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Who are the Network Orchestrators of the World?

June 15, 2015

Ever wonder about the success and notoriety of companies like Airbnb, Uber, and Alibaba? Harvard Business Review (HBR) categorizes such companies as “Network Orchestrators.” The characteristics that merit these network-driven businesses’ high valuation for investors are their business model and ability to create value.

While these businesses find success, HBR found that just 5% of businesses adopt this "Network Orchestrator" model. Why? They were the ones willing to:

> Rely on intangible assets.
Consider intangible assets like knowledge, relationships, and other people’s assets. This extends beyond physical assets or people that most corporate leaders are skilled at managing. Network Orchestrators leverage the individuals’ assets and relationships.

> Allocate capital to those intangible assets.
Typically assets and expenses include property or equipment, and people, training and intellectual property. Networks—and their intangible assets—are often overlooked.

> Blend industries that haven’t crossed before.
Many traditional businesses avoid merging or crossing over into different industries. Network Orchestrators cross multiple industries utilizing the power of network.

Use these businesses as inspiration to evaluate your company’s business model, assets, and allocation of assets.