Partnership, Collaboration Business Models

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Creating
Collaborativ
e
Partnerships

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WEB 2.0 – TODAY’S
ENVIRONMENT• Web 2.0 (or Business 2.0) is the next
generation of Internet use—a more mature,
distinctive communications platform
characterized by new qualities such as
collaboration, sharing, and free.
• Business 2.0 encourages user
participation and the formation of
communities that contribute to the
content.
• In Business 2.0, technology allows users
to find and publish information
themselves to the Web, eliminating, for
example, many barriers to entry for online
business opportunities.

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OPEN SYSTEM
• An open system consists of hardware and
software whose design is based on publicly
known standards, and that allow third parties to
create add-on products to plug into or
interoperate with the system.
• Thousands of hardware devices and software
applications are created and sold by third-party
vendors interoperate with all types of
computing devices.

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OPEN SOURCE CODE
• Source code contains instructions written
by a programmer specifying the actions to
be performed by computer software.
• Open source refers to any software
whose source code is made available free,
not on a fee or licensing basis, as in e-
business, for example, for any third party
to review and modify.

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USER-CONTRIBUTED CONTENT
• Business 2.0 is characterized by companies or users posting content for the masses.
• Business 2.0 is also characterized by the masses posting content for the masses.
– User-generated content is created and updated by many users for many users.

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• Business 2.0 is capitalizing on an open system.
BUSINESS 2.0

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THE PACE OF BUSINESS
• “Despite the sluggish condition of the
global economy and ongoing
concerns about income inequality,
privacy, security, central bank
policies and energy prices, this group
and the companies they run are
enjoying major growth. In an era of
relentless advancement in almost
every field, these individuals are at
the fore of changes being envied,
adopted and copied by rivals the
world over.”
– Forbes, April 2016
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PARTNERSHIPS, & ALLIANCES
• Organizations form alliances and
partnerships with other organizations
based on their core competency
– Core competency – an
organization’s key strength, a
business function that it does best.
– Core competency strategy –
organization chooses to focus
specifically on its core competency
and forms partnerships with other
organizations to handle both
strategic and non-strategic
business processes.

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REPUTATION SYSTEM
• Buyers post feedback on sellers.
• eBay buyers voluntarily comment on
the quality of service, their
satisfaction with the item traded, and
promptness of shipping.
• Sellers comment about prompt
payment from buyers or respond to
comments left by the buyer.
• Companies ranging from Amazon to
restaurants are using reputation
systems to improve quality and
enhance customer satisfaction.

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KNOWLEDGE

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KNOWLEDGE CATEGORIES
• Explicit: Examples of explicit knowledge are assets such as patents, trademarks, business
plans, marketing research, and customer lists.
• Tacit: The knowledge contained in people’s heads.
• The challenge: Inherent in tacit knowledge is figuring out how to recognize, generate,
share, and manage knowledge that resides in people’s heads.

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KNOWLEDGE MANAGEMENT
SYSTEM
• A knowledge management system (KMS) supports the capturing, organization, and
dissemination of knowledge (i.e., know-how) throughout an organization.
• KMS can distribute an organization’s knowledge base by interconnecting people and digitally
gathering their expertise.

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COLLABORATION OUTSIDE
• The most common form of collective
intelligence found outside the organization is
crowdsourcing, which refers to the wisdom
of the crowd.
• For many years organizations believed that
good ideas came from the top. CEOs
collaborated only with the heads of sales and
marketing, the quality assurance expert, or
the road warrior salesman. The organization
chart governed who should work with whom.
• Firms capitalize on crowdsourcing by opening
up a task or problem to a wider group to find
better results from outside the box.

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COLLABORATION TOOLS
• Bob Lutz - used blogs for marketing, sharing ideas,
gathering feedback, press response, and image shaping.
– After leaving the Marines, Lutz spent eight years
with GM in Europe before joining BMW serving as
Executive Vice President of sales at BMW[7] for
three years.
– Lutz was also an Executive Vice President at Ford
Motor Company, where he led the creation of the
Ford Sierra, initiated development of the original
Ford Explorer, and was a Member of Ford's Board of
Directors.
– Lutz became head of Chrysler Corporation's Global
Product Development, including the very successful
Dodge Viper and LH series cars.

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COLLABORATION INSIDE
• A collaboration system is a set of tools that supports the work of teams or groups by
facilitating the sharing and flow of information.
• Collective intelligence is collaborating and tapping into the core knowledge of all employees,
partners, and customers. Knowledge can be a real competitive advantage for an
organization.
• The primary objective of knowledge management is to be sure that a company’s knowledge
of facts, sources of information, and solutions are readily available to all employees
whenever it is needed.

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COLLABORATION SYSTEMS
• Collaboration solves specific business tasks such
as telecommuting, online meetings, deploying
applications, and remote project and sales
management
• Collaboration system – an
IT-based set of tools that supports
the work of teams by facilitating
the sharing and flow of information

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NETWORKING COMMUNITIES
• Find jobs.
• Find companies
• Find people

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THE CHALLENGES
• Technology Dependence
– How long can people go without checking email, text messaging, or listening to
free music on Pandora or watching on-demand movies?
• Information Vandalism
– Allowing anyone to edit anything opens the door for individuals to purposely
damage or destroy, or vandalize website content.
• Violations of Copyright and Plagiarism
– Online collaboration makes plagiarism as easy as clicking a mouse.
• What’s real? What’s not?
– Be sure you double check

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In-class
• Question & Answer
• Research Examples
• Case Study
• Discussion for Complete Understanding
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