Companies as Networks

Network-Centric

Companies are moving away from centralized, monolithic organizational models to more distributed, more modular network-centric organizational structures. Networks help companies become more flexible and help them scale their connections with customers, partners and other external stakeholders.

A new generation of soulful companies will use networks not just to improve their operations, but to bring more accountability into their organization. The result will be a wave of economic democratization with important implications not just for the firm, but for society as well.

 

 

 Featured Articles on Organizational Networks:

Radical Connectedness and the Evolution of Business

Companies need to move beyond the old, mechanistic strategies for connecting and collaborating. To thrive today, they must now look to the biology-inspired strategies of networks. This is the evolution of the firm – a move away from the self-reliance of yesterday, to the radical connectedness of today.

Trust and Networks

Trust makes networks work. When trust is high among members of a network, there’s a wonderful cohesiveness and capacity to get work done. When it’s low and relationships are plagued by suspicion, networks collapse into brittle organizational structures that rarely offset their operational costs in real world outcomes.

Twitter is Not a Social Network

Twitter is not a social network. It’s a “real-time information network” and once you see it that way, its competitive edges look a lot closer to Google than Facebook. Facebook is a social network utility, while Twitter is a social network application with real-time information as its end goal.

Latest Articles on Organizational Networks:

  • Quiznos and the Old Business Model The Quiznos near-bankruptcy highlights the dangers of the old model for running business networks: one that uses outsourcing of value creation in an exploitive fashion.
  • Why is Twitter So Mad at Google? Twitter is mad at Google for connecting Google+ with search - and for commoditizing their service in the process. How this might not be such a bad thing.
  • Google+ Hints at a Social Media Marketing Revolution Google+ is pushing organizations to adopt "permission marketing" principles that are better for customers. Here's how it can go even further.
  • Radical Connectedness and the Evolution of Business Companies need to move beyond the old, mechanistic strategies for connecting and collaborating. To thrive today, they must now look to the biology-inspired strategies of networks. This is the evolution of the firm - a move away from the self-reliance of yesterday, to the radical connectedness of today.
  • TicketMaster "Friend Discovery" Helps You Find Facebook Friends at Concerts TicketMaster just announced a new interactive seat map feature that allows you to more easily book seats next to your friends at concerts. This new "social seat map" feature is a prime example of "Friend Discovery" - connecting an organization’s CRM database with the social networks of its customers.
  • How to Strengthen Your Organization's Influence Mapping Part 4 of 4: Organizations that are permeable are more open to influence from their external environment. That makes them more resilient and able to align themselves with market forces. Being open to influence is only one aspect of permeability, ho...
  • Trust and Networks Trust makes networks work. When trust is high among members of a network, there’s a wonderful cohesiveness and capacity to get work done. When it's low and relationships are plagued by suspicion, networks collapse into brittle organizational structures that rarely offset their operational costs in real world outcomes.