Vivek Sood's Blog, page 59

China’s recent economic reforms: Time to revamp global business networks has arrived – say the experts

China, the giant economy has dominated the news agenda recently just like their dominance in the manufacturing arena. Several proposed reforms have caught more attention than others, such as the relaxation of the one-child policy, now that China’s population is aging.

However, business reforms carry tremendous implications that are likely to affect not just companies currently outsourcing to China, but also those who are competing with Chinese suppliers in the global supply chains on all continents.

The global market generally has welcomed China’s reforms, albeit with guarded optimism although inherent conflicts of interests in implementation of these reforms are readily apparent. Nonetheless, it is clear that the China has made the first move towards balancing the economy, which so far has been dominated by state-owned enterprises (SOEs).

Bloomberg Businessweek notes: “On the one hand, China can’t continue growing the way it has, and indeed risks social and economic fracture if these reforms aren’t carried out. On the other hand, by pursuing these reforms the party is diluting its control in multiple ways”.

From a business standpoint there is one clear message: everyone has to take the game to the next level in order to survive. For state-owned enterprises (SOEs), given the likely future of intense competition with private organisations, this implies an immediate need to make sure they stay on top by transforming their supply chains. Even though the 60-point reform plan still hints at government support to help SOEs maintain their dominance, SOEs have to take on greater responsibilities by giving back more to the government.

Comparing the role of a supply chain in an organisation with a backbone of the human body, Vivek Sood – Managing Director of Global Supply Chain Group – added: “Amid this changing landscape for China, the structure, mobility and capacity to act have become more vital than ever. As such, an organisation’s entire ability to execute depends on their Supply Chain Capacity. Unfortunately, many SOEs continue to rely on twisted spines of convoluted supply chains.”

Private companies welcome the reform as a sign of reduced state monopoly, but also admit that the low cost strategy has been a losing strategy for them in recent years. In fact, many Chinese manufacturers have invested in lean technologies to boost performance and profits. Some ambitious ones who are confident about their supply chain management have even bought Western brands such as the case of Lenovo buying IBM.

Western players who have seen China as part of their business model may need to figure out the likelihood and intensity of impacts from these reforms on their global supply chains. They may either rejoice at the possibility of having more quality-focused suppliers, or find themselves in stiff competition from other local manufacturers.

Vivek Sood, author of the widely acclaimed book “The 5-Star Business Network”, stressed: “Supply chain strategies will be good only when they are devised with due deliberation, taking into account all the factors that surround the key decisions incorporated into them. Policy reforms are welcome first steps – yet a lot of work needs to done for configuring the new business networks in order to bring the bacon home.”

 

Click here to get first three chapters of the book The 5-STAR Business Network

Nokia sheds iconic phone unit in an attempt to re-bundle itself

Virtually all its shareholders gave their approval, and with a stroke of pen the Finnish firm that once dominated the global mobile phone market officially announced the sale of its mobile phone unit to Microsoft Corp yesterday. The $US 7.4 billion deal will see Nokia transform its business model into a telecom equipment and network services provider, a major step towards re-bundling itself into a super networked business.

The move was given a green light by virtually all Nokia equity owners, who saw it was time to let go of a high-fixed-cost and increasingly-low-margin division. The company has been lagging behind at number 8th in the smartphone arena, although it still maintains number two position in the overall mobile phone market according to Gartner.

Chairman Risto Siilasmaa told investors. “We have no doubt that this is the right decision.” Talks surrounded Nokia’s string of wrong turns in the past such as investing in the smart phone technology too early (as noted by former chief executive Jorma Ollila), and reaping poor results from software design efforts.

“Nokia’s high fixed costs signal underlying issues in its supply chain management. The network of supplies has not been optimally selected and articulated to maximize its product offerings to the end customer. At the same time, both Apple and Samsung have created partnerships to leverage their business network to the maximum. For example Samsung’s partnership with Android allowed it to bypass costly software development that plagued Nokia. Similarly, most of Apple componentry is still manufactured by its business network partners” – said Vivek Sood, author of “Move Beyond the Traditional Supply Chains: The 5-STAR Business Network.”

