Increase Your Sales by 30% Using Internet Collaboration Networks

Small businesses are really excluded from the global economy

Small businesses from many different industries, both traditional and hi-tech, have discovered a new way for them to succeed in the "global economy".

It involves collaboration on large proposals, R&D and fulfilment of orders assisted by relatively low cost, virtual collaboration technology.

Traditionally many small businesses join supply chains centred on larger companies.

Unfortunately the companies at the bottom of such supply chains are often treated as commodity players and replaced with cheaper alternatives when the opportunity arises.

Some brave small businesses have attempted to "go it alone" by creating sophisticated internet e-business architectures which directly link them to their major customers and partners.

However the expense, risk and sheer management effort involved in this approach puts it beyond the reach of most.

Virtual Enterprise Networks (aka VENs) give small businesses scale

The "third way" which companies are discovering is to join "Virtual Enterprise Networks" or VENs with other like-minded but complimentary businesses to market, sell and deliver collective offers to the market beyond what the individual companies could offer by themselves.

In addition these VENs are also undertaking significant collaborative product development work, often in partnership with applied research institutes and universities, which would be beyond the reach of the member companies individually.

For example, a group of UK Engineering companies are using the VEN approach to collectively bid for many-million pounds of work per annum from a large European Customer. Like many corporates this customer has a supply chain rationalisation (aka small supplier reduction) programme which would stop them dealing with any of the companies individually.

Another example is a group of Swiss component manufacturers who used VENs to move up the value chain away from contract-specific components to branded product solutions in the face of stern cost-based competition from Czechoslovakian companies exporting into their home market.

A third example is a group of Mexican manufacturers who used a VEN to support their entry into a new, more sophisticated market (the US).

So what exactly is the "Value Proposition" for a VEN?

A VEN connects businesses into peer networks that are supported by appropriate technology to give them the capabilities and competitive advantages of global enterprises particularly:

? SALES
? MARKETING REACH
? PRODUCT DEVELOPMENT
? HUMAN, CAPITAL & IT RESOURCES

Whilst exploiting their inherent competitive advantages in being able to be more agile in areas such as:

? SPEED & RESPONSIVENESS
? ENTREPRENEURSHIP & INNOVATION
? FLEXIBILITY
? LOW OVERHEADS

So what are the critical factors for making a VEN a success?

All the experience points to four main ones:

CSF1. Not over-complicating the technology support!

The surprising thing about virtual enterprise networks is that the technology support companies need to get started and win collective new business is neither complex nor costly.

When companies are starting to collaborate all they really need is a simple web-based collaboration platform which they can access from their companies (whilst travelling) which allows them to securely communicate, schedule, discuss and work on shared documents.

Typically numerous suppliers offer such software as a hosted, pay-per-use service, which requires no software, installed at any of the client PCs.

Companies operating in a network also need access to good shared business applications such as campaign management/CRM - these applications must be web-based as networks of small companies do not have shared IT infrastructures.

CSF2. Taking "Network Governance" Seriously

The biggest concern a customer will have in dealing with a network is who is accountable when things go wrong (and can I sue them if it has to come to that!).

Also customers want to treat the network like a single entity not like a collection of different companies. Thus they need to see single point of contact, seamless business processes and common values from a network.

This can all be grouped together under the term "Network Governance".

Networks, which do not invest in building this typically unravel in their first sales pitch to any large customer once the customer's procurement department starts asking probing questions.

"Marriage of Convenience networks" rarely win collective contract work from major organisations.

CSF3. Development of Common Collaborative Working Practices

A virtual enterprise network is a virtual team. However it is made up of individuals from many different organisations with different ambitions, IT awareness, business cultures many of whom do not know each other well.

It is therefore a classic Virtually Networked Team and as such needs to agree the way these people will work together, make decisions, handle conflicts, share information and use the virtual collaboration technology.

An aspect of VENs which seem to differentiate them from other forms of networking is the willingness of the members to invest in the development of these shared working practices.

Without such practices it is unlikely that trust will grow in the network to the extent necessary to achieve anything significant.

The first conflict that happens will probably destroy the network.

Strange as it may seem it is sometimes the appearance of the first good business opportunity that destroys a network as members revert to non-collaborative styles with the smell of the money!

CSF4. "ABC" Roles

The most successful virtual enterprise networks are based around 3 key roles, which can be remembered using "ABC".

"A" is for the Architect who knows what the network of companies can (and cannot) deliver. The Architect is also responsible for finding companies to fill gaps in the virtual supply networks needed to deliver specific customer opportunities.

"B" is for the Broker who sources potential customer opportunities for the network and then works closely with the Architect to qualify them and configure the right virtual teams to bid.

"C" is for the Coach who works with the individuals in the different companies to build trust, design accountability structures, resolve issues, address conflicts of interest and build them into effective cross-company teams.

I am sold - how can I get started?

Click on this link to access "A 6-week plan for setting up a Virtual Enterprise Network" ===> http://www.bioteams.com/2005/07/24/ a_kick-start_plan.html

Ken Thompson's shared know-how on the "how-to" of virtual collaboration and successful bioteaming is available free on http://www.bioteams.com

---

Jump Start Your Network

Networking is often identified as a key business building activity for small business owners, especially those just getting started. Often we think of networking as meeting as many new people as possible. However... Read More

Youve Got Personality, Use It!

