Network Challenge, The: Strategy, Profit, and Risk in an Interlinked World

New Paperback Edition   Networks and the Enterprise: Breakthrough Thinking and Actionable Strategies   “This book presents an amazing collection of insights on underlying forces and ways to thrive in our post-Coaseian age—an age in which the centralized firm is changing into an agile and resilient network of participants. A must read for a world where unpredictability reigns supreme.” —John Seely Brown, Independent Co-Chair of the Deloitte Center for Edge Innovation, and Senior Fellow at the Annenberg Center for Communication at the University of Southern California   “I couldn’t wait to get my hands on this research…I have already begun to put the ideas into practice in designing next-generation open innovation networks…the diversity of ideas and perspectives is truly amazing and will be a terrific resource to anyone seeking to move to new business models based on the power of networks for innovation, marketing, and creating and leveraging big ideas. Job well done!” —Larry Huston, Creator of the “Connect and Develop” program for Procter & Gamble, and Managing Director of 4iNNO, a major Open Innovation consulting practice   “In our borderless world, every manager needs to understand the strategic implications of networks. For the first time, The Network Challenge brings together thought leaders from many fields—a team of experts as broad as the network challenge itself.” —Kenichi Ohmae, author of more than 100 books, including the seminal work, The Mind of the Strategist, advisor on global strategy to foreign governments and scores of multinational corporations, selected by The Economist as one of five management gurus in the world.   Networks define modern business. Networks introduce new risks (as seen by the rapid spread of contagion in global financial markets) and opportunities (as seen in the rapid rise of network-based businesses). While managers typically view business through the lens of a single firm, this book challenges readers to take a broader view of their enterprises and opportunities.   This book’s 28 original essays include CK Prahalad on networks as the new locus of competitive advantage Russell E. Palmer on leadership in a networked global environment Dawn Iacobucci and James M. Salter II on the business implications of social networking Franklin Allen and Ana Babus on contagion in financial markets Steven O. Kimbrough on artificial intelligence, evolutionary computation, and networks Satish Nambisan and Mohan Sawhney on tapping the “global brain” for innovation Manuel E. Sosa on coordination networks in product development Christophe Van den Bulte and Stefan Wuyts on customer networks Christoph Zott and Raphael Amit on using business models to drive network-based strategies Yoram (Jerry) Wind, Victor Fung, and William Fung on network orchestration Valery Yakubovich and Ryan Burg on network-based HR strategy Howard Kunreuther on risk management strategies for an interdependent world Paul R. Kleindorfer and Ilias D. Visvikis on integrating financial and physical networks in global logistics Witold J. Henisz on network-based political and social risk management Boaz Ganor on terrorism networks   And much more...

Table of Contents:
Authors xviii Foreword by Dean Thomas S. Robertson and Dean Frank Brown xxv Preface xxvi   PART I            THE NETWORK CHALLENGE   Chapter 1        The Network Imperative: Community or Contagion? 3 Paul Kleindorfer and Yoram (Jerry) Wind   Chapter 2        Creating Experience: Competitive Advantage in the Age of Networks 25 C.K. Prahalad   Chapter 3        Knowledge as a Social Phenomenon: “Horse Holding” and Learning in Networks 37 Alan Kantrow   Chapter 4        Cross-Cultural Leadership in Networked Global Enterprises 49 Russell E. Palmer   PART II           FOUNDATIONS   Chapter 5        Social Networks: You’ve Lost Control 67 Dawn Iacobucci and James M. Salter II   Chapter 6        Biological Networks: Rainforests, Coral Reefs, and the Galapagos Islands 85 Sonia Kleindorfer and James G. Mitchell   Chapter 7        Information Networks in the History of Life 105 Robert Giegengack and Yvette Bordeaux   Chapter 8        Artificial Intelligence: How Individual Agents Add Up to a Network 125 Steven O. Kimbrough   PART III          INNOVATION AND COORDINATION IN NETWORKS   Chapter 9        Network-Centric Innovation: Four Strategies for Tapping the Global Brain 147 Satish Nambisan and Mohan Sawhney   Chapter 10      Coordination Networks in Product Development 165 Manuel E. Sosa   Chapter 11      Organizational Design: Balancing Search and Stability in Strategic Decision Making 185 Jan W. Rivkin and Nicolaj Siggelkow   PART IV          STRATEGY AND BUSINESS MODELS   Chapter 12      Complexity Theory: Making Sense of Network Effects 207 Colin Crook   Chapter 13      Supply Webs: Managing, Organizing, and Capitalizing on Global Networks of Suppliers 225 Serguei Netessine   Chapter 14      Leveraging Customer Networks 243 Christophe Van den Bulte and Stefan Wuyts   Chapter 15      The Business Models as the Engine of Network-Based Strategies 259 Christoph Zott and Raphael Amit   Chapter 16      Extended Intelligence Networks: Minding and Mining the Periphery 277 George S. Day, Paul J. H. Schoemaker, and Scott A. Snyder   PART V           ORGANIZING IN A NETWORKED WORLD   Chapter 17      Network Orchestration: Creating and Managing Global Supply Chains Without Owning Them 299 Yoram (Jerry) Wind, Victor Fung, and William Fung   Chapter 18      Managing the Hyper-Networked “Instant Messaging” Generation in the Work Force 317 Eric K. Clemons, Steve Barnett, JoAnn Magdoff, and Julia Clemons   Chapter 19      Missing the Forest for the Trees: Network-Based HR Strategies 335 Valery Yakubovich and Ryan Burg   Chapter 20      Relating Well: Building Capabilities for Sustaining Alliance Networks 353 Prashant Kale, Harbir Singh, and John Bell   PART VI          NETWORK-BASED SOURCES OF RISK AND PROFITABILITY   Chapter 21      Networks in Finance 367 Franklin Allen and Ana Babus   Chapter 22      The Weakest Link: Managing Risk Through Interdependent Strategies 383 Howard Kunreuther   Chapter 23      Integration of Financial and Physical Networks in Global Logistics 399 Paul R. Kleindorfer and Ilias D. Visvikis   Chapter 24      Telecommunications: Network Strategies for Network Industries? 417 Kevin Werbach   Chapter 25      Network-Based Strategies and Competencies for Political and Social Risk Management 433 Witold J. Henisz   PART VII         A DOUBLE-EDGED SWORD: CONTAGION AND CONTAINMENT   Chapter 26      Terrorism Networks: It Takes a Network to Beat a Network 453 Boaz Ganor   Chapter 27      Global Diseases: The Role of Networks in the Spread (and Prevention) of Infection 471 J. Shin Teh and Harvey Rubin   Chapter 28      Lessons from Empirical Network Analyses on Matters of Life and Death in East Africa 495 Jere R. Behrman, Hans-Peter Kohler, and Susan Cotts Watkins   About the Authors 513 Index 537