SAP, Oracle, IBM and Cisco all offer capital-intensive solutions that enable companies to handle multitudes of data to improve performance. These system integrators are now developing ways for this data to be shared, analyzed and used by partners of their clients. Wal-Mart has long been the fabled example by working with suppliers to provide troths of demand data to improve inventory management. Yet these companies are behemoths with large resources at their disposal, and even larger cash reserves.
Most companies can't afford multimillion-dollar system integrations but the thing is - they don't need to. Forking out seven figures for infrastructure certainly isn't the first step. Imagination is more valuable than software when sharing concepts and best practices. Start by re-thinking the ways that value is generated and delivered and then imagine the opportunities offered by sharing operations and removing redundancies with your suppliers, partners or even competitors. It's time to see everyone in the vertical value chain as partners; not just customers and suppliers.
It is increasingly apparent that companies are not meant to go it alone. Integrating operations across multiple companies produces a nexus of agile and responsive partners that work together to build value. In business guru's speak this is referred to as an Enterprise-Value Network.
However, developing new operations systems and implementing complicated IT solutions can take years to realize value. There aren't any New York Times best sellers to guide you on how to build a value network. Yet there are simple ways of approaching the challenge. While the implications of a Total Value Network are deep the first part of successfully developing a network are directly related to communications and strategic planning.
You have to talk to your network. It's people first, then processes, and lastly systems.
Relationship Management is the primary ingredient to building a strong network. Not just outreach but understanding; you must understand your partner's goals, concerns, strengths and weaknesses. In doing so you will learn which elements of your respective companies can blend together. More importantly you will know which elements are at odds and must remain internal.
Once the relationships that will construct your network are established it is possible to begin sharing knowledge and building communities of practice. This works because much of a company's ability to function is stored within its people, and how its people work together.
This is especially true for new companies and nascent industries. Build a network to help build competitive advantage. Garner support from a wide base to diversify risk and exposure. Share customer information to get to market quicker. Offer incentives to gain access to new audiences.
One your network is established and your people and processes are connected, then it is possible to discuss a unified approach to market's and investment. An investment might make more sense if multiple partners are simultaneously taking a stake.
Companies have to re-think the way they reach out to other companies, but also government and non-governmental organizations, as well as community groups. Move beyond Enterprise Value Networks and into Total Value Networks. Trends indicate that corporate America is influenced by various third party groups. Large corporations are building value networks up and down the partner chain. You can view this as a risk, or an opportunity. You can try and stay afloat on your own or build an armada of our own.
