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Agile Network Businesses
http://taylorandfrancis.com
Agile Network Businesses
Collaboration, Coordination, and
Competitive Advantage

Vivek Kale
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742

© 2018 by Vivek Kale

CRC Press is an imprint of Taylor & Francis Group, an Informa business

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International Standard Book Number-13: 978-1-4987-4832-2 (Hardback)

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Library of Congress Cataloging‑ in‑ Publication Data

Names: Kale, Vivek, author.

Title: Agile network businesses : collaboration, coordination, and
competitive advantage / Vivek Kale.
Description: New York : CRC Press, 2017.
Identifiers: LCCN 2016056575| ISBN 9781498748322 (hb : alk. paper) | ISBN
9781315368559 (eISBN)
Subjects: LCSH: Business networks. | Knowledge management. | Information
technology--Management.
Classification: LCC HD69.S8 K353 2017 | DDC 658.4/038028546--dc23
LC record available at https://lccn.loc.gov/2016056575

Visit the Taylor & Francis Web site at

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L. G. Joshi and his highly successful entrepreneurial ventures
that sparked my interest, imagination, and insight into
the power of networks.
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Contents

List of Figures...................................................................................................xix
List of Tables....................................................................................................xxi
Preface............................................................................................................xxiii
Acknowledgments .........................................................................................xxvii
Author ............................................................................................................xxix
Other Books by Vivek Kale...........................................................................xxxi
1 Smart Enterprises...................................................................................1
1.1 Agile Enterprises............................................................................... 1
1.1.1 Stability versus Agility......................................................... 4
1.1.2 Aspects of Agility................................................................. 6
1.1.3 Principles of Built-for-Change Systems................................ 7
1.1.4 Framework for Change Proficiency...................................... 8
1.2 Enhancing Enterprise Agility........................................................... 9
1.2.1 E-Business Strategy.............................................................. 9
1.2.2 Business Process Reengineering........................................... 9
1.2.3 Mobilizing Enterprise Processes..........................................10
1.2.3.1 Extending Web to Wireless..................................10
1.2.3.2 Extending Business Processes with Mobility........10
1.2.3.3 Enabling a Dynamic Business Model...................10
1.3 Customer Responsiveness................................................................11
1.3.1 Salient Aspects of Customer Responsiveness.......................14
1.3.2 Customer-Responsive Management....................................17
1.3.2.1 Networks of Resources........................................ 20
1.3.2.2 Business Webs..................................................... 22
1.3.2.3 Economics of Customer Responsiveness............. 22
1.4 Network of Enterprises....................................................................25
1.5 Summary ....................................................................................... 26
2 Business Networks............................................................................... 27
2.1 Network Enterprises Taxonomy..................................................... 27
2.1.1 Family Network Businesses................................................ 27
2.1.2 Entrepreneurial Small Network Businesses........................ 28

vii
viii ◾ Contents

2.1.3 Guanxi: Chinese Family and Community Network

Businesses.......................................................................... 29
2.1.4 Keiretsu: Japanese Corporate Network Businesses............. 30
2.1.5 Chaebol: Korean Circular Shareholding Networks.............31
2.1.6 Research and Development Alliance Networks and
Project Networks................................................................31
2.1.7 Value Chain Supply Networks: Global Sourcing and
Global Commodity Chains................................................33
2.1.8 Network-Based Businesses: Utilities, Public Services,
and Infrastructure Networks...............................................33
2.1.9 International Corporate Networks..................................... 34
2.1.10 Spatial Clusters, Industry Clusters, and
Cluster– Network Relationships..........................................35
2.2 Alliances......................................................................................... 36
2.2.1 Types of Network Power.................................................... 38
2.2.1.1 First-Degree Network Power: Coordination........ 38
2.2.1.2 Second-Degree Network Power: Cooperation..... 39
2.2.1.3 Third-Degree Network Power: Collaboration..... 39
2.2.2 Alliances for Enhancing Network Power........................... 40
2.2.2.1 Types of Alliances............................................... 43
2.2.3 Multinational Network of British Petroleum..................... 50
2.3 Summary ........................................................................................52

Section I  GENESIS OF NETWORK BUSINESSES

3   Computer Networks.............................................................................55
3.1 Network Principles......................................................................... 56
3.1.1 Protocol............................................................................. 56
3.1.2 Protocol Layers...................................................................57
3.1.3 Protocol Suite......................................................................57
3.1.4 Datagram............................................................................57
3.2 Types of Networks.......................................................................... 58
3.2.1 Personal Area Networks..................................................... 60
3.2.2 Local Area Networks......................................................... 60
3.2.3 Metropolitan Area Networks..............................................61
3.2.4 Wide Area Networks.......................................................... 62
3.3 Network Models............................................................................. 62
3.3.1 OSI Reference Model......................................................... 63
3.3.1.1 Physical Layer..................................................... 63
3.3.1.2 Data Link Layer.................................................. 64
3.3.1.3 Network Layer.................................................... 64
3.3.1.4 Transport Layer....................................................65
3.3.1.5 Session Layer........................................................65
 Contents ◾ ix

3.3.1.6 Presentation Layer................................................65

3.3.1.7 Application Layer................................................ 66
3.3.2 TCP/IP Reference Model................................................... 66
3.3.2.1 Link Layer........................................................... 66
3.3.2.2 Internet Layer.......................................................67
3.3.2.3 Transport Layer....................................................67
3.3.2.4 Application Layer................................................ 68
3.4 Internet........................................................................................... 68
3.4.1 Internet Services................................................................. 69
3.4.1.1 Electronic Mail................................................... 69
3.4.1.2 File Transfer Protocol.......................................... 70
3.4.1.3 Remote Log-In (Telnet)...................................... 70
3.4.1.4 Voice over IP....................................................... 70
3.4.1.5 Listservs.............................................................. 70
3.4.1.6 Streaming Audio and Video................................ 71
3.4.1.7 Instant Messages, Tweets, and Blogs................... 71
3.5 World Wide Web............................................................................ 71
3.5.1 Origin of the World Wide Web Browser............................ 73
3.5.2 Applications of the World Wide Web................................. 75
3.6 Semantic Web.................................................................................76
3.7 Internet of Things........................................................................... 77
3.8 From Physical to Logical Networks................................................ 79
3.9 Summary........................................................................................ 80
4   Distributed Systems .............................................................................81
4.1 Parallel Computing........................................................................ 83
4.2 Distributed Computing.................................................................. 87
4.2.1 System Architectural Styles................................................ 88
4.2.1.1 N-Tier Architecture............................................. 88
4.2.1.2 Peer-to-Peer......................................................... 90
4.2.2 Software Architectural Styles............................................. 90
4.2.2.1 Data-Centered Architectures............................... 90
4.2.2.2 Data Flow Architectures......................................91
4.2.2.3 Call and Return Architectures............................ 92
4.2.2.4 Virtual Architectures........................................... 94
4.2.2.5 Independent Components .................................. 95
4.2.3 Technologies for Distributed Computing .......................... 96
4.3 Distributed Databases.................................................................... 99
4.3.1 Characteristics of Distributed Databases...........................101
4.3.1.1 Transparency......................................................101
4.3.1.2 Availability and Reliability.................................102
4.3.1.3 Scalability and Partition Tolerance.....................102
4.3.1.4 Autonomy..........................................................103
x ◾ Contents