For the self employed professional, nothing is more important than the image you project to your clients and potential clients. Napoleon Hill put it best when he said, "People buy your personality and... Read More

Volunteering for a Networking Group

When is it appropriate to volunteer to take a position in the group?Have you heard the saying that "the fastest way to get anything done is to ask a busy person"? It is... Read More

The Five Step Formula For Getting Prospects to Call You

Are you tired of prospecting for new business?Are you sick of networking, begging for referrals, or spending a small fortune on advertisements that produce little results?Wouldn't it be nice if you could just... Read More

How to Organize a Successful Bad Sweater Party

"Hey Scott, would you like to go to a Bad Sweater Party this weekend?""A what party?!" I said."A Bad Sweater Party. Wait a minute?you mean to tell me you've never been to a... Read More

Successfully Meeting And Greeting - Ten Strategies For Getting Off To A Good Start

A day in the life of every businessperson is made up of a series of meetings and greetings. Whether you are making the initial contact with a client or a colleague, you want... Read More

Keys to Successful Networking While In Transition

Let's be real. With other pressures of life upon us, having to network can be a burden and increase stress levels.How we decide to spend valuable time networking will determine our direct success... Read More

How Speakers, Exhibitors, Consultants, and Meeting Planners Partner-Generate More Money and Value

? "Make Every Moment Count" is the title of a CD that a pharmaceutical company gave away at their exhibit booth at two major conferences.Half of the CD covered the company's new product... Read More

Mary Kay Ash Did It Best... (The Networking Factor)

"The Networking Factor, Everyone is important!" This slogan reminds me of another personal credo by one of the country's greatest motivators... Zig Ziglar says, "You can have everything in life you want if... Read More

How to Create an Interest Story for the Press

What makes a good interest story?An interest story is just that, an interest story. It means that you have something interesting to say and therefore have something of interest to be printed. The... Read More

Success Sentences to Help Combat Conversational Crappiness

Essential to your success as an effective, engaging communicator is learning not only what to say, but what not to say. The following guide examines several sentences, phrases and questions that stand in... Read More

Building Business Relationships in a Roomful of Strangers

You approach a stranger at an association meeting or industry conference with you arm outstretched and say: "Hi. My name is?.." And you're off and running.There's an art to successful networking and business... Read More

Hey, Whos the New Guy? How to Make Guests and First Timers Feel Welcome

The New Guy is a person we all know. And regardless of age, gender, race or personality ? spotting The New Guy and stepping onto their front porch is your duty as an... Read More

Are You in the Relationship Business?

Are you in the relationship business? Of course you are. Everyone who has to work with, deal with, sell to, convince, is! Unless you're on a deserted island, you must connect with, interact,... Read More

Unforgettable First Impressions Part 4: Become a Social Gift Giver

Do you ever wonder why single people give flowers, wine, candy or mix CD's on first dates?Bingo! Because they want to get lucky!Just kidding. They bring gifts because they want make a great... Read More

Build Your Business through Strategic Networking

Networking ? it's the latest business trend. Or is it?Actually, business owners have always engaged in the art and science of networking. Only years ago it didn't have a name. Business owners would... Read More

The Answer to Your Worst Networking Nightmare

Imagine you just met your ideal client at a networking event. He's friendly, has great ideas and could use a valuable person like you to help grow his business. Not to mention, he's... Read More

Test Your Networking Know-How

Let's test your knowledge on networking:1)The best definition of networking is: a) Schmoozing at meetings and events b) The solicitation of funds c) Building and maintaining mutually beneficial relationships d) Marketing... Read More

Building Bridges - The Importance of Being Connected Where You Live

As a Young Professional (YP) in the up-and-coming city of Milwaukee, WI, I can tell you that it's very important to find a way to get connected in your city. It's important because... Read More

A New LinkedIn Discussion Forum for High Power Dealmakers

For those of you interested in international business transactions or the business networking organization, LinkedIn, a new Yahoo groups discussion forum has been created. Several Yahoo discussion groups already exist on the uses... Read More

Networking Know-how

Successful networking requires the understanding from the get-go that it is about what we can do for each other. Networking requires time, patience, and a commitment to helping others. Honest networking is not... Read More

Power Networking: Getting Your Name Out There!

Today's economy presents some very special challenges to people who are unemployed, underemployed, or who are simply trying to give their own business venture a shot in the arm. At times, the job... Read More

Alliances: More Than A One Way Relationship

What is the biggest advantage of forming an alliance?Everyone has their own definition of an alliance. I had a potential alliance with a person that was starting his own business. He came to... Read More

The Foundation of Networking: Its Not Rocket Science

Commandment 1LoveWhen we choose to simply love, our giving and receiving becomes unconditional. We can listen and not be caught up in the vicious cycle of judgment.We can also watch people and suspend... Read More

The Promotion Factor: Seven Strategies to Promote Yourself and Your Business by Playing Golf

Effective business promotion is more powerful than advertising. Using golf is one the best ways to increase your business and personal success. Playing golf is the foundation for networking and recruiting. Think about... Read More

Strategic Networking: Take the Shortest Path to Success

Do you use Ryze or LinkedIn to promote your web based business? If so, you may have noticed that everything is linked to everything else. Here's how to take the shortest path to... Read More

You MUST Be Visible

Have you ever noticed how visible large corporations are? Take Coca-Cola?, Nike? and McDonalds?. They are everywhere. Just ask anyone what comes to mind when he/she hears the words soft drink, running shoes... Read More

When Gifts Say More

What's a gift mean? If you're like me, you probably focus on the giving and the getting.But, have you thought of gifts as a medium, a channel, for communication? In a book called... Read More

Online Business Networking: How Personal is Too Personal?

Online networking has opened up some fantastic business opportunities for solo entrepreneurs. You can open an account with one of the major online business networks such as Ryze, and get to know industrious... Read More