Innovation extended networks

This approach was originally developed, like lean thinking, in Japanese business practice and involves the creation of an extended networks of inter-linked suppliers within a supply chain, all of whom are focused on delivering innovation in products and services, either in the form of functional or cost reduction improvements. The practice normally involves the creation of extended long-term supplier associations focused on passing value improvements throughout the supply chain to the customer. 

In Level 5, a business functional view appears and the constituents are involved in joint design and development, focused on what their collective database information shows as the trends, preferences, current popular innovations, and actual customer and consumer needs. Often the relationship leads to a truly collaborative endeavor where all constituents do what they do best and all participants bring their views of the market needs into play. The best concepts are used to create new prototypes or product offerings. Joint development of new equipment is likely to occur. Consumers are a key part of the design team and participation extends across the network. This phase of the effort could include joint investment in new capital assets. 

Economy The creation of innovative Internet services has produced massive amounts of wealth and income for some producers. Search engine companies are perhaps the best examples. Terms such as new economy or information economy have been conceived. The main source of financial flows on the Internet is derived from marketing (banners and sponsored links) or end users payments. The global economy is reflected at the local level via online shops (market places), networking (user communities) and virtual contents (products). The Internet has extended the possibilities of immaterial or virtual products and income sources. 

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