Strategic Ecosystem Design in Modern Corporations: How Innovation Ecosystems Fuel Sustainable Revenue Growth

In an era where technological complexity and market fragmentation dominate, the most successful corporations are those that transcend traditional boundaries to build interconnected innovation ecosystems. These ecosystems—networks of partners, customers, and stakeholders aligned around shared value propositions—are no longer optional but essential for sustainable revenue growth. The United States Tennis Association (USTA), under the leadership of Chief Commercial Officer Kirsten Corio, exemplifies how strategic ecosystem design can transform a sports organization into a commercial powerhouse. By leveraging the Ecosystem Pie Model (EPM) from Long Range Planning, we can dissect how such strategies create long-term value and why investors should prioritize companies mastering this approach.

The Ecosystem Pie Model: A Framework for Strategic Alignment

The EPM, introduced in Long Range Planning in 2020, provides a structured way to map and assess innovation ecosystems. It emphasizes three core principles: shared value propositions, collaborative risk profiles, and mutability—the ability to adapt to changing market conditions. The model visualizes an ecosystem as a "pie" divided into segments representing different stakeholders (e.g., suppliers, customers, regulators) and their interdependencies. By analyzing these segments, firms can identify gaps, optimize resource allocation, and align their strategies with ecosystem-wide goals.

For instance, the EPM's focus on collaborative risk profiles is critical in today's volatile markets. When stakeholders share risks and rewards, they create a resilient network less vulnerable to disruptions. This is evident in the USTA's $800 million renovation of Arthur Ashe Stadium, which required coordination with vendors, sponsors, and local authorities. By aligning these partners around a shared vision of enhancing the U.S. Open experience, the USTA mitigated risks and unlocked new revenue streams.

The USTA Case: Ecosystem-Driven Revenue Growth

Under Corio's leadership, the USTA has redefined its commercial strategy through ecosystem-driven initiatives. From 2023 to 2025, the organization's revenue grew to $424.6 million, with 91% derived from program services like the U.S. Open. Corio's approach integrates digital innovation, premium hospitality, and strategic partnerships to create a cohesive ecosystem.

1. Digital and Analytical Convergence: The USTA leverages data analytics to optimize ticketing, media rights, and customer engagement. For example, its global media distribution strategy has expanded broadcasting revenue to $149.1 million, while digital platforms enhance fan interaction.
2. Premium Hospitality Redefined: The Arthur Ashe Stadium renovation includes 2,000 new courtside seats, a Player Performance Center, and sensory enhancements like a custom-designed aroma for VIP areas. These upgrades align with the EPM's emphasis on shared value, as they elevate the fan experience while attracting corporate sponsors.
3. Strategic Partnerships: The USTA's five-year alliance with the Intercollegiate Tennis Association (ITA) and integration of the ITF's World Tennis Number (WTN) rating system illustrate how ecosystem alignment fosters growth. These partnerships expand the USTA's reach into collegiate tennis and create new opportunities for sponsorship and community engagement.

Corio's leadership exemplifies the EPM's mutability principle. By continuously iterating on strategies—such as introducing shuttle services to reduce traffic congestion or adopting a fluid hospitality model inspired by Madison Square Garden—the USTA adapts to evolving market demands.

Investment Implications: Why Ecosystem Mastery Matters

The USTA's success underscores a broader trend: companies that master ecosystem design outperform peers in revenue growth and resilience. According to the EPM, such firms excel in three areas:
1. Cross-Functional Collaboration: They break down silos between departments and external partners to drive innovation.
2. Customer-Centric Value Chains: They prioritize user needs, as seen in the USTA's VIP research and sensory enhancements.
3. Scalable Risk Management: They distribute risks across the ecosystem, ensuring stability during disruptions.

For investors, the lesson is clear: prioritize companies that demonstrate ecosystem mastery. Consider Tesla (TSLA), whose ecosystem of electric vehicles, charging infrastructure, and software updates creates a self-reinforcing loop of value. reflects this ecosystem's strength, with revenue growing from $31.5 billion in 2021 to $96.8 billion in 2023. Similarly, Amazon's AWS ecosystem, which integrates cloud services, developer tools, and enterprise clients, has driven consistent revenue growth and market dominance.

Conclusion: The Future Belongs to Ecosystems

The EPM and the USTA's case reveal a universal truth: in a fragmented world, isolated ventures fail. Success belongs to those who build ecosystems that align stakeholders, share risks, and adapt to change. For investors, this means identifying companies that not only innovate but also orchestrate ecosystems to amplify their impact. As markets evolve, the ability to design and sustain such ecosystems will separate the leaders from the laggards. The USTA's journey—from a sports organization to a commercial innovator—provides a blueprint for this future.

In the end, the most compelling investment opportunities lie not in individual products or services but in the networks that connect them. Those who recognize this will thrive in the decades ahead.