4.4 Advantages and Disadvantages of Distributed Databases..............103

4.5 Summary ......................................................................................104

Section II  ROAD TO NETWORK BUSINESSES

5 Systems Science, Complexity, and Networks......................................109
5.1 Systems Science.............................................................................110
5.1.1 Principles of Systems Science............................................ 111
5.2 Enterprise Offerings...................................................................... 111
5.2.1 Product Complexity..........................................................113
5.2.2 Product Architecture.........................................................114
5.2.2.1 Integrated Product Architecture.........................116
5.2.2.2 Modular Product Architecture...........................116
5.3 Modularity....................................................................................116
5.3.1 Hierarchy..........................................................................117
5.4 Networks.......................................................................................117
5.4.1 Random Graphs and Networks........................................ 119
5.4.2 Scale-Free Networks........................................................ 120
5.4.3 Small-World Networks......................................................121
5.4.4 Trees.................................................................................121
5.4.5 Network Modules............................................................ 122
5.5 Complex Adaptive System............................................................ 123
5.5.1 Modeling Complex Adaptive Systems.............................. 123
5.6 Project Management......................................................................125
5.6.1 Project Modeling............................................................. 126
5.6.2 Project Evaluation............................................................ 126
5.6.3 Project Management and Control.................................... 127
5.6.4 Project Scheduling........................................................... 127
5.6.4.1 Temporal Networks.......................................... 128
5.6.4.2 Program Evaluation and Review Technique...... 130
5.7 Summary ......................................................................................131
6 Enterprise Networks ...........................................................................133
6.1 Network of Enterprises..................................................................133
6.1.1 Theory of Constraints...................................................... 134
6.1.1.1 TOC Tools........................................................ 136
6.1.2 Dr. Little’ s Law.................................................................137
6.2 Designing the Network of Enterprise............................................138
6.3 Ongoing Changes to the Network of Enterprise ...........................140
6.4  Business Processes for the Network of Enterprises .........................141
6.5 Performance of Network of Enterprises.........................................143
6.6 Characteristics of Network of Enterprises......................................149
6.6.1 Complementarity, Compatibility, and Standards..............149
 Contents ◾ xi

6.6.2 Network Externalities.......................................................150

6.6.2.1 Reasons for Obtaining Network Externalities.... 151
6.6.3 Switching Costs and Lock-In............................................153
6.6.4 Significant Economies of Scale in Production...................154
6.6.5 Network Effects................................................................154
6.6.5.1 Network Effects in the Mobile
Telecommunications Industry............................157
6.6.5.2 Network Effects and Competitive Advantage ....158
6.7 Summary ......................................................................................159

7 Agent Systems.....................................................................................161
7.1 Agent Systems................................................................................161
7.1.1 Agent Properties................................................................162
7.1.2 Agent Taxonomy...............................................................164
7.1.3 Agent Architectures..........................................................165
7.1.4 Agent Communications....................................................166
7.2 Agents for Virtual Enterprises.......................................................167
7.2.1 Agents and Expert Systems...............................................167
7.2.2 Agents and Service-Oriented Architecture Solutions.........169
7.2.3 Agent-Oriented Software Engineering..............................169
7.2.3.1 Object-Oriented Programming..........................170
7.2.3.2 Component-Based Development........................170
7.2.3.3 Service-Oriented Architecture............................171
7.2.3.4 Agent-Oriented Computing...............................172
7.3 Developing Agent-Based Systems..................................................177
7.3.1 Design of Agent-based Systems.........................................177
7.3.2 Agent-Based E-Business Systems.......................................180
7.3.3 Agent-Based Software Engineering...................................184
7.3.3.1 Agent-Based Platform JADE .............................185
7.4 Summary ......................................................................................186

8 Cloud Computing..............................................................................187
8.1 Cloud Definition...........................................................................188
8.2 Cloud Characteristics....................................................................189
8.2.1 Cloud Storage Infrastructure Requirements......................191
8.3 Cloud Delivery Models.................................................................193
8.3.1 Infrastructure as a Service (IaaS).......................................193
8.3.2 Platform as a Service (PaaS)..............................................195
8.3.3 Software as a Service (SaaS)..............................................196
8.4 Cloud Deployment Models...........................................................196
8.4.1 Private Clouds...................................................................196
8.4.2 Public Clouds....................................................................198
8.4.3 Hybrid Clouds..................................................................198
xii ◾ Contents

8.4.4 Community Clouds..........................................................198

8.5 Cloud Benefits...............................................................................199
8.6 Cloud Technologies.......................................................................201
8.6.1 Virtualization................................................................... 202
8.6.1.1 Characteristics of Virtualized Environments..... 203
8.6.2 Service-Oriented Architecture.......................................... 207
8.6.2.1 Advantages of SOA........................................... 208
8.6.2.2 Layers in SOA................................................... 209
8.7 Business Processes with SOA.........................................................211
8.7.1 Process..............................................................................212
8.7.2 Workflow..........................................................................213
8.7.3 Business Process Management (BPM)...............................215
8.7.4 Business Processes via Web Services..................................216
8.7.4.1 Service Composition..........................................217
8.8 Summary.......................................................................................218

9 Big Data Computing and Graph Databases.......................................219

9.1 Big Data....................................................................................... 220
9.1.1 What Is Big Data?............................................................ 220
9.1.1.1 Data Volume..................................................... 220
9.1.1.2 Data Velocity.................................................... 222
9.1.1.3 Data Variety...................................................... 223
9.1.1.4  Data Veracity.................................................... 224
9.1.2 Common Characteristics of Big Data Computing
Systems............................................................................ 225
9.1.3 Big Data Appliances......................................................... 228
9.2 Tools and Techniques of Big Data................................................ 229
9.2.1 Processing Approach........................................................ 229
9.2.2 Big Data System Architecture...........................................231
9.2.2.1 Basically Available, Soft State, Eventual
Consistency (BASE)...........................................231
9.2.2.2 Functional Decomposition.................................233
9.2.2.3 Master– Slave Replication...................................233
9.2.3 Row Partitioning or Sharding...........................................233
9.2.4 Row versus Column-Oriented Data Layouts.....................233
9.2.5 NoSQL Data Management.............................................. 234
9.3 Graph Databases...........................................................................235
9.3.1 OrientDB......................................................................... 236
9.3.2 Neo4j............................................................................... 237
9.3.2.1 Neo4j Features.................................................. 237
9.3.2.2 Neo4j Data Model............................................ 239
9.4 Summary ..................................................................................... 240
 Contents ◾ xiii

