Collaborative Advantage: Winning through Extended Enterprise Supplier Networks

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Overview

Why has Chrysler been twice as profitable as GM and Ford during the 1990s even though it is a much smaller company with plants that are less efficient than Ford's? Why does Toyota continue to have substantial productivity and quality advantages long after knowledge of the Toyota Production System has diffused to competitors? The answer, according to Jeff Dyer, is that Toyota and Chrysler have been the first in their industry to recognize that the fundamental unit of competition has changed—from the individual firm to the extended enterprise.
In this book Dyer demonstrates the power of collaborative advantage, arguing that, in the future, competitive advantage will increasingly be created by teams of companies, rather than by the single firm. Managers who do not recognize this development—regardless of their industry—are in danger of adopting the wrong strategies for their firms. Dyer draws on eight years of study of the automotive industry, including a wealth of data from interviews with over 200 executives and surveys of over 500 suppliers, as he offers detailed case studies of Toyota and Chrysler to show managers how to create collaborative advantage with their supplier networks. Dyer demonstrates how to build trust in the extended enterprise, how to exploit and manage knowledge (describing how Toyota manages knowledge across organizational boundaries), and how to create advantages through dedicated asset investments. In turn, these processes generate stunning performance advantages and an identity for the extended enterprise.
To be successful in future years, executives will have to convert their corporations into fully integrated, extended enterprises. In Collaborative Advantage, Jeff Dyer shows them how.

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Editorial Reviews

From the Publisher
"Collaborative Advantage is built upon solid scholarship and practical experience. It is not a one-size-fits-all missionary treatise for a managerial technique. Rather, its solid theoretical framework helps us understand what types of supplier relationships are best in various situations, and then frames a practical process for building them. This is a very good book that every manager concerned about competitive advantage should read." —Clayton Christiansen, Professor at Harvard Business School and author of The Innovator's Dilemma

"Jeff Dyer has done a great job of defining the process and rationale behind Chrysler's Extended Enterprise concept. Hopefully, it will continue to be a template for others to follow to implement Supply Chain Management in their companies."—Thomas Stallkamp, Vice Chairman and CEO, MSX International; formerly Vice Chairman of DaimlerChrysler Corporation

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Product Details

  • ISBN-13: 9780195130683
  • Publisher: Oxford University Press, USA
  • Publication date: 11/16/2000
  • Pages: 224
  • Sales rank: 1,208,980
  • Product dimensions: 6.00 (w) x 9.00 (h) x 0.90 (d)

Meet the Author

Jeffrey H. Dyer holds the Donald Staheli Chair in International Strategy at the Marriott School, Brigham Young University. Before joining the faculty at BYU, he was a professor at the Wharton School, University of Pennsylvania. As a private, and former Bain & Company, consultant, he worked with companies such as Motorola, Ford, Baxter International, Navistar, and Bang & Olufsen. He lives in Highland, Utah.

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Table of Contents

Preface
Acknowledgments
Introduction: Collaborative Advantage and the Extended Enterprise 3
1 Creating Partnerships for Collaborative Advantage 23
2 Creating Dedicated Assets in the Extended Enterprise 41
3 Effective Knowledge Management in the Extended Enterprise 59
4 Creating Trust in the Extended Enterprise 87
5 Chrysler's Extended Enterprise: The Process 111
6 Chrysler's Extended Enterprise: The Results 133
7 Key Lessons for Implementing the Extended Enterprise 151
Conclusion: A Model for the Future 169
Notes 185
Index 197
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