the days of the corporate lone wolf are over. stand alone vs. networks
TRANSCRIPT
The days of the corporate lone wolf
are over
Stand alone VS. Networks
Smart companies rely on networks of :
PartnersSuppliersCustomers
Integrated business ecosystemcollective whole success
Operating in a business environment of shared fates
Business models Ecosystem allows the
companies to be more resilient to market changes and customer needs.
Why & are still surviving?`
The answer:
They are still at the hub of the business ecosystem.
They work with a network of partners to bring products and services to customers.
case study: IBM and Avaki have secured corporate
customers IBM provides computing platform while Avaki
provides the software Leveraging the assets and capabilities and
establishing a partnership Helped both the health and the market in both
IBM and Avaki
How to achieve a good network and competitive ecosystem?
Competitive advantage Sophisticated technology Traditional management systems with
emphasis on internal capabilities are no longer sufficient.
Steps to implement ecosystem stategies:
1st step
Understand Ecosystem Strategies
Make use of the biological ecosystem ideas to achieve a holistic strategies that fit the new networked business world.
Biological & Business Ecosystems
Steps to implement ecosystem stategies:
2nd stepUse technology as a connective tissue
Effect of Technology on ecosystem: Function properly & easily Grow Develop
case study:WAL MART success is based on IT decisions and especially the major CIO role in the retailer business
All the decisions especially outsourcing decisions are based on IT decisions.
Retaillink business information platform allows WAL MART to know details about customers and sales from every scanner in store, send them stock keeping units that forms tables, analyze and sote the data
WAL mart share the data with suppliers which helps in being more cost effective than competitors.
Role of CIO in ecosystem business strategy Should find IT systems
that Monitor Manage the
external partnersIn addition to:
•Monitor
•Manage internal assets
•HR, Product life cycle.
case study
Intellectual asset creationIBM investment of $1 billion in LINUX
Importance and significance:
IBM: asset value and market share
LINUX: fast growing operating system in the future.
eBay is an example of a perfect model of a healthy ecosystem
eBay has created networks and a transparency model of sharing information with partners.
eBay is receiving 85% of web based auction revenue.
P&G working vision
“the consumer-driven supply network”
The new vision is different in:
• consumer first
• a network not a chain
supply network•Real time demand information
replace point of sale with electronic product code(EPC), (RFID)
•Communication
E-mails, Faxes, or live video conference with partners
•Product to demand manufacturing system
goal s to use IT to be able to produce every item every day instead of every month or week.
•Dynamic replenishment and distribution
goal is to deliver tomorrow what consumer ordered today
beliefs
P&G and WAL MART are forming a partnership by which they work together to define, test and launch new strategies.
Benefits of partenership ecosystems:•Increase revenue
•Reduce costs, inventory and expenses.
•Improve services
Result A (win – win) situation
for all partners.