CIO Masterclass: Digital Ecosystem Strategies

‘Know your role and value within the larger whole’

Modern business ecosystems are like digital jungles: complex, dynamic, and full of interdependencies. During the recent CIO Masterclass by Anderson MacGyver, leaders from the tech and business world got an in-depth look at how organizations can remain relevant within the networked economy and society. From Tesla shame to local heroes, the masterclass demonstrated that technology is only one part of the story…

As many people, I initially think of nature when I hear the word ecosystem,” said moderator Fiep Warmerdam in her opening speech. “For example, the ‘Circle of Life’ from The Lion King, where everything is connected and balanced: the lion hunts the gazelle but nourishes the grass on which herbivores graze after its death. A disruption in this balance, caused by greed or a lack of respect, ultimately leads to misery for all. A similar balance applies to most of our business ecosystems.”

The moderator herself once worked at an e-commerce platform that, to deliver value to customers, depended on the right partners within a broad and complex partnership. The company enables product suppliers to automate the management and publication of product data across various marketing and sales channels. Examples of platforms it integrates with include Zalando, eBay, Google Shopping, Amazon, Facebook, and Instagram. Additionally, it connects with price comparison websites.

“Many different partners, and therefore many integrations and data flows,” says the Anderson MacGyver consultant, who immediately highlights three fundamental features of digital ecosystems. It’s also important that the right players are involved. “For leading players, you’re only interesting once you work with other big names.” APIs and software as the backbone provide a high degree of agility, meaning it’s essential to continually add value and maintain your position within the ecosystem’s dynamics.

Tesla Shame

The speed at which your value within an ecosystem can change is illustrated by colleague Robbert Petterson with a current example. “Are there any Tesla drivers here? So few? Who’s too ashamed to admit it?” The consultant and researcher refers to Elon Musk’s controversial actions around fake news on his X platform, his open support for Trump, and his involvement in European politics. “The result is a dramatic drop in demand for his brand, while the demand for electric cars remains. Competitors are, of course, taking advantage of this.”

The message from Robbert Petterson is: never underestimate the role of consumers and citizens. “It’s crucial to know what they find important and value.” And you generally don’t deliver that value alone, especially in a world of increasing digital interconnectivity. “So, you need a clear understanding of the ecosystem in which you operate.” To make this easier, Anderson MacGyver has developed the ValueWeb, which visualizes all the actors and their relationships.

To effectively participate in such a partnership, the consultant argues, you need to build a Digital Enterprise. Five essential and closely interlinked building blocks shape a modern organization: a distinctive customer experience, a stable and efficient operational backbone, an adequate digital infrastructure, shared data, and digital intelligence. Everything must align with your position within your digital ecosystem. It’s not only about the right technology but also about the right skills, leadership, and governance. This makes building a Digital Enterprise a strategic issue.

Real-world Examples

He gives three examples where one of the five building blocks is the springboard to success. To grow, a specialist in mounting materials for solar panels worked on a digital ‘installers journey’ to improve relationships with the installers serving the end customer. A large leasing company wants to become the world’s first fully digital “Car as a Service” provider. Its new integrated and scalable backbone is unique globally and can be marketed as a “white label” platform. An energy grid operator is moving forward by using data and intelligence to prepare its high-voltage grid for the energy transition.

To take the right steps as your own Digital Enterprise, understanding the wishes and interests of other parties within the digital ecosystem is fundamental. “Keep a close eye on consumers and citizens,” concludes Robbert Petterson. “Investigate how you can best align with them and solidify your position within this dynamic interplay of actors as a digital company.”

Would you prefer to be part of someone else’s digital ecosystem, or would you want to create one yourself? This question is central to the presentation by Lauri Koop, former CEO of DPG Media Online Services and, until the end of the first quarter this year, the head of Aimwel: a DPG subsidiary that automates marketing campaigns for the recruitment sector. The Finnish-Estonian tech leader then gave a fascinating insight into the dynamics of online media, where one must deal with the dominance of American tech giants.

Technology as the Engine

Technology plays a central role in how modern ecosystems serve the customer. “Look at Uber, Spotify, Apple, Amazon, Microsoft, Google, and so on,” says Lauri Koop. “Every big company wants its own ecosystem.” The profit lies in several areas: new revenue streams and business models, accelerated adoption of new technologies, lower costs, and more efficient processes. And last but not least, they give the owner power and control.

“Once you have or are part of an ecosystem, others can’t easily push you out,” continues the Aimwel CEO. “At least five of the seven largest companies in the world have or are building a digital ecosystem.” Only oil company Aramco and chip maker Nvidia – which is working hard on an ecosystem with software companies – remain more traditional. It’s also clear that the Americans control this dynamic.

What does this mean for his own professional domain? The fact is that media companies are highly overrepresented in online search results because they share so much information and interlink search engine-friendly articles. They can also form the link to a range of affiliate partnerships and handy apps, bringing people, products, and services together. They must, however, be visible within the environments of tech giants like Meta and Google, who control much of the power.

Building Your Own Ecosystem

Teaming up with these big players costs a lot of money. “Almost half of every advertising euro ends up in the pockets of tech giants and smaller players in the ecosystem,” says Lauri. This makes it worthwhile for media companies to be in control of their own ecosystem.

This can be achieved by companies like DPG Media using one-time permission for commercial actions across all their titles and brands. This greatly expands their reach. Local heroes emerge as a result: successful ecosystem-like platforms, with examples such as Funda.nl and Bol.com. Open ecosystems, according to Lauri Koop, have the greatest chance of success because they provide more value to the end-user.

Lauri concludes with a summary of key points for anyone wanting to claim a leading position in a digital ecosystem: know what the user wants and what you can offer, work with the right strategic partners, and be aware of the potential impact of new activities. You don’t want success in one area to come at the expense of other valuable activities.

Search Engine Out of the Game?

Finally, during the interactive Q&A session, an interesting point was raised. One of the masterclass attendees mentioned no longer using search engines, instead navigating online via ChatGPT and other AI services. Lauri Koop confirmed that this is a visible trend. “Visitor flows are increasingly finding their way through new channels. It’s evident that business models will change.”

The rise of AI once again highlights the volatile online media dynamics, where things can suddenly take on a different perspective. According to Robbert Petterson, this is a good reason to keep a clear understanding of what value you are delivering with which partners to whom. “Get closer to the consumer, citizen, and end-user – stay with them, respect them, and maintain your role in the ecosystem.” And thus, the story, as in any living ecosystem, returns to its origin: the interdependence that keeps everything moving.