Section III NETWORK BUSINESSES

10   Network Enterprises.......................................................................... 243
10.1 Virtual Organization.................................................................... 244
10.1.1 Advantages........................................................................247
10.1.2 Forms of Virtual Organization........................................ 248
10.1.3 Potential Benefits of Virtual Organization........................249
10.1.4 Managing the Virtual Organization.................................252
10.1.4.1 Organizational Factors.......................................253
10.1.4.2 Economical Factors........................................... 254
10.1.5 Technology Management..................................................255
10.2 Network Enterprise as a Virtual Organization...............................256
10.3 Brands as Network Enterprises......................................................257
10.3.1 Shared Values....................................................................257
10.3.2 Strategy.............................................................................257
10.3.3 Structure...........................................................................258
10.3.4 Stuff..................................................................................258
10.3.5 Style..................................................................................258
10.3.6 Staff..................................................................................258
10.3.7 Skills.................................................................................259
10.3.8 Systems.............................................................................259
10.3.9 Sequence...........................................................................259
10.4 Summary...................................................................................... 260
11 Management of Network Enterprises.................................................261
11.1 Network Enterprises Management............................................... 262
11.1.1 Firm Perspective............................................................... 262
11.1.2 Network Perspective.........................................................265
11.1.3 Environmental Perspective............................................... 272
11.2 Concept of Supply Chain Management (SCM).............................275
11.2.1 SCM Challenges...............................................................276
11.2.2 Supply Chain Management (SCM)................................. 278
11.2.2.1 SCM Characteristics......................................... 279
11.2.2.2 SCM Functional Components...........................281
11.2.2.3 Supply Chain Management Maturity
(SCMM) Framework........................................ 284
11.3 Supply Chain Management Framework....................................... 286
11.3.1 Supply Chain Performance Framework............................ 288
11.3.1.1  Volume ............................................................. 288
11.3.1.2 Volatility........................................................... 289
11.3.1.3 Velocity............................................................. 289
11.3.1.4 Variety.............................................................. 290
11.3.1.5 Variability......................................................... 290
xiv ◾ Contents

11.3.1.6 Visibility............................................................291
11.3.1.7 Virtuality.......................................................... 292
11.3.2 Supply Chain Performance Measurement........................ 292
11.4 Summary ......................................................................................293
12 Collaborative Network Enterprises....................................................295
12.1 Process Networks......................................................................... 296
12.2 Collaboration............................................................................... 298
12.1.1 Transactional Collaboration............................................. 300
12.1.2 Functional Collaboration................................................. 300
12.1.3 Explorative Collaboration.................................................301
12.1.4 Entrepreneurial Collaboration......................................... 302
12.3 Collaboration Strategies ............................................................... 303
12.3.1 Product Life Cycle Management...................................... 303
12.3.2 Synchronized Inventories and Production........................ 305
12.3.3 Distribution Order Fulfillment........................................ 306
12.4 Innovation Networks ....................................................................311
12.4.1 Influences Phase................................................................312
12.4.2 Innovation Phase..............................................................313
12.4.3 Knowledge Objects Phase.................................................316
12.5 Summary ......................................................................................317

Section IV NETWORK BUSINESSES EXAMPLES

13   Supplier Networks..............................................................................321
13.1 Suppliers....................................................................................... 322
13.1.1 Debacle at Cisco.............................................................. 323
13.2 Decision Networks........................................................................325
13.2.1 Decision Graphs...............................................................325
13.2.1.1 Fundamentals of Utility Theory........................ 326
13.2.1.2 Decision Trees....................................................327
13.2.1.3 Influence Diagrams........................................... 328
13.2.2 Hierarchical Decision Model........................................... 330
13.2.3 Network Decision Model..................................................331
13.3 Information Networks...................................................................332
13.3.1 e-Sensors for Supporting Supplier Networks.....................335
13.4 Logistic Networks.........................................................................335
13.5 Summary.......................................................................................339
14 Manufacturing Network Enterprises.................................................341
14.1 Manufacturing Network Enterprises............................................ 341
14.1.1 MNEs as Complex Adaptive Systems (CASs).................. 343
14.1.2 Elements of MNEs........................................................... 346
 Contents ◾ xv

14.1.2.1 Acknowledging Identity and Recognizing

Boundaries........................................................ 346
14.1.2.2 Modularity........................................................ 346
14.1.2.3 Heterogeneity.................................................... 347
14.1.2.4 Scalability......................................................... 347
14.1.2.5 Context Awareness............................................ 347
14.1.2.6 Autonomy......................................................... 348
14.1.2.7 Interoperability ................................................ 348
14.1.2.8 Networkability.................................................. 349
14.2 Cloud Based Manufacturing Network Enterprises....................... 349
14.2.1 Evolution of Manufacturing............................................. 349
14.2.2 Cloud Manufacturing (CMfg)..........................................350
14.2.2.1 Concept of CMfg...............................................350
14.2.2.2 System Architecture...........................................351
14.2.2.3 Characteristics of CMfg.....................................351
14.2.2.4 CMfg Technologies............................................353
14.3 Outsourcing..................................................................................354
14.3.1 Foxconn............................................................................357
14.4 Summary ......................................................................................358
15   e-Business Networks...........................................................................359
15.1 Business Webs.............................................................................. 360
15.1.1 Mela B-Web..................................................................... 360
15.1.1.1 eBay.................................................................. 360
15.1.2 Aggregator B-Web............................................................ 363
15.1.2.1 Amazon............................................................ 363
15.1.3 Integrator B-Web..............................................................367
15.1.3.1 Cisco................................................................. 368
15.1.4 Associator B-Web............................................................. 369
15.1.5 Distributor B-Web............................................................370
15.1.6 Comparison of Commerce Networks................................371
15.2 Profit Models.................................................................................371
15.3 Price Fixation ................................................................................372
15.3.1 Price Determination.........................................................372
15.3.2 Price Differentiation..........................................................373
15.3.3 Dynamic Price Determination through Auctions.............374
15.4 Electronic Procurement.................................................................375
15.4.1 Models for Electronic Procurement...................................376
15.4.1.1 Sell-Side Market Model.................................... 377
15.4.1.2 Buy-Side Market Model.....................................379
15.4.1.3 Marketplace.......................................................381
15.5 Summary ..................................................................................... 382
xvi ◾ Contents

