Business in networks. Håkan Håkansson

Transcription

1 Business in networks Håkan Håkansson

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3 DUCATI

4 The Lack table

5 Salma

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7 Opera Mini

8 and now to THEORY

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10 The Business World as a Jungle - Starting in Townsend story of the island of Juan Fernandez - Supported with ideas from Darwin - Polyani (1944) the natural equilibrium among fighting units - Antagonistic behavior creating an equilibrum with optimal resource allocation

11 Basic logic Jungle Hostile interaction (transactions) Markets Economizing Innovation

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13 The Business World as a Rainforest The importance of thick interaction Interdependencies between activities, resources and actors Actors trying to find a suitable role The business world as a complex and multidimensional totality featured by relatedness, variety and motion

14 Basic logic Rain forest Thick interaction (relationships) Networks Economizing Innovation

15 Consequences The importance to develop single relationships How to develop single relationships The importance to develop the company s network How to develop the network

16 Business Interaction

17 VALUE OF A RELATIONSHIP Is based on what is produced within the relationship Is also based on how this affects other relationships Value creation is thus affected by a doubble interaction - one within the relationship and one between this relationship and other relationships

18 Within the own organization To have right attitude to interaction To have motivation for interaction To have back up in the interaction To have relevant knowledge for taking part in interaction

19 Exampel: Ducati Had to do a turn around Own production only 20% of product value Suppliers have to be highly activated

20 Organization before the change Finance AD Personnel Quality R&D Operations Sales I.T. Purchasing Direct iron materials Direct non iron materials Electric materials, plastics, commercials Indirect materials, services, plants

21 Organization after the change Finance AD Personnel R&D Operations Sales Quality I.T. Suppliers Development 1 Colour 2 Electronic 3 Engine 4 Functional Groups 5 Commodities Buyer Buyer Buyer Buyer Buyer Logistics Logistics Logistics Logistics Logistics Product Dev. Product Dev. Product Dev. Product Dev. Product Dev. Quality Inspector Quality Inspector Quality Inspector Quality Inspector Quality Inspector

22 A supplier development group Colour Buyer Logistics Product Development Quality inspection

23 Business Interaction

24 Interactive capabilities Be able to handle interaction proceses over time in terms of technical issues administrative issues social issues

25 Example: IKEA The Lack table Low price over a period of 30 years Simple product four legs and a table top Has been continuously developed

26 Constant development IKEA has done more than 100 projects with key suppliers in order to keep the low price IKEA has in these projects been involved in all technical, administrative and social elements of the total interaction developed suitable tools

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28 Lack : an interactive development story >20 B. units involved, mostly outside IKEA GBA2 at IKEA of Sweden: complete responsibility for Lack Swedwood BoF-division, Poland (three plants): produce IKEA TSO, Poland : purchase Wicoma, Poland: engineering partner KronoPol, Poland: HDF, chipboard supplier Becker-Acroma and Akzo-Nobel, Sweden: lacquer suppliers Sorbini, Italy, Bürkle, Germany: coating line suppliers IKEA Sales Organizations, Retail Units, Distribution Centres

29 Continuous process Specific relationship goals Joint development of relation specific goals

30 Business Interaction

31 Influencing the counterpart To find the right counterpart To get the counterpart to become motivated get organized for interaction develop suitable tools (accounting etc) develop interaction with others

32 Example - Salma Tine tried during several years to find right counterparts for their Salma as a salami in Asia and in Europe especially Germany. It became a success when they reformulated the project and went for established partners in Norway

33 Ducati and IKEA In both cases the choice and activation of the counterparts are important elements To get high priority but also to influence the counterpart to keep other important counterparts

34 Business Interaction

35 Network effects All relationships are connected to some other relationships Thus, changing in one will have effects also in other relationships There are important domino and chain effects as well as broader network effects

36 Example: Opera Mini Opera Software realized in 2008 that it had got a lot of users in Nigeria. Today, the company has more than 10 million users in Nigeria. These all use the web browser Opera Mini to connect to internet via their mobile phones

37 Opera cont Opera Mini was developed in a special project where the customer choose another supplier. An early alliance with Nokia which included that Nokia pre-installed Opera Mini on their low priced telephones. These telephones became popular in Nigeria and som other developing countries due to the bad infrastructure in terms of fixed telephone lines.

38 One problem The users are not paying for using the web-browser Thus, a lot of use (Face book!) but no «sales» But, the users must use the mobile phone and the operators of mobile phones interested in getting an increased use. New alliances!

39 A Model of Business Interaction

40 How interaction between resources affects Products - adaptations to other products and facilities and to business logics Production facilities adaptations to inputs and outputs and to business logics Business units adapt knowledge and capabilities Relationships getting a certain content (links, ties, bonds)

41 The importance of business networks Networks can be more efficient than «markets» Networks can be more innovative than «markets» But networks require interactive capabilities

42 Interactive capabilities to be able to activate the counterpart to influence the counterpart to activate itself to develop and handle interaction processes to create interactive agency technical, social but especially economical issues

43 Interactive capabilities cont. to combine counterparts and to get counterparts to actively combine to develop and handle networking processes to utilize time and space (place) in multidimensional ways

44 Conclusions 1. There is and has always been networks 2. All such networks can always be developed. 3. This regards efficiency as well as innovations 4. Any improvement is related to the economic calculations on both sides 5. Any development of efficiency or new technical items is part of a larger solution has to be embedded into the network 6. Involved actors need specific interactive capabilities