The king is dead, long live the king

There used to be a time — let’s say the 1970s, 1980s, and 1990s — when a company could be so big and successful that they became the king of the hill. They were dominant, they could control the market, and basically held a virtual monopoly or, at worst, an oligopoly. That was the case in the oil industry, banking, retail, technology — you name it. The question is whether this still makes sense. Can we still crown a king of the hill? I’m sure people will say they can, naming companies like Apple, Disney, Walmart, Microsoft... but are they truly kings?

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I’ve long been fascinated by ecosystems. Not that I was any good at biology, but more on ecosystems as a group of organizations collaborating. Of course, it originates from biology, where an ecosystem can be described as organisms living together, supporting each other in a delicate balance. One might argue, all successful organizations today are ecosystems. Hear me out...

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We’ve been talking about supply chains for as long as production has been a thing, but lately we’ve been talking more and more about horizontal or vertical integration. In essence, they are ecosystems. Can you name a single company that can do literally everything without the need for any supplier? None come to mind. Even giants like Apple heavily depend on companies like Foxconn for the manufacturing of their iPhones. In the current economic and geopolitical climate, this becomes painfully clear. So, if that is the case, companies will need to start acting like it and operate in an ecosystem — and not one where they behave as a gorilla in the room claiming all the space (and profits), but a delicate balance among all organizations operating within the same system.

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Collaboration is the new skill set. People got — and still get — hired for being a team player, but that’s again internally focused. When will we start recruiting people based on their ecosystem skills — on collaborating with other organizations? Microsoft relies heavily on its vast network of partner and reseller companies. Banks are shifting to digital entities collaborating to provide value beyond just core banking. Hospitals collaborate across the value chain for more patient-centric care instead of institution-focused systems... Would you like me to go on?

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Now, here’s the caveat: we aren’t built for this. We’re built for survival. Whether it’s us as human beings or us as organizations, we strive to survive. Just look at the standard vocabulary in any company — talking about competing, winning, crushing the other’s position... It’s not exactly positive talk. We will first need to unlearn competing, and then start collaborating. That is not only a mindset shift; it’s a cultural shift. Our current economic system is based on competition. But true ecosystem thinking is about advancing collectively — creating overall value and, hopefully, all individuals will benefit — but not in equal shares or tightly linked to their input. Once we realize this, we can start moving forward. This is not a plea for less capitalism — it’s a plea for a different kind. One where the ecosystem wins. Have you ever seen a frog or a bat bragging about how many mosquitos it ate at night so there would be fewer of them? We, humans, benefit.

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While we look for business success, we should be on the hunt for collaborations. Ecosystems are the way forward. I don’t care what name you give it. No company can go it alone anymore. Not one.

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