Extending The Enterprise
- A fundamental shift ini the economics of information in underway – a shift that is less about any specific technology than about the fact that a new behavior is reaching critical mass.
- This explosion in connectivity is the latest – and for business strategist, the most important – wave in the information revolution.
- Over the next decade, a new economics of information will precipitate changes in the structure of entire industries and in the ways companies compete.
Companies need not trade off flexibility for integration in critical cross-company processes. By managing the activities of relationship with suppliers as networks rather than production lines, companies can swap their tightly coupled processes for loosely coupled ones, thereby gaining much needed flexibility and improving their performance in the bargain.
Understanding Business Networks
The basic theory of organization –> specialization
- task-based relationship
- information or expertise realtionship
- What should be increased?
- task dependencies –> customized, shared, creative.
- expertise/information dependencies –> real time, fast decision, simulation.
- social interdependence –> trust, collaboration, vision.