Digital Business Ecosystem refers to an open foundation and dispersed software policy that is internet enterprise based. The ecosystem intends to generate, incorporate as well as offer services more proficiently and successfully (Akkermans, 2004). This means that one can use the software existing on Digital Business Ecosystem to publicize a product on hand, produce new services as well as generate and also develop the new offerings.
The digital business as an ecosystem aims at developing diverse forms of both the business models and the software for acclimatization to the varying environment conditions. The digital business ecosystem provides infinite access to software as a way out to concentrate on the explicit wants and needs of small and medium enterprises (SMEs). This is essential in the field of business as it helps in widening one’s market reach, makes it possible for one to extend its services, produce some offerings as well as discover the novel business associates and suppliers. Generally, affinity diagram, systems model, maturity model and risk/opportunity analysis matrix will be used in description of this topic. They will be used in description of the key result areas, which are cost, jobs, security, complexity and accessibility.
The Digital Business Ecosystem as an incorporated scheme by the European Commission can be comprised of twenty European partners and educational organizations. It is put up by means of Open Source Principles, an indication that no costs for software, hence anyone can build up and expand the scheme (Blanken, 1999). In addition to this, the ecosystem on typical submissive mechanism permits simple addition of the infrastructure on hand. With the main cause of this problem, the management involved would be in a position to put down workable strategies that would help do away with the problem or improve the ways of coping with the situation while still being successful in running the business. Thus, according to Tapia, Daneva & Van Eck (2007), “changes in the business environment force enterprises to re-think the way they are doing business” (p. 203).
The ecosystem can also converse via open principles like simple object access protocol permitting contact with World Wide Web consortium on the various web services (Daneva, 2007). Besides the improvements, digital business ecosystem can also be extended to put infrastructures together.
The digital business ecosystem is significant to the people worldwide and especially to those in the field of trade. Thus, for example, the research conducted by Ramesh, Glass, & Vessey (2004) examines the computer study in order to determine the most popular issues addressed there. This is due to its diverse advantages in marketing, the products as well as the publication services it offers, hence making the trade simple. In addition to this, system requires standards that are not demanding, thus enabling those in the field to run their businesses with minimal efforts. The policy requires minimal input for one to operate as the costs are free and open to anyone interested. A number of its features can be used by means of the usual web browser. However, for one to get access to full benefit of digital business ecosystem, downloading and installation of the software should be applied.
The term digital business ecosystem originated from the addition of the word digital before business ecosystem. This means to submit to social-economic growth that catalyzes data communication expertise (Klein, 1982). The scheme was the sort to come up with a solution the various problems that are faced in business activities. With the evolvement of the ecosystem, many activities are made possible as the processing of data and other services provided by the system have become possible. This has played a great role in the country’s development as business is among the major sources of livelihood to many.
Moreover, in the developing countries the scheme has greatly participated in the growth of economy as the software enables faster attainment of the information needed by the suppliers. As defined by Rogers (2003), ““innovation is an idea, practice or object that is perceived as new” (p.12). It is all about managing alteration in an organization. The majority of transformations are produced by disorderly innovation and frequently come from the mind. These transformations mostly affect the inner working as well as marketing in an organization (Wejnert, 2002). In case these alterations are brought into an organization, an innovation may end up flowing to the entire association system.
The department concerned with this kind of planning in the system ought to be full of professionals so as not to involve strategies that would otherwise lead to failure of the industry (Porter, 2004). Digital business ecosystem is a vigorous architecture that is capable of involuntarily coming up with solutions, towards multifaceted dynamic problems. It is also capable of possessing a number of properties that are essential in social-economic growth. The digital ecosystem has resulted to achievable goals set by people through self-organization as well as sustainability that bring about enthusiasm natural bionetwork.
Applicable models in the description of key result areas
Affinity diagram is a business tool that employs order thoughts and information. Affinity diagram is among the seven tools of management and planning. Affinity diagram permits numerous ideas stanching from brainstorming to be arranged into groups based on their usual relations, for the purpose of appraisal and scrutiny. In business, tool is of great use as the activities needed to run a successful business are easily well organized. The person involved in a given business can put the relevant data needed to in the certain area. This gives the business operator an opportunity to plan and organize the progress of his business (Luftman, 2001). This is made possible by the relevant data as well as thoughts put in order making planning and management of business possible.
