The network-centric business model is driving exponential financial growth at small business, corporate, and global economic levels. Using the network-based model, new, innovative businesses thrive, while staple brands, mired in traditional sales and business practices, falter. But network transformation may hold a key answer.
Network transformation is the key to creating and maintaining business growth. By harnessing custom network power and recognizing its relevance and agility, businesses at all levels can thrive. Here are five critical components to consider when planning and implementing network transformation.
- Network Effects
Whether a company is platform-based, entertainment, or traditional goods and services, the ability to increase connections, form independent cohorts for precise collaboration, and utilize connections to increase individual and corporate value, drives success. A comprehensive understanding of network capability is foundational to increasing customer and shareholder value.
Companies can build value by harnessing the network to create pathways for customer connection and collaboration.
- Shared Value
Network transformation enables active co-creation of value with customers. Social media platforms like Instagram and Facebook, where the customer is the product, have paved the way through recognition of this shared value.
Traditional companies who have chosen to follow in the footsteps of these networking innovators are taking critical steps to transforming their industry. This shift in mindset may call for changes in products, services, and business strategy, but will inevitably result in increased profitability.
- Time Compression
Another advantage elicited by networks, particularly at the global corporate level, is the ability to compress time. Network giants such as LinkedIn, Google, and Groupon, release upgrades constantly. Amazon makes changes to production approximately every 11 seconds.
New and growing businesses must plan network capabilities in the light of the most dynamic impact on delivering rapid improvements to structure, capacity, and workflow.
- Platform Innovation Capacity
The network is the foundation of every component of business growth, product development, service delivery, workflow engineering, customer engagement, and sales and marketing. It must become a platform capable of supporting rapid innovation.
Business success is dependent on the network, and the infrastructure must be changed to encourage and enable the pace of innovation.
- New IP
Traditional IP infrastructure put vendor needs first. New IP network architecture is both user friendly and user-centric, allowing businesses to rapidly adapt elements, create new products and deliver services through the use of open interfaces, adaptive and programmable functionality, and functional analytics monitoring.
Improving New IP infrastructure means looking at these key features to optimize functionality.
In conclusion, as with all change, network transformation can seem overwhelming. However, transformation is critical when building a functional, value-driven business infrastructure, poised to keep pace with the current growth rate, set by the network business model itself, and showing no signs of slowing down.