Article at a glance:

The future of the networked company

Recent years have seen the rise of network organizations—groups of "unbundled" companies collaborating across the value chain to deliver products and services to customers. By owning fewer assets and leveraging the resources of partner companies, network "orchestrators" such as Cisco, CNET, Schwab, and eBay require less capital, return higher revenues per employee, and spread the risks (and benefits) of a volatile market across the network. This article describes the characteristics of these networks, how orchestrators build them, and what other companies can do to follow suit.

The take-away

Business networks deliver superior value to customers, partners, and investors. And the orchestrators of these networks outperform other top companies inside and outside their industries. To succeed as network orchestrators, companies must understand what they do best and then use information standards to build a platform across which network participants will interact.