Affinity diagram allows the various ideas that those in the business come up to be organized into groups that the organization can refer to and make the needed progressions. The ideas as well as data in business are crucial in planning. This is because; it gives the business a way forward on the various goals it would wish to achieve at a given time. The affinity diagrams, is a significant tool in digital business ecosystem, as it aids plays the role of grouping information into themes.
The affinity diagrams are used in illustrating a predicament, coming up with ideas through brainstorming, sorting of thoughts into usual themes, developing consensus for the whole group, developing theme cards and grouping headers to the broadest category. The arrangement of thoughts under headings and the headings below super-headers in affinity diagrams are one method of ensuring that all the information required in the diagram is available. This, calls for a proper planning prior to the arrangement of data.
The diagrams are essential in comprehending numerous data thus, their importance in business to enable operators to manage their businesses without taking risks. This also promote technology in that more interventions are made regarding the field as the software allow a room for people all over the world to the access to the business ecosystem. Affinity diagrams have an added benefit in that, it is a cost effective method for seeking thoughts from a group as well as attaining consent on the way in which in formation is prepared.
Risk matrix is a template that is employed to classify assortment of levels of jeopardy. It is used as a produce of the damage probability group and harm sternness sort. Risk matrix is an easy device for augmenting visibility of jeopardy and helping out organization verdict making. Each scheme and organization ought to create their own risk matrix, despite the fact that numerous typical risk matrices exist. On creation of the risk matrix, the association can calculate the stages of risks it can take with a variety of events. The company’s would only achieve this through the comparison of the benefits obtained against the costs incurred in taking the risk.
However, there are various problems that are experienced in risk matrix, thus making it difficult for an organization to access risks. The problems include:
- Errors made in allocation- the risk matrices can incorrectly allocate qualitative rating to quantitatively lesser risks. This would greatly affect the activities of the organization as wrong calculations are made. This therefore, calls for attention when dealing with risk matrix.
- Poor decree- characteristic risk matrices is prone to correctly comparing with lesser fraction, thus causing inconveniences in the organization’s plan. The management concerned with planning the organization’s activities ought to come up with proper resolutions, so as to ensure that the association does not incur losses.
- Uncertain contribution and yield- Classification of sternness can not be completed independently for vague outcomes. The contributions of risk matrices ensuing outputs, require prejudiced explanation. This needs that the risk matrices be employed with care as well as with fixed judgments.
Risk matrix can be regarded as a software submission that enables one to make out, administer and prioritize the major risks in an organization’s program. The risks taken in the ecosystem ought to be looked into with care to ensure proper management for the project or the organization. In every business, risk taken by the management during planning, and it is the role management to ensure that the company evades any risk that could have great negative effects to the company’s outcomes.
Maturity model is an expansion replica that shaped revision of data composed by an association that contracted with a defense department in United State who founded the study. When the model is applied in an organization that is already in progress, the software development procedure, it permits an efficient approach to civilizing them. The main objective of the model is to assist associations benefit up their performance. Maturity model can also be referred to as a methodology that is employed to improve the organization’s software advancement procedures.
The maturity model is essential in the field of business as it gives the organization an opportunity to revise data it receives before enacting it in its planning. This enables the company to come up with proper management for its activities.
There are various scenarios in the digital business ecosystem that will affect the future of business. Some of the scenarios comprise of:
Health- health of business operators will decline by 10% by 2030. This will be accelerated by the digital waves that according to scientists affect the genetic make up of a human being.
Economics- the economics will rise by 20% by 2030 in the field of digital business ecosystem. This is due to the rising need for technology application in the various associations, thus increasing the use of software.
Civilization- the culture of will change by 10% by 2030. The alteration is caused by the need for people to fit in the changing world, hence people adapting to the new standards causing the society to change their cultures.
The atmosphere- by the year 2030 the environment situation will decrease. The decline is brought about by the waves that will have interfered with the normal atmosphere affecting the current usage of the software.
The scenarios cause various risks as well as opportunities. The human health is of great importance in the business. Thus, decline in the health will risk the business in that; there will be minimal source of labor. This will affect the output in the field, as lowered availability of human labor will lead to low inputs in the business hence low outputs. However, this can lead to the creation of other businesses in the medical field. The field would employ the same software for their services hence promoting the digital business.
