Business Network implementation

Implementing the Business Network

The implementation of the business network is a staged process. There are several stages and states though which the virtual business network has to go through before it is operational. The different states are Formation, Valuation, Expansion, Formulation, and Operational state. The formation state is the first state when the business network begins its existence. Valuation state indicates that the goals of the members are being analyzed and reorganized towards a common collaborative goal. In the expansion state further network alliances and expert service providers are being added to increase value to the network.

Formulation state decides the responsibilities, accountability and also creates a hierarchy and control chain. The last state is the fully operational state where all key elements of the Business Network are in place and operational. Apart from these states, the business networks also have to follow a setup process. The setup process involves several activities and these are described below.

Forming a founder group: This is the first activity in implementing the business network. Since the network cannot be started alone, it is necessary to join with know alliances and friends who are trust worthy. Together the founder group can be formed. This group can comprise of business or companies working in the same business industry but with complementary complimentary expertise and capabilities. This will avoid direct competition among the founder group at this early stage of formation of the virtual business network.

Expanding the network: After implementing the basic governance rules, new members can be permitted to join the network. The member selection process should be as per the accepted guidelines in the member policies devised for the virtual business network.

Common Resources: At the very beginning some kind of initial investment is needed to sustain the business network till contracts and works are obtained. For this the member companies or businesses can contribute collectively. Some help from government can also be available based on the regional location and policies.

Establishing collaboration tools: All the necessary communication tools among the member companies should be setup before the first project is allotted.

Running the virtual business network

After the successful implementation of the business network, there will be three unique groups in the virtual business network. These streams are mainly the Member Group, Marketing Group and the Network administration group. Each group plays a vital role in the success of the virtual business network. When each group is in place and operational setup a goal for sales and a business plan for at least 6 months ahead. This business plan should highlight the key waypoints and small steps to achieve success.