Game Theory: A meaningful tool to create and enhance an Ecosystem
Tuesday, June 9th, 2009 by Rodrigo PenalvaIt’s interesting the relationship made by Antonio in his post with the concept of ecosystem and the Game Theory. A successful ecosystem happens when one engages different and complementary groups towards a common goal, using sided network effects produced by these complementary groups to increase the power of the ecosystem.
The first big challenge is to create an expectation in these groups by transmitting them a message that one is looking for a win-win result, looking for cooperation instead of competition as in Game Theory. One example was when Apple launched a new SDK, communicating that its effort was to facilitate developers’ work.
However, to transmit the message that you are looking for a win-win result is quite difficult because normally, the group or just a few players of the group that you are trying to engage have conflicting goals. Therefore, it becomes a tough job to maintain the image that you are interested in developing an ecosystem; it is tough to reach a unanimous solution and actions among players of the ecosystem. One example could be the Google’s image nowadays. A lot of people are starting to become skeptics about how Google manage the customers’ personal information: Google is failing to transmit the message that it just uses the customers’ information in anonymous way, and maybe for this reason, Google is losing its credibility.
The second challenge is to fulfill the expectation created. The company needs to create innovative solutions that fit in these groups’ needs. Apple Store is a good example. First, it created a simple way to buy music where it’s possible to buy just one song and not the entire CD. In addition, the price of each song becomes standardized.
Besides, innovation is not just something that we wake up someday and say: “Today I want to create a disruptive innovation.” Google and Apple, two reference companies when we talk about a portfolio of innovative products, really have innovation embedded in their values. Google’s 20% rule is an example. The company allows its engineers to spend 20% of their working time on corporate projects of their choice.

