Co-evolving management with virtual cluster: What we can learn from Komatsu´s networking strategy

Komatsu Corporation is a manufacturing enterprise of machines for mining, construction and automobiles. They have established a unique networking system called CSS-Net and KOMTRAX, utilizing Internet and GSP technology. The system provides the information of products, operation, parts & components, repairing service, and so forth. They have connected many parts/components vendors, dealers and customers by the system to support better maintenance service and operation consulting after selling their main products by “after market” strategy. They also have established human network along the system to share tacit knowledge which cannot be provided merely through information systems. The whole system enabled to establish a kind of virtual cluster of enterprises and it is so beneficial not only for customers but also vendors and dealers including many powerless small and medium enterprises in regions and emerging countries. Their co-evolving management style is suggestive for many enterprises to establish sustainable growth.