Evolution of the Platform Organization: 4 The Future of Networks: Platforms and Ecosystems

Organizational structure has been a central theme in the ‘future of work’ discourse. The transition away from hierarchical to networked forms and the increasing autonomy of individuals and groups with the larger organization has been going on for decades. Nonetheless, as discussed in earlier sections, hierarchical dynamics still pervade the world of business. Why?

One hypothesis is that no other organizing principle has come along to decisively displace hierarchy. Yes, many organizations have tried to relax command-and-control thinking and management theories, as with Stanley McChrystal’s task force and Zhang Ruimin’s Rendanheyi. However, we may now have an approach to organizational and inter-organizational coordination that will lead to the displacement of hierarchical institutions: ecosystems.

Ecosystem is a term borrowed from biology and reapplied to strategy research and practice. The term has grown in use, increasing sevenfold over the past few years. At the most basic, the term is used to…