The Network Challenge
Strategy, Profit, and Risk in an Interlinked World
Published on 16. July 2009
Book
Hardback
592 pages
978-0-13-701191-9 (ISBN)
Description
Networks and the Enterprise: Breakthrough Thinking and
Actionable Strategies
"This book presents an amazing collection of insights on underlying forces and ways to thrive in our post-Coaseian age-an age in which the centralized firm is changing into an agile and resilient network of participants. A must read for a world where unpredictability reigns supreme."
-John Seely Brown, Independent Co-Chair of the Deloitte Center for Edge Innovation, and Senior Fellow at the Annenberg Center for Communication at the University of Southern California
"I couldn't wait to get my hands on this research...I have already begun to put the ideas into practice in designing next-generation open innovation networks...the diversity of ideas and perspectives is truly amazing and will be a terrific resource to anyone seeking to move to new business models based on the power of networks for innovation, marketing, and creating and leveraging big ideas. Job well done!"
-Larry Huston, Creator of the "Connect and Develop" program for Procter & Gamble, and Managing Director of 4iNNO, a major Open Innovation consulting practice
"In our borderless world, every manager needs to understand the strategic implications of networks. For the first time, The Network Challenge brings together thought leaders from many fields-a team of experts as broad as the network challenge itself."
-Kenichi Ohmae, author of more than 100 books, including the seminal work, The Mind of the Strategist, advisor on global strategy to foreign governments and scores of multinational corporations, selected by The Economist as one of five management gurus in the world.
Networks define modern business. Networks introduce new risks (as seen by the rapid spread of contagion in global financial markets) and opportunities (as seen in the rapid rise of network-based businesses).
While managers typically view business through the lens of a single firm, this book
challenges readers to take a broader view of their enterprises and opportunities.
This book's 28 original essays include
CK Prahalad on networks as the new locus of competitive advantage
Russell E. Palmer on leadership in a networked global environment
Dawn Iacobucci and James M. Salter II on the business implications of social networking
Franklin Allen and Ana Babus on contagion in financial markets
Steven O. Kimbrough on artificial intelligence, evolutionary computation,
and networks
Satish Nambisan and Mohan Sawhney on tapping the "global brain" for innovation
Manuel E. Sosa on coordination networks in product development
Christophe Van den Bulte and Stefan Wuyts on customer networks
Christoph Zott and Raphael Amit on using business models to drive network-based strategies
Yoram (Jerry) Wind, Victor Fung, and William Fung on network orchestration
Valery Yakubovich and Ryan Burg on network-based HR strategy
Howard Kunreuther on risk management strategies for an interdependent world
Paul R. Kleindorfer and Ilias D. Visvikis on integrating financial and physical networks in global logistics
Witold J. Henisz on network-based political and social risk management
Boaz Ganor on terrorism networks
And much more...
Actionable Strategies
"This book presents an amazing collection of insights on underlying forces and ways to thrive in our post-Coaseian age-an age in which the centralized firm is changing into an agile and resilient network of participants. A must read for a world where unpredictability reigns supreme."
-John Seely Brown, Independent Co-Chair of the Deloitte Center for Edge Innovation, and Senior Fellow at the Annenberg Center for Communication at the University of Southern California
"I couldn't wait to get my hands on this research...I have already begun to put the ideas into practice in designing next-generation open innovation networks...the diversity of ideas and perspectives is truly amazing and will be a terrific resource to anyone seeking to move to new business models based on the power of networks for innovation, marketing, and creating and leveraging big ideas. Job well done!"
-Larry Huston, Creator of the "Connect and Develop" program for Procter & Gamble, and Managing Director of 4iNNO, a major Open Innovation consulting practice
"In our borderless world, every manager needs to understand the strategic implications of networks. For the first time, The Network Challenge brings together thought leaders from many fields-a team of experts as broad as the network challenge itself."
-Kenichi Ohmae, author of more than 100 books, including the seminal work, The Mind of the Strategist, advisor on global strategy to foreign governments and scores of multinational corporations, selected by The Economist as one of five management gurus in the world.
Networks define modern business. Networks introduce new risks (as seen by the rapid spread of contagion in global financial markets) and opportunities (as seen in the rapid rise of network-based businesses).
While managers typically view business through the lens of a single firm, this book
challenges readers to take a broader view of their enterprises and opportunities.
