ABSTRACT
Blurring industry boundaries and reorganization of the conventional linear value chain led to new configurations that have come to be known as digital ecosystems. This chapter discusses how firms compete in a rapidly digitizing ecosystem environment. First, this chapter examines the architecture, demonstrating the driving forces behind digital ecosystems. Second, governance decisions that ecosystem orchestrators make for strategic advantages are addressed. Finally, this chapter emphasizes customers as the quintessence of digital ecosystems. Topics such as customer centricity, customers as co-creators, and customer trust are scrutinized. The chapter concludes by emphasizing how the digital ecosystem promotes collaboration across entities.
