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Tim Gieseke

Capitalizing on [Business] Ecosystem Services

Burgess COMMENTARY

Peter Burgess

Capitalizing on [Business] Ecosystem Services

The recent, most successful businesses seem to be an anomaly in how businesses are supposed to make money as Tom Goodwin stated,

'Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate. Something special is happening.'

The 'something happening' is certainly special, but it is not new under the sun. These business are recognizing that ecosystem services have tremendous value to all the species in the ecosystem. That is where most get lost....

Ecological Ecosystems beget Business Ecosystems beget E-Commerce Ecosystems beget EcoCommerce Ecosystems.

Okay, in the mid-90s, Moore began to see how businesses in the increasingly complex economy were acting like species within a business ecosystem rather than like individual and independent entities. This evolution accelerated with the internet to create e-commerce ecosystems, such as Alibaba. Alibaba is no longer a business within an e-commerce ecosystem, but is the sphere in which the e-commerce ecosystem resides (a biome for those ecologists).

An economists would describe Alibaba's strategy of making money by creating and enabling the structure, functions and processes of an e-commerce ecosystem.

An ecologist would describe the structure, functions and processes of an ecological system as ecosystems services. Hence, Alibaba makes money via creating [business] ecosystem services.

So why does this matter?

First, it might bring economists down to the earth to realize not only is the ecological system the foundation of the economy, but its operating system is far superior.

Second, if ecosystem services are so vital to the prosperity and productivity of the economic system, perhaps we will realize they are vital to the productivity of the ecological system that we primarily depend on.

Thirdly, the multi-sided business platforms (of Alibaba, Uber, etc.) that create the structure, functions and processes of e-commerce ecosystems are now able to process the complex transactions to express the value the structure, functions and processes of ecological systems.

Ecological Ecosystems beget Business Ecosystems beget E-Commerce Ecosystems beget EcoCommerce Ecosystems.

At the interface of natural ecosystems and e-commerce ecosystems lies an eco-commerce ecosystem. Something special is going to happen here.

Neil F. Crescenti Neil F. Crescenti 2nd Clean Water Project Manager at Willamette Partnership Interesting read. To me the idea of ecosystem services is an evolution of our thinking around the use and management of natural resources. Rather than just considering the product value of resources and regulatory management of the use of those resources, there are increasing examples where a more holistic suite of benefits are considered in decision making. I think through these processes resource management will become less siloed. LikeReply2 hours ago

Charles Lines Charles Lines 2nd Independent Consultant, Blogger and Author Ah, but what sort of governance Tim Gieseke ? I think it will take more time and be 'messier' than traditional approaches. But that is not necessarily a bad thing - where complex problems, etc., are concerned. LikeReply2 hours ago

Charles Lines Charles Lines 2nd Independent Consultant, Blogger and Author This marrying of ecology and economy is yet another example of how new hybrid areas are evolving all the time within our ever more complex and interconnected world. As we collaborate more things will not only join up but also merge into new and useful areas for exploration and beneficial exploitation. LikeReply(1)4 hours ago

Tim Gieseke Tim Gieseke AUTHOR 1st President, Ag Resource Strategies, LLC Charles Lines, my most recent revelation is that 'governance' is the glue to merge and create the interface for the ecological and economic systems Like3 hours ago

Tim Gieseke Tim Gieseke AUTHOR 1st President, Ag Resource Strategies, LLC Thanks Peter Burgess. Seven years ago my intuition told me it was possible to value natural capital at the landscape scale. Today the technology is here to meet the demand. It is more complex certainly than typical accounting. My quest for 2016 is to pull the pieces together (not really that many) to pilot a multi-sided platform - to demonstrate the first eco-commerce interaction. I understand the ecosystem well enough to steer the governance on this first run. LikeReply14 hours ago

Peter Burgess Peter Burgess YOU Tom Gieseke ... I love what you are wanting to do. It fits perfectly with my own efforts. My position is that we have money metrics for the economy, but we don't have effective metrics yet for natural capital nor metrics for social or human capital. Given that the PURPOSE of all economic activity is to improve and maintain standard of living and quality of life, it seems that such metrics should be part of the package and it also seems self evident that optimization should be getting the best quality of life with the minimum of damage to the environment. Our man built economy (man built structures and systems) should be judged on how well it supports this core mission. Yes ... we have the technology to do this sort or metrics , and a starting point is an architecture for the core data that must drive such a system. http://www.truevaluemetrics.org Best wishes.

Peter Burgess Peter Burgess YOU Founder/CEO at TrueValueMetrics developing Multi Dimension Impact Accounting This is a short piece ... but it is deep. My own dream is to figure out how to make 'accounting' as efficient for the measurement of progress and performance for people and planet as we have in conventional accounting for money and profit. http://www.truevaluemetrics.org