The Problem with Legacy Ecosystems

The Problem with Legacy Ecosystems

1. Many of the most successful business models of the 21st century are built on being able to reach into peoples’ lives, using software that generates information on customer habits and patterns of usage

2. The ability to connect more personally with customers creates immense opportunity for companies to capture data about the market, supply new products and services, and build extremely defensible network effects and feedback loops

3. The new disrupters know more about customers, because they have access to better data

4. Disrupting Partnerships

   • business models and channel strategies must change in unison—requiring tough decisions that can upset long-standing partners

5. The Need for Interdependence

   • restructure the extended value chain is common when major innovations are introduced—not just because business models are often in flux, but also because innovative product designs are still emerging

6. Building a New Ecosystem

   • Companies of all varieties will need to reshape their value chains. And sometimes this change will impact longtime partners in unfavorable ways

7. data has three beneficial characteristics

   • scalable
     • defensible
       • reinforceable

8. Establish what you must do

   • business leaders everywhere start to deal with the pressures that digital change can bring

9. Develop better metrics

   • focus on profitability or top-line revenue

10. Create commercial opportunities for partners

    • it’s vital for firms to create new opportunities for both themselves and their partners