16 Platform Networks.............................................................................385
16.1 Product Platforms......................................................................... 386
16.1.1 Microsoft’ s Platform Strategy.......................................... 388
16.2 Defining Platform Networks........................................................ 389
16.3 Salient Characteristics...................................................................391
16.3.1 Fight or Share...................................................................391
16.3.2 Open or Closed.................................................................392
16.4 Platform Networks: Core Concepts...............................................393
16.4.1 Product Life Cycle and the S-Curve..................................393
16.4.1.1 Dominant Design............................................. 397
16.4.2 Network Effects............................................................... 397
16.4.3 Multisidedness................................................................. 398
16.4.4 Multihoming................................................................... 399
16.4.5 Tipping............................................................................ 400
16.4.6 Lock-In............................................................................ 400
16.5 Platform Network Enterprises Examples.......................................401
16.5.1 Uber.................................................................................401
16.5.2 Airbnb..............................................................................401
16.6 Summary ..................................................................................... 402
17   Social Networks................................................................................. 403
17.1 Social Networks........................................................................... 403
17.1.1 Social Networks Metrics.................................................. 405
17.2 Popular Social Networks.............................................................. 408
17.2.1 LinkedIn.......................................................................... 408
17.2.2 Facebook.......................................................................... 408
17.2.3 Twitter..............................................................................410
17.2.4 Google+ ...........................................................................410
17.2.5 Other Social Networks.....................................................411
17.3 Social Networks Analysis (SNA)...................................................412
17.4 Social Network Performance.........................................................414
17.4.1 Robustness........................................................................414
17.4.2 Efficiency..........................................................................414
17.4.3 Effectiveness......................................................................415
17.4.4 Diversity...........................................................................415
17.5 Summary ......................................................................................415
18   Wireless Sensor Networks..................................................................417
18.1 Wireless Sensor Networks..............................................................417
18.1.1 WSN Characteristics........................................................418
18.1.2 WSN Design Challenges..................................................419
18.1.3 WSN Design Objectives.................................................. 420
18.1.4 WSN Architecture............................................................421
 Contents ◾ xvii

18.1.4.1 Sensor Node Structure...................................... 423

18.1.4.2 WSN Protocol Stack......................................... 425
18.2 Sensor Data Processing................................................................. 429
18.2.1 Sensor Data-Gathering and Data Dissemination
Mechanisms..................................................................... 429
18.2.1.1 Mechanisms Based on Storage Location........... 430
18.2.1.2 Mechanisms Based on the Direction of
Diffusion........................................................... 432
18.2.1.3 Mechanisms Based on the Structure of
Dissemination................................................... 434
18.3 Sensor Database............................................................................ 436
18.4 Data Fusion Mechanisms............................................................. 439
18.4.1 Classifi cation of Data Fusion Mechanisms Based on
Functions......................................................................... 440
18.4.2 System Architectures of Data Fusion............................... 441
18.4.3 Trade-Offs of Resources................................................... 442
18.4.3.1 Trade-Off between Energy and Accuracy.......... 442
18.4.3.2 Trade-Off between Energy and Latency............ 442
18.5 Summary ..................................................................................... 443

Epilogue..................................................................................................... 445
Bibliography............................................................................................... 447
Index...........................................................................................................451
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List of Figures

Figure 2.1   Ownership

 patterns and cooperative versus competitive
approach....................................................................................... 41
Figure 2.2   Alliance lifetime in years.............................................................. 43
Figure 2.3   R ange of relationships.................................................................. 45
Figure 3.1   OSI vs. TCP/IP network reference models.................................... 58
Figure 4.1   Parallel
 computing architectures: (a) Flynn’ s taxonomy, (b) a
shared-memory system, and (c) a distributed system..................... 84
Figure 5.1   Product
 architectures in terms of their functional and
physical independence.................................................................115
Figure 5.2   (a) Asimple graph, (b) a modular graph.....................................119
Figure 6.1   Trends
 of various costs with an increasing number of nodes
in a network of enterprises.......................................................... 141
Figure 6.2   Performance
 measurement system for the networks of
enterprises................................................................................... 144
Figure 6.3   Surging contexts of innovations...................................................152
Figure 7.1   Patterns for agent-based e-business systems................................. 181
Figure 8.1   Cloud reference model................................................................ 193
Figure 8.2   Portfolio of services for the three cloud delivery models............. 194
Figure 9.1   4V characteristics of big data...................................................... 221
Figure 9.2   Use cases for big data computing................................................ 224
Figure 9.3   Parallel architectures................................................................... 230
Figure 11.1    Components of an agile supply chain.......................................... 280
Figure 11.2   SCMM framework..................................................................... 285

xix
xx ◾ List of Figures

Figure 11.3   Classic supply chain operating model....................................... 286

Figure 11.4   Network structure in a supply chain......................................... 287
Figure 11.5   Supply chain structure examples............................................... 288
Figure 12.1   Innovation framework business processes................................. 312
Figure 12.2   Innovation framework business process interactions..................315
Figure 13.1   Supply network information framework................................... 334
Figure 13.2   Relationship
 between total and functional logistics costs as
the number of depots in a network changes.............................. 338
Figure 15.1   Models
 for electronic procurement: (a) sell-side market
model, (b) buy-side market model, (c) marketplace................... 377
Figure 16.1   PLC and the S-curve................................................................ 394
Figure 18.1   (a)
 Sensor network architecture, (b) single-hop network
architecture............................................................................... 422
Figure 18.2   (a)
 Single-hop multiclustering architecture, (b) multihop
clustering architecture, and (c) multitier clustering
architectures............................................................................. 424
Figure 18.3   Sensor node structure............................................................... 425
Figure 18.4   Generic WSN protocol stack.................................................... 425
Figure 18.5   Three
 phases in directed diffusion: (a) interest propagation,
(b) data propagation, (c) data delivery along reinforced path.... 433
Figure 18.6   Three-phase handshaking protocols in SPIN............................ 434
Figure 18.7   (a)
 Sensor database system architecture, (b) procedures for
query and data extraction in TinyDB....................................... 438
Figure 18.8   Address-centric routing vs. data-centric routing.......................440
List of Tables

