How The Network Wins - van Heck & Vervest 2007 Flashcards
Why do smart business networks deliver exceptional results? (van Heck & Vervest, 2007)
Companies make different linkages, combine different capabilities from many different parties, are more agile and move positions faster. They have a strong network effect (the more users, the more useful the network becomes, the more difficult it becomes to switch and the less likely the user will move to another network)
What is pick, plug and play? (van Heck & Vervest, 2007)
The ability to quickly connect and disconnect with an actor; the selection and execution of business processes across the network; and establishing the decision rules and the embedded logic within the business network
Rules should be agreed upon for when the actors are disconnected (completed an order or no longer be a member of the network)
An expectant web of participants ready to jump into action (pick) and combine rapidly (plug) to meet the requirements of a specific situation (play). On completion, the participants are dispersed to “rest” while, perhaps, being active in other business networks or more traditional supply chains.
What is the network horizon? (van Liere & Koppius, 2007)
The number of nodes an actor can “see” from a specific position in the network. If a company has a broader horizon (heterogeneous), it can sustain a competitive advantage. If all companies have the same horizon (homogenous), this advantage will disappear as any opportunity can be spotted by many firms.
What are the 3 layers of the new business network approach? (van Heck & Vervest, 2007)
Business Operating Layer (not included in the Traditional business logic)
Transaction Layer
Logistics Layer