A key reason cited for the poor performance of Nokia’s phone division is not enough innovation. While its rivals such as Apple and Samsung continue to gather momentum with their smart phone lines revamped utilizing the core of their business network partners, Nokia’s only notable attempt was when it embraced the Windows operating system in 2011. Even so, the move did not substantially lift Nokia to its market leading position decades ago.

Life after mobile handsets for Nokia will include attempts to make its existing business units profitable, by focusing on its infrastructure. Speculations are already underway about the new moves. For example acquisition of Alcatel-Lucent’s wireless-equipment unit could build a substantial competency base to enable robust market competition.

A super networked business is created by a business forming strong supply networks that allows efficiency and effectiveness in three core competencies: customers, infrastructure and innovation. Vivek Sood, who is the CEO of Global Supply Chain Group, said: “Now that Nokia has freed itself of its past legacies, it is the perfect time to focus on its core competency and cherry-pick its partners that can complement the gaps. If done properly, Nokia can then re-emerge as a super networked business again ready for the next few decades.”

 

Click here to get first three chapters of the book The 5-STAR Business Network

5 strategies that will save your company when it is falling behind your competitors

For every business or economic activity, there is a time when it falls behind its competitors. No matter whether the situation comes to you at the initial stages or you are facing a sudden challenge right after touching the tip of popularity, you surely have to find out the way to get back on the track until or unless you have decided to roll back your investment. For every type of business, there are some specific solutions but some typical strategies offers workable solutions for almost every business. Here are five of them which can save your company in critical situations.

1. Timely research

Almost a century after the legendary disaster faced by the “unsinkable ship” RMS Titanic, fact finding teams & under-water experts are still trying to find out the lost pieces to complete the jigsaw puzzle that how the ship broke into 2 pieces. Their research cannot bring back the lost lives but still it is necessary to avoid more disasters of the same nature.Same formula can be applied to a sinking business but here time has much more importance. In-time research is strongly needed to find out the root cause for the downfall of any business. This type of research can be helpful in finding the latest trends as well. Selling your business is an art and in-time research can act like an advance recharge to keep it working.

2. Confidence & Cooperation:

Famous business writer Vivek Sood says, in his latest of the series about business solutions “The 5 Star Business Network” that Co-operation creates the elusive thing called synergy that makes it possible for 2+2 to become 5. For this co-operation confidence is inevitable factor. In order to build the co-operative relations among the team leader and other staff, creation of such an environment is surely needed where anyone can trust to share his ideas or reservations regarding a proposed business strategy and so on. No matter how small is the scale of your business or it is spread over countries these 2 Cs positively affects the growth of your business and help to transform it into a strong business network.

3. The network effect (synchronicity)

I have no other option except to quote again the idea defined in “The 5-Star Business Networks” by business guru Mr. Sood because before reading the book I have only heard about the network effects which results in the downfall or a flourishing business. Vivek suggests that the network effect has re-defined the idea of collaboration. Without being the part of a business network, it is almost impossible for a businessman to breath. This network effect helps in transforming 2+2 into 22, acts as the shield in hard times and is defined as synchronicity. In order to have a detailed look that how this synchronicity works as the strong strategy to compete with your business rivals, I would definitely recommend to get your own copy by ordering here: http://www.amazon.com/The-5-STAR-Busi...

4. Unique relationships:

It took almost one and half decade to Red Bull to come up on a stage where it is more or less untouchable by its competitors. Initially the manufacturer of this Thai soft drink, Dietrich Mateschitz had to face strong challenges in shape of rumours regarding the health effects caused by the drink which also made the health authorities reluctant in granting permission and the unfamiliar taste which had nothing to do with appetizing effect usually associated with the soft drinks. But Dietrich Mateschitz didn’t lose hope and keep focusing on building strong relationships with suppliers, marketers, logisticians and offcourse loyal fans. The relationship between Dietrich Mateschitz and his advertising agency was much more than the relation of a customer-service provider. Similar relations were built with others involved in the business. The strategy helped Dietrich Mateschitz in stabilizing the business at small scale and to flourish it on a larger scale as well. So don’t forget to build exclusive relationships to get the back up support when it is strongly needed. These types of unique relations are also seen as the best critics, which help to correct the mistakes and shortcomings in the opted business strategies.

