The Concept of Networkability - How to Make Companies Competitive in Business Networks

Business networking the management of ITenabled relationships between internal and external business partners is one of the most important features of enterprises in the information age. Currently, business networking is moving into the center of business engineering and aims at preparing enterprises in becoming part of IT-based business networks and in exploiting new process efficiencies and business opportunities. In this paper we develop an idea for describing, measuring and managing an enterprise’s ability to succeed in business networks: the concept of networkability. We illustrate the design objects of networkability using an example from the logistics industry and apply coordination theory to derive mechanisms which help to strengthen a company’s networkability. I. BUSINESS NETWORKING In the information age, the networking of companies is one of the most important business trends [17]. The many factors contributing to this trend include the diffusion of the Internet in the business world, the increasing availability of standards for information systems and data, the global competition in many branches of industry and the appearance of new types of companies, such as mega-mergers (e.g. DaimlerChrysler, MCI/Worldcom, Deutsche Bank/Bankers Trust) and start-up companies (e.g. Amazon.com, eBay, eToys, Yahoo!). Within this context, maximum process efficiency and a continuous search for new fields of business are key success factors. This is the starting point of business networking, a concept we refer to as the design and management of IT-supported relationships with internal and external business partners. An example of how to profit from the advantages of increased efficiency and from new business segments is Riverwood International, a manufacturer of cardboard packaging in Atlanta, USA. Since two years, Riverwood has been pursuing a business networking strategy in the area of supply chain management, a strategy which aims at improving information exchange with customers (e.g. Anheuser-Busch, Miller Breweries, Coca-Cola). By using a supply chain management system (SAP APO), the current sales plans of the customers were directly linked to Riverwood’s production planning. The consequences of business networking were a reduction in stock levels and increased flexibility. With this as a basis, Riverwood is planning to offer a new service which will be responsible for the exchange of planning data for the whole paper-processing industry in the USA. As Fig. 1 shows, this supply chain center uses different electronic services (eServices) and standards (business bus). Beschaffung Small Customer 2