Ecosystem

Question 1

What is an ecosystem?

Answer 1

It is the environment in which an organization operates, its interactions and relationships with stakeholders.

Question 2

What are some of the tools for analyzing and understanding the ecosystem?

Answer 2

1. PESTEL

2. Porter’s Five Forces

Question 3

How can an organization be successful in its ecosystem?

Answer 3

The organization must interact with their environment and the other parties within it and form mutually beneficial relationships.

Question 4

What’s the difference between ecosystem and environment?

Answer 4

The ecosystem emphasizes on dependency of organizations on other parties and the need to form sustainable mutually beneficial relationships.

Question 5

How many elements are in the ecosystem?

Answer 5

4 elements

Question 6

What are the elements in an ecosystem?

Answer 6

1. Markets
2. Societies
3. Risk and Opportunities
4. Technology

Question 7

In what way does the elements of the ecosystem affect value?

Answer 7

The elements lead to the definition, creation, delivery and capture of value.

Question 8

What facilitates the interaction within society and markets and between markets and society?

Answer 8

Technology

Question 9

What elements provide opportunity and risks for organizations?

Answer 9

Society, markets and technology and their interactions with each other lead to opportunities and risks.

Question 10

What are markets?

Answer 10

Markets are places where organizations interact with their customers, partners, suppliers and competitors. They facilitate exchange, competition and profit. They include labour markets, goods and services market and financial markets.

Question 11

How are customers’ needs met?

Answer 11

Through the provision of goods, services and experiences in the market.

Question 12

How do organizations serve the needs of customers?

Answer 12

By presenting a value proposition which includes :

1. Price
2. Convenience
3. Experience
4. Quality

Question 13

In what way, will the value proposition bring sales?

Answer 13

By appealing more to customers than the offerings from other competitors

Question 14

How to devise and deliver a value proposition that appeals to customers in order to generate sales?

Answer 14

1. Collaborate with customers and partners; Understanding customer needs and how best to fulfill those needs.
2. Coordinate with suppliers: This is to combine right resources, processes and technologies to produce goods and services
3. Position their value proposition: this will make the customers perceive more favorably than the proposition offered by competitors.

Question 15

How do markets evolve continuously?

Answer 15

Through the entry and exit of different players and interactions.

Question 16

What tool is used to analyze the market?

Answer 16

Porter’s Five Forces

Question 17

What is society?

Answer 17

It regulates activities, conduct and operations of organizations through laws, customs, moral norms and social action. It includes governments, communities, regulators. It transcends national boundaries more so In a digital world.

Question 18

What infrastructure does the society provide?

Answer 18

Society provides social, economic and legal infrastructure which allows businesses to operate.

Question 19

What is the tool to analyze and understand the impact of society on organizations?

Answer 19

PESTEL

Question 20

What is technology?

Answer 20

It is the application of scientific knowledge to solve problems and tackle issues that people and society face. It provides tools, techniques, methods and processes that enable organizations to operate and interact.

Question 21

Ways in which technology affects society

Answer 21

1. New experiences (AR,VR)
2. New expectations( for example instant communication)
3. Advances in medical science that has increased life span ( aging population)
4. New forms of organizing and interacting( for eg. Social media)

Question 22

Ways in which technology affects markets

Answer 22

1. Facilitating improved productivity and efficiency (for eg, through automation)
2. Producing and delivering new types of goods and services( for eg. Streaming services such as Netflix and communication services such as WhatsApp!
3. Providing a potential source of competitive advantage for organizations either through development of new technology or by applying an existing technology better than competitors.

Question 23

What possibilities do opportunities provide for organizations?

Answer 23

1. Collaboration
2. Coordination
3. Competition with others enabled by law, demographic shifts, market arrangements and technological innovation.

Question 24

What happens when organizations identify and exploit opportunities?

Answer 24

They create and deliver value

Question 25

What tools are used to identify and exploit opportunities?

Answer 25

SWOT analysis and scenario analysis

Question 26

What is risk?

Answer 26

Risks refer to the chance that events will occur that will prevent the organization from achieving its objectives.

Question 27

Where does risks arise from?

Answer 27

They arise from decisions, interactions, activities and events in the organization and its ecosystem.

Question 28

Factors that affect the level of risk acceptable.

Answer 28

1. Potential reward
2. Overall risk capacity of an organization
3. Risk tolerance
4. Risk appetite