AI, Sustainability and Geopolitics impacts Boards’ Strategic Leadership of Ecosystems

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AI, Sustainability and Geopolitics impacts Boards’ Strategic Leadership of Ecosystems

Boards’ Strategic Leadership of Ecosystems- A New Mandate for Governance

In today’s rapidly evolving business landscape, ecosystems are emerging as the defining force behind value creation, competitive advantage, and long-term resilience. The shift from traditional corporate structures to interconnected business ecosystems requires board members to rethink governance, strategy, and their role in fostering collaboration. While startups and digital-native companies have long embraced ecosystems, boards of incumbent firms must now step up to provide strategic leadership in this dynamic environment.

Why Ecosystem Strategy Matters for Boards

According to BCG’s research on business ecosystems, more than half of the S&P Global 100 companies are engaged in one or more ecosystems, with 90% of executives planning to expand their ecosystem activities. However, ecosystems are not an automatic recipe for success—less than 15% of them sustain long-term profitability. Boards must therefore take a strategic, governance-driven approach to navigating the opportunities and risks of ecosystem participation.

Key factors influencing the rise of ecosystem strategies include:

  • Technological Disruption: AI, generative AI, and quantum computing are transforming industries, making ecosystems a powerful tool for adaptability and resilience.
  • Sustainability and Regulatory Compliance: Climate goals, ESG requirements, and evolving reporting standards necessitate ecosystem-wide collaboration.
  • Geopolitical Shifts: Trade restrictions, supply chain disruptions, and new governance models (such as digital sovereignty) require firms to operate within trusted business networks.

To address these challenges, boards need to actively steer ecosystem governance, ensuring alignment with corporate strategy while fostering agility.

The Ecosystem Canvas: A Tool for Board-Level Strategy

A structured approach is essential for boards to evaluate their ecosystem position and drive informed decision-making. The Ecosystem Canvas, developed by Professor Andrew Shipilov, INSEAD and Advisor, NED Francesco Burelli, provides a practical framework for mapping and assessing ecosystem dynamics.

The canvas consists of key components that board members should consider:

  1. Unique Value Proposition

Boards must define what their company contributes to the ecosystem: Is it an orchestrator, a key participant, or a contributor to a larger network? Understanding the firm’s differentiating role ensures alignment with strategic goals.

  1. Ecosystem Participants and Roles

The success of an ecosystem depends on well-defined roles among partners, including:

  • Orchestrators: Those who set the rules and shape the ecosystem (e.g., Apple in its App Store ecosystem).
  • Core Partner(s): Provides the base offering to the customers, needed to sustain the network.
  • Technology Enabler: Supports the technology operation of the network.
  • Complementors: Firms providing complementary products or services (e.g., developers within a smart-home ecosystem).
  • Resellers: Providers of key components needed to sustain the network.

Boards must assess how their company interacts within this structure and ensure governance mechanisms that drive both innovation and risk mitigation.

  1. Governance and Decision-Making

Ecosystem governance differs significantly from corporate governance. It requires balancing openness (collaboration) and control (protection of value). The Board Foundation highlights that the ability to orchestrate ecosystem-wide governance is becoming a key differentiator for success.

Moreover, ecosystems often require “managed ecosystems”, where a central organization actively shapes and coordinates interactions among stakeholders. Boards must determine whether they are playing an orchestrator role or are part of a larger network, adapting governance strategies accordingly.

  1. Monetization and Value Capture

How does the company generate and share value within the ecosystem? Boards must oversee revenue models, data-sharing agreements, and competitive risks while ensuring that ecosystem participation translates into financial and strategic benefits.

  1. Evolution and Adaptation

No ecosystem remains static. Boards should regularly assess:

  • Is the ecosystem growing, stagnating, or consolidating?
  • Are new players disrupting the value chain?
  • How can AI, blockchain, or sustainability trends reshape participation?

Strategic leaders play a crucial role in guiding ecosystems through these transitions, ensuring that coordination mechanisms, incentives, and leadership engagement evolve to support long-term sustainability.

AI and Technology in Ecosystem Leadership

As ecosystems become increasingly digital, emerging technologies such as AI and blockchain are shaping governance models. Boards must explore:

  • How AI-driven insights can enhance decision-making in ecosystems.
  • The role of blockchain in ensuring trust and transparency in multi-party collaborations.
  • The impact of digital twins and predictive analytics in ecosystem coordination.

Boards must take proactive steps to integrate these technologies into ecosystem governance, ensuring data-driven strategy formulation and real-time adaptation.

A Board-Level Mandate for Ecosystem Leadership

Given the complexity and impact of business ecosystems, boards must take on an active governance role rather than merely observing from the sidelines. A strategic leadership mandate for ecosystems should include:

  1. Embedding Ecosystem Thinking in Board Agendas: Regular discussions on partnership strategies, regulatory challenges, and competitive positioning.
  2. Developing Risk and Opportunity Frameworks: Addressing ecosystem dependencies, cybersecurity, AI ethics, and regulatory risks.
  3. Fostering a Learning Culture: Encouraging board members to engage with experts in digital transformation, sustainability, and ecosystem governance.

Conclusion: Boards as Ecosystem Architects

As ecosystems redefine industries, boards must transition from a corporate-centric to an ecosystem-centric mindset. The Ecosystem Canvas offers a structured way to navigate this shift, helping boards make informed decisions on participation, governance, and long-term value creation. In a world where business resilience depends on interconnectivity, strategic ecosystem leadership is no longer optional—it’s a board-level imperative.

References

  1. Boston Consulting Group (BCG). What Is Your Business Ecosystem Strategy? March 2022.
  2. World Economic Forum (WEF). Why We Will Be Seeing a Radical Reinvention of Supply Chains. January 2025.
  3. INSEAD Knowledge. What Makes Business Ecosystems Succeed? 
  4. The Board Foundation. From Corporate to Ecosystem Governance. 
  5. Journal of Management Studies (JMS). Advancing Strategic Leadership Research for Business Ecosystems.  2024.

Coming Events 

We will be exloring the topic of Boards Processes, Ecosystem and AI in a number of coming events;

February 12 Boards Processes and Transition

March 7 Boards Strategic Leadership of Ecosystems

And from our partner Insead Alumni in Stockholm on Feb 17 Lead in the Age of AI from Strategy to Implementation

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> Announced Events 2025

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About Liselotte Engstam and Digoshen

This blog post was originally shared at the blog of Digoshen  www.digoshen.com,  the blog of Boards Impact Forum www.boardsimpactforum.com and the blog of the Digoshen founder www.liselotteengstam.com, 

At Digoshen, we work hard to increase #futureinsights and help remove #digitalblindspots and #sustainabilityblindspots. We believe that Companies, Boards, and Business Leadership Teams need to understand more about the future and the digital & sustainable world to fully leverage the potential when bringing their business into the digital & more sustainable age. If you are a board member, consider joining our international board network and master programs.

Welcome to also explore the Digoshen Companion for AI Leadership for Boards and Boards Impact Forum, where the Digoshen Founder is the Chair.

Find a link to Digoshen Chair Liselotte Engstam Google Scholar Page

You will find more insights via Digoshen Website, and you are welcome to follow us on LinkedIn Digoshen @ Linkedin  and twitter: @digoshen  and founder @liseeng