The days of the corporate lone wolf are over

Stand alone VS. Networks

Smart companies rely on networks of : Partners Suppliers Customers

Integrated business ecosystem collective whole success Operating in a business environment of shared fates Business models Ecosystem allows the companies to be more resilient to market changes and customer needs.

Why & are still surviving?` The answer: They are still at the hub of the business ecosystem. They work with a network of partners to bring products and services to customers.

case study: IBM and Avaki have secured corporate customers IBM provides computing platform while Avaki provides the software Leveraging the assets and capabilities and establishing a partnership Helped both the health and the market in both IBM and Avaki

How to achieve a good network and competitive ecosystem? Competitive advantage Sophisticated technology Traditional management systems with emphasis on internal capabilities are no longer sufficient.

Steps to implement ecosystem stategies: 1 st step  Understand Ecosystem Strategies Make use of the biological ecosystem ideas to achieve a holistic strategies that fit the new networked business world.

Biological & Business Ecosystems

Steps to implement ecosystem stategies: 2 nd step  Use technology as a connective tissue Effect of Technology on ecosystem: Function properly & easily Grow Develop

case study: WAL MART success is based on IT decisions and especially the major CIO role in the retailer business All the decisions especially outsourcing decisions are based on IT decisions. Retaillink business information platform allows WAL MART to know details about customers and sales from every scanner in store, send them stock keeping units that forms tables, analyze and sote the data WAL mart share the data with suppliers which helps in being more cost effective than competitors.

Role of CIO in ecosystem business strategy Should find IT systems that  Monitor  Manage the external partners In addition to: Monitor Manage internal assets HR, Product life cycle.

case study Intellectual asset creation IBM investment of $1 billion in LINUX Importance and significance: IBM: asset value and market share LINUX: fast growing operating system in the future.

eBay is an example of a perfect model of a healthy ecosystem eBay has created networks and a transparency model of sharing information with partners. eBay is receiving 85% of web based auction revenue.

P&G working vision “the consumer-driven supply network” The new vision is different in: consumer first a network not a chain

supply network Real time demand information replace point of sale with electronic product code(EPC), (RFID) Communication s, Faxes, or live video conference with partners Product to demand manufacturing system goal s to use IT to be able to produce every item every day instead of every month or week. Dynamic replenishment and distribution goal is to deliver tomorrow what consumer ordered today

beliefs P&G and WAL MART are forming a partnership by which they work together to define, test and launch new strategies. Benefits of partenership ecosystems: Increase revenue Reduce costs, inventory and expenses. Improve services

Result A (win – win) situation for all partners.