How Business Networks can help rescue companies by Anais Lelong
Global Business Networks are essential in nowadays’ business world, we have no choice but to accept this fact. In effect, no business can survive now without building a proper business network beforehand. This is the first reality anyone has to understand before starting his business. This is the root of all the worse problems your company could encounter. This is the key to avoid many problems, but this is also the solution for many problems that may happen anyway. Business Networks can make the difference between success and failure.
First of all, your business network will provide you many opportunities of creating value through collaborative relationships with your partners all over the world. In fact, collaborative relationships are very crucial for business networks to be efficient, as mentioned in Vivek Sood’s book, The 5-STAR Business Network (http://bit.ly/5-STARBN).
If you have built a great business network, you can decide to outsource and implement a process very quickly and safely. Indeed, once you already have a network, everything becomes much easier and faster. Any time you make a decision, you can choose among your partners and the results will appear very soon.
If you decide to use outsourcing to achieve better results through costs savings and new value creation, your business network will be very helpful in this situation. Let us say you have a global business network, with partners all over the world, and you want to outsource a specific task in the production process. Once you made that decision, you can have a look among your partners and see what they can offer. If one supplier’s proposition does not suit your project, you just have to look at other proposals from other suppliers. Having many partners all over the world will provide you different solutions, which can be applied to different problem and solve them very quickly.
Imagine a supplier that does not provide as good results as before, you can find another one, maybe right next-door! This is the beauty of business networks today. Partners are many and can be replaced any time, according to what your business needs. If a supplier does not match the requirements and goals anymore, your business network will offer you other solutions to solve the problem.
If you look at outsourcing stories, you will rapidly realize that this is true and that business networks are very crucial to your business survival. Let us look at the Red Bull example. The success story of Red Bull is mostly due to its business network. In effect, Dietrich Mateschitz, the founder of Red Bull is someone who perfectly understood that and used his business network to lead the company to the success. Red Bull is a company that outsources almost everything and this has been possible because of a great business network. He once said, “I support the concept of free competition”. Obviously, he is in favor of global business competition because he knows perfectly how to deal with it and how to benefit from it! Business network is the key, and that is what he understood faster than his competitors. He was able to use the global business network to achieve great results for Red Bull.
Many cases of failure are due to improper business network management or simply undeveloped business network. Old companies that used to achieve good results often happen to sit back and stay on their achievements, but this will lead them to bankruptcy. Companies have to follow the wave and become more and more global, expanding their network, if they want to survive against world competition.
by Anais Lelong