Table 1.1   C
 ustomer Satisfaction Orientation of Traditional Mass Marketing
vs. Value Orientation of Customized Relationship Marketing............. 11
Table 2.1   Competitive vs. Cooperation Views................................................ 41
Table 2.2   Motives for Collaborations.............................................................44
Table 3.1   OSI Layers or Stack........................................................................ 59
Table 7.1   C
 omparison between Object-Oriented, Component-Based,
and Agent-Oriented Methods....................................................... 173
Table 8.1   Key Attributes of Cloud Computing............................................ 189
Table 8.2   Key Attributes of Cloud Services.................................................. 190
Table 8.3   Comparison of Cloud Delivery Models........................................ 197
Table 9.1   Scale of Data................................................................................ 222
Table 9.2   Big Data Values across Industries................................................. 225
Table 9.3   Industry Use Cases for Big Data................................................... 226
Table 12.1 C
 omparison of Forecasting and Replenishment Processes Used
in Retail Value Chain................................................................... 310
Table 13.1   C
 omparison between Hierarchical and Network Decision
Models.......................................................................................... 330
Table 13.2   Types of Data Exchanged in Supplier Networks........................... 336
Table 15.1 Comparison of various types of B-Webs....................................... 371
Table 16.1   Characteristic PLC Times by Industry......................................... 395
Table 16.2   Multisided Market Makers........................................................... 399
Table 18.1   Possible WSN Protocol Stack....................................................... 426
Table 18.2   Possible Lower-Layer WSN Protocols........................................... 427

xxi
http://taylorandfrancis.com
Preface

In the last couple of decades, the business environment has changed with unprec-
edented speed. Firms structured along tight hierarchies first started to cooperate in
tightly coupled strategic networks with stable interorganizational ties, then moved
into more loosely coupled configurations of legally independent firms in order to
create competitive advantages. The networked enterprise that emerged represents
an organizational form that is vastly better at managing unpredictable environ-
ments and conditions of uncertainty.
These changes in the competitive environment have had a profound effect on
the way organizations compete and cooperate today. Whereas vertically integrated
firms are reconfiguring their value chain and focusing on added-value activities,
small firms aggregated into industrial districts are growing globally, creating
loosely coupled networks of firms.
Customers in geographically dispersed, emerging, and established global mar-
kets nowadays demand higher quality products in a greater variety, at lower cost,
and in a shorter time. As a result, enterprises have moved from centralized, ver-
tically integrated, single-site manufacturing facilities to geographically dispersed
networks of capabilities, competencies, and resources, namely, network enter-
prises. Enterprises are now constructing more fluid “network businesses” in which
each member focuses on its differentiation and relies increasingly on its partners,
suppliers, and customers to provide the rest. This book shifts focus from the tra-
ditional network of real businesses to such virtual IT-enabled network businesses
or enterprises, because their operations and dynamics as such represent the market
more closely. Network businesses have emerged as an organizational paradigm for
collaboration and coordination across loosely connected individual organizations.

A network enterprise needs to be differentiated from the traditional

focal firm acting as an orchestrator or systems integrator: the tradi-
tional focal firm seldom plays simultaneous differing roles in different
network of enterprises. In contrast, the focal firm within a network enter-
prise may participate simultaneously in differing roles to differing degrees in
more than one but disparate network enterprises.

xxiii
xxiv ◾ Preface

There may be an impression that managing the network enterprise will entail
frightening proportions of issues in the areas of leadership, human resources, and
so on. The author would hasten to allay any sense of alarm by pointing out that
the network enterprise is not as far fetched as it may seem at the first blush. All
­project-oriented businesses, ranging from small engineering and construction
firms to engineering procurement construction (EPC) behemoths like Bachtel,
have been routinely enacting this very business model for decades while undertak-
ing projects across the whole world.
Network businesses or enterprises are a realization of the vision of IT/IS-enabled
virtual network enterprises that reform and reconfigure automatically to address
the opportunities available in the market. They have especially become viable and
governable after the advent of cloud computing and big data computing. Big data
computing systems and environments combine the power of elastic infrastructure
(via cloud computing) and information management with the ability to analyze
and discern recurring patterns in the colossal pools of operational and transactions
data (via big data computing) to leverage and transform them into success pat-
terns for an enterprise’s business. These extremes of requirements for storage and
processing arose primarily from developments of the past decade in the areas of
e-business networks, social networks, wireless networks, and so on.

What Makes This Book Different?

This book interprets the 1990s phenomenon of network enterprises from the point
of view of business and technology. It enables IT managers and business decision
makers to get a clear understanding of what network businesses or enterprises
really means, what it might do for them, and how it can be realized.

The characteristic features of this book are as follows:

◾◾ Introduces the network solutions and distributed systems that were a first
step toward enabling a network enterprise. It also gives a detailed description
of network of enterprises and agent systems related solutions that paved the
road to network enterprises.
◾◾ Describes the basics of service oriented architecture (SOA), cloud comput-
ing, and big data computing that were essential prerequisites to the latest
network enterprises.
◾◾ Details the distinguishing aspects of network enterprises, namely, virtual
enterprises, taxonomy and management of network enterprises, and collab-
orative enterprises.
◾◾ Covers major application areas of interest in network enterprises, namely, sup-
plier, manufacturing, e-business, platform, social, and wireless sensor networks.
◾◾ Introduces new decision networks in the context of supply chain networks.
 Preface ◾ xxv

In the final analysis, network enterprise is a realization of the vision of the inter-
networked virtual enterprise that reforms and reconfigures automatically to address
the opportunities available in the market and which falls within the gambit of the
market mandated by the stakeholders. It also reinterprets the traditional supply
chain (SC) in terms of the flow of decisions, information, and materials, leading
to the trifurcation of SC networks into mutually separable decision networks (like
fourth-party logistics [4PLs]), information networks (like wireless sensor networks
[WSN] and Sensor Farms), and logistics networks (like third-party logistics [3PLs]).
I wanted to write a book presenting network enterprises from this novel perspective;
the outcome is the book that you are reading now. Thank you!
Notwithstanding the worldwide protectionist tide against globalization, the
separation of decision networks envisaged in this book will lead to a worldwide
renewed interest in supply chain management businesses and SCM systems. In
their new avatar of the trifurcated SC networks, SCM will chart blue ocean oppor-
tunities powered by artificial intelligence (AI) solutions for the decision networks,
and big data and data fusion solutions for the information networks.

How Is This Book Organized?

This book traces the genesis and the road to network businesses, the detailed fea-
tures and characteristics of network businesses, and, in the last part of the book,
the high-potential examples of network businesses.
Chapter 1 provides an overview of agile enterprises. Chapter 2 explores the var-
ious types of business networks and describes the taxonomy of alliances between
organizations.
Section I presents the genesis of network businesses. Chapters 3 and 4 provide
an overview of computer networks and distributed systems respectively.
Section II presents the road that led to network businesses. Chapter 5 intro-
duces the basic concepts of systems theory, complexity, and networks. Networks
of enterprises and agent-based systems are described in Chapters 6 and 7, respec-
tively. Chapter 8 discusses the nature and characteristics of cloud computing, ser-
vice-oriented architecture, and business processes. Big data computing, NoSQL,
and the graph database Neo4j are presented in Chapter 9.
Section III deals with network businesses. Chapter 10 introduces the charac-
teristics of virtual organization and explores brands as a virtual organization, that
is, a network enterprise. Chapter 11 deals with the management of network enter-
prises. Collaborative network enterprises are covered in Chapter 12.
Section IV deals with examples of network enterprises. Chapters 13 and 14
present the supplier and manufacturing network enterprises, respectively. Chapters
15 and 16 describe e-business and platform network enterprises, respectively.
Chapter 17 is on popular social network enterprise applications such as Facebook
and Twitter. Chapter 18 introduces sensor network enterprises.
xxvi ◾ Preface

Who Should Read This Book?

