Flywheel effect

The term flywheel effect explains the concept of harnessing the collective strengths and expertise of diverse ecosystem partners. In subscription commerce it highlights the connections between technology providers, advisors, and buyers, and the technologies they use. Because these elements work in harmony it fosters greater innovation and growth for everyone, well beyond what would be possible outside of the ecosystem.

The leading global research and advisory firm Forrester describes this phenomenon as the ‘multiplier effect.’

“A multiplier effect increases the impact of a force, including the drivers of partner ecosystem transformation. To take advantage of this effect when scaling a successful indirect business, organizations must reorganize themselves to align, ignite, and orchestrate ecosystems of co-innovation and value creation across the diverse universe of partners.” (Source: The Future Of Partner Ecosystem Marketing Fuels The Multiplier Effect, Forrester, January 17 2023, by Maria Chien, Carrie Hayes with Kathy Contreras, Hannibal Scipio, Kiri Bartels, Arianne Burnette.)