582: McKinsey's Venkat Atluri, How to thrive in the ecosystem economy (Strategy Skills classics)

582: McKinsey's Venkat Atluri, How to thrive in the ecosystem economy (Strategy Skills classics)

Venkat Atluri, McKinsey senior partner and coauthor of The Ecosystem Economy: How to Lead in the New Age of Sectors Without Borders, explains how value creation is shifting from stand-alone enterprises to coordinated networks of collaborators. Drawing on two decades advising leaders in technology, media, and telecom, he outlines what makes ecosystem businesses distinct from traditional conglomerates—and the governance required to make them work at scale.

Atluri emphasizes that ecosystems aren't about diversification for its own sake, but about following a customer-led thread:

"Start with the customer and then follow the thread—what other problems does that customer have that you can solve together with partners?"

Key Insights from the Conversation
  • Beyond Suppliers: Many firms mistake a supplier list or procurement process for an ecosystem. Atluri is clear:
    "A supplier list is not an ecosystem. An ecosystem is about mutual value creation and sharing in the upside."


  • Role Clarity Matters: Some firms will anchor the platform, continuously raising the bar for developers and users. Others will participate as contributors, protecting privacy, quality, and customer experience. Scale only comes when "responsibilities, incentives, and accountability" are explicit.

  • Discipline in Operating Models: He advises executives to integrate ecosystem thinking into strategy, but then run deeper, dedicated workstreams to define roles, economics, and governance.

  • Competition Is Ecosystem vs. Ecosystem: Scenario planning must account for new types of disruptors and ask, "What would an ecosystem leader do here?" Over time, Atluri expects the economy to consolidate into a few macro-ecosystems with multiple micro-ecosystems nested beneath them.

  • History as a Control: Symbian and BlackBerry illustrate that large user bases are not moats.

    "Unless you keep raising the bar on your proposition, you lose."

  • Customer Experience Sets the Standard: Consumer expectations now apply in B2B as well:

    "If something doesn't work out of the box, that tells you the company is focused on itself, not the customer."

🎯 Practical Takeaways for Senior Leaders
  • Map a customer segment's biggest problems and use that to prioritize expansion.

  • Deliberately choose whether to anchor a platform or participate in one—and align capital and talent accordingly.

  • Replace vendor transactions with value-sharing constructs that reward partners for enlarging the pie.

  • Establish governance, metrics, and cultural norms that enable collaboration at scale.

  • Continuously improve the platform to keep developers, customers, and partners engaged.

Atluri's message is simple but powerful:

"Ecosystems win when they deliver ever-rising value to customers and fair economics to contributors."

Companies that treat ecosystems as procurement exercises will stall. Those that treat them as strategic systems will build compounding advantages over time.

📚 Get Venkat's book, The Ecosystem Economy, here: https://shorturl.at/XawOb

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Hello everyone! This is Monday Morning 8 a.m., a weekly newsletter where we distill the insights from all of the distractions, articles, and emails that you receive in your inbox every day. In this newsletter, we're going to focus on four major themes from last week's news. To listen to the audio version of this newsletter, search for "Strategy Skills" in any podcast app. To get a written copy with links to mentioned articles sign up here: www.firmsconsulting.com/promo

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Hello everyone! This is Monday Morning 8 a.m., a weekly newsletter where we distill the insights from all of the distractions, articles, and emails that you receive in your inbox every day. In this newsletter, we're going to focus on four major themes from last week's news. To listen to the audio version of this newsletter, search for "Strategy Skills" in any podcast app. To get a written copy with links to mentioned articles sign up here: www.firmsconsulting.com/promo

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In today's episode of the Strategy Skills podcast, we have a conversation with Blair Sheppard, Global Head of Strategy and Leadership for PWC. Blair shares his views of looming global crises driven by wealth disparity, technological disruption, the polarization of people, and declining trust in society's institutions. Blair Sheppard is also the Dean Emeritus and Professor Emeritus of Duke University's Fuqua School of Business, where he taught for thirty-three years. He was the principal force behind opening Duke's campus in China, and the founder and CEO of Duke Corporate Education. Blair is a regular speaker at high-caliber international forums including the Global Solutions Summit, the St. Petersburg International Economic Forum, and Slush. He was born in Hamilton, Ontario (Canada) and lives in Durham, North Carolina (US). In his new book, TEN YEARS TO MIDNIGHT: Four Urgent Global Crises and Their Strategic Solutions, Blair sets out why that timeline is so crucial, what the most urgent challenges are and the key elements of a solution. The world faces four crises: A crisis of prosperity, with rising inequality, poor life choices for young people, the squeezed middle class and a mass of people on the brink of retirement but lacking the savings to sustain them; A crisis of technology, as our economic system drives innovation but fails to manage unintended negative consequences which pollute key elements of life support, from our atmosphere to our news; A crisis of institutional legitimacy, as traditional institutions try to maintain their existing structures in the face of major global forces, and find themselves buckling and warping rather than adapting; and, A crisis of leadership, as those who should help us manage these crises instead focus on narrow priorities rather than leading the world towards holistic solutions. Get access to sample training from our advanced programs here: www.firmsconsulting.com/promo We use affiliate links whenever possible (if you purchase items listed above using our affiliate links, we will get a bonus).

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Hello everyone! This is Monday Morning 8 a.m., a weekly newsletter where we distill the insights from all of the distractions, articles, and emails that you receive in your inbox every day. In this newsletter, we're going to focus on four major themes from last week's news. To listen to the audio version of this newsletter, search for "Strategy Skills" in any podcast app. To get a written copy with links to mentioned articles sign up here: www.firmsconsulting.com/promo

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