All stakeholders of a network enterprise can read this book. All those who are
involved in any aspect of a IT/IS-enabled network enterprise project will profit
by using this book as a road map to make a more meaningful contribution to the
success of their network enterprise initiatives.
The minimal recommendations for different categories of stakeholders are as
follows:

◾◾ Executives and business managers should read Chapters 1, 2, 5, and 10–17.

◾◾ Operational managers should read Chapters 1, 2, 5, 6, and 10–18.
◾◾ Project managers and module leaders should read Chapters 1, 3–9, and
13–18.
◾◾ Technology managers should read Chapters 1–18.
◾◾ Professionals interested in network enterprises should read Chapters 1, 2,
and 5–17.
◾◾ Students of computer courses should read Chapters 1–10 and 13–18.
◾◾ Students of management courses should read Chapters 1, 2, 5, 6, and 10–18.
◾◾ General readers interested in the phenomenon of network enterprises should
read Chapters 1–6 and 10–18.

Vivek Kale
Mumbai, India
Acknowledgments

I would like to thank all those who have helped me with their clarifications, criti-
cism, and valuable information during the writing of this book.
Thanks again to John Wyzalek for making this book happen and guiding it
through to completion.
My wife, Girija, and my daughters, Tanaya and Atmaja, patiently tolerated
my mental and physical absences during the writing (and rewritings) of this book.
Ultimately, it is their cheerful support that make these book projects possible and
worthwhile.

Vivek Kale
Mumbai, India

xxvii
http://taylorandfrancis.com
Another random document with
no related content on Scribd:
 1 year 1.5 per cent.
2–5 5.4 per cent.
6–10 6.6 per cent.
11–15 7.2 per cent.
16–20 11.4 per cent.
21–30 22.2 per cent.
31–40 19.3 per cent.
41–50 12.6 per cent.
51–60 7.7 per cent.
61–70 3.6 per cent.
71–80 2.0 per cent.
Above 80 0.5 per cent.

Leubuscher recorded that in Jena the proportion of cases in the

individual age classes did not correspond with the figures reported
from other localities. Children, and especially very young children,
suffered relatively less than adults.
The following statistics of the 1889–90 incidence of influenza
among school children in Cologne were collected by Lent:

Attendance. Ill of influenza.

Class I–13 to 14 years of age 3,002 1,015 33.8 per cent.
Class II–11 to 12 years of age 5,737 1,835 31.9 per cent.
Class III–10 years of age 3,701 1,130 30.5 per cent.
Class IV– 9 years of age 3,590 930 25.9 per cent.
Class V– 8 years of age 2,929 822 28.0 per cent.
Class VI– 7 years of age 3,388 758 22.3 per cent.

These may be compared with figures for the public schools in the
suburbs of Cologne:
 Attendance. Ill of influenza.
Class I–13 to 14 years of age 1,609 689 42.9 per cent.
Class II–11 to 12 years of age 2,885 1,094 37.9 per cent.
Class III–10 years of age 1,683 626 37.1 per cent.
Class IV– 9 years of age 1,758 552 31.4 per cent.
Class V– 8 years of age 1,771 502 28.2 per cent.
Class VI– 7 years of age 1,938 510 26.3 per cent.

The increase of disease incidence with age is apparent. Finkler’s

explanation for the higher incidence among the children of the
suburbs, “that the children in the country had usually to walk a
greater distance to school” does not appear to be complete.
Comby found that out of 3,411 school children in Lausanne 1,840
contracted influenza. This shows a relatively high incidence in
children of school age in that city.
Concerning age distribution in 1889–90 Leichtenstern remarks
that the greatest morbidity incidence was in school children,
adolescents and young adults, especially the last. Nursing infants
were attacked in considerably less degree than any of these other
ages. Also in the higher ages those above sixty were attacked in lesser
degree. The greatest morbidity frequently was between the ages of
twenty and forty. Abbott concluded on the basis of estimates
furnished him from various institutions and individuals in the State
that people of all ages were attacked but the ratio of adults was
greatest, of old people next, and of children and infants least.
Relationship of occupation to morbidity incidence.—Leichtenstern
found that the only apparent influence of occupation on the
incidence of influenza depended upon the liability to exposure in the
various occupations. He remarks particularly on the large incidence
of influenza among physicians. In contrast was the low incidence in
lighthouse keepers. In 1889–90 among 415 dwellers on 51 lightships
and 20 isolated lighthouses on the English coast only 8 persons
developed influenza and these in four localities, and in every instance
there was traceable direct communication from some other source.
There is contradictory evidence as to whether individuals working
out of doors are more apt to develop influenza. Certain statistics
show that postmen and individuals working on railroads were
attacked more frequently and earlier than others, while other
statistics show that in railroads the office personnel was attacked
earlier than individuals on the trains and those working on the
tracks.
Abbott concluded that special occupations did not appear to have
had a marked effect in modifying the severity of the epidemic. At the
Boston Post Office in 1889–90, of the indoor employees, 475 in
number, 25 per cent. were attacked. Of the carriers, 450 in number,
11 per cent. were affected with the disease. But there were other
reports of the same period which stated that the ratio of the persons
employed at outdoor occupations who were attacked was greater
than that of indoor occupation.
Finkler has discussed the influence of occupation at some length:
“When we compare the statistics of the last pandemic concerning
the influence of vocation, we see in the first place that those first and
chiefly were attacked whose occupation compelled them to remain in
the open air. This was shown especially by Neidhardt, who studied
the influenza epidemic in the Grand Duchy of Hesse. His
conclusions, however, were disputed by others. Thus, the prejudicial
influence of exposure to the open air was not supported by the
statistics of railroad employees in Saxony. Of those who were
employed in the outdoor service, 32 per cent. became ill; of those
employed in office work, on the other hand, 40 per cent. The
statistics of the local benefit societies in Plauen show that the
percentage of the sick among farm hands and builders was not
greater than that among the members of other benefit societies who
worked indoors. In Schwarzenberg the laborers in the forest who
were working in the open air all day were affected less than others,
and there was no sickness whatever in some forest districts.
Lancereaux, of Paris, states that most of the railroad employees who
suffered from influenza were those engaged in office work and not
those who worked in the open air. The preponderance of influenza
patients among the factory hands may be seen from a table prepared
by Ripperger:
 A. In the open air.
Occupation. Per cent. attacked.
Workmen and laborers of Niederbayern 7
Railway officials in Amberg 9
Peasants in Niederbayern 11.7
Workmen in the Salzach-Correction 20

B. In closed rooms.
Slag mills in St. Jugbert 15
Cotton mill in Bamberg 20
Cotton mill in Bayreuth 33
Sugar factory in Bayreuth 36
Aniline works in Ludwigshafen 38.8
Cotton mill in Zweibrücken 50
Tinware factory in Amberg 60
Factory in Schweinfurth 62
Gun factory in Amberg 70
Gold beaters in Stockach 80

