Figure 7. Network lifecycle.What is a network lifecycle?
In the marketing literature the product lifecycle is used to illustrate how a product goes through various phases from development to liquidation. Typical phases are development, introduction, growth, maturity and decline/liquidation. Organization research has developed analogies to the product lifecycle which describes both the lifecycle of organizations and industries. This analogy may also be used to describe the network lifecycle, as illustrated in figure 7. The vertical axis shows the intensity of the network collaboration. This intensity may be measured in different ways, all depending on which questions are most relevant. Examples of intensity measures may be the extent of value creation in the network, number of participants at the meeting places, number of members, number of innovations, etc. The horizontal axis is a time scale (age).
Networks may have short and long cycles. Some network will not survive the formative phase, others will not survive the growth phase, and the phase of maturation may be shorter or longer. Recently established networks are in their formative phase, while well-established networks may be in their growth or mature phase. Networks with a long history have typically been able to conclude at least one cycle and have managed to navigate restructuring to find a new focus for collaboration.
Networks may have short and long cycles. Some network will not survive the formative phase, others will not survive the growth phase, and the phase of maturation may be shorter or longer. Recently established networks are in their formative phase, while well-established networks may be in their growth or mature phase. Networks with a long history have typically been able to conclude at least one cycle and have managed to navigate restructuring to find a new focus for collaboration.
How can the tool be used?
The curve in figure 7 shows a possible development process over time, but all networks will not necessarily go through the same development process. Still, this tool is a useful one. Exercise 1 will get you started.
The program owners focused on knowledge intensive and creative services and not on industry. At the same time, there was a growing understanding that the local group of innovative industries dealing with environmental services, created jobs for well-educated young people. …
The industrial network which we now refer to as TechHub has emerged based upon customer/supplier relationships on the same postal address. One example is from the relationship between Norva24, now the largest prosecutor in the Nordics when it comes to water/wastewater-techniques and Nomek, producer of several metal products. Norva24 challenged Nomek to come up with a solution regarding mobile dewatering system on trucks. Nomek found a solution and it gave Norva24 a big competitive advantage towards others who had – and still have – to drive a longer distance to empty the septic. This is just one example of products and services that have been co-conceived between companies in the TechHub. The short talk by the coffee machine must never be underestimated …
Lessons to learn:
From the BG point of view, this restructuring has been vital to avoid being stuck on a path towards decline. The lessons to learn is to be able to deal with a situation where some important members “grow out” of a network and you need new vitality in. It is also a lesson to learn that innovative industry in this rural municipality are the motor. It is in connection with this motor you may create new knowledge intensive jobs; both inside the individual industry company or outside as a consultant. The industry is an active partner in establishing knowledge intensive service-companies (consultants) because they want the services close.
The VRI2 project studied the various networks at different stages of development. Some are in a very early phase; others have been around for years and have gone through the lifecycles several times.
The business network in Jostedalen has a long history. It was established as an informal network, a common interest group, but it did not have innovation or product development as their objective. Receiving an offer to formalize their collaboration by developing a business network made it possible to improve the quality of collaboration. Our assessment is that this network has been through one cycle and that invitation to participate in the business network project helped bring on a new phase of restructuring and new growth. The network is now in a new growth phase where they are testing out different innovations and forms of collaboration.
The IT Forum and the Fruit and Berries Network have been through several cycles of growth, maturity, restructuring and new growth. IT Forum has managed to renew, identify new challenges and taken action around these and have thus been through several restructuring and growth phases.
The Fruit and Berries Network as well has been through several rounds of growth, maturity, restructuring and new growth. The ability to restructure and identify and take on new challenges is part of the ground work to develop a long-term network collaboration. Both IT Forum and the Fruit and Berries Network are dealing with long-term issues, while other networks may be established as results of a specific need, and when the need is met the network’s lifecycle is over. These are typically networks that arise from a project. When the project is completed and the problem solved, the network is put to rest. When a good and productive collaboration between actors has been established and there is a desire to keep the collaboration going, the network may therefore be re-established in a new form and with new objectives.
