Download or read book The Network Challenge (Chapter 2) written by C.K. Prahalad and published by Pearson Education. This book was released on 2009-05-19 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: The locus of innovation is shifting from the firm to the network. In contrast to developing standalone products, innovators are drawing together networks that deliver a personalized, co-created experience to the customer. This chapter describes a model in which nodal firms link communities of customers with communities of prequalified vendors. It examines cases from cardiac pacemakers to addressing diabetes and explores the implications of this shift for product and service innovation, value creation, and new sources of competitive advantage.