- Hardcover: 304 pages
- Publisher: Jossey-Bass; 1 edition (August 17, 2009)
- Language: English
- ISBN-10: 0470528346
- ISBN-13: 978-0470528341
- Product Dimensions: 6.4 x 1.1 x 9.3 inches
- Shipping Weight: 1.1 pounds (View shipping rates and policies)
- Average Customer Review: 3 customer reviews
- Amazon Best Sellers Rank: #2,684,977 in Books (See Top 100 in Books)
Enter your mobile number or email address below and we'll send you a link to download the free Kindle App. Then you can start reading Kindle books on your smartphone, tablet, or computer - no Kindle device required.
To get the free app, enter your mobile phone number.
Business Network Transformation: Strategies to Reconfigure Your Business Relationships for Competitive Advantage 1st Edition
Use the Amazon App to scan ISBNs and compare prices.
"Operational excellence can no longer be achieved by focusing only on a company's internal resources. Companies today operate with tightly-linked global business networks. This book provides managers with vital insights on how to achieve alignment and process efficiencies across their entire virtual organization of suppliers, customers, complementors, and alliance partners."
—Robert S. Kaplan, Baker Foundation Professor, Harvard Business School and chairman, Professional Practice, The Palladium Group
"This book makes the connection between the wave of new technologies and their ability to create entirely new value throughout a business network. It's about the creation of revenues and profits by working in a wholly different manner with your extended business network. If you have to pick one book to get the whole picture on the new world of business networks, then get this one and share in the common understanding a remarkable collection of business leaders have brought to the topic."
—Andy Mulholland, Global Chief Technology Officer, Capgemini
From the Inside Flap
From the Introduction:
"This book is about the evolving nature of global business and the ways that a company's network of relationships (with suppliers, customers, and other partners) is being reconfigured to derive competitive advantage and increased profitability.
Business network transformation is a true market movement and isn't something that can be ignored. As the pace of business change accelerates and businesses become increasingly connected, business networks provide the new source of competitive advantage for companies. We are now witnessing a global transformation into dynamic and orchestrated business networks in which each entity is focused on its key differentiation while collaborating with others in its network to deliver higher shared customer value, speed of innovation, and cost benefits.
Companies rely on partners not only to take on non-core activities so that resources can be funneled into innovative activities, but also to collaborate with them for new product development and new ways to enter attractive markets. Globalization and deregulation are empowering companies to discover innovation and talent from all corners of the world and to enter emerging high-growth markets that require new partnerships. Companies in the value chain must act as one entity to serve the end customer, who is armed with more information and has more choices than ever before."
- Geoffrey Moore and Philip Lay, TCG Advisors
Marco Iansiti, Harvard Business School
Mohan Sawhney, Kellogg School of Management, Northwestern
Ranjay Gulati, Harvard Business School
David Kletter, Booz Allen Hamilton
N. Venkatraman, Boston University
John Hagel III, John Seely Brown, and Gautam Kasthurirangan, Deloitte
Randall Russell, Palladium Group
Henry Chesbrough, University of California at Berkeley
Jeffrey Dyer, Brigham Young University
Andrew McAfee, Harvard Business School
Top customer reviews
There was a problem filtering reviews right now. Please try again later.
The book is easy to read, the concepts clear, and the discussion ample. But the details are few; the ideas seem pretty well established so if you are following this stuff not much new here. Overall Jeffrey Wood the editor from SAP did a nice job of walking the line between getting the company's message out through thought leaders who are able to express themselves.
The fact that this book will get a market push, primarily with business execs means that its one that you should be aware of because people are going to ask about business network transformation - particularly if you have SAP.
* The book's chapters are with real thought leaders and academics who are sharing their ideas presented in a BNT context.
* The book provides a comprehensive discussion of BNT from a strategy, IT, operations, measurement and innovation perspectives. This is not a one trick book.
* The individual chapter authors do a fairly good job of not repeating each other or contradicting each other, so it reads as a book about a single subject.
* The books chapters have been written to order - the idea of BNT - to varying degrees. This seems to be the idea that SAP is getting behind so because they are behind it the authors are at a minimum saluting the idea - this robs the reader of some deep discussion and analysis of the merit and pitfalls of the ideas behind BNT.
* There is little to no treatment of the finances and financial governance of these approaches. One of the things holding BNT's back is how we account for them, particularly in a services environment. The book is largely and surprisingly silent on this point.
* There is much discussion and very little detail in the chapters about actual experiences, what works and what does not work. The authors seem to be at least one or two degrees removed from the actual case experience or the experience is a few years old.
The move to business networks is not particularly new. The discussion of them has been going on for some time and this book makes a valuable contribution to the discussion with 11 chapters focusing on different aspects of business networks. The chapters are:
1. Transforming your business network (Philip Lay and Geoffrey Moore) - a general introduction into the idea and an attempt to brand BNT as a business term.
2. Business Network Transformation IN action (Marco Iansiti and Ross Sullivan) - a discussion of the BNT ideas in general with surprisingly general case studies. This is a repeat of Iansiti's Keystone Advantage HBR 2004.
