Field Notes

Beyond Product: The Power of Ecosystem Thinking

28 Aug 2025•David Ashenden

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A great product can win a market, but an ecosystem can reshape an industry. What does it take to move from offering features to enabling networks?

Ecosystems create gravitational pull: customers, partners, and developers all orbit around the core. Most start-ups begin with a single product. A few stop there, while others evolve into something larger: ecosystems. Apple’s success is not just the iPhone, but the App Store, iCloud, and a host of partners.

It's said that Tesla’s advantage lies not only in cars but in its charging infrastructure and energy products, and given their recent hard times, they might need it.

James Moore, who popularised the idea of business ecosystems in the 1990s, described them as communities of organisations co-evolving capabilities around innovation. Bill Gates once remarked:

“A platform is when the economic value of everybody that uses it exceeds the value of the company that creates it.” – Bill Gates

Ecosystems matter because they transform single-point products into durable systems of value. They build resilience by dispersing innovation across many contributors. They deepen moats by creating switching costs and reinforcing feedback loops.

Why ecosystems matter now

The shift from growth-at-all-costs to sustainable value has revived interest in ecosystem thinking. In fintech, mobile money platforms like M-Pesa created access not by owning everything but by convening banks, merchants, and telecom operators. In commerce, Shopify unlocked scale by building a developer marketplace, enabling thousands of small retailers to plug into payments, logistics, and tools. Their strength is not in breadth of ownership but in depth of participation.

Peter Drucker framed business purpose as creating a customer. Ecosystem logic extends this: to create value not just for customers, but for partners who amplify reach and stickiness. John Hagel, in his work on digital platforms, argued that successful ecosystems tap into learning effects – the more people contribute, the smarter and more adaptive the system becomes.

Case studies in ecosystem thinking

Salesforce AppExchange. Salesforce turned CRM software into a platform by enabling third-party developers. Its AppExchange today hosts thousands of applications that enrich the core system. Customers stay not just for Salesforce, but for the orbit of solutions.
WordPress. Starting as a blogging tool, it grew into a global content platform through plugins and themes built by independent developers. Its open ecosystem allowed it to dominate web publishing.
Healthcare ecosystems. Apple’s HealthKit aggregates data across apps and devices, linking consumers, doctors, and insurers. By enabling others, Apple positioned itself at the centre of a web of health services.
Agriculture. In India, agri-tech platforms are creating ecosystems where farmers, suppliers, and logistics providers share data, boosting productivity and incomes.

How to build an ecosystem

Earn the hub position. A compelling core product is prerequisite. Without trust and traction, there is no centre of gravity.
Design for openness with guardrails. Too much control suffocates innovation. Too little creates chaos. Apple vets its App Store; Shopify reviews integrations. Balance is key.
Create incentives for partners. Ecosystems thrive when participants profit. Microsoft’s rise was powered by developers making money on Windows.
Think global and inclusive. Ecosystems can solve systemic problems - from financial inclusion to climate – by convening diverse actors.

The risks of ego-systems

Not every attempt succeeds. Companies that treat ecosystems as zero-sum empires risk alienating partners. True ecosystems distribute value. They are not about dominance but mutual reinforcement. As the African proverb goes:

“If you want to go fast, go alone. If you want to go far, go together.”

The danger is mistaking an ecosystem for a captive supply chain. Collaboration and openness are essential; without them, the system withers.

Parting thoughts