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What to do with the Ecosystem for IT business



In his last video Anoop Kumar Ravindranath talked a lot about “the ecosystem”. While I thought I understood what the ecosystem was, I wondered if everyone had the same definition, or knew why it was so important.

So – what does the word itself mean? It is a combination between “eco” and “system”. “Eco” is the spin-off from “ecology” which means all which is around us. The ecosystem is talking about the system which is around us, our environment.

According to the Business Dictionary an ecosystem is a “Self-sustaining community comprised of interdependent organisms (plants, insects, animals) and their natural environment. It provides the food chain through which energy flows, and the biological cycles that recycle essential nutrients and wastes.”

So let’s bring these two definitions into one. Let’s check out the things in our “food-chain”. But why is the food-chain important to a business ecosystem discussion? In a food-chain every member is creating and adding value. If you substitute the “food-chain” with “value-chain”, we get to the core of why the ecosystem matters to businesses.

You are part of the ecosystem, regardless if you are a Service Provider, Hardware Vendor, Independent Software Vendor, Reseller, System Integrator or a consumer. Everybody in this ecosystem is generating value. An uncomplete value-chain will reduce the generated value for its members.

Some companies don’t want to deal with an ecosystem – they say “I will make all this stuff by myself!”. Yes this is possible, but they have to invest a lot of money, time and  develop expertise. Realistically, most companies want to get to market quickly without having to invest huge amounts of money, so this is usually not the best approach.

As you could see the ecosystem does matter to you as a business. You will generate benefits and a higher value while operating in an ecosystem and using the synergy it creates.

Stay tuned for our next blog in this series where we will cover the lone wolf vs partnership approach to the cloud ecosystem.

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About the Author


I am studying Business Information Systems at Hewlett Packard Enterprise Germany in the DualStudy Program. This program combines 50% high-level academic study at university with 50% practical on-the-job experience. My studies combine business knowledge with IT and technology skills like programming, database development and development of distributed systems. During my studies I worked for Hewlett Packard Enterprise in various positions. In my current internship in Palo Alto I help to run the marketing for the Evolution of the Channel.

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