The Future of Global Business Gateways: Network Innovation by C.K.Pralahad |
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Theme of the lecture of Prof.C.K Pralahad at the University of Amsterdam; What are robust collective developments andĀ strategies for international competition? How can we reinforce or reinvent the traditional position for the Randstad region (Amsterdam, Rotterdam, the Hague) as a gateway region? Earlier gateway concepts were based on physical conditions, business connections, and social cultural environmental conditions. What will be the new logic for the Emerging Global Structure. CK argumented that we should look for next practices instead of best practices. If you focus on best practices we get copies if you focus on next practices we are engaged in entrepreneurship.We should also focus on the discontinuities and amplify weak signals. Essential is how value is cretaed and what is in fact the meaning of value. How does the firm interact with consumer. In fact through co-creation the nature of the firm is changing What in fact are the basic drivers of Global Structural Change and is the economic crisis an accelarotor or an decellarator of this change? 1).Traditional interventions and resources as speed quality and cost cutting. 2).Ubiquious interconnectivity. Transparency, social media, information access. 3).Emerging markets(BOP the bottom of the pryramid, 4).Value creation through co-creation. Transformation of the nature of the firm. There will be different dynamics in the markets.The perception of value by people in the BOP is totally different.
The Bottom of the pyramid is creating a new global competitive agenda.Connectivity and convergence of media will shift the balance of power.We move into a new approach to innovation where we will be more focused on long term relationships then the one off transaction mode.CK mentioned two “best practices”. The tyre centre that doesnot sell tyres but lets you pay for the usage of the tyres and helps you to be more efficient and helps you to cut down on petrol costs( because of gps on the tyres and new routing for the trucks and drivers) and even to manage safety better. What kind of business is this tyre company in and Norwich UnionĀ Car insurance that only charge you for the time you drive your car and adjust the charges for the region and the specific time that you are driving. A completely personalised insurance.
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