5. Courage to take risks:

Though in times of hardships, the idea of taking risks may seem like a big blunder but only courage to take risks can lead to the level of creativity and innovation, where others find it difficult to even follow your path. Don’t forget that you cannot be perfect in each stance and there is no guarantee of 100% profit in any case.So why not to be innovative? Keep experimenting with your ideas. It will not only help you in bringing more and more new products in the market,but it will also give a tough time to your competitors and keep you ahead of them. Always remember that accelerating a business is not rocket science, only vigilant mind with new ideas and eager to take risk & to imply the ideas can do wonders in the field of the business.

For further readings you may follow these links:

The article focuses on five simple points to bring new life to your business. For details click on:

http://business.time.com/2013/08/09/t...

This research focuses on the needs of the customer and help to find out their view point regarding your business plans and their way of looking at your failures. To read the complete article click https://www.helpscout.net/blog/custom...

For launching a mega project, you always need to start at the limited scale. This article helps to find out the stratgeis to excel small level business and turn it into a big hit.

http://www.investopedia.com/articles/...

10 ideas why your business network is your business’ net worth and how to make the most of it.

The simplest definition of business is to sell or buy the goods or services. Though, It may define the trading style of the past centuries but now business is not that much simple. One need to compete strongly to stay in the market, to be the best in every sense and above all being a part of business network is almost inevitable. Joining a network is not at all about catching the bandwagon instead it’s a shield which saves you in more than a dozen ways. In other words you can say that your business network is your business’ net worth. Hows and whys are discussed here:

1. Like Nokia like Network… connecting people

Business network works almost in similar way to the Nokia slogan “ connecting people”. People live in society to avoid isolation and same thing a businessman do by joining an already existing network or creating his/her own network. It serves as a platform to share the ideas and knowledge, to meet new ones, to guide them and get the guidance from the experienced ones. Find out more about how a business network enables connection among the business men here: http://www.forbes.com/sites/geristeng...

2. Source of practical information

You can learn 100s of the tricks from a book to sell your service or product but only the information which you gained through market research can reveal that what actually the customers want. Loyal and trustworthy friends in a network offer this unique and 100% relevant information. Its better to find few trust worthy people instead of expanding the network to the endless limits.

3. A realm of similar people with similar interests.

In “5-Star Business Networks” Vivek Sood, famous business writer, recalls that how he found a group of trustworthy and loyal people ready to share their ideas at Linkedin.com. You may find it interesting to read the whole story and his view point about how joining networks positively effects the business here. http://www.amazon.com/The-5-STAR-Busi...

Same thing happens when you become part of a network. Joining a business network enables you to find people with common interests and goals similar to yours. Their knowledge and first hand information improves your understanding towards the business.

4. Makes yourself more visible

You may find it difficult to meet new people but in order to expand your business or to brighten your career it is highly recommended to make yourself as much visible as possible. The easiest way to do so is to join a network where simply interacting with others can do wonders for you and your business as well. Wisely chosen or created business network offers you the right place with the right people, to do the business.

5. Recruiting Platform:

No matter whether you need to recruit or to be recruited, in either sense business network can be helpful. By making yourself visible in your network, you can easily be remained in the mind of those who are the part of this network. Business network works like referral programme where the most visible ones are highly refered as well. Once you get referred or having a referral, respond positively. It will create more chances for you in future.

6. Refines communication skills.

When we discuss business networking, it also means communication between the two individuals. This interaction helps in learning that how a team leader deals with the staff or how a businessman responds in a crucial matters and takes decision. Business networks enable to learn the suitable human behaviour in various situations. Keep interacting with others because only the practice will bring perfection to your communication skills.

7. Refines Target market.

Every businessman goes for some market research to find its target market where the offered service or product is highly needed. The loyal and trustworthy members of the business networks help in cutting down the research expenditures and directly targeting the refined market. You may also share your knowledge to strengthen this bond because business network is all about mutual interests.

