Move to this new, inter-enterprise operating system enabled and accelerated by the convergence of 3 mega-trends: Shift to cloud-based delivery models. Blurring of the lines between Enterprise Apps and Social Media Channels and Communities – Enabling the new networked economy requires three things: Cloud-based TECHNOLOGY COMMUNITY CAPABILITIES
The networks we use to run our daily lives share these three components of TECHNOLOGY, COMMUNITY AND CAPABILITIES.
enterprises see the benefits that the combination of cloud computing, enterprise apps, and community can bring to their business……and they want to take part in the Networked Economy.CFO Magazine study of 200 global finance executives: View using technologies – like the cloud and business networks – to better discover, connect, and collaborate with their customers, suppliers, banks, and other trading partners was a top priority for agility and growth.CIO Magazine study found IT executives prioritizing investments to improve external collaboration.Research series from Harvard Business School points to inter-enterprise collaboration as THE key competitive competence going forward.
And for good reasonHaving a Networked Business drives top and bottomline benefits.McKinsey and Co. did a study last year on the impact of the Networked EnterpriseFinding: Networked Businesses outpaced their less Networked peers in nearly every category of business performance…by a wide margin.
There’s lots of room to grow in the Networked Economy.Companies have spent billions of dollars in personnel, reengineering, and systems over the past two decades to improve their internal process and information flows.These Islands of Efficiency are disconnected from the outside world and fall down where it matters most – when buying, selling, or exchanging cash with other businesses. >80% of POs, Invoices, and other transactions still take place offline…Lots of paper…lots of people…and lots of inefficiency.All this inefficiency costs business $650 billions per year in missed sales opportunities, higher operating and supply chain costs, and slower cash flow cycles.
In the Networked Economy…businesses and their supply chains operate much differently and much more efficiently.Connected to customers, suppliers, and other partners. Efficient by using cloud-based applications.Informed thanks to community intelligence,market insights, and best practices.Benefits of the Networked Economy are available to all members of the community – from the world’s largest multi-nationals…to small suppliers.
And For Good ReasonBenefits of the Networked Enterprise 77% increased access to 63% increased 55% knowledge marketing better effectiveness 41% information sharing 43% improved greater collaboration market across silos 24% share increased revenue 8% higher margins “Networked enterprises were 50% more likely than their peers to have increased sales, higher profit margins, gain market share, and be a market leader.” Source: McKinsey & Company, “The rise of the networked enterprise, Web 2.0 finds it’s payday.” Survey of 4,394 executives. December 20107 Ariba, Inc. 2011 All rights reserved.