How Australia’s top-performing companies tap into business ecosystems

PwC’s Accelerating Performance research* identified 11 factors that differentiate the top 20% of companies from the remaining 80%. This article focuses on being ‘Ecosystem driven’. Find out more about Accelerating Performance.

Top-performing companies are using ecosystems to drive business growth, boost operational efficiency, broaden and deepen the customer relationship, improve sustainability outcomes, and manage risk. Technology is helping companies to cross industry boundaries and establish partnerships with multiple organisations.

Australia’s leading companies are proving particularly adept at seeing the value upsides from ecosystems. The top 20% of Australian companies (based on a combination of revenue growth and profit margin, adjusted for the industry) are more than 1.2 times more likely than the remaining 80% of organisations to leverage ecosystems to gain access to privileged information (such as customer data) and complementary capabilities and skills.

^{1. Percentage of respondents from Australia who indicated ‘to a large extent’, or ‘to a very large extent’.
Source: PwC’s Accelerating Performance research}

They’re also leading the way on a global scale when it comes to using ecosystems to gain access to new customers (92% of Australia’s top performers use ecosystems for this purpose versus 86% of global top performers).

To gain access to powerful networks both within and across industries, and enjoy a clear competitive advantage, successful ecosystem strategies need the following:

1. Win-win mindset

Top performing companies participate in multidimensional networks that are genuinely beneficial to all parties. From improving operational efficiency to developing new propositions, identify clear value-adds so that everyone sees value. This requires what can be a major mindset shift from control to collaboration.

2. Values alignment

Partnerships don’t need to be a perfect marriage, but mismatched values are an instant red flag. Put the right processes in place to vet potential partners, or else risk reputational damage and/or brand devaluation.

3. Agility

The best ecosystems are dynamic and flexible. Create alliances quickly to capitalise on synergies, and dissolve things fast if they don’t work out or circumstances change. In short, take a test-and-learn approach.

4. Internal capabilities

Ensure you have the right internal teams and/or skill sets to establish and maintain successful partnerships. Ask yourself: Do you have the skills to achieve consensus and resolve conflict? Can your relationship managers structure contractual arrangements effectively? How will you embed your partnerships and ensure they remain economically viable?

5. Infrastructure

Cost-effective, scalable partnerships need the right infrastructure. Australia’s top performers, for instance, are 1.2 times more likely than the remaining 80% of organisations to use cloud technologies to support their ecosystem strategy. While it’s great to have consistent platforms, it’s not always possible. Sometimes you need to take a modular infrastructure that can plug and play with your legacy technology. Strong mapping capabilities and APIs let you move data from one model to another.

^{* PwC surveyed 464 respondents in Australia at director level or above with anonymised responses, in November 2022, from the following industries: consumer markets; financial services; technology, media and telecommunications; industrial, manufacturing and automotive.}