8. Your network is your personal asset too!

Remember that you are social being at first and to keep socializing is the basic need of any human being. Business network built on pure relationship is one of the most precious assets you have. So don’t hesitate in making strong relationships much more worthy than your business. For more information on the topic , please follow the link: http://www.cbsnews.com/8301-505125_16...

9. Networking ,the top CBM for today’s business

The concept of business rivalry is fading because the concept of business network has made it possible for the key rivals to sit on a same table or to connect via internet and discuss the common interest of each other and threats being faced .Thus, business networking is working like confidence building measure for the two rivals. Not only the rivals, the two strangers connected through a network also start believing in each other because of the connection built through this network.

10. Business Network-a multiplying factor

Business network is all about mutual trust, which leads to cooperation and finally makes it possible to have a multiplying factor in each sense. This mutual cooperation can lead to the joint ventures or increase in investments and much more. You only need to focus on strengthening your relationships with other members of the network. Be loyal and trust them to get the same in return.

For more tips you may follow the link: http://business.financialpost.com/201...

Using the web for your business is an art and those those who are running their business from home, surely needs mastery because here the situation is quite different from the ordinary business. The guardian pays more light on the issue in the following link: http://www.theguardian.com/small-busi...

4 key areas of mistakes in IT deployment

 Although Information Technology systems have evolved over the past decades, failures are still frequent. Most IT systems fail because their implementation does not follow the process and the conditions that it should. The people in charge often realize it too late, when the process is already in place. In fact, they only realize it when the first results are available and are not as good as expected – if not worse.  There are four major areas of mistakes in IT systems deployment.

 IT Outsourcing strategy development

The first crucial mistake is the strategy itself. Executives and managers usually set a strategy according to what happened before in their organization. Of course the past experience must be taken into account but it is not the only element that impacts on the future. Besides, tactical thinking predominates the IT and outsourcing strategy, which is a big problem because different people with different goals have to implement the strategy. Thus, they all try to serve their own interest when making a decision, which prevent the alignment with the business strategy. When it comes to the strategy development, another problem is the lack of visualization. They do not make good decisions because they focus too much on the short-term and they do not have a clear view of the future changes that will affect the organization after the implementation of a new IT system. Also, they do not make good prevision and it often ends with budget overruns because of the improper budgeting process.

 IT Software and Service provider selection

After the strategy is decided, they have to choose between all the possibilities for their new IT system, which means they have to choose the software and the provider. However, this step is quite crucial because it will determine everything after that. The software must fit to the requirements of the organization. Besides, they must also analyze all the providers’ proposals, to determine if they correspond to the criteria. Beforehand, they must determine what criteria are important to their company. However, they often have unclear expectations of the providers they choose. Besides, it can also happen that they want a new system for the wrong reasons. Maybe they do not actually need it, or not this kind of IT systems, but they do it to follow competitors, or any other wrong reason.

 IT Service provider Implementation and Integration

One cause of failures in IT systems deployment is the implementation step. Indeed, many mistakes appear during this step. This is mostly a matter of time and cost: it often takes more time than expected to finalize the implementation, which involves additional time needed and costs. Besides, because of the lack of visualization of future changes, they do not think enough about the training needed for employees who will use the new system. Indeed, they need to adapt to a new system, but training is generally not enough. Likewise, systems are not enough tested before being actually used, which will be the cause of unexpected problems later. All this lead to bad management because people are not prepared enough for this shift and systems are not tested enough. Thus, problems appear over the implementation process and after.

 IT Service provider relationship management and service usage

Because of bad implementation and not enough beforehand preparation and analysis, many problems keep happening while the IT system is in place. Although the system can work and give some good results, usually the capacities of the systems are not exploited fully. Besides, this is also due to insufficient data accuracy or completeness. More failures appear because of improper feedback mechanisms, which prevent from solving the problems noticed.

  You can find a more detailed approach about these four key areas of mistakes in Vivek Sood’s book, The 5-STAR Business Network (http://bit.ly/5-STARBN).

by Anais Lelong

What you should know about business relationships

What you should know about business relationshipsAlthough you may be good at building and maintaining relationships in your life, it can be very different when it comes to business. In effect, relationships between business partners are very specific relationships. As most relationships, they are based on a contract. The contract is the cornerstone of any relationship (personal or professional), but each contract can be very specific, although some basics exist, according to the area or sector concerned.