3. Creating superior customer value in a connected world (Sawhney and Gulati) - provides a comprehensive but conservative view on BNTs.
4. Shrinking core, expanding periphery: the relationship architecture of high-performing organizations (Gulati and Kletter) is a reprint of a California Management Review 2005 article which provides some helpful frameworks for thinking about the different stages. But, it's a little dated particularly if you have been following research in the area.
5. Product leadership in a network era (Venkatraman) - provides a logical and complete description of the product opportunities, but again nothing earth shattering here.
6. Driving collaborating success in global process networks (Hagel III, Seely Broun, Kasthururangan) features some good case studies on Li & Fung and other companies. This chapter is probably the best of the book.
7. Operational excellence: the new lever for profitability and competitive advantage in a networked world (Russell) - perhaps the worst chapter in the book as it is an extended info-mercial for the balanced scorecard and strategy maps.
8. Constructing and managing innovation in business networks (Chesbrough) a good chapter that rehashes the author's concepts about open innovation. I would suggest the book as being better.
9. Value of trust in business networks (Dyer) - a good discussion of the issue of trust in the automobile industry which is highly networked.
10. The role of IT in business network transformation (McAfee) - the discussion is a little overly simplistic regarding the use of IT in creating networks and the examples are more seasoned (older) The author quickly moves to his definition of Enterprise 2.0 and does not provide much guidance.
11. Road map to transform your business network (Lay and Moore) -- Exactly the type of wrap-up chapter you would expect complete with a maturity model for BNT that requires a full suite of ERP tools. I am sure you will see in consulting and other presentations.
More often than not, this means an organizational transformation within a global transformation, "into dynamic and orchestrated business networks in which each entity is focused on its key differentiation while collaborating with others [including former as well as future competitors] in its network to deliver higher shared customer value, speed of innovation, and cost benefits." Companies have no choice but to seek out within and (yes) beyond their competitive marketplace for new or better ways to serve their end customer.
The most appropriate business model is perhaps best described by Henry Chesbrough in his seminal works, Open Innovation (2003) and Open Business Models (2006): "A business model performs two important functions: it creates value and it captures a portion of that value. It creates value by defining a series of activities from raw materials through to the final consumer that will yield a new product or service with value being added throughout the various activities. The business model captures value by establishing a unique resource, asset, or position within that series of activities, where the firm enjoys a competitive advantage."
Having thus established a frame-of-reference, Chesbrough continues: "An open business model uses this new division of innovation labor - both in the creation of value and in the capture of a portion of that value. Open models create value by leveraging many more ideas, due to their inclusion of a variety of external concepts. Open models can also enable greater value capture, by using a key asset, resource, or position not only in the company's own business model but also in other companies businesses."
To those who have relatively little (if any) prior experience with business network transformation (BNT), I suggest that they first read and then re-read Word's brilliant Introduction and the first chapter, "Transforming Your Business Network" co-authored by Philip Lay and Geoffrey Moore, before proceeding to the other material. This approach will provide a frame of reference for Marco Iansiti and Ross Sullivan's discussion of "Business Network Transformation in Action in Chapter 2, and, a solid preparation for the information and advice that follow in Chapters 3-7 on how to achieve these strategic objectives:
o Creating superior customer value (Mohanbir Sawhney and Ranjay Gulati, Pages 39-57)
o Shrinking core while expanding periphery of the relational architecture (Gulati and David Kletter, Pages 59-95)
o Achieving and sustaining product leadership (N. Venkatraman, Pages 97-121)
o Driving collaborative success on global networks (John Hagel III, John Seely Brown, and Gautam Kasthurirangan, Pages 123-150)
o Leveraging profitability and competitive advantage with operational excellence (Randall H. Russell, Pages 151-177)
The material in the first two and remaining four chapters is of comparable scope, depth, and value. Readers will appreciate the fact that at the conclusion of the 11 chapters, rather than a formulaic summary of key points or checklist of "action steps" to be taken (albeit devices that can also have value), the author or co-authors of each suggest what is most appropriate for a conclusion to the given material. For Chapter 8, Chesbrough offers "Practical Lessons for Business Network Innovators"; for Chapter 9, Jeffrey Dyer concludes with suggesting a process by which to identify underperforming business partnerships; for Chapter 10, after explaining the role of IT in BNT, Andrew McAfee shares his thoughts about "Betting on the Next Wave" as he poses "three simple questions" he urges his reader to consider when defining appropriate IT initiatives; and at for the conclusion of Chapter 11, Lay and Moore also pose several questions, in this instance to help management teams to determine when and where to start "their BNT journey."
Again, I presume to suggest to those who have relatively little (if any) prior experience with business network transformation that they first read and then re-read Word's brilliant Introduction and the first chapter co-authored by Lay and Moore before proceeding to the other material. Ultimately, of course, each reader must determine what is of greatest interest, relevance, and value. Also, with all due respect to the quality of the advice offered throughout the volume, the reader must also determine which of it to follow and then, key point, how to execute it in the given organization.