Increase Your Sales by 30% Using Internet Collaboration Networks

Small businesses are really excluded from the global economy

Small businesses from many different industries, both traditional and hi-tech, have discovered a new way for them to succeed in the "global economy".

It involves collaboration on large proposals, R&D and fulfilment of orders assisted by relatively low cost, virtual collaboration technology.

Traditionally many small businesses join supply chains centred on larger companies.

Unfortunately the companies at the bottom of such supply chains are often treated as commodity players and replaced with cheaper alternatives when the opportunity arises.

Some brave small businesses have attempted to "go it alone" by creating sophisticated internet e-business architectures which directly link them to their major customers and partners.

However the expense, risk and sheer management effort involved in this approach puts it beyond the reach of most.

Virtual Enterprise Networks (aka VENs) give small businesses scale

The "third way" which companies are discovering is to join "Virtual Enterprise Networks" or VENs with other like-minded but complimentary businesses to market, sell and deliver collective offers to the market beyond what the individual companies could offer by themselves.

In addition these VENs are also undertaking significant collaborative product development work, often in partnership with applied research institutes and universities, which would be beyond the reach of the member companies individually.

For example, a group of UK Engineering companies are using the VEN approach to collectively bid for many-million pounds of work per annum from a large European Customer. Like many corporates this customer has a supply chain rationalisation (aka small supplier reduction) programme which would stop them dealing with any of the companies individually.

Another example is a group of Swiss component manufacturers who used VENs to move up the value chain away from contract-specific components to branded product solutions in the face of stern cost-based competition from Czechoslovakian companies exporting into their home market.

A third example is a group of Mexican manufacturers who used a VEN to support their entry into a new, more sophisticated market (the US).

So what exactly is the "Value Proposition" for a VEN?

A VEN connects businesses into peer networks that are supported by appropriate technology to give them the capabilities and competitive advantages of global enterprises particularly:

· SALES
· MARKETING REACH
· PRODUCT DEVELOPMENT
· HUMAN, CAPITAL & IT RESOURCES

Whilst exploiting their inherent competitive advantages in being able to be more agile in areas such as:

· SPEED & RESPONSIVENESS
· ENTREPRENEURSHIP & INNOVATION
· FLEXIBILITY
· LOW OVERHEADS

So what are the critical factors for making a VEN a success?

All the experience points to four main ones:

CSF1. Not over-complicating the technology support!

The surprising thing about virtual enterprise networks is that the technology support companies need to get started and win collective new business is neither complex nor costly.

When companies are starting to collaborate all they really need is a simple web-based collaboration platform which they can access from their companies (whilst travelling) which allows them to securely communicate, schedule, discuss and work on shared documents.

Typically numerous suppliers offer such software as a hosted, pay-per-use service, which requires no software, installed at any of the client PCs.

Companies operating in a network also need access to good shared business applications such as campaign management/CRM - these applications must be web-based as networks of small companies do not have shared IT infrastructures.

CSF2. Taking "Network Governance" Seriously

The biggest concern a customer will have in dealing with a network is who is accountable when things go wrong (and can I sue them if it has to come to that!).

Also customers want to treat the network like a single entity not like a collection of different companies. Thus they need to see single point of contact, seamless business processes and common values from a network.

This can all be grouped together under the term "Network Governance".

Networks, which do not invest in building this typically unravel in their first sales pitch to any large customer once the customer's procurement department starts asking probing questions.

"Marriage of Convenience networks" rarely win collective contract work from major organisations.

CSF3. Development of Common Collaborative Working Practices

A virtual enterprise network is a virtual team. However it is made up of individuals from many different organisations with different ambitions, IT awareness, business cultures many of whom do not know each other well.

It is therefore a classic Virtually Networked Team and as such needs to agree the way these people will work together, make decisions, handle conflicts, share information and use the virtual collaboration technology.

An aspect of VENs which seem to differentiate them from other forms of networking is the willingness of the members to invest in the development of these shared working practices.

Without such practices it is unlikely that trust will grow in the network to the extent necessary to achieve anything significant.

The first conflict that happens will probably destroy the network.

Strange as it may seem it is sometimes the appearance of the first good business opportunity that destroys a network as members revert to non-collaborative styles with the smell of the money!

