Description of the Extended Enterprise

The underlying philosophy behind the Extended Enterprise fundamentally changes the relationship between Chrysler and those outside the organization essential to its success. It is an example of the type of relationships that we discussed regarding multicompany partnerships. Many features of the Extended Enterprise are finding their way into partnerships in other industries. 

The Extended Enterprise has also drawn the attention of the business press in an article authored by Jeffrey Dyer. It is offered as a case study of transferring the respected Japanese supplier relationship model, referred to as keiretsu, to the United States. Dyer describes the motivations and the impact of the Extended Enterprise partnership philosophy on product cost and development cycle time. 

At the upper left are the platform teams. At Chrysler, there were six of these. For example, a platform such as minivan will be responsible for products with familiar brand names like the Pacifica, PT Cmiser, Neon, Stratus, Town Country, Jeep Cherokee, and Dodge Caravan. Each platform contains representatives from traditional functions such as manufacturing, engineering, and procurement. 

Avoiding these costs and preserving customer loyalty are the purpose of the Extended Enterprise. The sections that follow describe some features of the Extended Enterprise we expect to become commonplace in many industries. 

In Chapter 13, we described how DaimlerChrysler deployed platform teams in its U.S.-based Chrysler business. According to then-president Robert Lutz,i Chrysler was on the ropes in the late 1980s. Platform teams were a response to high cost, long lead times for product development, and outmoded products. Platform teams encouraged new lines of communication within the organization, and we discuss this aspect of platform teams under the appropriate task in Chapter 13. 

Like many revolutionary changes, the Extended Enterprise was bom of necessity, not design. According to Lutz, Chrysler may have vanished with- 

Design, Engineering, Manufacturing, Procureilent Supply, Sales 

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