1/ Network Orchestration, A moat
The business model of PDS ππ
They play the role of the Orchestrator: A platform that connects to & finds synergies among 1000s of local networks across the world to create collective value for the network & its stakeholders
H/T @Chins1729 π
The business model of PDS ππ
They play the role of the Orchestrator: A platform that connects to & finds synergies among 1000s of local networks across the world to create collective value for the network & its stakeholders
H/T @Chins1729 π
2/ It's hard for a traditional firm to move towards being a Network Orchestrator
X | From thinking about their firm β The whole Network
Y | From Management control β Empowerment
Z | Shift in Value Creation through Specialisation β Integration
High Entry Barrier π§
X | From thinking about their firm β The whole Network
Y | From Management control β Empowerment
Z | Shift in Value Creation through Specialisation β Integration
High Entry Barrier π§
3/ X
Two retail stores in New York City may appear to be direct competitors, but this is an illusion.
Each store has a supply chain stretching from its shelves out to the world
Before a customer walks into the store, often the game is over based on the superior supply chain.
Two retail stores in New York City may appear to be direct competitors, but this is an illusion.
Each store has a supply chain stretching from its shelves out to the world
Before a customer walks into the store, often the game is over based on the superior supply chain.
4/ Y
Customers want more customization, flexibility & transparency (High control over the end product & the processes)
The Suppliers are attached to the orchestrator through a loose-tight relationship, intermediated by intrapreneurs (with notable skin in the game)
Customers want more customization, flexibility & transparency (High control over the end product & the processes)
The Suppliers are attached to the orchestrator through a loose-tight relationship, intermediated by intrapreneurs (with notable skin in the game)
5/ Z
For a typical $4 stuffed toy, the in-factory costs might be $1 and the ex-factory costs might be $3.
In a world in which almost every penny has been squeezed from factory costs, the βsoft $3β may be the most attractive target for finding value.
For a typical $4 stuffed toy, the in-factory costs might be $1 and the ex-factory costs might be $3.
In a world in which almost every penny has been squeezed from factory costs, the βsoft $3β may be the most attractive target for finding value.
6/ Networks donβt run themselves. They are not just designed on paper. Henry Ford didnβt just design his factory and then walk away.
It requires active management to make it work. It's more a people's business than anything.
It requires active management to make it work. It's more a people's business than anything.
7/ The question for network orchestration β Not just sourcing products but rather designing global processes
What is the best possible way to get this job done, the best path through a network of global possibilities?
What is the best possible way to get this job done, the best path through a network of global possibilities?
8/ The end product is delivering the right product to the right place at the right time and at the right price.
It's a complex problem, and thus holds immense riches for the one who delivers a solution.
It's a complex problem, and thus holds immense riches for the one who delivers a solution.
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