The Transformation Challenge

The starting point of the seminar is the observation that as traditional value chains disintegrate alternative forms of co-operation come into existence. Networks are one possible way to analyze and interprete this new form of collaboration. The aim of the seminar was to identify the potential value of this “network idea”. For this reason, we researched the economic foundations of networks and identified potential sources of competitive advantage. Faster development cycles and the access to resources owned by network partners are only some of the identified and analyzed advantages. To fully exploit these advantages several factors have to be considered. Among these factors are the role and position a company occupies in the network, the attributes of the individual network partners, and especially the fit among all players. Presumably the most important factor is the role of management, which is discussed in great detail. Based on these findings we present a 4-Factor-Model of network success. The theoretical findings and assumptions were tested in 11 interviews with business unit managers of different divisions within PHILIPS.