taking advantage of the networked economic system: he who connects wins
through Pfungwa Serima February 05, 2015
in this courageous new world of the Networked economy, one adage rings truer than ever: no firm is an island. cell, cloud, social media and computing device-to-computing device (M2M) technologies are growing connections between people and enterprises in more methods than now we have ever seen – and these smarter, sooner and more world networks are already beginning to grow to be industry in ways by no means notion conceivable.
How, you ask skeptically. easy. as of late’s trade world calls for significant interaction with suppliers, trading partners, stakeholders and customers – however many of these interactions nonetheless depend on inefficient applied sciences like cellphone, e mail, and so forth. What’s more, these connections tend to be with people and businesses you’re already connected to, limiting the possible price.
nowadays’s Networked economy offers opportunities for connecting to a wider set of parties, in way more efficient methods. in addition to non-public contacts, as of late’s networks deliver collectively present and doable suppliers, partners, and customers throughout each the financial and physical value chains. And increasingly they embody machine-to-computing device sensors and gadgets.
however the actual energy of networks lies in what goes on inside of them – the entire interactions, transactions and commentary, and the massive amounts of insights and knowledge that they generate. firms that move beyond easy transactions and tap into these insights and information are discovering they are able to drive actual aggressive benefit. when you’re entering a brand new market, how do you assessment risk? How do you determine what products suit local tastes? you could have your own experts and market information, however your networks of suppliers, partners, and customers could grasp much more precious data.
prior to now, corporations relied on one-to-one industry networks, setting up a right away hyperlink between each events. Networks have been all about connecting corporations more effectively to operate a particular course of like buying, selling or invoicing.
these days, consumers and agents are using networks to reinforce and expand their relationships, and use many-to-many techniques that construct massive communities, make new contacts, share knowledge, conduct transactions, and far more. buyers are the use of the connectivity and insights of networks to search out the right partners and optimise their spend and supply chain. marketers are the use of networks to engage with shoppers when, how and where they wish to be engaged to extend pride and pockets share.
This isn’t some futuristic crystal ball-watching. It’s right here and now. Social instruments and business networks have already changed the nature of industry and engagement. companies lately are already extra related and cell than ever. the chance now’s to use this greater degree of connectedness to permit new tactics which might be only that you can think of in a networked setting, and drive innovation throughout their operations.
What’s this means is that the use of trade networks and social endeavor tool is becoming a competitive differentiator. We’re already seeing growing numbers of South African businesses harnessing the insights and intelligence of entire communities to allow new procedures that drive innovation and aggressive advantage.
i would go so far as to claim that companies can not be competitive without the strengthen of a community – and the convergence of trends just like the growing use of cloud computing, the advancements of desktop-to-computing device expertise, and the evolution of the know-how powering the supply chain are leaving corporations and not using a other choice.
It’s not a awful technique to be left with, alternatively, as corporations that join and collaborate via networks outperform their peers. McKinsey and firm experiences that networked businesses are 50% extra seemingly than their friends to have increased sales, greater revenue margins, gain market share, and be a market leader.
they’re also getting nearer to their clients, transforming both innovation and consumer relationships. just as shoppers faucet into personal networks to analyze, share and store better, corporations will faucet the ‘data of crowds’ and insights from business networks to now not only sense the present, however see the longer term and proactively shape it to their benefit by means of looking forward to risks and developments available in the market, and delivering the services and products that pressure higher gross sales and larger market share.
the combination of trade networks and social structures is a game-changer – and we’re just getting began. There’s surely that the Networked economic system could have a profound influence on our future.
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