“Many peculiar records of how individual classes of occupation

have fared are obviously to be explained by the fact that the infection
manifested its action in very different degrees. Thus, among the
workmen on the Baltic ship-canal only those became ill who lived in
the town of Rendsburg; those who had been housed in barracks
outside of the city were not affected. Of the 438 lead workers of
Rockhope, which is situated in a lonely valley in Durham, all
remained perfectly free from the disease during the three epidemics
of 1889–92.
“Some occupations are said to afford protection against influenza.
Thus workmen in tanneries, chloride of lime, tar, cement, sulphuric
acid, glass, and coke works, are said to have escaped the disease with
extraordinary frequency.
“We shall be compelled perhaps to agree with Leichtenstern in his
conclusion that occupation and social position only in so far exert an
influence on the frequency of the disease as certain occupations in
life lead to more or less contact with travellers.
 “Very remarkable is the proportionately small number of soldiers
affected, at least in the Prussian army, where, according to the
official record, the epidemic from its beginning to its end attacked
only 101.5 per thousand of the entire forces.”
Comparison of morbidity by occupation necessarily includes so
many variables and so many factors other than occupation that the
results are decidedly unsatisfactory. An example is found in Jordan,
Reed and Fink’s report of the incidence among troops in the Student
Army Training Camps in Chicago. They found a strikingly different
attack rate in the various groups studied. In the Chicago Telephone
Exchange they ranged from 30 to 270 per 1,000, although the
working conditions in the various exchanges were not materially
different. In the Student Army Training Corps at the University of
Chicago the lowest was 39 and the highest 398 per 1,000. The higher
rate group was particularly exposed to infection while the lower,
although composed of men of similar ages, living under similar
conditions, were guarded to a considerable extent against contact
with beginning cases.
Woolley has made an interesting observation on the effect of
occupation: “The disease was no respecter of persons except that it
was more severe in those who were hard workers. Those who tried to
‘buck the game’ and ‘stay with it’ showed the highest mortality rates.
So, the non-commissioned officers and the nurses suffered more
severely than the commissioned officers and privates.
“The annual morbidity rate per 1,000 was as follows:

For commissioned officers 261

Non-commissioned officers 208
Nurses 416
White enlisted men 568
Black enlisted men 1,130

“The annual mortality rate per 1,000 was:

 For commissioned officers 69
Non-commissioned officers 83
Nurses 77
White enlisted men 145
Black enlisted men 253

“The case mortalities were:

Per cent.
For commissioned officers 26.8
Non-commissioned officers 40.0
Nurses 33.3
White enlisted men 26.0
Black enlisted men 22.5

“The above figures are for the period of five weeks from August
28th to October 1st, 1918, and cover the most active portion of the
epidemic, but are obviously incomplete. They are given for purposes
of comparison.”
Woolley makes the observation that the organizations which spent
most of the time in the open and which were therefore most exposed
to the weather suffered least during the epidemic. This was
particularly true in the Remount Depot.
In our work we have attempted to classify our population
according to occupation along very broad lines.
“Infant” includes all individuals up to the age of two years. In these
the exposure is limited by the fact that they are either relatively
isolated at home, or when abroad, are still under relative isolation in
a perambulator or under the eye of a nurse. There is relatively little
commingling with the older age groups.
“Child,” refers to all children up to the age of school years. There is
relatively much greater commingling, particularly with other
individuals of the same age.
“School” refers to all children and adolescents who were reported
as attending school.
 “Home” includes not only the housewife, the housekeeper, but also
servants and invalids; all who in their daily routine spend the greater
part of the time in the home.
“Manual Indoors” refers chiefly to laborers in factories and
includes all manufacturing occupations in which the work is of a
manual character no matter what the particular branch.
“Manual Outdoors” refers to such occupations as ditch diggers,
street cleaners, conductors and motormen, longshoremen, trucksters
and teamsters, telephone and telegraph linemen, etc.
“Retail Sales Indoors” refers to clerks in stores and all other
individuals who, working indoors, come into about the same degree
of contact with the public-at-large.
“Retail Sales Outdoors” includes sales agents, life insurance
agents, traveling salesman, pedlers, newsboys, etc.
“Office,” officials, secretaries, stenographers, telephone operators,
telegraph operators, etc.
We have observed that in 1918 infants presented the lowest
incidence and school children the highest. Occupations designated
Home and Office were surprisingly high. Children also showed a high
incidence, one out of every five developing the disease. The records
show that manual labor, both indoors and outdoors, was associated
with a higher incidence than less strenuous work, as retail sales,
indoors and outdoors (Chart XXIII).
The attack rates in most of the occupations are so nearly the same
as to lead to no certain conclusions. It would appear from our
records that individuals working out of doors were less frequently
attacked than those whose occupation kept them in doors. The
groups at the two extremes of incidence correspond to what we
should expect when considering opportunities for contract. The
infant has least direct contact. His contact is only with one or a few
individuals, the mother or the nurse. This group developed the
disease in 5.8 per cent. The school child not only has the same degree
of contact as do adults, but also in the tussle and scramble of play the
contact becomes much closer. The factor of age plays a large part in
the occupational distribution and the apparent occupational
susceptibility is influenced by the age susceptibility.
 When we consider the occupational incidence in the various
districts we find that the only constant feature in the relatively small
groups is the low incidence among infants (Chart XXIV).
CHART XXIII.
CHART XXIV.
CHART XXV.
 CHART XXVI.

