Survival of the Fittest (Transforming the Supply Chain into an Adaptive Business Network)

Author: Klaus E. Heinz, Bob Bates
Publisher:
Publish Date: 2005-09-01
Features: This book is a profound work on business operations and management by Dr. Klaus E. Heinz, a senior executive director and core leader of SAP, the world's third-largest software company, as well as a professor of management at the University of Mannheim, Germany. He believes that the fundamental changes in the current business environment have given rise to Process Management Technology represented by SAP's Adaptive Business Network, which, like high-tech products that can be materialized, has become the most strategically valuable technology in today's national and corporate competition. Now, the business environment has shifted from relative stability in the past to a highly uncertain and rapidly changing one. Businesses must either "move with the wind," "be driven by the wind," or face "perish without action." The theme of this book is to elaborate on the transformations brought about by the internet and supporting technologies in industries along the value chain. In these industries, the operations of companies along the value chain are coordinated to form an enterprise network to meet the diverse needs of customers. With the impact of technological changes on the economy, many industries have adopted network structures or are undergoing this transformative shift. The ongoing changes primarily include:
- Companies within the enterprise network can easily access all information about other companies;
- Improved process automation and enhanced intercompany relationships have increased responsiveness and reduced costs;
- Lowered transaction costs have streamlined company processes and increased task outsourcing;
- More accurate and timely information about customer behavior is provided.
All these trends enable businesses to form a new paradigm—Adaptive Business Networks. This book elaborates on the concept of Adaptive Business Networks, how to establish such networks, and the benefits they bring. By introducing the idea of Adaptive Business Networks, companies can focus on and leverage the trends reshaping their businesses, thereby enhancing their competitiveness.