"Companies don’t compete against other companies. Networks compete against networks." - Competing in a Flat World
I'm often asked, "what is a network orchestrator?". It is not a concept that I created from thin air. As the network orchestrator of a global business solutions firm, one of my primary goals is to help our clients understand that network orchestration goes beyond connecting people at a business function.
One of the best explanations of a network orchestration is presented by Dr. Victor K. Fung, Dr. William K. Fung and Yoram (Jerry) Wind in their book, Competing in a Flat World. In the book, they examine the role of the network orchestrator related to focus, management and value creation. The network orchestrator focuses on the following in comparison to traditional methods:
1. The complete network in the firm vs. the firm. 2. Empowerment of the components of the network vs. rigid controls. 3. Creating value through integration vs. the command and control method.
At S4X, we do not own manufacturing plants. We do not own distribution centers. We are not investment bankers. We are not a law firm. Although we have a location in Indiana, we are not an Indiana Life Science company.
We create solutions for our clients utilizing a global virtual business network. We orchestrate the formation or a specific network for a given client situation. The result is a flexible solution which can be short-term or long-term. All the components of the solution work to create a true client centric solution because we focus on the client situation versus the individual needs of the components.
Think of S4X as the guest conductor for an all-star jazz band at an international jazz festival. We work to bring the various talented musicians to create a beautiful melody for the audience.
It takes more than one link to create a chain. In a similar fashion, the supply chain of a company involves several links to be complete.
As a business consulting firm, we are currently involved with the creation of a supply chain management company. When I say supply chain, I'm describing a business focused on warehousing, fulfillment, logistics, transportation and the underlying technology. Going through the process of educating myself about this industry has given me a deeper respect for the connection points necessary to make a business run.
Most companies tend to think that the most important supply chain is the one which helps achieve a client interaction. What about the supply chain that helps a company function. Have you ever though about what it takes to get that pen you are using to your office and into your hand? Here's a clue: it doesn't just magically appear at Staples. Whether you are an Indiana life science company or a marketing firm from South Africa.
What does your internal supply chain look like? Do you manage it the same as your client-facing supply chain?
A non-scientific review of Indianapolis business trends reveals that technology companies are growing despite the economy. Now, I'm not selecting the technology industry to suggest that everyone should switch to that industry.
As a business consulting firm, we use technology but are far from a technology company. One of our partners, Dave Castor at Alerding Castor, keeps our team informed about technology.
I just think that other industries can learn from the technology industry. Whether your firm is a manufacturer or a business services organization, the lessons from the technology company can help you.
I could use examples from our company or our clients but I thought I would a share a video clip which prompted my thoughts on this subject. Although David Lawee, VP Corporate Development at Google is speaking about business formation issues related to technology, he presented two themes that resonated with me and probably will with you as well.
#1 - Passion, Partnerships and Speed #2 - Maximize time and people resources
We all use technology in our organizations for-profit and NGO alike. What can you or have you learned from those organizations that create the technology you use?
Much has been made about smart grids, energy independence, clean energy, etc. Whether you like it or not, I think we will have a clean energy infrastructure in place in the United States. Even today, the National Clean Energy Project forum is being held in Washington, DC. This forum is a follow-up to the National Clean Energy Summit.
From a corporate development standpoint, this will present an opportunity for those companies willing to get connected to the grid. By "grid", I'm talking about the technologies, organizations and funding sources that will help to change the energy infrastructure paradigm.
We are currently working on business development opportunities for a client in the energy management sector. Their technology connects the suppliers, consumers and the energy markets. This is one example a business opportunity.
Regarding funding, several top VC firms are looking to invest in clean energy including Kleiner Perkins (KPCB GreenTech Team). Multiple funding sources may add in business formation efforts.
As a business consulting firm and network orchestration firm, we are fortunate to be on the front line of the clean energy movement. Yes, clean energy is good for the environment but it can also be good for the growth of your business. I think the rhetoric is about to take a back seat to action by mutliple sectors. Will your company be connected to the grid..the action?
During the last four days, we have been working on four new private equity projects. Yes, deals are still being done. These projects range from $7 to $100 million. The industries represented by these projects are information technology, commodities, life science and hospitality.
The point I am trying to make is that despite the gloom and doom in the news, many companies are still moving forward and growing revenue. From emerging markets to a virtual business, we are assisting our clients through the private equity process. Even in the hospitality sector where the demographic trends suggest many negatives, our clients are selecting opportunities to position themselves to benefit down the road.
