6533b7ddfe1ef96bd1274697

RESEARCH PRODUCT

Smart ICT Support for Business Networks

subject

description

Modern companies lean increasingly towards innovating and renewing their business operations in a more value-adding and customer-centric direction. As a prerequisite to this, a number of companies are willing to combine their knowledge and resources, for instance by forming strategic alliances supported by a mixture of open ICT infrastructure and proprietary and interoperable ICT applications. This study examines a network of three focal companies that are seeking cost-efficient expansion of their services. As the potential market for these complex customer services is worldwide, the objective is expected to be met only with the help of ICT. Furthermore, the view among the companies is relatively unanimous regarding the necessity for co-operation. The joint business model is aimed at providing customized b-to-b services to a limited customer base. The model is based on long-lasting relationship with the customers and builds on in-depth knowledge of the customers’ facilities, i.e. production equipment, software, labor skills and local circumstances, etc. The required information on customers’ facilities to be analyzed, synthesized, and exploited originates from a variety of sources and differs in terms of confidentiality and reliability. The relevant information must ultimately be shared and jointly interpreted by the consortium companies, as this is essential to their complementary roles. Often e-commerce, inter-organizational systems and business networks are formed by integrating existing ICT-infrastructures in order to make trading and production networks or supply chains more efficient (van de Ven , 1976; Wolters et al., 1999; Hoogeweegen et al., 1999). It is most often assumed that due to ICT, the transaction costs are reduced to the extent that it is worthwhile to outsource ancillary operations and concentrate on core competencies (Malone et al., 1987; Picot et al., 1997). Alternatively, the networks between partners and even competitors can also be seen as – not only a means of cutting costs – but a source of new, innova-