Future of Business to Stay Alive-Virtual Enterprise Network (VEN)

As per the recent researches companies have to graduate to next level from Enterprise Application to Networked Enterprise. Research data shows that Networked Enterprises are not only more likely to be market leaders or to be gaining market share but also use management practices that lead to margins higher than those of companies using the technology in more limited ways.  The Concept of Virtual Enterprise Network (VEN) is already in place in various Industries in bits and pieces.  The future of organizations will be based on the same concept. You can no longer be able to play it all alone. Cost competitiveness and Innovation will force companies to move towards Networked Enterprise or VEN.

The Evolution of Business Competition:

It used to be competition between Companies (Vertical Integration) 

Then we heard "Future competition will not be among individual companies... shareholder value will be determined by competitiveness of Supply Chains…" Professor Arjan J. Van Weele, Eindhoven University

Now we hear "…Future business competition will not be between companies or even supply chains but between Networks"
Professor Marco Lansiti, Harvard Business School

 As per Ken Thompson, the goal of a Virtual Enterprise Network (VEN) is to connect Small and Medium  Enterprises (SMEs) into peer networks, supported by appropriate collaboration practices and technologies, to give them the capabilities and competitive advantages of global enterprises, particularly in:

• Sales
• Market Reach
• Product Development
• Human Capital and IT Capital

Virtual Enterprise Network's (VEN) inherent  competitive advantage over large enterprise  in:

• Speed and Responsiveness
• Entrepreneurship and Innovation
• Flexibility
• Low Overheads 

A VEN is, therefore , a way for businesses to achieve Virtual Scale, enabling it to operate as if it possesses more resources and capacity than it actually has within its own physical organizations. This allows  the VEN to function with all the resources and reach of a large enterprise, but without sacrificing its speed, agility and low overhead. This enables it to compete for bigger, more profitable contracts with higher innovation and design elements, with bigger customers that are more willing to build a strategic partnerships rather than simple transactional relationship with VEN's individual supplier

Concept of Small Fish & Big Fish:

In most Developed economies , smaller enterprise (Small Fish) are much in greater  number than large firms (Big Fish).  For Example, in European Union , Small and Medium   Enterprise (SMEs or Small Fish) comprise approximately 99% of all firms and employs majority of population.

But how do these two distinctly different entities , The Big Fish and the Small Fish -come  together to create a business innovation and to swarm around new business opportunities ?

Limitations:

• Big Fish worry about small Fish Longevity and stability
• There are cultural differences between Small Fish and Big Fish
• Small Fish don't understand or fit Big Fish structures and processes
• Small Fish are too much trouble to deal with and they are far more disruptive
• Small Fish find it hard to participate in extended information sharing sessions with Big Fish that often last 12-18 months before any revenues are realized
• Local Big Fish operations may have limited autonomy for strategic sourcing and forming new alliances.
• Accessibility issues are commonplace as Big Fish are not generally head-quartered in given Small Fish regions.

With all these limitation Virtual Enterprise Network  still help to achieve the following goals.  Big Fish desperately want and need the innovative products, services and thinking that specialized Small Fish bring. There can be two way, one is to involve a Small Fish finding one of the Big Fish's approved supplier to work through to eventually reach Big Fish itself  and other way is  like minded Small Fish directly engage key and resources to Interest and engage the Big Fish. Competitive success depends on how the Virtual Enterprise Network will help to develop strategic partnership they need with the Big Fish to propel them for next level of success.

The Virtual Enterprise Network creates a symbiosis, a living, mutually beneficial relationship among dissimilar organisms, where the participants , Big and Small, can thrive together in 21st century world of Extreme Competition.

Our Business Model works on same philosophy and we had developed some next age products, which we will be launching very soon.

Stay tuned...