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He relies on his own scholarship as well as interviews with orchestrators and musicians to arrive at a few conclusions.
Orchestrators, however, do not share their core technologies.
Second, network orchestrators, being under no obligation to share their standard once it is established, are in a better position to manage and profit from their growth.
Companies that are equipped to serve as orchestrators will evaluate candidates for network membership on the basis of criteria such as size and maturity as well as their cultural and performance traits.
Other orchestrators define the relationship differently, usually according to where they fit within a rough typology (Exhibit 3).
It is not enough for network orchestrators to create information standards.
But to co-develop products and services effectively across a network, orchestrators must create cross-organizational teams--some ongoing, others dedicated to one-time projects--which sometimes will be led by the orchestrator's best-qualified partners, not by the orchestrator itself.
EXHIBIT 1 Market milestones even in a downturn Performance of network orchestrators as of March 31, 2001 Cisco * Market value per employee, $ million 3.
Charles Schwab, Cisco Systems, CNET Networks, eBay, E*Trade, Palm, and other members of the first generation of network orchestrators have outperformed their peers- leaders in their industries-in most key measures of revenue growth and the creation of shareholder value.
Network orchestrators far outperformed these industry standard-bearers, as well as the NASDAQ and S&P 500 listed companies, in both shareholder value creation and revenue per employee (exhibit, part 2).
Companies more fitted to the role of network orchestrator do, however, enjoy certain advantages over those choosing to become shapers of economic webs.
Whether these businesses then choose to join depends on their chances of doing three things: first, gaining access to the knowledge and expertise that the orchestrator derives from its unique perspective on the network members' interactions; second, realizing efficiencies flowing from the network members' sharing of assets; and, third, in the case of a service business like Schwab, obtaining privileged access to the orchestrator's own customers.