in the nature of business as industries as diverse as banking, automotive and retail are converging in unprecedented ways–and at an unprecedented rate. To learn how leading companies are embracing innovation in ecosystems to drive both value creation and competitiveness, the IBM Institute for Business Value in collaboration with Oxford Economics surveyed 1000 top executives in 19 industries and 29 countries between August and January 2019. Design/methodology/approach The survey cohort included 250 Chief Executive Officers, 150 Chief Financial Officers, 150 Chief Innovation Officers, 150 Chief Marketing Officers, 150 Chief Operations Officer and 150 Chief Alliance/Partnership Officers. Findings Analysis revealed that organizations with high engagement in ecosystems generate greater revenues from innovation initiatives. Specifically, revenues tied to innovation were more than 14 percent higher for ecosystem-engaged businesses than their less ecosystem-oriented peers. Practical implications The analysis showed that organizations differentiated on four innovation-enabling dimensions are more successful than others in ecosystem innovation. Their winning practices: 10;•9;They lead with platforms for innovating in ecosystems. 10;•9;They create the structures that enable the transformation of ideas into desired customer experiences in ecosystems 10;•9;They establish effective, meaningful measurements for successful innovation in ecosystems. 10;•9;They approach innovation with a collaborative mindset and create an environment of openness that shapes innovative behavior. 10; Originality/value The study identified the best practices of the most successful companies, ecosystem innovators. They excel across four innovation dimensions. They build platforms and employ ecosystems to better orchestrate customer experiences. They establish processes to effectively measure innovation within ecosystems in which they operate. They form organizational structures that institutionalize innovation. And they create and promote environments of openness and collaboration