
Profiting from a networked business reality
Collaborative networks reduce organizational hierarchies. Such networks are created by identifying and promoting communication networks that benefit both the individuals involved and the business as a whole.
To be commercially effective over the long term, the individuals involved in a collaborative network must experience a personal sense of achievement. There must also be measurable business gains that justify the investing of time, effort and resources to promote collaboration.
There are two types of collaborative networks that can be developed. One is “internal collaborative networks” between different divisions of the same business. The other is “external collaborative networks” between businesses that may be competitors.
Internal Collaborative Networks
This allows for a better utilization of both financial and human resources.
We see design collaboration in the use of common parts for different models of cars for example. This can lead to cost reduction. But when a common part is defective, the trade-off in reduced manufacturing cost can be a larger number of recalls for a wider range of car models.
External Collaborative Networks
This can allow two or more competitors to pool resources that lead to these businesses dominating the market.
The two major smart phone producers may have been suing each other over patent rights but this did not stop them from collaborating in the manufacture of the technology components that are inside their differently designed products.
Today’s software and communications technologies allow all businesses big or small to leverage on intellectual capital and market knowledge to create and deliver quality products or services worldwide.
Creating Collaborative Networks
Many businesses are not aware of the “informal collaborative networks” that are available for them to tap into to create better products or services and develop a stronger market presence. The people we meet at business exchanges, chambers and meetings may potentially be strategic partners who can be a part of our collaborative business network.
Information technology has created more networked markets that allow individual specialist across the industry to communicate seamlessly. The question then is, “Are you effective in utilising all the knowledge and skills of the human resources at your disposal for maximum business benefit?”
An external consultant can work with you to objectively identify collaborative networks that could be developed to promote sustained high business growth.
Collaboration between human beings can be both exhausting and invigorating. It is therefore important to manage the human relationships involved in a manner that promotes sustainable creative activity that leads to greater innovation and competitiveness.
Siddha Param
International Business Consultant
Reboot your business plan for sustained high growth
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