The Federated Broker Model at The Dow Chemical Company: Blending World Class Internal and External Capabilities
Name
MIT_CISRwp355_DowChemFederatedBrkrMdlCase.pdf
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313.95 KB
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Checksum (MD5)
04018354c905b50724ec3e7397eefc2e
Author(s)
Ross, Jeanne W.
Beath, Cynthia M.
Date Issued
July 1, 2005
Publisher
Cambridge, Mass.: Center for Information Systems Research, Sloan School of Management, Massachusetts Institute of Technology
Citation
Ross, Jeanne W. and Cynthia M. Beath. “The Federated Broker Model at The Dow Chemical Company: Blending World Class Internal and External Capabilities.” Working paper 355, Center for Information Systems Research, Sloan School of Management, Massachusetts Institute of Technology, 2005. https://dspace.mit.edu/handle/1721.1/175368.
Series/Report no.
MIT Sloan School of Management Working Paper 4559-05
CISR Working Paper 355
Abstract
Dow Chemical Company, a $40 billion chemical company, has a highly integrated operating model emphasizing standardized business processes around the world. Global integration and standardization are reinforced through a matrixed organizational structure and considerable outsourcing. But Dow is pursuing a growth strategy involving rapid development of joint ventures. Dow's highly integrated operating model is not well-suited to joint ventures, so the company is embarking on an experiment known as the Federated Broker Model-an open, componentized, internet-based architecture in which Dow would buy many of its business services from vendors. This new architecture would allow Dow and its partners to purchase standardized ERP services, which would, in turn, facilitate the integration required for joint ventures.
Subjects
Business Models
Operating Models
Sourcing
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