Why You Can’t Build the Future Alone: Ecosystems as your competitive advantage

I used to think innovation was about having the next big idea. But during Mark Greeven ’s IMD MBA Program 's class in Singapore, I realized it’s not about the idea alone, it’s about who you build it with.

We live in a world where companies can no longer rely solely on their own capabilities. The days of dominating an industry with a single product or service are gone. Today, those who win do so by co-creating value, not competing for it alone. This is the power of ecosystems.

I will dig deeper into my main learnings from Mark. 

Perform, Then Transform

Imagine you're running a car company. You've perfected your combustion engine models, optimized your supply chain, and earned customer trust. You’re in the perform stage, exploiting your current competitive advantage. But eventually, you reach a ceiling. The market shifts. For example, Tesla and BYD . They didn’t just improve the car, they reinvented the system.

This is the tension many companies face: how to both perform and transform. You need to sustain what works today while building the capabilities to win tomorrow. And that requires more than a pivot. It demands a rebuild.

Why Transformation Is Hard

Why do so many companies struggle? Because transformation challenges your identity. It requires breaking existing systems, unlearning, and investing in new capabilities. Many try to buy their way into innovation, but you can’t simply acquire culture, skills, or systems. Without embedding new capabilities and processes, those efforts fail.

Want to build a community? Great. But if you don’t have direct-to-consumer (D2C) capabilities, like logistics, customer data, or engagement tools, your efforts will fall flat. You don’t just need a great product. You need the machinery to support it.

Building Capabilities Through Ecosystems

That’s where ecosystems come in.

Think of the LEGO Group . They’ve stayed relevant for decades, not by clinging to plastic bricks, but by evolving how they connect with consumers. Now consider Nike . Their new chairman came from LEGO. Coincidence? I don’t think so. Nike’s next chapter isn’t just about shoes, it’s about building the right partnerships and borrowing successful playbooks from other industries.

Good ecosystems don’t replicate your model, they expand your reach. They help you scale new capabilities with few but clear priorities. It’s not about working with everyone, it’s about working with the right ones.

Xiaomi – From Smartphones to Everything

Xiaomi Technology didn’t start with an empire. They started with software, built a fanbase, and launched a $100 smartphone. It wasn’t about profit, it was about access. They outsourced hardware, kept their product range narrow, and built a loyal community.

Then came the breakthrough: they incubated 300+ companies, replicating their model across product lines, from rice cookers to smart scooters. Each company filled a gap. Xiaomi became the orchestrator, offering a platform for emerging brands, and access to 580 million monthly users.

This is ecosystem thinking.

Platforms vs. Ecosystems

Here’s a common misconception: Platforms are ecosystems. They’re not.

Platforms are containers, they host different services or sellers, but each operates more or less independently. Ecosystems, on the other hand, are embedded: services work together to solve a bigger, interconnected customer need.

Let’s compare, same industry, completely different approach:

Platform Example, Pet Marketplace App Think of a pet marketplace like Chewy or Amazon Pets. You can buy food, toys, and maybe book a vet appointment. But each transaction is separate. The dog food doesn’t “talk to” the vet visit. The insurance isn’t connected to the wearable. The platform simply offers variety, it’s a digital shelf.

Ecosystem Example, Integrated Pet Wellness App Now imagine an app that tracks your dog’s health through a smart collar, alerts you when it's time for a vet visit, recommends specific food based on activity levels, and lets you manage insurance, all in one place. Each feature is connected, data flows between them, and the experience gets smarter over time.

The Anatomy of an Ecosystem – Core, Glue, and Complementors

One of the most interesting ideas from class was this deceptively simple model: every successful ecosystem has three layers, Core, Glue, and Complementors.

Core Offering

Your core is the reason customers show up.

• For Apple, it’s the iPhone.
• For Xiaomi, it was MIUI and smartphones.
• For L’Oréal, it’s skincare and cosmetics.

Glue Layer

The glue creates stickiness, the software, services, or community features that keep users coming back.

• Apple’s iCloud syncs everything. L’Oréal’s Modiface lets you virtually try makeup.
• Xiaomi uses its app and fan forums as connective tissue.

Complementors

Partners that expand your value around the customer’s “job to be done.”

• Apple has apps, AirPods, and Apple Music.
• Xiaomi works with 300+ spin-offs offering home devices.
• A pet app might offer food, GPS, vet access, and insurance, all from different players.

This structure is powered by AI, the engine that turns data into decisions. AI connects user feedback, partner performance, and personalization into a continuous improvement loop: Data → Models → Decisions → More Data.

Without AI, you just collect data. With it, your ecosystem evolves in real time.

Governance – Holding It All Together

As ecosystems grow, they become harder to manage. For example, governance, the system that defines who decides what and how value is distributed.

There are three key models:

• Centralized Governance: A single orchestrator (like Apple) controls the ecosystem for consistency and speed.
• Federated Governance: Semi-autonomous units (like Alibaba) operate independently under a shared vision.
• DAO Governance: Blockchain-based systems where decision-making is decentralized and community-led.

Your governance model defines how fast you move, how aligned your players are, and how resilient your ecosystem becomes.

What Failure Looks Like

Lowe's Companies, Inc. was a retail giant that tried to launch a smart home ecosystem. It failed, not because of the idea, but the execution.

They focused on a product (Iris), didn’t support third-party developers, lacked the tech DNA, and rushed to monetize before creating user value. In contrast, Amazon and Google built open ecosystems around Alexa and Home, and thrived.

Lesson: ecosystems aren’t side projects, they’re enterprise transformations.

Are You the Orchestrator or the Complementor?

Every company, whether they know it or not, is already part of an ecosystem. The real question is: Are you leading it or just playing along?

Mark’s class in Singapore reshaped how I think about strategy, growth, and collaboration.

The future isn’t about control. It’s about co-creation.

And if we’re serious about building the future, we better start building it together.