CIMA E2 Syllabus A. Business models and value creation - Complexity and Orchestration - Notes ^{3 / 7}

1. Level of Complexity

   Complexity refers to the security of the role of the participant in the ecosystem. 

   High complexity means that the role of the participant in the ecosystem is secure. This is because the barriers to entry are high which means there will be very few new entrants.

   Low complexity means that the role of the participant in the ecosystem is not secure. This is because the barriers to entry are low which means there will be many new entrants

2. Degree of Orchestration

   Orchestration refers to the degree to which one orchestrator can exercise influence over others in an ecosystem. It involves one party organising or “orchestrating” relationships between market participants.

   Tight orchestration is where an orchestrator has a very high influence on the actions of the participants in an ecosystem.

   Loose orchestration is where nobody has a high influence on the actions of the participants in an ecosystem.

The factors are used to assess the degree of orchestration in a digital ecosystem are:

1. Regulatory environment

2. Degree of influence by main player

3. The level of potential compliance fines

The factors are used to assess the complexity of a digital eco-system are:

1. The number of participants

2. The level of barriers to entry

3. The range of the relationships involved