By understanding that private equity has not gone away, many small and middle market firms have an opportunity to capitalize on the crisis. Our strategic partner, David Castor, spells out some of the nuances in his blog series on private equity.
We enjoy working with our clients on these types of projects. Not only does the revenue increase but jobs are retained. That is really exciting.
Is your company looking for opportunities for growth? Contact us to learn more about finding your equation for growth.
This week, I continued my annual ritual of reading The Four Agreements by Don Miguel Ruiz. For the past 4 years, I have taken the time at the beginning of each to read the book to remind myself about the lessons that can be learned from this book. The book is focused on the following personal agreements made by an individual:
1. Be Impeccable With Your Word 2. Don't Take Anything Personally 3. Don't Make Assumptions 4. Always Do Your Best
I understand that life and business can be complicated. With that being said, I think the four agreements in this book can be useful for personal and professional reasons. From a business perspective, the agreements can help to create a sustainable culture for your company.
I mention culture for a company because the culture is often overlooked during strategic planning sessions. Additionally, culture will trump strategic implementation every day of the week.
Whether you are a business development professional or a social entrepreneur these agreements can assist you.
Do you have an annual activity to begin your year?
It is often said that your reputation is defined by your community and the company you keep.
As
a global business consulting firm, we are fortunate to work with a
phenomenal community consisting our clients and partners. Although the
confidential nature of our relationships prevents me from mentioning
our entire community, I want to mention a few companies that have made
2008 a great year for our team.
Our relationships with our virtual business partners including the entrepreneurial business law firm, Alerding Castor, and the creative business blogging firm, Compendium Blogware, have helped us to expand our platform of services and geographic reach. Most recently, we have expanded our reach to Africa.
We look forward to continuing our relationships in 2009.
What do you want your equation to look like for 2009?
I've been reading a few new books lately. While reviewing my notes from Thirteen Days by Robert F. Kennedy, I was reminded of the lessons that can and should be learned from alternate sources.
In the book, a quote from Basil Liddell Hart is mentioned with regard to proper negotiations.
"Keep strong, if possible. In any case, keep cool. Have unlimited patience. Never corner an opponent and always assist him to save face. Put yourself in his shoes--so as to see things through his eyes. Avoid self-righteousness like the devil--nothing is so self-blinding."
Although this quote refers to military-related negotiations, the lessons are transferable to other industry settings. For example, one of our current projects for a client includes business formation activities and negotiating licensing agreements for their patented product. In order to complete these agreements, we must follow some of the lessons from Mr. Hart's quote.
In another situation, we have been retained to consult on an equity raise for an Indiana life science company. During the raise, we have to always consider the situation through the eyes of our investors.
As a global knowledge management firm, we also encounter the complexities of international negotiations which include the need to understand the cultural differences. This is especially true while working in emerging markets.
What lessons have you learned from your negotiations?
The temperature outside has dropped 30 degrees in the last 24 hours here in Indianapolis. With the frigid temperatures and strong winds, a strategy from staying warm has to be implemented. One of the key strategies is to dress in layers rather than wearing one big coat.
In business, we are all experiencing a change in the weather. If we try to use a one-size-fits-all solution, we may not be able to weather the storm. We prefer to advise our clients on incremental solutions similar to wearing layers of clothing to protect yourself from the cold weather. You've heard about the principles of Kaizen and Six Sigma. For those that don't know, Kaizen focuses on ocuses on continuous improvement. Six Sigma focuses on improving processes and eliminating defects.
As a business consulting firm, we help our clients (including virtual business clients) to implement the components of these principles that work for their given industry. From a law firm to an Indiana life science company, we partner with our clients to develop incremental solutions which can help to provide stability in a time of "quick fixes".
When the winter temperatures hit our area, we prefer to use layers and dress for long-term warmth. What does your winter clothing look like?
Making a virtual company work takes careful planning. The major components are relatively simple. Those being attorneys, accountants, C-Level executives and understanding your product.
What if you are an Indiana life science company looking to working with a South Africa life science company? Not only due you have cultural issues, you will also have different regulatory issues to manage. Additionally, how will you ensure the communications are seamless and real-time?
With regard to the communications, we are working with a client to utilize the online social networking infrastructure in a business social networking environment. The goal is to create a collaborative culture and decrease communication cost.
For the regulatory component, our client and partner, Safis Solutions provides excellent advice for ensuring compliance. Gretchen Bowker, Director of Regulatory Affairs and Compliance Services has a great article relating to virtual companies in the October 2008 Safis Solutions Newsletter.