This book's 28 original essays include
CK Prahalad on networks as the new locus of competitive advantage
Russell E. Palmer on leadership in a networked global environment
Dawn Iacobucci and James M. Salter II on the business implications of social networking
Franklin Allen and Ana Babus on contagion in financial markets
Steven O. Kimbrough on artificial intelligence, evolutionary computation,
and networks
Satish Nambisan and Mohan Sawhney on tapping the "global brain" for innovation
Manuel E. Sosa on coordination networks in product development
Christophe Van den Bulte and Stefan Wuyts on customer networks
Christoph Zott and Raphael Amit on using business models to drive network-based strategies
Yoram (Jerry) Wind, Victor Fung, and William Fung on network orchestration
Valery Yakubovich and Ryan Burg on network-based HR strategy
Howard Kunreuther on risk management strategies for an interdependent world
Paul R. Kleindorfer and Ilias D. Visvikis on integrating financial and physical networks in global logistics
Witold J. Henisz on network-based political and social risk management
Boaz Ganor on terrorism networks
And much more...
Reviews / Votes
"We're entering an age of networked intelligence. The Network Challenge marshals a cast of savvy thinkers and practitioners to tackle a broad range of the fascinating and important unanswered questions. Completely stimulating."--Don Tapscott, author of 13 books about networks in business and society, including
Wikinomics and most recently,Grown Up Digital.
More details
Language
English
Place of publication
Upper Saddle River
United States
Publishing group
Pearson Education (US)
Target group
Professional and scholarly
Dimensions
Height: 241 mm
Width: 189 mm
Thickness: 35 mm
Weight
1126 gr
ISBN-13
978-0-13-701191-9 (9780137011919)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Persons
Paul R. Kleindorfer is the Paul Dubrule Professor of Sustainable Development and Distinguished Research Professor at INSEAD, Fontainebleau, and the Anheuser Busch Professor of Management Science (Emeritus) at the Wharton School of the University of Pennsylvania. Dr. Kleindorfer graduated with distinction from the U. S. Naval Academy in 1961. He studied on a Fulbright Fellowship in Mathematics at the University of Tuebingen, Germany (1964/65), followed by doctoral studies in the Graduate School of Industrial Administration at Carnegie Mellon University (PhD,1970). Before joining INSEAD in 2006, Dr. Kleindorfer held university appointments at Carnegie Mellon University (l968/9), Massachusetts Institute of Technology (1969/72), and The Wharton School (1973-2006). Dr. Kleindorfer's research has focused on risk management, ranging from major accident prevention to hedging and trading to mitigate supply and demand coordination risks. His current research is on sustainable operations for energy-intensive companies and carbon-leveraged investments arising from legislation and regulations to mitigate presumed consequences of industrial activity on the biosphere and climate.
Yoram (Jerry) Wind is The Lauder Professor and Professor of Marketing at the Wharton School of the University of Pennsylvania. He joined the Wharton faculty in 1967, with a doctorate from Stanford University. He is founding director of The SEI Center for Advanced Studies in Management, the founding academic director of The Wharton Fellows Program, and was the founding editor of Wharton School Publishing. From 1995 to 1997 he led the development of the Wharton globalization strategy. Dr. Wind led the reinvention of the Wharton MBA curriculum (1991-93) and the creation of the Wharton Executive MBA Program (1974). Dr. Wind was founding director of the Joseph H. Lauder Institute (1983-1988) and the Wharton International Forum (1987). He has served in editorial positions for many top marketing journals. He has published more than 250 papers and articles and more than 20 books. Dr. Wind is a member of the advisory boards for various entrepreneurial ventures and a trustee of the Philadelphia Museum of Art. Dr. Wind's major marketing awards include The Buck Weaver Award (2007), The Charles Coolidge Parlin Award (1985), AMA/Irwin Distinguished Educator Award (1993), the Paul D. Converse Award (1996), and the Elsevier Science Distinguished Scholar Award of the Society of Marketing Advances (2003). Dr. Wind is the former Chancellor of the International Academy of Management. He is co-founder of the Interdisciplinary Center, Herzliya (IDC) and chair of its academic council and university appointment and promotion committee. He received a PhD from Stanford University.
