The Network Challenge: Strategy, Profit, and Risk in an Interlinked World

by Paul R. Kleindorfer, Yoram (Jerry) R. Wind, Robert E. Gunther

Overview

New Paperback Edition

 

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...

Product Details

ISBN-13:	9780137029327
Publisher:	Pearson Education
Publication date:	06/11/2009
Sold by:	Barnes & Noble
Format:	eBook
Pages:	592
File size:	4 MB

About the Author

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 Tübingen, 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.

Table of Contents

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