Introduction
Smart Business Networks (SBNs) entail a creative approach in carrying out business activities through establishing a strong connection with key players and business processes to achieve better results compared to the traditional way of doing business (Holland et al., 2004, p. 254). Here, business organizations develop strategies that enable them to use social networking systems and communication technologies to achieve a common goal. Therefore, smart business networks are linking nodes that use communication technologies to connect one node to other nodes within an organization. In so doing, the connected nodes can achieve a common goal through working together as a team (Holland et al., 2004).
In this paper, we will look at the key features of smart business networks as provided in the article, ‘Smart business networks: how the network wins’ relative to the ways in which these features enable different organizations and processes to respond to change. On the other hand, the paper evaluates the author’s proposal for a new business network rather than the conventional value chain approach and the role of Business Operating Systems in using this new business approach.
Characteristics of Smart Business Networks
The type of products and services offered by a smart business network is a key distinguishing characteristic of the new business approach when compared to the conventional business approach. As a result, the products and services of smart business networks are complex, bundled and they are also delivered quickly (Van Heck & Vervest, 2007). Therefore, there is the need for smart business networks to couple their business goals with the available communication technologies to develop products and services faster than their competitors. In addition, smart business networks seek newer and varied business linkages rather than the traditional value chain to enable them to develop better, fast and efficient processes (Van Heck & Vervest, 2007). Overall, these distinctive features of products and services enable smart business networks to respond to market demand quickly, create new markets, and capture new opportunities quickly.
Conversely, value creation is much quicker and short-lived within the smart business networks as opposed to the traditional business approach. Therefore, when responding to demand, smart business networks possess the ability to create rapid connect and disconnect linkages. For instance, due to an emerging customer demand or an urgent issue, smart business networks employ the network logic to select members who can work as a team to produce the desirable results (Van Heck & Vervest, 2007; Holland et al., 2004). Subsequently, the selected members must also disconnect quickly to avail themselves of other upcoming challenges. Therefore, the rapid connect and disconnect approach enables different business networks to come up with superior feedback and a variety of processes, which characterizes product development and service delivery within smart business organizations.
Additionally, smart business networks show coordination in decision-making and equal control over the activities of the networks. Therefore, smart business networks can be considered as a group of independent individuals sharing cooperative responsibilities as they interact with each other and their environment, which is characterized by decentralized powers (Van Heck & Vervest, 2007). In so doing, individual nodes within a particular network demonstrate impulsive abilities in product development, decision-making, problem resolution, and responding to unexpected challenges.
Furthermore, smart business networks exhibit information sharing, which involves the partners of one network or members of a wide range of networks. Within a particular network, the process of sharing information involves several bridging positions whereby, the information that comes from a central source is received by other members within the same network who should also look for alternative ways of bridging the information to subsequent users (Van Heck & Vervest, 2007, p. 33). Therefore, the exercise of sharing information within business networks enables inter-linked individuals to strategically combine their intelligence to facilitate the realization of the desired goals.
Lastly, smart business networks share a common platform characterized by an interlinked Business Operating System (BOS), which enables inter-organizational coupling in process implementation and management. Therefore, the BOS provides a platform on which individual business logic or processes are interlinked with related processes in the same or different organization (Holland et al., 2004, p. 255). However, despite the processes being interlinked, their implementation and management occur separately. As a result, a well-developed business operating system enables business networks to connect and disconnect rapidly when addressing an urgent business issue.
A New Business Network Approach
The author notes that in a conventional business network, there are two business platforms (Logistics and Transaction), which play a key role in interlinking individual business processes. Here, for two business logic to create an interface, one business entity must establish a specific function and transfer it to another particularly during the process of outsourcing services (Van Heck & Vervest, 2007, p. 35).
However, in the new business network, processes are developed at the logistics and transaction platforms as noted in the traditional business approach. Subsequently, the processes are then linked with related processes in the same or different organization through the business operating system to enable a rapid connect and disconnect system that responds to emerging issues within a particular business network (Holland et al., 2004, p. 258). In addition, the business operating system gives the individual business logic optimal flexibility in executing and managing their processes as they contribute towards the realization of the set goals.
The Role of the Business Operating System in using the New Business Approach
From the discussions above, it is notable that a good business operating system enables individual business logic to develop, execute, and manage their processes within a particular network. Therefore, the business operating system plays a major role in the connect and disconnect approach within business networks in terms of facilitating membership selection, setting business goals, linking individual processes, managing risks and rewards, tolerating faults, and guaranteeing continuous business improvement (Van Heck & Vervest, 2007, p. 36).
Conclusions
The paper explores the characteristics of smart business networks as provided in the article, ‘Smart Business Networks: how the network wins’ relative to the ways in which these attributes enable different business organizations to respond to various business challenges. In addition, the paper presents the author’s proposal on the establishment of a new business approach and the role played by the business operating system in using the proposed approach. From the discussions above, it is worth noting that smart business networks entail a creative approach in conducting different business activities by using the latest technologies and social networks. Therefore, the full implementation of this new approach will allow many business organizations to explore new markets and expand rapidly.
Reference list
Holland, C., Shaw, D.R., Westwood, J.B., & Harris, I., 2004. Marketing translation services internationally: Exploiting IT to achieve a smart network. Journal of Information Technology, 19 (4), pp. 254–260.
Van Heck, E. & Vervest, P., 2007. Smart business networks: how the network wins.
Communication of the ACM, [Online]. 50 (6), pp. 28-37. Web.