Rethinking Business Ecosystems Part 2: How to Synergize Nature’s Principles With Business Practices

Written by Borbala Pentek on August 21, 2024. Posted in Articles, Strategy, Strategy Planning

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Traditionally, an ecosystem is considered a community of organisms co-working in a special physical environment. Ecosystem dynamics, in this context, would be the network of interacting and interrelated relationships within the system that form a complex and integrated whole. What differentiates this “new” view of business ecosystems (although James Moore in 2006 was already presenting the concept back in 2006, so it can hardly be called new) from systems theory is the holism of the concept. While in system thinking, a system has its boundaries, in ecosystem thinking, the system is boundless—it’s always part of a larger network of systems. 

Ecosystems theory draws inspiration from the natural world, which makes sense since we’re all part of that. Giles Hutchins in his book The Nature of Business describes several key principles that guide interactions in an ecosystem, some of them, as follows: 

• Networks: Living systems are interconnected, they communicate with other systems without strict boundaries. As the book Realizing Community Futures states, “Life did not take over the planet by combat, but by cooperation, partnership and networking.” 
• Cycles: Matter and energy are in a continuous flow, both being consumed and created by parts of the system. As a whole, an ecosystem generates no net waste. 
• Diversity: The higher the biodiversity within the ecosystem, the more capable it is of withstanding challenges. 
• Dynamic balance: Nature works not through the maximization of certain variables but through responsive adaptations and feedback loops. 

Read More: Practitioner Interview: How Continuous Feedback Fuels Continuous Improvement

Ecosystem Thinking in Business

In business, an ecosystem is a complex network of interdependent entities and relationships that co-evolve and co-create to produce value that offers exponentially greater benefits than the sum of the network’s parts. In the absence of these benefits, there would be little reason to be in the system at all. Inherently, ecosystems are expansive, crossing many geographies and sectors, and they include a mix of public and private entities as well as consumers.

Here’s just one example of how the benefits manifest in the business world: In a technology ecosystem, companies can develop platforms jointly, integrate their services, or develop solutions jointly. This approach enables tech companies to promptly respond to changes in the market. 

How Can We Apply Nature’s Principles to the Business World? 

This is a tough question, as it implies going through the eye of the needle, as Otto Scharmer from U-Lab phrased it. This means we need to let go of our desire to continuously grow, get more, achieve more, and understand how slowing down is a necessity of long-termism. Here are a few principles of the new age of business. Consider this hard-to-swallow, but necessary medicine. 

Synergy 

The concept of synergy is based on maximizing collective potential. Simply put: Individual parts in an ecosystem possess distinct properties, which, when combined, create new and exponentially better characteristics. Synergy, the maximization of collective potential, means that co-creation achieves results that creation never could. 

Emergence 

An emergent strategy, as opposed to a deliberate strategy, stems from unplanned actions of individual contributors as a response to change or unexpected events, often resulting in spontaneous innovation. While deliberate strategies are all about planning, an emergent strategy is based on trust and shared values. There’s a reason that deliberate strategies are becoming harder and harder to implement, and emergent strategies are becoming more popular: change, disruption, and pressure have become the new normal.  

However, emergence only works with a joint purpose. Therefore, companies will have to do better when it comes to inspiring employees with a common belief system, values, and purpose. This is not just marketing, but a prerequisite for synergy and better outcomes. 

Holism

Holism in ecosystem thinking emphasizes comprehensive consideration of business challenges and opportunities, recognizing the interconnectedness of environmental, social, and economic factors. For example, a company adopting the triple bottom line approach—which involves evaluating environmental and social impacts alongside profitability—demonstrates holistic thinking by prioritizing sustainability and societal well-being alongside financial success, leading to more resilient and responsible business practices. 

Proactivity

Proactivity in ecosystem thinking involves anticipating future challenges and opportunities rather than simply reacting to current situations. A practical example of this is a company investing in renewable energy solutions before regulatory changes mandate reductions in carbon emissions, positioning the company as a leader in sustainability. In this paradigm shift, our very survival hinges on our ability to embrace proactive strategies that prioritize sustainability, resilience, and responsible growth.

Read More: Ask Our Experts: Principles on Creating Meaningful Sustainability Reports

The Future

William Gibson’s words, “The future is already here, it is just not very evenly distributed,” highlight the uneven spread of progress. Ecosystem thinking encourages co-evolution and a shift from an ego- to an eco-mindset, reminding us to transcend self-centeredness and recognize our role as parts of a larger whole to avoid self-destruction.

If you missed the first part of this article, click here to catch up.

About the Author

Bori Péntek is a management consultant specializing in organizational development and human resource management. She helps businesses align their strategies, processes, and practices with their core values, focusing on human and social well-being. With experience in recruitment, HR, and operations management across sectors like sustainable construction, research, and instructional design, Bori emphasizes improving employee well-being, fostering inclusive cultures, and ensuring that organizations are resilient and socially responsible. She develops solutions that address systemic challenges and support long-term success.

Tags: business ecosystems, Ecosystem Thinking, long-termism, synergy