Understanding Modern Networks: Business Models & Examples

Modern networks are more complicated affairs than they may seem. They represent a strategy, an approach, and a vision of the future for each network participant. Networks vary in their models, aims of formation, and, logically, their structure. They have one thing in common though: networks are a deliberate evolution of the corporate world across industries from alluring islands of proprietary solutions to an overwhelmingly invisible cloud of highly detailed solutions, encompassing every conscious and unconscious action, decision, and preference of any given individual, whether those solutions are proprietary or acquired.

But let’s get down to particular examples and details to illustrate the formation of modern networks. The case study of a cooperation network, named House of the Future, carried out in the framework of a project with a significant participation of the University of Aveiro in Portugal, described a visionary framework of networks based on combinations of the following hallmarks:

By duration:

  1. Project teams and virtual corporations – gathering for a short-term goal

  2. Strategic alliances, joint ventures, and business association – implying longer run collaboration

By actors involved:

  1. Vertical – connecting actors along a supply chain;

  2. Horizontal – connecting actors from similar functional areas or sectors

  3. Diagonal – connecting acto ...

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