Era of omnipresent digital ecosystems is not-too-distant future. With every-day use home devices soon to go digital, everything will be connected to Internet and to each other. Using smartphones, tablets, laptops or desktop PCs, consumers will increasingly access, monitor, and control their connected digital products and services remotely over the Internet. Massive streams of complex, fast-moving “big data” from these digital devices will be stored as personal profiles in the cloud, along with related customer details. Composed of hardware, software and services, digital ecosystems have a vital role in this evolution. Based on the design of the hardware, the function of the software, and the services provided, ecosystems can target specific parts of the market or the market as a whole. In consumer-oriented digital markets, ecosystems are being enabled by standard technical platforms that allow devices, applications, data, products, and services to work together in new ways. In business, a number of SMEs perceive the digital ecosystem as a new promised land, guaranteeing fair competition and enabling smaller businesses to innovate on a par with large enterprises.

RISE OF DIGITAL ECOSYSTEMS

Based on the concept of interconnectivity, ecosystems create dependencies. These dependencies can either lead to consumer loyalty, or to consumer revolt. Examples of brands bent on setting up ecosystems which drive loyalty include Microsoft, Google, and Apple. Only businesses able to cope with complexities of digital ecosystems will succeed. What does a new digital ecosystem have in store for companies?

Big Data Flow

With devices and ecosystem apps generating loads of fast-moving data, consumers will expect to obtain value from the use of provided data. Here comes an opportunity for these firms which are competent in analytics and know how to convince their clients that they will use the data well. Briefly, early-adopters, which control and drive the most benefit from the data will outcompete laggards.

Unclear Boundaries

The lines separating industries such as automotive, retail, consumer goods, insurance, digital media, and telecommunications will continue to dissolve as new entrants move into the adjacencies and niches created by digital ecosystems.

Interconnectivity of Products and Services

Consumers will evaluate products on the basis of their ease of use anywhere and at any time. Products and services will no longer be evaluated only from the point of view of their ability to function independently; Their ability to function as part of a digital ecosystem of other products and services will be a key criterion in value assessment.

E-COMMERCE IN DIGITAL ENVIRONMENT 

Businesses online have a lot to gain from further development of digital ecosystems. Here is why:

Systems support coherent branding

It is easier to provide unified and coherent branding in digital ecosystems, even if some elements of the system have unique requirements. Branding loses consistency when there are multiple, independent elements representing the brand. When messaging gets fragmented, user experience will be inconsistent.

Systems guarantee better cross-channel customer experience

Experience elements such as navigational systems and sharing tools can be re-used within systems more easily, thus making for a better customer experience for people who use multiple touchpoints for a single company. Companies can proactively choose what to make consistent, and what needs to be specific to a given touchpoint. Without some form of systemic coordination, it is almost impossible to create a customer experience that feels unified across multiple touchpoints.

Systems make for stronger customer engagement

Businesses can consider their online components as part of a digital ecosystem, thus promoting a deeper level of customer engagement. By contrast, a company which has a couple of disconnected websites will find it more difficult to keep its customers engaged.

Systems help cut down on design and implementation

Websites and other digital applications often share common design and experience elements (like shopping carts and checkout processes). If designed to promote its re-use across the system, these shared components will only need to be designed and built once.

Systems drive more revenue

Cross-selling becomes so much easier between the elements of a digital ecosystem. Often it is just about linking two things together and telling customers about complementary products or services in a different channel. If customers have great cross-channel experiences with a brand, they are bound to buy more.

Sources: www.bcgperspectives.com; http://www.surrey.ac.uk; http://techpinions.com
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