With the intention of inspiring people to purchase services as well as alter their outlook, advertising is of these markets is crucial so as to ensure all those that might be interested in purchasing these goods but have limited time to get an opportunity to buy the goods from the digital business ecosystem (Wejnert, 2002). This can be regarded as one of the swift means of attracting more consumers despite of their limited time.
Civilization is another scenario that can lead to risks in the digital business ecosystem. The change in the way people live can interfere with the software as with time people can generate their own software. A society will lead to improved market for the digital business.
The economics of a nation is expected to experience opportunities like; increased business operations as the use of digital business ecosystem provides the dealers with a better opportunity to market their produce (Tapia, 2006b). Also, the consumers get a better field where they can associate with the retailers, thus promoting business.
A maturity model is developed by organizing the various levels of software processes.
- Processes are jumbled
- Establishment of the fundamental scheme organization techniques.
- Certification, incorporation and standardization of the developed typical software procedure.
- Monitoring and scheming of the processes via information assortment and scrutiny.
- Optimization stage, where procedures are improved via scrutinizing feedback from existing procedures.
The digital business ecosystem is at the fourth stage where it is monitoring its various procedures through scrutiny of data. The ecosystem is already aware of the various inputs needed to fit in the market. It has informed its consumers the various requirements, uses as well as applications necessary for them to fit in the business. The scheme has also been fully involved in its applications as well as providing customers with the fair services at low costs.
The strategic plan for the digital business in five years time comprise of
The scheme is spread worldwide with the suppliers available in every region. In addition, the business will make alliances with other businesses facilitate its operations.
The ecosystem will serve all people especially those in business to promote the various activities taking place in the field of business.
The scheme aims at promoting the level of technology worldwide by application of the software as it makes processing of data fast, thus promoting business.
The plan of the scheme is to provide users with cheap services to encourage customers to continue using the services.
The business expects to have grown largely to promote the number of consumers using the services.
In conclusion, the digital business ecosystem ought to come up with a proper plan and management to provide better services to its customers (Tapia, 2006a). This comprise of fair and cheap services to promote the number of its consumers. The incremental innovation is a kind of modernism that involves utilizing technologies on hand, centering its attention on price or characteristic developments in existing products, advertising, business forms as well as procedures. The management in the ecosystem should make efforts to improve and ensure that services the scheme provides are helpful to the consumers.
References
Akkermans, H & Gordijn, J 2004, Digital Business Ecosystem, 3rd edn, Talbot Adair Press, London.
Blanken, H 1999, Exploring Digital Ecosystem, Free Press, New York.
Daneva, M 2007, Developing an Inter-Enterprise Alignment Maturity Model, 3rd edn, Talbot Adair Press, London
Klein, JK 1982, The Role of Software in Digital Business, 4th edn, Douglas McIntyre Ltd, Vancouver.
Luftman, J 2001, Assessing IT-Business Alignment. Information Systems Management, 7th edn, Oxford University Press, Oxford.
Porter, M 2004, Competitive Advantage: Creating and Sustaining Software, 3rd edn, Free Press, New York.
Ramesh, V, Glass, RL & Vessey, I 2004, ‘ Research in computer science: an empirical study’, The Journal of Systems and Software, vol. 70, pp. 165–176, Web.
Rogers, E 2003, Diffusion of innovations, 5th edn, Free Press, New York.
Tapia, RS 2006a, A Value-Based Maturity Model For IT Alignment In Networked Businesses, Web.
Tapia, RS 2006b, IT Process Architectures for Enterprises Development: A Survey from A Maturity Model Perspective, Technical Report TR-CTIT-06-04, Center of Telematics and Information Technology, University of Twente, Web.
Tapia, RS, Daneva, M & Van Eck, P 2007, “Validating Adequacy and Suitability of Business-IT Alignment Criteria in an Inter-Enterprise Maturity Model“, in 11th IEEE International Enterprise Distributed Object Computing Conference EDOC, University of Twente, vol. 407, no. 638, pp. 202-213, Web.
Wejnert, B 2002, “Integrating models of diffusion: A conceptual framework”, Annual Review of Sociology, vol. 28, pp. 297-326.