Yoram (Jerry) Wind is The Lauder Professor and Professor of Marketing at the Wharton School of the University of Pennsylvania. He joined the Wharton faculty in 1967, with a doctorate from Stanford University. He is founding director of The SEI Center for Advanced Studies in Management, the founding academic director of The Wharton Fellows Program, and was the founding editor of Wharton School Publishing. From 1995 to 1997 he led the development of the Wharton globalization strategy. Dr. Wind led the reinvention of the Wharton MBA curriculum (1991-93) and the creation of the Wharton Executive MBA Program (1974). Dr. Wind was founding director of the Joseph H. Lauder Institute (1983-1988) and the Wharton International Forum (1987). He has served in editorial positions for many top marketing journals. He has published more than 250 papers and articles and more than 20 books. Dr. Wind is a member of the advisory boards for various entrepreneurial ventures and a trustee of the Philadelphia Museum of Art. Dr. Wind's major marketing awards include The Buck Weaver Award (2007), The Charles Coolidge Parlin Award (1985), AMA/Irwin Distinguished Educator Award (1993), the Paul D. Converse Award (1996), and the Elsevier Science Distinguished Scholar Award of the Society of Marketing Advances (2003). Dr. Wind is the former Chancellor of the International Academy of Management. He is co-founder of the Interdisciplinary Center, Herzliya (IDC) and chair of its academic council and university appointment and promotion committee. He received a PhD from Stanford University.
Content
Authors xviii
Foreword by Dean Thomas S. Robertson and Dean Frank Brown xxv
Preface xxvi
PART I THE NETWORK CHALLENGE
Chapter 1 The Network Imperative: Community or Contagion? 3
Paul Kleindorfer and Yoram (Jerry) Wind
Chapter 2 Creating Experience: Competitive Advantage in the Age of Networks 25
C.K. Prahalad
Chapter 3 Knowledge as a Social Phenomenon: "Horse Holding" and Learning in Networks 37
Alan Kantrow
Chapter 4 Cross-Cultural Leadership in Networked Global Enterprises 49
Russell E. Palmer
PART II FOUNDATIONS
Chapter 5 Social Networks: You've Lost Control 67
Dawn Iacobucci and James M. Salter II
Chapter 6 Biological Networks: Rainforests, Coral Reefs, and the Galapagos Islands 85
Sonia Kleindorfer and James G. Mitchell
Chapter 7 Information Networks in the History of Life 105
Robert Giegengack and Yvette Bordeaux
Chapter 8 Artificial Intelligence: How Individual Agents Add Up to a Network 125
Steven O. Kimbrough
PART III INNOVATION AND COORDINATION IN NETWORKS
Chapter 9 Network-Centric Innovation: Four Strategies for Tapping the Global Brain 147
Satish Nambisan and Mohan Sawhney
Chapter 10 Coordination Networks in Product Development 165
Manuel E. Sosa
Chapter 11 Organizational Design: Balancing Search and Stability in Strategic Decision Making 185
Jan W. Rivkin and Nicolaj Siggelkow
PART IV STRATEGY AND BUSINESS MODELS
Chapter 12 Complexity Theory: Making Sense of Network Effects 207
Colin Crook
Chapter 13 Supply Webs: Managing, Organizing, and Capitalizing on Global Networks of Suppliers 225
Serguei Netessine
Chapter 14 Leveraging Customer Networks 243
Christophe Van den Bulte and Stefan Wuyts
Chapter 15 The Business Models as the Engine of Network-Based Strategies 259
Christoph Zott and Raphael Amit
Chapter 16 Extended Intelligence Networks: Minding and Mining the Periphery 277
George S. Day, Paul J. H. Schoemaker, and Scott A. Snyder
PART V ORGANIZING IN A NETWORKED WORLD
Chapter 17 Network Orchestration: Creating and Managing Global Supply Chains Without Owning Them 299
Yoram (Jerry) Wind, Victor Fung, and William Fung
Chapter 18 Managing the Hyper-Networked "Instant Messaging" Generation in the Work Force 317
Eric K. Clemons, Steve Barnett, JoAnn Magdoff, and Julia Clemons
Chapter 19 Missing the Forest for the Trees: Network-Based HR Strategies 335
Valery Yakubovich and Ryan Burg
Chapter 20 Relating Well: Building Capabilities for Sustaining Alliance Networks 353
Prashant Kale, Harbir Singh, and John Bell
PART VI NETWORK-BASED SOURCES OF RISK AND PROFITABILITY
Chapter 21 Networks in Finance 367
Franklin Allen and Ana Babus
Chapter 22 The Weakest Link: Managing Risk Through Interdependent Strategies 383
