Tip

Knowledge is key in governing the extended enterprise

The concept of the “extended enterprise” is hardly new. Even in the early years of the 20th century, when big corporations were gathering all the means of production under their corporate roofs to exercise control, the management theorists were advancing such ideas as the “organization as community” and the “environmental complex” of a management problem.

What distinguishes the extended enterprise today, of course, is knowledge.

The notion picked up steam in the 1990s as global markets took on structure, and outsourcing and partnerships became an acceptable response. Today, however, the nature of extended has evolved into something heretofore unimaginable.

What distinguishes the extended enterprise today, of course, is knowledge -- of the customer, the supplier and new business ideas in the minds of anyone, anywhere.

And the challenge for leaders today is governing this newfangled thing that breaks most of the management rules we grew up with. Even the term governance seems arcane -- too harsh and proscriptive for a fluid and ever-evolving enterprise. Just look at the words we use for it: value web, network and ecosystem.

I’ve observed the evolution firsthand, starting in the early 1990s at GE, where we were creating new and exciting business models and their enabling technology -- too new, too exciting, it turned out, for the customers we had in mind at the time.

    Requires Free Membership to View

And then in my own company, where the focus is on innovative management applications, research and best practices on which agile and adaptive organizations would run.

Technology, of course, makes the extended enterprise possible. And technology makes it necessary: the new markets, the globalization of business, the lower thresholds to entry for competitors, the speed of everything, the novelties in business models and products -- all of these are the devilish work of technology. And managing technology wisely -- within your four walls and outside across the extended enterprise -- using available, proven management standards is the answer.

A few general observations will move us toward a working governance plan.

Download the PDF: “Governing an Extended Enterprise.”

Let us know what you think about the story; email editor@searchcio.com. For enterprise IT news and updates throughout the week, follow us on Twitter @enterprisecio.

This was first published in March 2012

There are Comments. Add yours.

 
TIP: Want to include a code block in your comment? Use <pre> or <code> tags around the desired text. Ex: <code>insert code</code>

REGISTER or login:

Forgot Password?
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy
Sort by: OldestNewest

Forgot Password?

No problem! Submit your e-mail address below. We'll send you an email containing your password.

Your password has been sent to:

Disclaimer: Our Tips Exchange is a forum for you to share technical advice and expertise with your peers and to learn from other enterprise IT professionals. TechTarget provides the infrastructure to facilitate this sharing of information. However, we cannot guarantee the accuracy or validity of the material submitted. You agree that your use of the Ask The Expert services and your reliance on any questions, answers, information or other materials received through this Web site is at your own risk.