 Let us have a look at the example of marriages. When people decide to marry each other, they usually thought about it for a long time. They sign a contract, which determines their rights. Likewise, in business relationships, there are contracts, which also determines the rights and obligations of each party. However, when people start projects in businesses and start building relationships, they usually do not take enough time to think about it. In effect, they do not see it as they see the marriage, whereas they should.

It is not about their personal feelings, so they do not realize how important this is. They must take it as a marriage between several organizations, which is the same as marriage between people. That is the reason Vivek Sood underlines the importance of the selection of the provider in his book The 5-STAR Business Network (http://bit.ly/5-STARBN).

 Comparing business partnerships to marriage may make its importance more understandable. Now that we talked about real marriage, all the criteria of a successful partnership make much more sense than before.

In fact, when we say preparation is essential, it is also true for marriage. People get to know each other, live together, and then they decide to marry each other, when they are ready and when they are hundred percent sure about their feelings. The same should happen in business partnerships. The preparation step is crucial to choose the right partner, and to establish the terms of the future relationship.

Besides, long-term relationships are necessary to build a great global business network that will work for you. In order to do so, you must prefer long-term and sustainable relationships. That is the reason why it is important to choose a partner who will match the requirements and fit for your business strategy. He must be able to provide the expected outcomes.

 Moreover, this relationship will give you advantages you cannot even imagine before. Networks are the key to successful businesses. In a marriage, you will get to know your partner’s friends and family and your network will grow. The same happens with businesses! And this is the beauty of partnerships. In effect, as soon as you will set up sustainable relationships with your best partners, it will help you expand your business network, through your partners’ relationships. Consequently, the power of business networks comes from its very essence. Networks are what help build bigger networks. You have to nourish your business network with always more sustainable relationships to make it last and success.

 Therefore, it is obvious that partnerships are the key. Your business network is your main weapon and you must pay attention to the partners you choose in the first place. Although it is not about your feelings, it is about your business survival and success. Thus, do not miss the preparation step and analyze the more information you can about your potential partners. Like in a marriage, the contract will frame the relationship, but the most important is what happens before the contract is written and signed. However, although you may be sure about your choice, keep in mind that divorces can still occur.

How to use social media successfully

 Although social medias are crucial for your communication strategy, they can also be deadly for your business if you do not use them intelligently. There are some important rules and conditions for success by using social medias, and you have to understand them before starting to interfere with social medias. Your customers will carefully analyze your actions through social medias, so you must prepare deeply any single action.

 First of all, you have to be sure it will be useful and helpful for you to use them. Besides, you have to use them to answer the customer’s needs. In effect, your action on social medias must be valuable for your customers; otherwise it will only give a bad reputation of your business and will show your weaknesses, compared to competitors. You have to offer something special on social medias; you have to be some kind of expert about something.

Moreover, it is also a matter of choice. You must choose websites that work better for you and your business. It should not be a random website targeting random people, it is crucial to think about the best opportunities for you to communicate towards the right people.

 After that, people have to know you are present on social medias. You cannot just wait until they find you by chance. You can use email campaigns to make them know it, and tell them why they could be interested in joining your network. You must give them good reasons for them to interact with you; show them how it will benefit to them.

Once you have new social medias to interact with your customers, do not forget to stay involved. It cannot be a one-time action, but it must be permanent and steady.

To be more efficient, you can have all your contacts getting involved. In other words, encourage your partners and friends to support you through social medias. In fact, the more people support you, the more people will follow them. This is how it works for business, people need to be reassured by others preceding and testing for them. Potential customers need to know you are already popular before taking the risk to buy products from you instead of your competitors.

 Another tip to utilize social media efficiently and successfully is to use what you have already accomplished. Although it is a new tool of communication for you, it does not mean you have to find new information to communicate. You might have already the content in your other instruments of communication. Thus, you can just reuse this content, but in another way, which will reach more people. This is a key factor for your business to succeed: you have to reach more people than your competitors do. In business, communication has become a main tool, and it cannot be ignored in today’s global business world.

