Home Business Corporate News Industrial era passe, network age is cool
Narayanan Madhavan Management morphs, Hindustan Times New Delhi, April 17, 2008
Co-authored with fellow Michigan professor MS Krishnan, the book, “The New Age of Innovation: Driving Co-created Value Through Global Networks” published by Tata McGraw Hill chronicles the pioneers of the new age and derives lessons from them for others to emulate. The event in New Delhi was symbolic in many ways. Not only was the launch a global one for the professor guru who advises Fortune 500 leaders, but the case studies lined up in the tome also put Indian companies in the forefront.
What’s more, information technology that aids the new culture is a definitively Indian flavour. “It is a 180-degree turn from where the Industrial Revolution started,” Prahalad said.
Ford’s Model T epitomized the 20th Century one-size-fits-all assembly line. In the new scheme of things, such vertically integrated companies owning or controlling as many assets as possible are replaced by nimble players that draw upon a diverse variety of resources that are global in an equation the authors describe as R=G. The focus shifts from managing supply chain of vendors to a supply web of many. At the other end, every consumer is taken one at a time in an equation dubbed N=1.