Colatat, Phech

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Enterprise Network Diagrams:Insight through enterprise measurementDr George RothPhech Colatat, PhD CandidateFor further information, contact:    Phech Colatat                   pcolatat@mit.edu                   Lean Advancement Initiative                   Engineering Systems Division, MIT                   LAI Plenary Conference 2008Related Research Has AlreadyEvaluated Networks Collaborations in Broadway Musical Success,1945-1989 (Uzzi and Spiro 2005)Case Studies Currently Underway ToUnderstand “Collaborative”Relationships• Intra-organizational relationshipsUnited Technologies Corporation’s ACEOperating System – Deficiency Report ProcessImprovements• Inter-organizational relationshipHonda North America - supplier developmentactivitiesCentral firm Tier 1 supplier Tier 2 supplier Tier 3 supplierNetwork of Exchange  vs     Network of CollaborationKey QuestionHow to improve the processes ofcorporations and their enterprises?• Look beyond the firm-level to describeand measure enterprise-level processes•    Understand inter-organizational      processes and capabilities      through study of enterprise networksWhat makes for a “good” network?•   The right structure - number &      arrangement of relationships•    The right content - nature of  the      relationships themselves•    The ability to adapt over time to new      environmental conditionsResearch Goal:To visualize, analyze and evaluate enterprisesas inter-organizational networksMeasures of Structure•    Density of collaboration network vs.      density of exchange network           (Wasserman and Faust 1994)•    First-order & second-order network      coupling (Uzzi 1996)•     Small world Q (Uzzi and Spiro 2005)Measures of Content•    Trust•     Joint Problem Solving•     Fine grained information transfer(Uzzi 1997, Whitford et al 2007)•     Supplier development / process      compatibility (MacDuffie and Helper 1997)Outcomes of Interest•     Average profit margin of enterprise•     Gini coefficient (measure of inequality)High values of Q - low turnover of networkmembership Cohesion is too high Not enough new ideas Can become too comfortableLow values of Q - high turnover of networkmembership Cohesion is too low Not good as collaboratorsTwo firms may exchange goods, but their relationship maynot necessarily be collaborativeCollecting Enterprise Network Data Focus data collection on two enterprises Begin at central firm, followed by snowballsampling of suppliers Web-based survey – will include measures of Network structure Network content Outcome measures

Enterprise Network Diagrams: Insight Through Enterprise Measurement

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Enterprise Network Diagrams: Insight Through Enterprise Measurement

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