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Manufacturing Technology Committee
Chandler, Arizona Facility
Global Open Value Webs
Cooperative ecosystems of narrow, diverse specialists use third-party
market hubs to optimize value webs
Structure of Commerce
- Open transparent markets and the global Internet increase
the ability of groups of companies to cooperatively optimize
value webs
- Self-regulating, fluid markets always beat out command
and control structures
- Complex networks of suppliers and service providers are
integrated
- Material, information and funds flows are generally separate
- Competition based on information arbitrage is now largely
dead as transparency is achieved universally
- Inter-enterprise commerce service hubs are the anchors for
the formation of new industry structures
- Fragmented market makers and commerce platform operators
have consolidated
- The developing world hooks into the virtual economy, offering
high-quality, low cost services and knowledge work, not just
manufacturing
- There is significant investment by developing nations
and international aid agencies in high speed network connections
to connect to the Internet econom
Business Architecture
- Companies and executives that can put together diverse coalitions
of companies achieve big results
- The most highly valued companies create mutually supportive
business ecosystems; finding win-win partnerships is better
than finding a knock out punch to competitors
- The key core competency is knowing how to put relationships
together-partnering and alliance skill
- Managing across distance and cultures is key
- Integrators of services, acquisitions, and value-web-wide
processes succeed
- Most companies perform only small slices of activity themselves,
relying on the services of others to create the complete business
result
- Focus on core competencies is critical to success; large
incumbents slim down to core competencies and joint venture
with a variety of partners
- Developing a culture that is able to understand the value
of not owning or inventing everything is critical
- Co-branding is important
Enablers
- Hyper-enterprise systems give visibility into value creation
activities many stages removed from your own activity
- Data on operation of the entire value web drives optimization
of the activities performed in any single enterprise
- Standardization of B2B e-commerce via XML proceeds rapidly
- Enterprises dismantle large portions of their internal application
infrastructure and convert to using industry-level service hubs
where the information is already integrated and scale economics
have reduced costs significantly
- Internationalization of software and Web services is increasingly
important to success in the global Internet market
- Software services from India, Pakistan, Korea, and other
Far East countries have grown very quickly
- Free trade expands further; governments remain committed
to deregulation
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