 To conclude this article, let us say that social medias have become very important in communication, and companies that do not use them should think about it and see the opportunities. In effect, if you pick the right team for this role and your people know how to manage social medias efficiently, as we explained, the outcomes will be considerable, so will be the Return-On-Investment. It is all about choosing the right people to do the right thing for your business in the right way. Vivek Sood’s book The 5-STAR Business Network  will explain you this in more detail.

by anais lelong

From free markets to free networks and beyond

The story started in the 19th century with the beginning of free markets. The world of free markets is the world where business exchanges started to expand to global organizations and relationships. Many exchanges were now possible thanks to the free markets. The allocation of resources is determined by supply and demand, as well as the prices. In fact, free markets involve free exchanges and free balance between supply and demand. In free markets, participants have a high level of freedom in their actions.

However, the degree of thinking is very low and there is no planning that could give some guidance to all these exchanges between many parties from the markets. After that, organizations have tried to implement some rules to regulate the markets. Indeed, although free markets were efficient in the 19th century, regulation became necessary with the multiplication of the exchanges. Therefore, societies started to go towards a new approach with regulated markets. These markets are similar to free markets: there are many exchanges between many different people and parties but rules were implemented to regulate them. Some markets can be even more advanced than regulated ones: managed markets. In fact, management involves better regulation and efficient methods that enable a good functioning of global markets.

Organisations can go directly from regulated markets to managed markets, or they can also experience communistic markets or socialistic markets, which are very controlled but with a higher level of thinking and planning than regulated markets.

Managed markets, which follow these two models, are less controlled – but not totally free – and have a better level of thinking.

 However, managed markets are still at the level of multiple exchanges between unrelated and random parties. The next stage is obviously about building your business network. After managed markets, then, it comes to free networks. This approach can look like free markets but it is much better organized. In fact, free networks involve partners available on the market and you have a choice between partners. Contracts and relationships are very free. Once this approach is granted, you can start thinking about the next steps, which go through regulated networks and then managed networks. However, the crucial point is to outstrip the network stage. In effect, at first we talked about markets, but the key step is to move to a network approach. To be able to do this, you and your team need to improve the degree of thinking and planning first. The level of control is less important and it will determine the kind of relationship you have with your partners, but first you have to build your network. With repeated interactions, you will make your outcomes far more superior than any other form of association. That is the reason why great business networks are the key to the success of your business.

Then, more regulation of the global business networks will be necessary to keep up the relationships with partners, and then the business will have to move towards a more managed network structure in the global economy.

 Consequently, we have to admit that it is crucial to move from markets approach to networks approach. Then, we must think about regulation and management in order to gather all the conditions to build a great business network and sustainable relationships that will help us create more value. Vivek Sood’s book, The 5-STAR Business Network (http://bit.ly/5-STARBN), will give you important guidelines to make this path from free markets to free networks.

HP will bear the brunt of Chromebook 11 charger overheating fiasco and subsequent sales halt on Amazon and Best Buy; Google will also be affected

Sydney, 13 November 2013

Latest developments in the unfolding saga of sales halt of HP Chromebook 11 have seen both the key retail outlets now pulling it off the shelf following customer complaints of overheating chargers. HP is asking the existing owners of the product to use ‘any other Underwriters Laboratories-listed micro-USB charger’ with the product.

Chromebook 11 was launched for $279 with much fanfare by HP and Google last month and was strategically placed for sale at Best Buy and Amazon. Despite the high expectations, the reviews found performance issues with the trackpad. An HP spokesperson – Sheila_Watson – posted on their blog:

‘Google and HP are pausing sales of the HP Chromebook 11 after receiving a small number of user reports that some chargers included with the device have been damaged due to over-heating during use. We are working with the Consumer Product Safety Commission to identify the appropriate corrective action, and will provide additional information and instructions as soon as we can.

In the meantime, customers who have purchased an HP Chromebook 11 should not use the original charger provided with the product. In the interim they may continue using their HP Chromebook 11 with any other Underwriters Laboratories-listed micro-USB charger, for example one provided with a tablet or smartphone. We apologize for the inconvenience.’

