Archive for October, 2010

A week ago, I talked with the manager of a medium-sized enterprise from the region where I live. He was very optimistic about the economic trends in Slovenia. He told me that his company has had a substantial increase of orders from abroad. As a result, he expects considerable growth in both income and added value in the future.  However, I think that possibility of growth for his company will need a longer period of time in order to affect the regional economy.

The main reason for this situation is that the company mentioned above is unwilling to collaborate with other local enterprises. Older companies which have old-fashioned opinions like to think they are self-sufficient or they work in limited business networks. Those enterprises don’t want to combine business models with any smaller companys’ business models. They mistakenly believe that they cannot share their companies’ value propositions or share in the value propositions in any other companies from the local region. If a company with an increase of orders starts to combine with the value propositions of the local enterprises, then it can increase incomes for commercial and value network services.

What do larger companies have to do to change this situation?

1. They have to eschew isolation, discard their outmoded ideas, and realize that businesses in today’s world flourish more through collaboration than competition.

2. They have to assess own business models.

3. They have to determine the areas suitable for changes.

4.  They have to determine appropriate scenarios.

5. They have to find possibilities for collaboration with the business models of complementary, local area partners.

6. They have to prepare prototypes of business models combining.

7. They have to implement combined business models collaboration in the involved companies.