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The future is networks interview with professor henrich greve from INSEAD

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The EIU: What is the single biggest trend that will shape the way we work in the future?Henrich Greve: That would be working in networks, where you work with people from other organisat

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The EIU: What is the single biggest trend that will shape the way we work in the future?

Henrich Greve: That would be working in networks, where you work with people from other

organisations

What does it mean to work in a network?

It means working not really in the traditional way of being a customer or a seller or some other

demanding or giving part, but really working more as a partner They will be doing things together,

such as research, development, joint production, joint services, sales – pretty much anything that

an organisation does could end up being done by a mixture of people from different organisations

What are the drivers behind this trend?

It’s a combination of firms being less willing and less able to do everything they need on their

own What firms are discovering is that customers are less receptive to the type of traditional

product that relies on one knowledge base Instead, what you see is that the products or services

that really do well are the ones that blend industries, mix knowledge spheres and shift the

boundaries For this, firms need new knowledge, and getting that knowledge inside the firm is

hard Increasingly they are turning to collaborations, working together at all stages to make sure

that things work An example is the iPhone If you think of all the industries that are inside an

iPhone, there are quite a few

S P O N S O R E D B Y :

The fuTure is neTworks

Professor Henrich Greve from INSEAD believes that

companies will need to collaborate with networks of

partners to gain access to new knowledge

Customers the world over are becoming more sophisticated and, as a result, so

too are the products and services they require That means that in order to bring

new and innovative offerings to market, companies must draw on a wider base of

knowledge than ever before

And while companies can extend their own knowledge to a degree, they can

also partner with organisations with other specialisations to benefit from their

knowledge As he explains in this interview with The Economist Intelligence Unit

(EIU), Henrich Greve, professor of entrepreneurship at business school INSEAD,

believes that the need to share knowledge will become so critical that in the future

collaboration among networks of partner companies will become the defining mode

of work

This interview is part of an investigation into the future of work by The

Economist Intelligence Unit, sponsored by Ricoh Europe For more, visit

http://bit.ly/eiufuturework

Professor Henrich Greve

INSEAD

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How prevalent are networks already?

They are already prevalent in some industries Classical examples that we do know a lot about

are biotechnology and pharmacy, where it is very hard to do all of the things that are needed

for medication to get to the patient, inside one firm It’s also prevalent in industries that have

products that involve electronics or computing devices So I’m not talking about industries that

you would traditionally think of as being computer-driven A car has some obvious semiconductors

because you will have music-playing and other devices in it, but there are also many - that decide

what the engine is doing Of course, if you want to design and put together a car, as a carmaker

you’re not going to have the expertise in making or adapting those devices You will need some

help from the makers

If every vehicle has to have an on-board computer, would it not be more efficient to

employ your own people to work on the semiconductor parts of the vehicle?

For many of these types of devices there are choices, and I can imagine different firms making

different choices They could try and develop that expertise internally One reason for doing it that

way is maybe because they find that it is cheaper; maybe they find that there is some advantage to

having the expertise internally But the other option is that if you can work well with another firm,

then you really don’t need to know the internal parts of that device You don’t have the need for

the expert knowledge Instead, what you need to do is know how to communicate with people who

have that knowledge It’s often easier A lot of people prefer to know how to communicate with

accountants rather than learning accountancy

What will the situation look like in ten years?

We will see more blends of knowledge that we hadn’t thought possible And we will see new value

from that Firms aren’t necessarily going to look all that different, but what is inside them is going

to be very different because more and more work is going to be crossing boundaries They are

going to have to learn from each other how to design things, they may have to work together to

produce things If you think of yourself, as an individual, ten years from now, you might have a lot

of conveniences in terms of products and services that are combined in such a way that they add

value across fields of knowledge But at the same time you are probably carrying those products

on the way to a workplace where you’re going to have a pretty complicated job of interacting with

people from one or more other organisations in order to do something useful

Overall, do you see working in networks as a force for good or a force for bad?

It’s important for organisations It’s going to be very useful for them to be more flexible in what

they offer But it’s going to be pretty challenging for their employees There will be an increase in

the number of people whose work will be less structured and less localised They’ll have to move

around more, and we’re not sure exactly what the reaction to that will be But I think it’s pretty

clear that some people will discover that they shouldn’t be in networked work Then the question

is: will the organisation be able to make good separations, so that some people can stay at home

at the organisation while others will take on the more challenging roles? To the extent that if

it takes a while to discover these things, or to the extent that career incentives push you to be

in a network regardless of whether you like it or not, working in networks is not going to be an

altogether positive experience There are going to be some minuses But there are also going to be

employees who find that working in networked organizations is just right for them

The products or services that really

do well are the ones that blend industries, mix knowledge spheres and shift the boundaries.

Professor Henrich Greve INSEAD

S P O N S O R E D B Y :

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