Who Controls Eco-systems in Open Innovation?

In a discussion in my Leadership+Innovation group on LinkedIn, Mark Karasek asked for examples in which “open standards” ecosystems benefited everyone rather than giving one company a lion’s share.

I had a hard time thinking of such examples so Mark raises a valid point. Actually, I would say that most – if not all – effective eco-systems are initiated and/or controlled by a company that stands to benefit most from this.

I do not view this as a negative thing. However, it should caution especially smaller companies when potential partners pitch you a project in which they say everyone will win. Most likely everyone will benefit – if not then the eco-system will falter as no eco-system can sustain if only one partner benefits from it.

We should just not forget that some always win more than others do. Apple is a great example. They walk a thin line as they keep strong control of their eco-systems and reap the most profits. Nevertheless, they still manage to bring in lots of new partners for their initiatives.

A critical task for smaller companies in such a situation is to evaluate whether this is the right setup to join given that they have limited resources and hopefully several options. They need to keep in mind that not every deal is worth doing.