Demand-supply network participants faced with multi-brand, multichannel, multi-distribution strategies can quickly discover they do not have the required agility, adaptability and alignment with their upstream and downstream partners to cope with the fast moving change in market conditions.
While “cloud computing” is a term bandied about by various technology vendors to suit their own enterprise centric software applications, Systems Of Engagement provide a platform of industry process dynamics that are selectively used by network participants.
These processes are driven by the need to support dynamic external enterprise demand and external enterprise supply activities. This is achieved by dynamic network process integration that is available on demand, rather than static data centric application to application integration.
Systems Of Engagement coordinate and support real world inter-enterprise functions, processes and transactions and communicate in natural business language.
This shared common data approach automatically preserves the context and integrity, of business transactions that flow from primary production to end user consumption; and greatly simplifies master data management and governance issues for network participants.
The trend in software has been to facilitate application to application and system to system data integration.
Systems Of Engagement can achieve (business network integration) at a “business process” level, which represents a step change in technology and transforms IT from a maintenance cost center role to a means of delivering new business value.
The business model of the airline industry helps us understand the flexibility now demanded in the marketplace. Just a few years ago, low-cost airlines won major market share from the traditional higher cost airlines. They did this by bundling more and more services at lower and lower prices.
However, low cost business models are only an advantage as long as there are high cost competitors; and as the low cost best in class models, morphed into best practice – it was adopted by some of the major airline brands; and then it be-came common practice to discount airfares, as all airlines adopted the low cost strategy.
With nothing other than price to differentiate them, the majority of airlines were soon operating at a loss, resulting in business failures and a number of merger and acquisitions within the industry.
Today most airlines are low-cost, but have achieved profitability by offering consumers speed, convenience and flexibility. Seats on airlines can be booked online 24*7*365.
This enables dynamic pricing within the industry, advance bookings attract lower prices; late bookings attract higher prices.
Most airlines have used their new found flexibility to unbundle the services and in-flight experience that they offer to the business and consumer passengers.
It’s all about dynamic inventory allocation, pricing and consumer experience.
If you want to travel in economy class and check a bag on the aircraft it costs extra. If you want priority boarding it’s extra. If you want extra leg room it’s extra. If you want to eat on the aircraft it’s extra. If you want entertainment on board it’s extra. If you want to access WI-FI for your computer in-flight that’s extra. Alternatively you can purchase a premium economy, business or first class ticket and get all of these services and more as bundled services.
This evolving business model is based on a selective set of bundled, unbundled and rebundled processes that customers can choose from a traditional enterprise-centric business model is its “market-in” approach.
An Eco-Enterprise creates business driven value by understanding the end-to-end business environment it operates in. It fashions its value proposition to align with how the market creates, transforms, distributes, exchanges and consumes value; and combines its core business processes with selective upstream and downstream partners.