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Presented by:
Laila Safouh
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Brief Overview of Book and Authors
The book; “ The Keystone Advantage: What the New Dynamics of Business Ecosystems Mean for Strategy, Innovation and sustainability”
The authors
Marco Iansiti
Roy Levien
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Outline
Specialize in Unique capabilities
Sustain Innovation
Tight Coupling
Loose Coupling
Niche Leverage
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Increase the efficiency of creating new products by third parties
Encourage ecosystem niche creation
Keystone’s importance: removal could lead to collapse of entire system
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Value created is crucial to community’s survival
Value sharing:
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Key is to find large enough market requiring specialized capabilities
© 2002 By Default!
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No longer bound by constraints of vertical integration
Combine specialized assets with complementary products
Trading off risk with productivity: niche players should diversify by multiple connections
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Three: Sustain Innovation
Fundamental change in technology strategy models
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Four: Tight Coupling (Manage Risk and Dependencies)
Tightly coupled relationships are by nature more efficient
However, some disadvantages:
Niche players more vulnerable to technology and business model changes
© 2002 By Default!
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Five: Loose Coupling (Embrace Mobility and Flexibility)
Niche player no longer as threatened by replacement of technologies
Firms can easily change in response to massive shifts in technological environment
© 2002 By Default!
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Six: Niche Leverage and Power Over Keystones
Enormous collective negotiating power over keystones
Niche players keep a check on keystones
Ecosystems compete for mobile niche players
Finally, niche players can become keystones
© 2002 By Default!
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Conclusion
Different Entities within the business and economic ecosystem are symbiotic
Keystones must create value and share it
Niche players must leverage themselves by taking advantage of Keystone value
A cycle where each affects the other and thus the health of the ecosystem
© 2002 By Default!
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