Smart Business Networks
Smart Business network is a creative way of doing business establishing a strong link to achieve effective results better than the conventional business. The word smart has been coined to the terminology not only referring to the literal meaning of smartness but also indicates doing business with a technological approach to produce different and better outcomes.
This business methodology adopts strategy to enhance the utilization of communication technology and network systems. Smart Business network can be considered as the linking nodes comprising of organizational. These nodes are linked to each other using a latest communication technology creating lines between various nodes involved in the business. All the nodes connected are working towards a common target and endeavor to synchronies efforts to achieve the target of the smart business network.
Most important aspect of setting up this business is long lasting, always working together with an effective output to the organizational goals. The linking may be fully looped with all the nodes of the organization or it might adopt a hierarchical set up depending on the situation and best combination available. A chain in a network is connected exactly from one to another.
If there are suppliers in the network and certain nodes are earmarked as the customer to the supplier, then the concept of supply chain management is adopted. In general the customers are linked upwards towards the suppliers in the supply chain management. Smart business network is adaptable to situations, dynamic and has the ability to get linked easily and delinked quickly as possible.
Features of Smart Business Network
Presently smart business network is not a reality in the business world, researcher are maximizing their efforts to implement Smart business network. This business is a coordinated business with the features of alertness, vigorous established with adequate network structures and networking process. This business technology utilizes the benefits of innovative business to generate economic rents. The set up of Wal-Mart firm is an example describing some of the features of a small business network.
In this company they have incorporated Radio Frequency Identification (RFID) technology to track and trace their products Smart business network also has a unique business operating system which is responsible for coordinating the process among the nodes on network. The business has embedded logic of this operating system. Some of the manufacturing industries catching business process logic in the industry wide repositories which are shared via intranet and extranet of the company.
This business technology also offers the government to go for e-governance providing a user-friendly interface to both citizens as well as businessman. Transport and logistics companies have effective solution using smart business network to get quick online information on the product location and many more real-time information simplifying the business process. The other features of the smart business network include the following:-
(a) It comprises of qualified suppliers and customers
(b) Smartness of the business remains comparative, time-bound and suited to situation
(c) Competitive Business coping up with the changing trends to manage the opposition in the business.
(d) Linked nodes in the smart business network have compatible goals.
(e) Communicating in novel way.
(f) Sustainable for a longer period.
(g) Adopts coordinated business process
Implementing Smart Business Network
Organizations interested in implementing Smart Business Network needs to understand the basic road map for establishing the smart business network or reorienting their current business process towards smart business process. The first step is to identify the company who can provide support for installing an IT infrastructure or a network infrastructure according to the target and smart business process requirements defined by the company.
After identifying the service provider the next step is to analysis the management cost and improvement in the productivity of the proposed project. In general there has been reduction in the cost for voice and data communication experienced by the companies without having the smart business network environment. Typical implementation of a Smart Business network would have the following.
(a) Managed Service Provider
(c) Integrated service router
(d) Other network devices like switch, hub, routers, and Application and file servers.
(e) The client side or the employee side would have a workstation, unified IP phone, facility for instant messaging, access to web based applications, company hosted email services. In special cases companies would also provide a secured wire less Access point in the network for executive level personnel in the company.
(f) With IP communication the system has not only overcome the cost of public toll pass but also enhanced the network security using private links
(g) The set up can also be integrated with a Customer Relationship Management (CRM) software giving productivity enhancement features including pop-us, call tracking click to dial and many more features.
Managing Smart Business Network
The major challenges foreseen in managing the smart business network are structure of the network, coordination process adopted, monitoring and process used for negotiation and the Information Technology Enabled incorporation. The following points needs to be considered for managing a smart business network.
(a) The core business process should identify the strong and weak ties with their partners against their design, source, logistics structure, distribution system and after sales service. The players in the network should have the ability to interact in plug and play mode and have the abilities for dynamic negotiation.
(b) Policies on managing the agency conflicts and intellectual property should be well defined.
(c) The process of Information sharing among the partners in the SBN partners to coordinate their distributed as well as interdependent activities has to be considered before implementing Smart Business Network.
(d) The coordination process should also include the ability to convert the user requirement into product or service specifications and convert the specifications into items or production tasks.
(e) Linking of knowledge resource over wide geographical areas of the organization.
(f) Incorporation of effective monitoring mechanism to control the various activities happening in the business network.
(g) The system should be long term predictable and has the ability to react to changing situations.
(h) The network should be able to identify the status of the member new entries and old member.
(i) The system should be designed to implement restructuring any portion of the network as per the changing requirement so as to establish alliances and promote effective as well as timely communication of information among the partners.