BUSINESS COLLECTIVE 1.0: PARTNERING REBORN
Most organisations still conduct business as separate entities that interact transaction by transaction. Relationships are “us versus them” – with winners and losers. That worked in the past. Not any more.
Globalisation, and the fact that competition now comes from anywhere, can pop up at any time, and can disrupt entire markets overnight, is making this approach obsolete.
Enter Business Collective 1.0.
This emerging and transformational business model is enabled by technology and talent, driven by the speed of business, and necessitated by competition.
Business Collective 1.0 is a simple idea. Multiple organisations meld together to face the market as one single commercial entity.
They eliminate the barriers that traditionally separated not just internal departments, but external partners up and down the supply chain.
In this new ecosystem, a collective of organisations align on a shared mission and competitive strategy; and work together to capitalise on their strengths and overcome weaknesses.
Business Collective 1.0 (BC1.0) is not business as usual, as Frank Vorrath, Vice President, Global Supply Chain at Johnson Controls points out.
“We have reached the limits of what transactional relationships can do. We must now take the approach of truly integrating - everyone becoming part of a unified business strategy and a unified front to face the competition and thrive. This means companies must open their books and doors in ways they never did before. All parties must step up their level of investments – in systems, people, process and infrastructure to support this business collective strategy. Companies and their service providers must shift from transactional relationships that focus on moving freight from point A to point B, to new strategic partnerships that create value for everyone.”
This paper is the first in a three-part series that explores the emerging concept of Business Collective 1.0. The papers, in sequence, define the concept, map out a blueprint for implementation, and finally, discuss the benefits of successful adoption.