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'Inside-out' companies are the secret to success in business

Technology is changing the way businesses and customers interact - leading to the forming of the 'inside-out' company, where relationships with stakeholders actually shape strategy rather than being subject to it.

This was the main finding from research conducted through Enterprise LSE by LSE academic Dr Carsten Sørensen, senior lecturer in Information Systems in the Department of Management, and PA Consulting Group.

They found that businesses are using modern communication technology to engage people in shaping strategy and services - through blogs, collaboration tools, online markets and virtual worlds. Senior executives are taking a facilitative rather than directorial role, acting as a catalyst or 'lightning conductor' for innovation wherever it may evolve.

The research concludes that we are approaching a tipping point, where technology will be cheap enough and intuitive enough to make collaboration as valuable a source of innovation to the business as computation has been a source of efficiency.

Dr Carsten Sørensen, senior lecturer in Information Systems and Innovation at LSE's Department of Management, emphasises that: 'In order to identify the strategic value of IT it is necessary to employ the technology in developing relationships, listening to customers, and engaging them actively in the production of innovative services. This, however, will challenge all levels of the traditional organisation and will both be risky and rewarding.'

Ends

Contact

Shani Willson at PA Consulting Group by calling + 44 207 798 2654 or e-mail: shani.willson@paconsulting.com|.

1 May 2007

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