The CIO Imperative: How does technology underpin ecosystem transformation?

Each model presents a different set of technology parameters for its members’ CIOs. A primary differentiator is the dominance of the ecosystem leader. 

In symbiotic and marketplace models, dominant technology leaders act as standard setters and platforms for other participants. The CIO’s role within this model, is to create a powerful technology platform that can onboard disparate partners, while integrating data and keeping it secure.

In the more decentralized governance of the co-optive or value chain models, multiple CIOs must reach a consensus on data standards, interoperability, and cybersecurity. CIOs must recognize which system (or systems) they are operating under and the technology model it drives.

The greatest challenge for CIOs operating within an ecosystem can be the model’s participant structure. CIOs find it difficult enough to integrate data, drive common standards and maintain security within the boundaries of their enterprise. Challenges – technical, people and governance – can increase in a multi-participant environment of the business ecosystem.

Technology challenges in building business ecosystems

Technology governance

Achieving leadership and common direction is critical in any partnership or alliance. But common infrastructures, analytics and customer interface require near 100% adherence for effective operations.

Ecosystems, therefore, require a strong technology governance structure from all participants. As a practical matter, this implies a dedicated functional group to ensure internal systems are fit for purpose to interoperate in a multi-party environment, and that all governance and inter-operations are accounted for and rationalized.

Data integration

A powerful asset of successful ecosystems is the combined data of the participants. For example, a well-integrated model will create a cohesive experience for the combined customer franchises and include the offerings of each ecosystem member. Common taxonomies, integration standards, visualization and artificial intelligence (AI) will be required.

Interoperability and cloud

Ecosystem participants will each have different systems, devices, applications and communication networks. Participating CIOs will need to agree on common core standards and then build out the interfaces that enable systems to talk to each other.

The key to this dilemma will be a common cloud platform that embraces the platforms of all of the ecosystem’s members. This platform enables the ecosystem orchestrator to integrate data, set level standards for interoperability, and build a shared data fabric. The common platform will also enable a hybrid-cloud structure that meets the highest security standards of its participants. Cloud is an essential platform for the successful ecosystem.

Cybersecurity

This is an area of zero compromise. Multiple cyber-systems can present weaknesses and vulnerabilities to hackers. Breaches can then enable access to the core systems of the participants.  Here, ecosystem operators should work to adopt the strongest available zero-trust protection capabilities, not adopt the least common denominator amongst the participants.

Technology talent

In today’s business climate, all organizations are finding it a challenge to find the tech talent to staff their internal operations. The ecosystem IT team cannot be an orphan group of part-timers or second-best team members. They need to be of a skill level that matches or exceeds the standards of its participants.

1. Embrace, understand and plan for the ecosystem ambitions of your company

Accept that ecosystem requirements are coming your way if they have not done so already. Understand your company’s ambitions. Above all, understand which ecosystem model they are adopting and plan your technology accordingly. Also, recognize that if successful your company may adopt multiple ecosystems.