The Death of Competition: Leadership & Strategy in the Age of Business Ecosystems
By Moore, James F.
Harper Business 1996
Partial Review by
Change Management Monitor:
The idea that businesses and organisations are better compared to organisms than to mechanisms and that they inhabit something analogous to an ecosystem has been gaining currency for some time now. There is also a growing literature accessible to non-scientists that explores the parallels (for example Waldrop's
Complexity and, on a quite different plane of sophistication, Capra's
The Web of Life).
Moore has written a wonderfully rich and sustained exploration of business strategy round the analogy of ecosystems. It is notable both for power of the comparison and for the author's use of systems (or systemic or holistic) thinking and language to drive home his message. To underpin his ideas, he suggests two key terms:
1.
Business ecosystem: 'The term circumscribes the microeconomies of intense coevolution coalescing around innovative ideas. Business ecosystems span a variety of industries. The companies within them coevolve capabilities around the innovation and work cooperatively and competitively to support new products, satisfy customer needs, and incorporate the next round of innovation.'
2.
Opportunity environment: 'a space of business possibility characterised by unmet customer needs, unharnessed technologies, potential regulatory openings, prominent investors, and many other untapped resources.'
Waldrop points out that it is a property of complex adaptive systems to seek out, evolve into and exploit new and emerging niches in their environment, and that it is another property of this process that the future of the system is, in consequence, unpredictable.
Moore takes up these points, applies them to an analysis of business ecosystems and draws out the consequences, while pointing out the crucial difference of consciousness; in a biological ecosystem, the organisms are not conscious of the whole system, whereas in a business ecosystem it is possible for a business to guide its own evolution - at least within limits.