Strategy by design for business ecosystem formation: a strategy-as-process-and-practice perspective

Abstract

The purpose of this paper is to explore the interplay of strategy processes and practices in the formation of data-based business ecosystems through a "strategy as process and practice" lens. The focus is on the practice of 'strategy-by-design' as a middle ground between purely planned and purely emergent strategy formation. A mixed-methods approach is used, combining a qualitative multi-case study with action research. The two Swiss companies were in the process of implementing data-based services and were in the early stages of creating a business ecosystem to deliver the envisioned value to customers. An extended conceptualisation is obtained of how strategy practices (including workshops, focus interviews, ecosystem games/simulations, co-creation, test/prototyping) as a whole can advance the formation of a data-based business ecosystem. The observed practice can be defined as strategy-by-design. This study represents one of the first empirical investigations of how the key strategy practices following the strategy-by-design approach can support the formation of a business ecosystem strategy. The approach followed in both cases consisted of many progressive learning steps, as an iterative process of open and closed strategy episodes.