Orchestrator

Orchestrator companies concentrate their efforts on their core competencies. Any value chain activities that fall outside of these categories are outsourced to specialized service providers with the necessary skills to complete them successfully. Thus, as value chain director, the Orchestrator will devote significant time to coordinating and matching individual value creation activities. The relatively higher transaction costs associated with this strategy are offset by leveraging partners' unique skills. A significant advantage of the Orchestrator pattern is that it fosters close collaboration with external partners who possess innovative capabilities that can benefit one's own production.

When and how to apply Orchestrator:

To be an Orchestrator, you must be fully aware of and understand your organization's key strengths. This is especially true if you are involved in a significant number of value chain steps. As an Orchestrator, you concentrate all of your efforts on the activities for which you are known to excel and outsource the remainder, thereby lowering costs and increasing flexibility. It is critical to keep your cards close to your chest; otherwise, you risk being replaced by another company. To be an effective Orchestrator, you must be adept at actively managing a diverse set of partners. Well-known companies that use this pattern are Tencent and eventbrite.

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This Pattern is used by:

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