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Ready to Grow 1.5x Faster? It's Time to Talk Ecosystems
PARTNER2B
October 21, 2024
Dear B2B Founders and Growth Leaders,
Did you know that companies with high-performing ecosystems capture 1.5 times more value than their peers?
This striking statistic, revealed in EY's recent research "The CEO Imperative: Are you mastering your ecosystem strategy?", underscores the transformative potential of strategic partnerships.
In this newsletter, we'll explore why this is true and how you can leverage partner ecosystems to achieve similar results even with limited resources (find a cheat sheet below).
Why High-Performing Ecosystems Drive Exceptional Value?
1. Synergistic Customer Outcomes
Partner ecosystems enable companies to deliver more comprehensive and impactful solutions to their customers. As Denise Millard, Chief Partner Officer at Dell Technologies, explains:
“The outcome the customer gets is more than they would if they were dealing with us independently."
Dell's journey from hardware vendor to technology services provider exemplifies how ecosystems can support significant business transformations, ultimately benefiting both the company and its clients.
2. Quantifiable Business Impact
The benefits of successful ecosystems extend beyond customer satisfaction. EY's research reveals impressive financial outcomes:
- 16.2% incremental revenue growth
- 16.5% incremental earnings
- 14.6% cost reduction
These figures demonstrate that well-executed ecosystem strategies can drive growth, profitability, and operational efficiency simultaneously.
3. Increasing Investment in Ecosystem Development
Recognizing the potential for outsized returns, forward-thinking companies are doubling down on their ecosystem strategies. The EY study found that 61% of ecosystem leaders plan to increase ecosystem spending through 2024. This trend suggests that the competitive advantage gained through strong partnerships will only grow in importance.
You may start building your partner ecosystem without huge investments. Here is my cheat sheet for you how to do it.
Read our guide on How To Build Partner Networks Without a Dedicated Team
Challenges and Best Practices
While the benefits of high-performing ecosystems are clear, achieving success in this area is not without its challenges:
1. Strategic Planning Hurdles
The majority (77%) of ecosystem leaders struggle with aspects of strategy and planning. This highlights the need for a thoughtful, deliberate approach to ecosystem development.
2. Partner-Centric Program Design
Kate Woolley, IBM Ecosystem General Manager, offers valuable advice for overcoming these challenges:
"When designing a partner program, you need to start by understanding what's most important to your partners and build the program around that."
This partner-first mindset is crucial for creating mutually beneficial relationships that drive long-term success.
Key Takeaways for B2B Leaders
1. Invest in Ecosystem Development: Given the potential for 1.5x value creation, prioritizing and investing in your partner ecosystem is a strategic imperative.
2. Focus on Customer Outcomes: Design your ecosystem to deliver enhanced value to customers through integrated, comprehensive solutions.
3. Measure and Communicate Impact: Track key metrics like revenue growth, earnings improvement, and cost reduction to demonstrate the ROI of your ecosystem strategy.
4. Prioritize Strategic Planning: Dedicate resources to overcome common planning challenges and create a robust ecosystem strategy.
5. Adopt a Partner-Centric Approach: Build your program around partner needs and priorities to ensure long-term engagement and success.
Explore our GUIDES section to find answers to all your questions about building partner ecosystems.
Have I motivated you to look at partner ecosystems as an efficient growth tool for 2025?
I'm here to chat if you have any questions or concerns. Let's discuss how we can make b2b partnerships simple!
Regards,
Elena from PARTNER2B
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