Thursday, October 17, 2013

17/10/2013: Customer-Activated Enterprise Research: Partnerships & Value-Added

I recently wrote about the upcoming publication of the IBM's Institute for Business Value CxO-level study: "The Customer-activated Enterprise: Insights from the Global C-suite Study" - the link to the original post is here:

Now the study is out and available here:

Some interesting insights from it will be forthcoming over the next few days as I slowly digest the paper (slowly - due to time constraints and not due to the nature of this superb piece of research).

First instalment a chart plotting CxOs' view of major changes in the business landscape in the next three to five years.

Note the emphasis on (opinions and views are my own - on foot of my interpretation of the data presented):
1) Bigger partner network is seen as a crucial trend changer by 73% of CxO executives - which is inherently driving the strategic focus of the enterprise development toward more diversified base of partnerships and networks.
2) Social and digital interactions are displacing face-to-face interactions and this implies that social and digital platforms will have to become also key tools for development and deployment of partnerships. End result of this (1) and (2) nexus is that business models will have to expand horizontally and beyond traditional nodes of corporate management and control. Risk will rise, uncertainty will rise both in scope and complexity.
3) This is supported by the shift in the partnerships nature: from lower emphasis on efficiency-driven partnerships toward more value-adding partnerships. In other words, not sub-contracting to specific tasks, but expansion of R&D, strategy and value-adding chains beyond the bounds of the traditional enterprise. This is very exciting, but adds even more complexity and uncertainty as well as more disruption to traditional (vertical or hierarchical) enterprise structures.
4) Focus on customer as individuals focus shift suggests that the era of Big Data will be moving toward the era of Small Data - greater granularity to follow with greater customisation. These can only be delivered via fluid, dynamic, non-contractual partnerships arrangements. Networks, not managerialism.
5) Not surprisingly, operational control weakens, organisational openness rises.

Much of the same that I have been talking about at TEDx Dublin and more recently at Alltech's Presidents Club meeting. You can also see my ideas on MNCs-led partnerships by searching this blog.

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