How do you manage the components of your virtual business?
“Logic will get you from A to B. Imagination will take you everywhere.” - Albert Einstein
On the recommendation of good friend, I purchased and started reading Einstein, His Life and Universe by Walter Isaacson. After starting the book, I can't help but realize the lessons from Mr. Einstein that can be transferred into business.
From the beginning, Einstein was a curious person with a continual thirst for knowledge. I think we tend to forget in business that there is always an opportunity to gain knowledge. Then, we can use this knowledge to impact our business and clients. Business formation funding is an area where a company could leverage this type of thirst. If you think traditionally (especially in the current environment), the only solution is a bank. Through this thirst for knowledge, you would learn there are many ways to structure funding including private equity. My partner Dave Castor explains the private equity in detail in his blog.
From emerging markets to established markets, this thirst for knowledge can lead to many opportunities. As a business consulting firm, we work to help our clients understand the value of this thirst to their firm's culture. This holds true in a slow economy or fast-moving economy.
What new opportunities have happened due to your thirst for knowledge?
At the end of last week, I had the opportunity to attend a meeting for the Marriott Diversity Ownership Initiative. This meeting introduced me to new terms related to the hospitality industry such as RevPar.
My attendance was due to a client/partner project. This project involves the creation of a fund to acquire limited-service hotels in the Midwest and Southeast portions of the United States. We will then utilize various partnerships to execute acquisitions.
What intrigued me was the level of collaboration by the participants and organizations such asNABHOOD - The National Association of Black Hotel Owners, Operators & Developers, Inc. The environment reminded me of the open source world of the information technology industry. We were sharing knowledge and creating virtual business partnerships through casual business networking. Additonally, I was pleased with the program and how it also focused on our domestic emerging markets as opporunities to create jobs.
In future posts, I will let you know how this project plays out. In the meantime, have you thought about a best practice from another industry that can be utilized in your business?
Much as been said about the economy and its issues. The major news outlets provide the high-level interviews and articles. I read those articles but rely on something more sensible - my peers, colleagues and close friends. How do we communicate? Online social networking sites and text messages.
I prefer Twitter and Facebook. For instance, I recently received an article about Citigroup divesting one of its divisions in India. The acquirer was Tata. The twist of the deal was a 9.5-year outsourcing contract for Tata from Citigroup. Definitely, a great win for Tata.
Via our online social networking, we have advised our clients and have gained several business formation projects in the last two weeks.
Have you learned to leverage the available technology at your fingertips?
In recent BusinessWeek article titled Why Clean Tech Is Taking Biotech's Shine, the author makes an observation on the linkages between the life science and clean tech industries and the entrepreneurs in each. Although I don’t agree with the complete analysis, I understand the similarities.
The article made me think about the linkages we see from a business consulting perspective everyday. In addition to the common skill sets of our clients. We look to other industries such as the hospitality industry for examples of best practices or transferable linkages. For example, an Indiana life science company’s sales team could learn from a team that serves them while dining at a fine dining establishment such as Moe’s Steakhouse. From touch points to playing a particular role for the particular client, there are many lessons to be learned.
On a more technical level, professional services firms such as a solo practice law firms can learn many lessons from a start-up IT firm. Consider business development. A start-up IT firm will use guerrilla marketing including blogging to make things happen. Forget the yellow pages. The solo practice firm could be successful by using just this aspect of the IT ecology.
Whether you are hiring new people or growing your current market share, you can learn from the indirect linkages you have with other industries. Have you checked out your indirect peer group lately?
Over the past few weeks, my friend Dave Castor of Alerding & Castor and I have discussed the virtues of strategic alliances. In my opinion, one of the major reasons for success or failure is lack of real communication.
An good example is the BioCrossroadsLINX collaboration between Indiana and San Diego. Spearheaded by BioCrossroads, this project is focused on the Indiana Life Sciences industry. The collaboration allows for both sides to benefit while maintaining there strategic advantages. Through multiple meetings and open dialogue on the proper strategic implementation, this alliance works.
Open communication is only one part of the deal. I watched this quick video from the folks at The Deal.com this morning that helps with the other key business issues.
I just finished speaking with my friend Dave Castor of Alerding Castor LLP. During the past few weeks, he has been moving at a hectic pace to grow his business. This is the life of an entrepreneur who advises entrepreneurs on the legal issues related to business formation and international licensing agreements.
