Change is something that organisations and enterprises have to contemplate with all the time
Politics, Economy, Society, Technology, Environment are change drivers which affect the dynamics in the marketplace
The pace, frequency and impact of change would require strategic response from organisations and enterprises
Network-Centric Competition Your Business Your Customers Your Customers Your Customers Your Suppliers Your Network Partners Your Competitors Your Competitors Economy Environment Technology Society Politics
Re-configure your value chain – what is your unique selling proposition ?
Re-invent your business model – how do you structure your business to interact with business partners and suppliers to offer your USP to your clients?
Re-think your business process – could it be done differently in a more effective and efficient manner which add more value to clients?
Network-Centric Competition An enterprise vertically structured Market 1 Market 2 Market 3 Direct present Vertical Integration? Direct present Direct present
Network-Centric Competition An Enterprise leveraging on network Market 1 Market 2 Market 3 Direct present Network- Centric? Network Partner Network Partner Service Platform Owner
Network-Centric Competition Clients Problems Business Services Firm 1 Business Services Firm 2 Sorry, no capability Yes, we have solutions! Knowledge provider Subject Matter Expert Business Services Firm 3
Network-Centric Competition Network-Centric Competition Principles 1 – Adapted from the Principles of Network-Centric Innovation, The Global Brain, Nambisan and Sawhney Principles of Network-Centric Competition 1 Description Examples Shared goals and objectives Common goals bring network members together Customers community Shared “world view” Common assumptions, mental models Open Source Community “ Social” knowledge creation Interaction among members as basis of value creation Inventor networks Architecture of participation Systems, mechanisms, processes to participate Open source community
Network-Centric Competition Management Features Leveraging on like-minded partners Network-Centric Elements Features Network leadership Orchestrating the behaviour of network members and network activities in creating value to clients Network governance A clear articulation of the roles and responsibilities of the members in the network Supporting infrastructure Knowledge management, project management, technology platforms, business tools etc which are core to the USP of the network Intellectual property management and value appropriation protocols Cover how intellectual property is developed, owned and shared as well as the value created through the use of the IPs are shared
Leveraging on like-minded partners Business Services Firm Business Partner Business Partner Existing Clients New Clients New Clients Existing services based on existing capabilities New services based on partner’s capabilities New services based on newly acquired capabilities New services to new clients based on partner’s capabilities New services to new clients based on partner’s capabilities and new distribution channels
Issues in competing using Network-Centric strategy
Could an enterprise build strategic relationships with like-minded enterprises to serve common customers or markets?
What would bind these enterprises together?
Who should lead the network? What are the reasons for this right of leadership?
How would the members of the network benefit from the network?
How should an enterprise structure itself internally to be effective in the network?
Cultural changes in applying Network-Centric strategy
Leadership – willingness to share strategic issues and rely on network partners based on agreed parameters
Team – ability to understand the strategic relationship and execute plans holistically, need to do away with “Not Invented Here” and “We Know Everything” syndromes
Internal processes and procedures need to be change to accommodate the network-centric strategy – training and re-training needed