Agile ecosystems; hype or necessity?

Five questions for Désirée van Gorp

1. An ecosystem for sourcing issues: what does that entail?

“We are all familiar with ecosystems in nature. But in economics, the concept of the ecosystem is also gaining ground. Companies that want to stay relevant need to be agile. It isn’t new, but it is essential to see sourcing issues in an organization – what do you outsource, and what do you do yourself – from this perspective.

In an ecosystem, every part of the system has its own unique value. By working together, you will be able to deal with changes and quickly adapt your ecosystem to deal with the new circumstances. But that requires trust, cooperation and a shared vision of the future.”

2. Why is that relevant now?

“In our global village, we see that a lot of an organization’s activities are split up and spread all over the world. On the one hand, that presents opportunities, for example to bind new clients or suppliers, to access talent elsewhere in the world, and to make value chains less vulnerable. On the other, however, we’ve seen how geopolitics and other international developments can quickly make value chains vulnerable due to acute changes in customer’s needs, a pandemic, trade wars, the challenges in the relationship with China, and technological innovations.

"A properly functioning ecosystem would be better able to deal with developments."

These developments could have an impact on your business strategy within as little as 24 hours. A properly functioning ecosystem would be better able to deal with these developments. The parts of the ecosystem can take on larger or smaller roles, depending on the changing circumstances.”

3. How do you build an ecosystem?

“According to the academic literature on the topic, a sourcing ecosystem works best when every part knows what they can obtain from the collaboration. But also when everyone has a shared set of norms and values within the partnership. Society is demanding more and more social relevance from companies, so those shared norms and values, a shared mission, are extremely important. That sometimes means having to make painful decisions when a system or a part of a system doesn’t do certain things anymore. Like deciding to stop serving a particular market. Giving up something in the short term to remain valuable over the long term.

“I am convinced that investments in making your ecosystem more manoeuvrable and sustainable will pay dividends over the longer term.”

One good example is the company Puma, which has set the goal of producing its products in a way that is friendly to the environment and to people. That has had a lot of consequences for their operations over the years. Many of the partners in the Puma ecosystem have fallen away and been replaced by others that do support Puma’s mission. That cost the company money and effort, but Puma is willing to pay the price. And Puma’s supporters - its employees, its customers and society at large - greatly appreciate the company for that. I am absolutely convinced that investments in making your ecosystem more manoeuvrable and sustainable will pay dividends over the longer term.”

4. Does that mean that your responsibility as an entrepreneur needs to change too?

“Absolutely. When employees of a garment factory in Bangladesh die due to the poor working conditions, then it’s your responsibility as a clothing brand at the end of the chain. If Amsterdam requires all cars to be electric starting from 2030, then the municipality will also have to think about what that means for other parties within the ecosystem. It might lead to healthier air in the city, but it doesn’t take responsibility for the environmental damage and poor working conditions in the parts of the world where the cars’ batteries are built or recycled.

“Governments and citizens will increasingly hold organizations accountable.”

5. What will the research have to offer when it is complete?

“My research focuses on the factors that make an ecosystem truly successful. What are the best practices, what can we learn from them, and how can we apply those lessons to other sectors and contexts? There has been relatively little academic research conducted from that perspective in the area of sourcing issues.

So at Nyenrode, we can truly lead the way. How can you build a sustainable ecosystem and create manoeuvrability and internal cohesion? How can you work together to become more innovative? The answers to questions like these give organizations a huge competitive advantage and make them more future-proof. Those insights can also make a difference for important social systems, from health care and energy to mobility. Financial support for this research will enable us to study more cases and formulate a sharper image of how an ecosystem can function optimally.”