More than ever, companies are sharing data, processes, and even employees with their customers and vendors to increase speed and efficiency. So what is collaborative commerce? The authors, who first introduce the concept in this book, suggest that just sharing information is not enough—new business models and organizational structures must be built around this open-door policy to reap maximum benefit.
Creating a knowledge-sharing network is key. For the companies that do it right (Toyota, for example), costs are reduced, innovation is put on speed dial, and competitive advantage washes over the value chain.
Effective collaboration begins simply: with agreement on a shared purpose. Leaders of each business in the chain must drive this core purpose throughout their organization. In addition to shared purpose, other major capabilities required to build a successful collaboration program are identity, reputation, trust, commerce, transparency, boundaries, real-time collaboration enterprise, and governance. With this groundwork completed, the rest of the book centers on the nuts and bolts of making it happen, exploring strategy, process, and governance issues.
Winning at Collaboration Commerce provides many short (often too short—more meat, please) real-world examples. For example, Volvo was able to increase new product success by 200 percent through development of its Innovation Management Center, where “team members can work with design-chain partners to brainstorm, define, and validate product possibilities, review concepts, and ultimately present new product concepts to executives.”
The authors are realistic in writing that companies cannot dive into this process lightly. “C-business models are achievable, but they require commitment and change across a number of areas: governance, strategy, process design, information technology infrastructure, people management, culture and change, and measurement.” Not to mention that your partners have to buy in equally as well.
- Sean Silverthorne