Why do the world's most successful companies swear by #ecosystem-focused business models? 💡 It's all in the numbers.
A cross-industry study of 800+ CXOs by EY-Parthenon revealed that companies leveraging this model enjoy a significant boost to their bottom line:
Ecosystems contribute 13.7% of their total revenues,
Companies experience a 12.9% reduction in costs,
They generate 13.3% in incremental earnings.
⏳ However, the path to an ecosystem business model isn’t that simple. It is filled with complexity and uncertainties. It requires leaders to step out of their comfort zone and relinquish the familiar driver’s seat.
But in an era where technology and markets are evolving at a dizzying pace, it's a leap that's becoming more of a necessity than a choice.
📈 Evidence? An incredible 2/3 of S&P Global 1200 companies have joined at least one ecosystem since 2018.
And the benefits aren’t limited to the tech industry, the pioneers of this model. Since 2020, bio-pharma companies have deployed 1.5X more capital in alliances than in M&A, and they've enjoyed an average ROI ~33% higher from alliances.
🗽Are you ready to make the leap?
As you contemplate your #growth strategy, take a closer look at the alliances and partnerships within your industry.
Are you just sticking to standards or you’re challenging the status quo?
Are you taking smaller, comfortable steps that are close to the core business OR or are you ready to take the leap for broader growth opportunities?
Often the question isn't whether you can afford to make this leap, but whether you can afford not to.
👍 Also check one of the most popular masterclasses on YouTube: