4. The Ecosystem and Strategy Flashcards
What is a strategic network?
A group of interconnected members that work collectively to achieve long term strategic advantages
How has digitech influenced virtual networking, and how has virtual networking in turn influenced modern business?
- Ease of communication
- Cooperating organisations and even virtual organisations
What is a strategic platform?
A platform which enables providers and consumer to transfer goods and services (often web based software)
What are Libert and Beck’s 4 types of business model in the modern ecosystem?
- Asset builder (physical goods)
- Service provider (skilled people)
- Technology creator (ideas)
- Network Orchestrator (connectivity)
What is the main role of network orchestrators?
To create a platform through which other members interact
What are the typical market behaviours of network orchestrators?
Fast growth and better asset utilisations, higher market valuations
What are the 10 principles of network orchestration?
- Create digital capabilities
- Invest in intangible assets
- Actively allocate capital
- Lead through co-creation
- Encourage customer co-creation
- Focus on subscriptions
- Freelance movement
- Big data
- Representative leaders
- Open mindedness
What are the 2 aims of Supply Chain Management?
- To co-ordinate operations from supplier of raw materials to customers
- To achieve synergies that benefit all parties
What is the upstream supply chain?
Raw materials
What is the downstream supply chain?
The eventual customer
What are 4 common practises in good Supply Chain Management?
- Consolidating the supplier base (fewer, longer term relationships)
- Linking IT
- Participation in product development
- Embedded representation
What are the 3 main benefits of SCM?
- Reduced transaction costs
- Improved communication
- Economies of scale
What are the 2 main weaknesses in SCM?
- Only as strong as weakest link
- Involves power relationships
What is the main impact of digital technologies on the supply chain?
Moving to a ‘pull’ system were customer demand pulls products through the supply chain
What are the 3 possible outcomes of SCM?
- Disintermediation (remove middle man)
- Reintermediation (new, different intermediaries)
- Counter-mediation (create own intermediaries)
What has the type of relationship with the upstream supply chain moved from, to?
Antagonistic to partnership
What important document underpins partnerships in supply chains?
Service Level Agreements
What are the 6 main advantages of strong downward supply chain relationships?
- Retains customers
- Existing customers more profitable than new due to less marketing
- Act as advocates
- Effective when switching costs high
- Regular customers alter to problems
- Good for morale and motivation
What 3 things does Adcock advocate for in Customer relationship management?
- Having a customer database
- Having a customer oriented service system
- Aiming for extra customer contact
What are Payne’s 6 markets for relationship marketing?
- Internal (staff focus on customer)
- Supplier (long term relationship and good price)
- Recruitment (strong links)
- Referral
- Influence (sub markets that influence e.g. government, bodies, analysts)
- Customer (existing and potential)
What is CSR?
Corporate Social Responsibility - the ways in which organisations exceed the minimum obligations to stakeholders specified in legal regulations
What is Friedman’s criticism of CSR?
‘The business of business is business’
What are the 3 internal aspects of CSR?
- Employee welfare
- Working conditions
- Job design
What are the 6 main external aspects of CSR?
- Environmental Issues
- Products
- Markets and marketing
- Suppliers
- Human rights
- Transparency and reliability
What are the 4 dimensions of CSR?
- Philanthropic
- Ethical
- Legal
- Economic
What are CIMA’s 5 key findings regarding sustainability and strategy?
- Strong ethics adds value to a brand
- Strong ethics have bottom line benefits
- Must be top down
- High qual info is vital
- Need proper evidence
What are the 3 headings of sustainability initiatives?
- Strategy and oversight
- Execution and alignment
- Performance and reporting
What are the 3 Ps of the triple bottom line?
- Profit
- People
- Planet
What are the 3 technological aspects to be considered under CSR?
- Fair communication (open, transparent)
- Fair expectations (flexible working)
- Fair collaboration (security)
What are the 3 technological aspects to be considered under CSR?
- Fair communication (open, transparent)
- Fair expectations (flexible working)
- Fair collaboration (security)
