Critical Success Factors

So what are the critical factors for making a Virtual Network a success? All the experience points to 3 main ones:

CSF1 - Not over-complicating the ebusiness technology support!

The surprising thing about virtual networks is that the technology support companies need to get started and win collective new business is neither complex nor costly. When companies are starting to collaborate all they really need is a simple web-based collaboration platform which the can access from their companies (and whilst travelling) which allows them to securely communicate, schedule, discuss and work on shared documents.

Typically such software is offered as a hosted pay-per-use service which requires no software, installed at any of the client PCs (or PDAs!)

CSF2 - Investing in Network Governance

The biggest concern a customer will have in dealing with a virtual network is who is accountable when things go wrong (and can I sue them if it has to come to that!). Also customers want to treat the network like a single entity not like a collection of different companies. Thus they need to see single point of contact, seamless business processes and common values from a network.

"the technology support companies need to get started and win collective new business is neither complex nor costly..."

This can all grouped together under the term "Network Governance". Networks, which do not invest in building this typically, unravel in their first sales pitch to any large customer once the customers procurement department starts asking probing questions.

CSF3 - "ABC" Roles

The most successful collaborative networks are based around 3 key roles, which can be remembered using "ABC".

"A" is for the Architect who knows what the network of companies can (and cannot) deliver.

"B" is for the Broker who sources potential customer opportunities for the network and then works closely with the Architect to qualify them and configure the right virtual teams to bid.

"C" is for the Coach who works with the individuals in the different companies to build trust, design accountability structures, resolve issues, address conflicts of interest and build them into effective cross-company teams.