Week 5 Flashcards
(14 cards)
What is the networked economy?
The networked economy describes the alliances of firms that thrive on digital supply networks.
These networks exchange information to coordinate the production and distribution of goods and services, and, in the best of all possible worlds, this interactive flow of information among member firms will result in efficient and effective supply-and-demand revelation.
What is interorganizational performance?
Interorganizational performance is the performance of networked organizations (NetOP) and is a network measure that captures output activity at that level at which the researcher defines the network of organizations.
What are the 3 perspectives of the Networked operational Level (NetOP)
- numbered perspective - leads to simple or derived measures that are concerned with the absolute performance of a defined set of partner firms and their performance relative to each other.
- tiered perspective - involves network tiers, into which are partitioned activities in the value chain by related activities.
- Layered perspective - involves a layering of individual firms, depicting whether they interact directly with firms in other tiers, or whether these ties are indirect.
Explain Networked operational Level (NetOP) layer - numbered perspective
The first, numbered perspective in Figure 1 leads to simple or derived measures that are concerned with the absolute performance of a defined set of partner firms and their performance relative to each other. The performance of a supply network set of X members can be contrasted with another supply network set of Y members in nominal terms by aggregating tangible and intangible performance metrics associated with individual firms. Measures such as standard deviation and covariance of performance measures across firms capture the performance homogeneity of member firms in a defined supply network set.
Explain Networked operational Level (NetOP) layer - tiered perspective
The second tiered perspective involves network tiers, into which are partitioned activities in the value chain by related activities. In a multitiered supply network, for example, one set of tiers will provide raw materials, another set will manufacture whole products or components, a third set will assemble these, a fourth set will wholesale them, and so forth. This can also be thought of as vertical specialization. The role of tiers in supply networks motivates the development of measures that capture the nominal performance of a supply network by tier, relative performance of member firms in a tier, and relative performance of member firms across tiers. Tier-focused nominal performance measures enable between-tier comparison across supply networks, whereas tier-focused relative performance measures enable within-tier comparisons of the performance homogeneity of member firms.
Explain Networked operational Level (NetOP) layer - layered perspective
Finally, the third layered perspective involves a layering of individual firms, depicting whether they interact directly with firms in other tiers, or whether these ties are indirect. Direct ties, such as relationship 1 and 2 in figure 1, cross only one level and one layer. These can be thought of as strategic alliances and partnerships. Indirect ties such as relationship 3 occur when firms are not immediately dependent on firms that supply the suppliers and have alternative sources. The choice of ties represents a tradeoff in required relational investments and conceivable benefits that are accrued. This dimension is also a matter of control and task interdependence.
What is the difference between monadic-, symmetric- and degree-symmetric models?
Traditional monadic models consider either one side of the business relationship or the other –client of vendor–. Symmetric models consider the balance in information sharing and performance. Degree-symmetric network performance captures both the balance and depth of the relationship.
Explain the extended strategic alignment model: business strategy
➢ Business strategy: We use business maxims typology of Broadbent and Weill and identify business strategy based on having one or more of the following six performance objectives (business maxims): reducing costs (cost focus), improving quality (value differentiation perceived by customers), business flexibility (flexibility and agility), growth, synergies in company capabilities (HR), and management orientation.
Explain the extended strategic alignment model: Process and supply chain management
➢ Process and Supply Chain Management: Ganeshan identifies three process management levels (related to SCM): operational, tactical, and strategic decision-making on products, services, markets, value, and business networks. They add that a process across multiple organizations can be managed as a single entity through one dominant member or through a system of partnerships requiring well-developed cooperation and coordination (high-scope). A business network can also consist of multiple entities where coordination between entities occurs through markets, and where the scope of process management is limited to one entity (low scope). Related to the scope of process management is the level of process integration in a network. A high level of integration (integrated SCM) means coordination across many activities (large scope) and multiple levels in SC.
Explain the extended strategic alignment model: Network structure
➢ Network structure: Sarkar gives four parameters to describe the structure of a business network: (1) the channel length being the number of organizations through which products (or services) move as they go from producers to end-consumers, (2) the number of organizations (included intermediaries) involved in the channel, (3) the mix of virtual (information) channels and physical channels, and (4) linear or parallel sequence of activities.
What are the 7 dimensions Grieger gives to characterize a network
(1) buyer orientation versus seller orientation,
(2) vertical network (within one industry) versus horizontal networks (across industries),
(3) fixed or variable pricing mechanisms,
(4) the purchasing mechanisms (what and how),
(5) open or closed networks,
(6) limited or extended support of the phases in the transaction process, and
(7) the value-adding mechanism of the network being aggregation (grouping buyers or sellers) or matching (bringing together buyer and seller).
How do oesterle et al define a business bus/
They define a high tech ‘business bus’ as an infrastructure in a group of organizations (or even an industry) consisting of a communication network, communication standards and services, application services and intermediaries, ideally in the form of a standardized socket and a plug to go with it for organizations to a business.
How does Weill defines IT infrastructure?
Weill defines IT infrastructure as a collection of reliable, centrally coordinated services supporting various business processes and needs. A firm’s IT infrastructure is a major business resource and a key source for attaining long-term competitive advantage. IT infrastructure can be shared across boundaries and enable better business processes.
Explain Supply Chain Operations Reference Model (SCOR)
Performance indicators are typically based on the Supply Chain Operations Reference Model (SCOR). SCOR is based on five distinct management processes: plan, source, make, deliver, and the return process. The SCOR model shows that the performance of a business network can be evaluated in many ways, e.g. higher flexibility, customer orientation, customization, and better cost-effectiveness.
