What is ecosystem-led growth (ELG)?
Ecosystem-led growth (ELG) is a business strategy that emphasizes the role of business partners to drive innovation, customer value, and sustainable growth. In this approach, your organization doesn’t operate in isolation. Ecosystem-led growth is about building bridges, transcending boundaries, and harnessing the collective strengths of partners to achieve unparalleled growth.
Leading companies are now acknowledging the power of indirect sales, as exemplified by Dell Technologies’ announcement that quadrupled the number of their partner-led accounts. Dell’s Global Channel Chief noted: “We can win more often – and faster – when we work side-by-side with our global partner ecosystem. With 99 percent of our customers and potential customers deemed as partner first for storage, we’re very clear about our intentions to embrace the channel.”
A business that prioritizes ecosystem-led growth prioritizes these values:
- Collaboration: These organizations actively collaborate with partners, suppliers, customers, and even competitors to create and deliver value. Cooperation and co-creation are central to ecosystem-led growth.
- Openness: Ecosystem-led growth often involves open platforms, data sharing, and interoperability, enabling seamless interactions and integrations between partners in an ecosystem.
- Innovation: Ecosystems become hubs of innovation, where diverse partners contribute ideas, technologies, and capabilities to develop new solutions, enhance existing ones, and find better ways to deliver incredible customer experiences.
- Customer-centricity: In an ecosystem, the focus is on meeting customer needs and delivering superior experiences by drawing on the collective strengths of ecosystem partners.
- Scalability: Ecosystems allow organizations to scale rapidly by tapping into the resources, reach, and capabilities of their partners, often expanding into new markets or industries.
- Value exchange: Partners within the ecosystem contribute and receive value, whether in the form of revenue sharing, access to resources, co-marketing opportunities, or shared insights.
- Digital transformation: Ecosystem-led growth is often closely tied to digital technologies and platforms that facilitate collaboration, data analytics, and the seamless flow of information.
In industries like technology, software, healthcare, and finance, complex and dynamic partner ecosystems play a critical role in driving innovation and market success. Ecosystem-led growth represents a shift away from traditional linear business models and toward a more dynamic, interconnected approach that embraces the idea that we all grow faster, together.