The world of the entrepreneur is constantly changing. Dave has recently added business blogging to his list of weekly action items. Fortunately for Dave, his firm's has several contributors to spread out the responsibility of creating content for the blog.
To stay ahead of the hectic pace, Dave has scheduled time with himself today and tomorrow. Although it sounds counterintuitive to take time away from business development, I think it is a good decision. In my opinion, working at a hectic pace without time for yourself leads to a cluttered mind and workspace. Clutter is not good.
Have you scheduled a regular meeting with yourself? If not, why?
We have all heard about the K.I.S.S. method of making decisions. If you haven't, "K.I.S.S.", stands for Keep It Simple Stupid. The question is, how many people actually practice K.I.S.S.? Are you the person with a 1,000 people on your social networking site or the entrepreneur focused on the minutiae working of the strategic implementation of your latest business venture? If you are in this group of people, you may want to consider simplifying.
Bruce Lee said, "True refinement seeks simplicity." In his book The 4-Hour Workweek, Tim Ferriss describes two ways of living your life. The "Deferrers" live life to have more at the end of their life. The "New Rich" live life to have more quality and less clutter throughout their entire life. Both focus on simplification.
Simplicty is not just creating less steps in a process. It includes recognizing that you may be over-thinking a process and thus cluttering it up. As a result, you are wasting time. Simplifying can occur almost anywhere in your buiness including business formation or your interactions within your business social network.
In the City of Indianapolis, there is a major decision about to happen related to the funding of art programs and organizations. According to a recent article in the Indianapolis Business Journal, due to budget deficits (not unlike many other cities in the United States), the funding for the arts could potentially be phased out over the next three years.
Multiple online communities and social networking sites including one by the Arts Council of Indianapolis have been create a dialogue and to post comments and concerns.
From a business perspective, I understand why cuts need to happen in the short term. However, expenses can be decreased without sacrificing an often overlooked business development and employee attraction/retention.
In today's market, the "quality of life" quotient is a key reason why people live, work and play in a given location. As an entrepreneur trying to attract the best talent for your team, you need all the help you can get. This includes the arts and cultural aspects of your community.
What do you, your employees, friends and family members do when they are not working? I'd guess that the arts are involved in more ways than you think.
Ideas + Experience = Companies (Yes, money is a part of this equation but not in the context of this post)
Last week, I attended Innovention 2008, the annual Indiana Life Science industry event hosted by the Indiana Health Industry Forum.
Two of the panel discussions during the event had divergent comments with regard to the state of the life science industry in Indiana. One panel suggested multiple technologies with high commercialization potential exist in Indiana but there is a lack of experienced individuals to capitalize on the potential. On the other panel, the comments indicated that the experience can be pulled together via a virtual business model. In the former, the glass is half empty. In the latter, the glass is half full.
I agree with the latter opinion. We are working with our clients and network to license some of the technologies and capitalize on the potential. If you are a budding entrepreneur looking for a business formation opportunity, this model may work for you. If you are an established organization, this model may create services or products for increased business development.
In a recent article in the NY Times titled As Travel Costs Rise, More Meetings Go Virtual, Steve Lohr talks about the increasing use of videoconferencing by global firms. The rise in travel costs was discussed as a reason for this increase.
In part, I agree with Mr. Lohr. Yes, the travel costs are increasing. Additionally, I think leveraging technology in order to increase the ROI per employee should be considered. As a business consulting firm, we view the refinement of the technology as an internal and external benefit. Internally, we are able to decrease our costs and increase business development opportunities by the use of webinars, business blogging, social networking sites and videoconferencing. Externally, we are able to work more efficiently with our clients by using similar technologies.
For start-up firms, the use of telepresence technologies can help to increase your efficiencies and set you apart from your competition. The adoption and acceptance of these technologies will only increase.
Are you positioning your organization to benefit or will you be left on the sidelines while your competitors be the market leaders?
"Companies don’t compete against other companies. Networks compete against networks." - Competing in a Flat World
It takes more than one link to create a chain. In a similar fashion, the supply chain of a company involves several links to be complete.
Much has been made about smart grids, energy independence, clean energy, etc. Whether you like it or not, I think we will have a clean energy infrastructure in place in the United States. Even today, the 
During the last four days, we have been working on four new private equity projects. Yes, deals are still being done. These projects range from $7 to $100 million. The industries represented by these projects are information technology, commodities, life science and hospitality.
It is often said that your reputation is defined by your community and the company you keep.
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