From Vertical Integration To Horizontal Collaboration

I’ve touched on aspects of this topic in a number of earlier writings on ecosystems – which you can explore here. In this post, I focus on the organizational implications of a transition from vertical integration to horizontal collaboration.

Figure 1: Future Ecosystems

We are living through an era of experimentation driven by rapid advances in science and technology, uncertainty across every domain, and the fact that no clear answers exist to the challenges looming before us. As we explore these challenges, they force us out of traditional boundaries. As a result, lines are blurring between industries, sectors, the physical and digital worlds, and the real and the virtual worlds. At the structural level, once distinct Industries and sectors are coming together to address challenges and satisfy human need. Future value creation therefore shifts in orientation from vertical integration to horizontal collaboration.

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