CSF4. "ABC" Roles

The most successful virtual enterprise networks are based around 3 key roles, which can be remembered using "ABC".

"A" is for the Architect who knows what the network of companies can (and cannot) deliver. The Architect is also responsible for finding companies to fill gaps in the virtual supply networks needed to deliver specific customer opportunities.

"B" is for the Broker who sources potential customer opportunities for the network and then works closely with the Architect to qualify them and configure the right virtual teams to bid.

"C" is for the Coach who works with the individuals in the different companies to build trust, design accountability structures, resolve issues, address conflicts of interest and build them into effective cross-company teams.

I am sold - how can I get started?

Click on this link to access "A 6-week plan for setting up a Virtual Enterprise Network" ===> http://www.bioteams.com/2005/07/24/ a_kick-start_plan.html

Ken Thompson's shared know-how on the "how-to" of virtual collaboration and successful bioteaming is available free on http://www.bioteams.com

---

Mother Said - Wash Your Hands

Think health articles are boring? This one isn't, so read... Read More

Plan for the Event or Flounder

Rather than being there to eat the food and drink... Read More

Network Marketing Secret: On Becoming the ?GoTo? Guy

For years we've been taught to identify ourselves as reps... Read More

Strategic Networking: Take the Shortest Path to Success

Do you use Ryze or LinkedIn to promote your web... Read More

The Quest for Passive Income

Passive Income, residuals, royalties three ways to get paid multiple... Read More

Acknowledging Referrals! What?s in It For You?

I grew up in a household where saying thank you... Read More

Giving Referrals to Get Referrals

One of the best ways to get a referral is... Read More

How to Shmooze

Definition: talk idly or casually in a friendly way Value:... Read More

Have We Met Before? What to Do When You Cant Remember Who Yourre Talking To

You see him from across the room. You know him,... Read More

How to Avoid Falling Asleep Behind the Conversational Wheel

Think about the last time you feel asleep behind the... Read More

Follow-Up with Your Contacts

What happens when you meet a potential client at an... Read More

Networking in the Business world

Why is it so important to network with other people... Read More

Success Sentences to Help Combat Conversational Crappiness

Essential to your success as an effective, engaging communicator is... Read More

A New LinkedIn Discussion Forum for High Power Dealmakers

For those of you interested in international business transactions or... Read More

Networking Know-how

Successful networking requires the understanding from the get-go that it... Read More

Volunteering for a Networking Group

When is it appropriate to volunteer to take a position... Read More

Mobile Car Wash Companies; Trading Tips

If you run a mobile car washing firm we recommend... Read More

How to Generate More Business by Telling People What You Do

What do you tell people when asked what you do?... Read More

Putting The Fun Back In Networking

Networking is one of the most important skills a person... Read More

Time to Hire a Professional Networker?

It used to be that people said that there was... Read More

The 4 Actions of Awesome Hospitality

These Actions of Awesome Hospitality? will help you manifest the... Read More

62 Ways to MAXIMIZE Your Approachability

If you walk into your local bookstore and pick up... Read More

10 Top Tips for Successful Networking

1. Recognise the importance of networkingAsk any successful business person... Read More

Lesson 15 - Meeting the Prince with More Reputation than Power

The StoryBusiness has a habit of testing us as individuals... Read More

Networking and Trade Shows

The most important reasons people exhibit at a trade show?... Read More

How To Make Your Next Networking Event A Success

There are people who are natural born networkers - those... Read More

Joining Industry Specific Organizations Has Many Benefits

Recently, while providing an up-and-coming Virtual Assistant (VA) and small... Read More

Small File Box With Resumes to Help Customers

I bet you have not thought about it much, but... Read More

Work that Room, Baby!

Networking, schmoozing, making connections. Call it what you want, it's... Read More

What a Leads Exchange Group can do for You

What is the definition of a leads exchange and how... Read More

7 Step Plan To Get Going With Networking

Whether you're an introvert or an extrovert, feel like you... Read More

Practice Makes Pefect

What is the problem when people try to describe what... Read More

Who Are You and What The Heck Do You Do?

A few years ago, I was attending a family function... Read More