What are the barriers to the complete implementation of private industrial networks?

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 The barriers to the complete implementation of private industrial networks are:-

  • One barrier is that participating firms are required to share sensitive data with their business partners up and down the supply chain. This is a huge corporate mindset change because what was previously considered proprietary and secret must now be shared. Furthermore, in the digital environment, it can be difficult to control the limits of this information sharing. Information that a firm willingly gives to its largest customer may wind up being shared with its closest competitor.
  • Other barriers include difficulties in integrating private industrial networks into existing ERP (enterprise resource planning) systems and EDI (electronic data interchange) networks. Most ERP systems were not designed initially to work with extranets or even to be particularly Internet compliant; they were based on business models that use entirely internal business processes.
  • Furthermore, changes in corporate culture and attitudes organization-wide and among all employees are essential so that shifting of allegiances occurs from the firm to the wider trans-organizational enterprise. This is difficult to achieve. Employees must recognize that the firm’s fate is intertwined with that of their suppliers and distributors. 
  • Suppliers, in turn, must change how they manage and allocate resources because their own production is closely aligned with the demands of the private industrial network partners. A loss of independence among all participants in the supply and distribution chains occurs and this requires huge behavioral changes in individual organizations in order for their participation to reap the benefits of participation.


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