The German computer science pioneer Karl Steinbuch in 1966 remarked: “In a few decades time, computers will be inter-woven into almost every industrial product.” The increasing prevalence of software ecosystems and platforms today calls for the ability to augment solutions and support an emerging portfolio of leading technology solutions and trends. It is unquestionable to design or use any software technology without taking into account digitalisation trends the emerging technological innovations (e.g., Big Data, Internet of Things, Systems of Systems) and without considering standing on the shoulders of a multitude of layers of platforms and ecosystems. In our research we investigate efficient ways to organise and carry out product development in software ecosystems with the target to satisfy mutual and conflicting requirements from the involved parties. This led to the formulation of the overall research questions (RQs): RQ1. What are the implications on the business models of the different actors, when moving from a traditional supply chain to a dynamic SECO? RQ2. What are the options for improved design of product architectures to handle the contradictory requirements of openness, flexibility and dependability, and to allow efficient product line management? We identified challenges with respect to 3 categories: a) organizational, b) technical, and c) business and use a schema to conceptualise an ecosystem for Federated Embedded 1 8 1 8 2 182 18182 – Software Business, Platforms, and Ecosystems Systems encompassing of four layers: actors, business processes, services and components. We described in an explorative case study (based on interviews with 15 senior staff members at 9 companies related to Embedded Systems) our findings mapped according to the Business Model Canvas (BMC) to highlight the interrelated parts and characteristics of the domain. Openness in SECO was evaluated in 7 companies including 8 practitioners taking into account their practices and methods. Moreover, we target efficient and informed architecture formulation through the selection of existing components and services, and fast architectural adaptations which is crucial for companies’ success, with a systematic approach in the decision-making process with respect to components, services and platforms.