Howard Kunreuther
Chapter 23 Integration of Financial and Physical Networks in Global Logistics 399
Paul R. Kleindorfer and Ilias D. Visvikis
Chapter 24 Telecommunications: Network Strategies for Network Industries? 417
Kevin Werbach
Chapter 25 Network-Based Strategies and Competencies for Political and Social Risk Management 433
Witold J. Henisz
PART VII A DOUBLE-EDGED SWORD: CONTAGION AND CONTAINMENT
Chapter 26 Terrorism Networks: It Takes a Network to Beat a Network 453
Boaz Ganor
Chapter 27 Global Diseases: The Role of Networks in the Spread (and Prevention) of Infection 471
J. Shin Teh and Harvey Rubin
Chapter 28 Lessons from Empirical Network Analyses on Matters of Life and Death in East Africa 495
Jere R. Behrman, Hans-Peter Kohler, and Susan Cotts Watkins
About the Authors 513
Index 537
Foreword by Dean Thomas S. Robertson and Dean Frank Brown xxv
Preface xxvi
PART I THE NETWORK CHALLENGE
Chapter 1 The Network Imperative: Community or Contagion? 3
Paul Kleindorfer and Yoram (Jerry) Wind
Chapter 2 Creating Experience: Competitive Advantage in the Age of Networks 25
C.K. Prahalad
Chapter 3 Knowledge as a Social Phenomenon: "Horse Holding" and Learning in Networks 37
Alan Kantrow
Chapter 4 Cross-Cultural Leadership in Networked Global Enterprises 49
Russell E. Palmer
PART II FOUNDATIONS
Chapter 5 Social Networks: You've Lost Control 67
Dawn Iacobucci and James M. Salter II
Chapter 6 Biological Networks: Rainforests, Coral Reefs, and the Galapagos Islands 85
Sonia Kleindorfer and James G. Mitchell
Chapter 7 Information Networks in the History of Life 105
Robert Giegengack and Yvette Bordeaux
Chapter 8 Artificial Intelligence: How Individual Agents Add Up to a Network 125
Steven O. Kimbrough
PART III INNOVATION AND COORDINATION IN NETWORKS
Chapter 9 Network-Centric Innovation: Four Strategies for Tapping the Global Brain 147
Satish Nambisan and Mohan Sawhney
Chapter 10 Coordination Networks in Product Development 165
Manuel E. Sosa
Chapter 11 Organizational Design: Balancing Search and Stability in Strategic Decision Making 185
Jan W. Rivkin and Nicolaj Siggelkow
PART IV STRATEGY AND BUSINESS MODELS
Chapter 12 Complexity Theory: Making Sense of Network Effects 207
Colin Crook
Chapter 13 Supply Webs: Managing, Organizing, and Capitalizing on Global Networks of Suppliers 225
Serguei Netessine
Chapter 14 Leveraging Customer Networks 243
Christophe Van den Bulte and Stefan Wuyts
Chapter 15 The Business Models as the Engine of Network-Based Strategies 259
Christoph Zott and Raphael Amit
Chapter 16 Extended Intelligence Networks: Minding and Mining the Periphery 277
George S. Day, Paul J. H. Schoemaker, and Scott A. Snyder
PART V ORGANIZING IN A NETWORKED WORLD
Chapter 17 Network Orchestration: Creating and Managing Global Supply Chains Without Owning Them 299
Yoram (Jerry) Wind, Victor Fung, and William Fung
Chapter 18 Managing the Hyper-Networked "Instant Messaging" Generation in the Work Force 317
Eric K. Clemons, Steve Barnett, JoAnn Magdoff, and Julia Clemons
Chapter 19 Missing the Forest for the Trees: Network-Based HR Strategies 335
Valery Yakubovich and Ryan Burg
Chapter 20 Relating Well: Building Capabilities for Sustaining Alliance Networks 353
Prashant Kale, Harbir Singh, and John Bell
PART VI NETWORK-BASED SOURCES OF RISK AND PROFITABILITY
Chapter 21 Networks in Finance 367
Franklin Allen and Ana Babus
Chapter 22 The Weakest Link: Managing Risk Through Interdependent Strategies 383
Howard Kunreuther
Chapter 23 Integration of Financial and Physical Networks in Global Logistics 399
Paul R. Kleindorfer and Ilias D. Visvikis
Chapter 24 Telecommunications: Network Strategies for Network Industries? 417
Kevin Werbach
Chapter 25 Network-Based Strategies and Competencies for Political and Social Risk Management 433
Witold J. Henisz
PART VII A DOUBLE-EDGED SWORD: CONTAGION AND CONTAINMENT
Chapter 26 Terrorism Networks: It Takes a Network to Beat a Network 453
Boaz Ganor
Chapter 27 Global Diseases: The Role of Networks in the Spread (and Prevention) of Infection 471
J. Shin Teh and Harvey Rubin
Chapter 28 Lessons from Empirical Network Analyses on Matters of Life and Death in East Africa 495
Jere R. Behrman, Hans-Peter Kohler, and Susan Cotts Watkins
About the Authors 513
Index 537