ABSTRACT
This chapter focuses on the structure, behavior, and evolving dynamics of networks of autonomous entities that collaborate to better achieve common and compatible goals. Instead of focusing on the internal specificities and tight interconnections among the internal components of an enterprise, the focus in collaborative networks is directed to the external interactions among autonomous (and heterogeneous) entities. After describing various types of collaborations, the chapter introduces the innovation framework business processes. It discusses collaborative strategies in the areas of product life cycle management, inventory management, and order fulfillment. Process networks unlock the real economic value of business collaboration. The chapter outlines the organizational principles of transactional cooperation. It also outlines the organizational principles of functional collaboration. Collaborative networks engender collaborative advantage for the members of the collaborative networks. The most successful implementation of collaboration to date appears to be Collaborative Planning, Forecasting, and Replenishment (CPFR), a model developed by the Voluntary Interindustry Commerce Standards (VICS) Association.