A similar statement was also posted on the Google Chrome Blog by Caesar Sengupta, VP, Product Management.

Frequently well made products are let down by peripheral accessories manufactured by third party suppliers that are part of the business networks of large corporations. This is not the first time HP has been let down by its supply chain partners noted Vivek Sood –author of the book  “Move Beyond the Traditional Supply Chains: The 5-STAR Business Networks”.  In the past there were instances in 2008 when up to 24 HP laptop models were affected by the NVIDIA chipsets overheating. Both Dell and HP were affected in that instance. In another instance Sony manufactured batteries that overheated during use in Dell laptops, affecting the results of both companies.

“It is critical that companies choose their supply networks diligently, and test the products rigorously before releasing them in the market. The recall and sales halts do not only affect the company reputation but also its financial results. Chromebook 11 is not yet a major part of HP’s product portfolio, yet this fiasco will adversely affect the business network relationship between HP and Google for several product planning cycles” said Vivek Sood.

HP will bear the brunt of this sales halt, not only because of its deeper involvement in production and supply of the product, but also because of its history of similar problems in the past. However, Google will also be adversely affected due to its supply chain and business network relationship with HP in this case. While it is impossible to predict the total impact at this early stage, as a preliminary estimate 2%-4% overall switch in market share can be expected over the holiday period, as a result.

The Newest Way to Make Your Business Network Great

In his book The 5-STAR Business Network (http://bit.ly/5-STARBN), Vivek Sood mentions the concept of synchronicity, and focus on Carl Jung’s perception of it. The concept of synchronicity has a specific definition in Carl Jung’s mind. For him, it is a causal connection of two or more psycho-physic phenomena. He started to use this word in the 1920s to describe two or more casually unrelated events happening together in a meaningful way. Although we could write pages on this concept, a short definition would be a coincidence that is not senseless. Carl Jung observed this phenomenon on a patient for the first time. A patient dreamt about a golden scarab, and the next day, the same insect hit his cabinet’s window. The question that comes up with this kind of situation is: Was the relationship between the events random or was there some hidden force?

 The concept of synchronicity has evolved through the 20th century and many studies exist about it, with many theories and explanations. However, this is Carl Jung’s thought in which we are interested. Indeed, his vision of meaningful coincidence is what I think happens with business relationships. Synchronicity is what enables our business networks to expand and to create more value.

To pursue his work, Jung started to collaborate with Wolfgang Pauli. This collaboration lasted for several decades, making conjectures about synchronicity. They conjectured that with a link between the apparently disparate realities of matter and mind were existing. Pauli called it a “missing link”.

 While accretion and synergy are two other concepts that create value, synchronicity is the best. Indeed, synchronicity provides even more multiplied effects than synergy, whereas we usually think synergies are the best we can achieve.

Global business networks can become very valuable because of synchronicity power. While synergy provides a good value (2 + 2 = 5, whereas with accretion 2 + 2 = 4), synchronicity is the most valuable. Its mathematical principle is described as follows: 2 + 2 = 22. This is the power contained in this concept.

 Therefore, you must focus on this concept to develop your business networks and make it more valuable than by using simple synergies or accretion. Visualization, if not faith, is compulsory to be able to understand this concept and make it work for you. Besides, the concept of synchronicity relies on key principles that may not be available for anyone. In fact, it is all about abundance of outcomes based on wisdom, creativity and cooperative effort. This is the cornerstone of the value of synchronicity.

 Consequently, business networks are great and work successfully for your business when synchronicity is the main ingredient. This is the most powerful ingredient that can help you build a great business network. However, this is still a matter of coincidences, although they are meaningful. In fact, the economic metaphor that can be utilized for synchronicity strategy is the free networks.

Accretion relies on free markets. When your strategy evolves to improve the outcomes, through synergies, the appropriate term is “managed markets”. Then, the best strategy, which includes synchronicity, leads to free networks, which is much more significant and valuable than free markets or managed markets.

Thus, step-by-step, you can improve your business strategy, using your business network and gradually implementing strategies of synchronicity. Synchronicity will create the best value through a great business network.

by Anais Lelong