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The Federated Broker Model at The Dow Chemical Company: Blending World Class Internal and External Capabilities

Title Author(s) Type Topic(s) Comments Date
The Federated Broker Model at The Dow Chemical Company: Blending World Class Internal and External CapabilitiesRoss, Jeanne W.
Beath, Cynthia M.
Working PaperSourcing02005-07-01
Abstract: Dow Chemical Company, a $40 billion chemical company, has a highly integrated operating model emphasizing standardized business processes around the world. Global integration and standardization are reinforced through a matrixed organizational structure and considerable outsourcing. But Dow is pursuing a growth strategy involving rapid development of joint ventures. Dow's highly integrated operating model is not well-suited to joint ventures, so the company is embarking on an experiment known as the Federated Broker Model-an open, componentized, internet-based architecture in which Dow would buy many of its business services from vendors. This new architecture would allow Dow and its partners to purchase standardized ERP services, which would, in turn, facilitate the integration required for joint ventures.

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