The first fact gained from a study of the 1920 occupational case
rate is that just as was the case in age incidence there is less variation
between the highest and the lowest than in 1918–19. While in the
first epidemic the highest occupational rate was five times the lowest,
in the second it was only twice the lowest (Chart XXV). But at the
extremes of the two charts we see some tendency to an inversion of
the order. In 1918–19 those occupied in “retail sales” outdoors
showed a low incidence, while in 1920 they were the highest. So also,
the incidence in the school group changed from highest in 1918 to
lowest in 1920. The incidence in infants increased; that in the office
workers decreased. No general conclusions are warranted from these
results.
In comparing the sex incidence by age groups we have found that
females as a rule showed a slightly greater incidence than males.
That this is not due fundamentally to occupational differences is
suggested by a comparison of the sex incidence in the two epidemics
studied. In 1918 the distribution is practically the same in the two
sexes in all occupations except “Home,” “Manual Outdoors,” “Retail
Sales Indoors,” “Retail Sales Outdoors” (Chart XXVI). In the first the
number of males is so small and in the second and fourth the
number of females is so small that these cannot justly be compared.
The group, “Retail Sales,” consists in 1918–19 of 69 males and 27
females, out of a total distribution in the population of 426 males
and 107 females. This is the only occupation that showed a definite
higher incidence among the females, and even here the number is
too small for accuracy. In 1920 this difference has practically
disappeared.
Effect of race stock.—Leichtenstern remarks in his monograph
that the reported differences in influenza morbidity among different
races, such for instance as European and other nationalities,
doubtless are due to factors other than genetic racial differences,
such as different modes of living, commerce, etc. The work of the last
two years calls for a reconsideration of this idea.
Frost in his valuable work found that “in the seven localities with
considerable colored population the incidence rates among the
colored were uniformly lower than among the whites, the difference
persisting after adjustment of the rate to a uniform basis of sex and
age distribution. The extent of the difference varied, being relatively
great in Baltimore, Augusta and Louisville, and very small in Little
Rock. This relatively low incidence in the colored race is quite
contrary to what would have been expected a priori, in view of the
fact that the death rate from pneumonia and influenza is normally
higher in the colored than in the white, and that the colored
population lived generally under conditions presumably more
favorable to the spread of contact infection.”
 Brewer, in his study of influenza in September, 1918, at Camp
Humphreys, finds that the colored troops showed a decidedly lower
rate than the white troops throughout the epidemic. He finds that the
incidence among colored troops was only 43 per cent. of that among
whites. The difference between colored and white organizations was
probably not due to difference in housing. Most of the colored troops
were in tents and the white troops were all in barracks. But the 42d
Company composed of negroes was housed in barracks under the
same conditions as the white troops of other organizations and they
had next to the lowest incidence of all organizations. Brewer
concludes that the colored race when living under good hygienic
conditions is not as susceptible to influenza as the white race under
the same conditions. The age distribution was the same in both
groups.
Armstrong concluded from figures based on reported cases of
influenza that in the autumn of 1918 proportionately four times as
much influenza and pneumonia was reported among the Italians as
was reported for the rest of the Framingham community, made up
largely of Irish or Irish-American stock. On the contrary, an
examination of a large proportion of the population of that town
showed a tuberculosis incidence among the Italian race stock of .48,
in contrast to an incidence among the Irish of 4.85 per cent. and of
2.16 per cent. in the entire population. Armstrong contrasts the
relative insusceptibility of Italian stock to tuberculosis, with the
apparent marked susceptibility to acute disease of the respiratory
tract, such as influenza and pneumonia; and the high susceptibility
of the Irish to tuberculosis, with their low susceptibility to acute
respiratory infection.
With regard to our work it is sufficient to state that the lowest
incidence in both epidemics, as well as in recurrent cases, was in the
Irish tenement districts. Both the Jewish and the Italian tenement
districts were slightly higher in both epidemics (Charts XIX and
XXI). The age distribution of the entire population of each of these
three districts was about the same, so it does not appear that the
slightly lower incidence among the Irish is due to a variation in the
age distribution of the population.
The subject of race in relation to influenza will be discussed further
under mortality.
 Mortality.
According to Marchese, in 1387 at Forli in Italy, not a person
escaped the disease, but only a few died. Gassar says that during the
same epidemic in Germany the patients suffered four, or at most five,
days with the most disagreeable catarrhal symptoms and delirium,
but recovered, and only very few were removed by death.
Pasquier remarks concerning an epidemic in 1411 that an
infinitude of individuals were attacked but that none died.
Concerning the epidemic of 1414 in France, Lobineau relates that
the disease was fatal only for the aged. Mezeray also speaks of the
high mortality of the old in this epidemic.
Regarding the pandemic of 1510, Thomas Short remarks that none
died except some children. Mezeray, on the other hand, says that the
disease had claimed many victims.
Pasquier and Valleriola both write of the epidemic of 1557, in
France, as being distinctly mild in character. Children only who
could not freely cough out the phlegm died. Coyttar speaks of the
absence of death except in tuberculous patients.
In the pandemic of 1580 individual observers report enormous
death rates. Thus, according to Schenkius, the disease killed 9,000
persons in Rome, while Madrid, Barcelona and other Spanish cities
were said to have been nearly depopulated by the disease. This high
mortality was, however, even at that time attributed by some
physicians to the injudicious employment of venesection.
Throughout the more recent history of pandemic influenza opinion
seems to have been nearly unanimous that blood letting has had very
bad results in the outcome of influenza cases. Remarks to this effect
have been made by the contemporaries of nearly every epidemic
since 1580.
According to Rayger and others during the epidemic of 1675,
nobody died of the disease itself with the exception of debilitated
persons, although it spared neither the weak nor the strong.
 Concerning the epidemic of 1688, Thomas Short writes for
England that though not one of fifteen escaped it, yet not one of a
thousand that had it died.
In 1712, Slevogt writes that in Germany “Fear soon vanished when
it was seen that although it had spread all over the city, it left the sick
with equal rapidity.”
Finkler remarks, concerning 1729–30, that, “The great mortality
which attended the epidemic in England and Italy seems somewhat
remarkable. Thus Hahn states that in London in the month of
September one thousand persons died each week, and in Mayence
forty persons daily. Most likely, however, other diseases which were
present at the same time added their quota to the mortality,
especially as the disease in other places, for example in Germany, ran
a benign course.”
Perkins, Huxham, Pelargus, Carl and others, concerning the
epidemic of 1732–33, all testify that the disease was of very low
fatality.
In 1742 the epidemic was evidenced by an enormous morbidity but
the disease was not dangerous as a general rule although Huxham
occasionally speaks of the virulent character of the disease in
England, and Cohansen says that in January, 1743, over 8,000
persons died from influenza in Rome and 5,000 in Mayence.
We have the testimony of Robert Whytt, for 1758, and that of
Razoux and Saillant and Ehrman for 1762, as to the low mortality of
the epidemic for those years.
According to Heberden the same was true for 1775, while Webster
tells us for 1780 that the disease was not dangerous but its effects
were seen the following year in the increased number of cases of
phthisis.
Finkler remarks concerning the epidemic of 1802, “The mortality
in this epidemic was small, only the abuse of venesection brought
many to the grave. Thus, so many farmers are said to have died in
Russia from it that venesection was forbidden by an imperial ukase.
Jonas says that many patients were bled either on the advice of a
simple village barber or by their own wish, and most of them died. In
Prussia also bleeding was declared detrimental by the Government.”
 He continues regarding 1836–37, that, “In London there died,
during the week ending January 24, 1837, a total of 871 persons, and
among these deaths there were 295 from disease of the respiratory
organs; during the week ending January 31st, out of a total of 860
deaths there were 309 from diseases of the respiratory organs.”
Watson, in describing the epidemic of 1847, discusses the
mortality:
“The absolute mortality has been enormous; yet the relative
mortality has been small. You will hear people comparing the
ravages of the influenza with those of the cholera, and inferring that
the latter is the less dangerous complaint of the two; but this is
plainly a great misapprehension. Less dangerous to the community
at large (in this country at least) it certainly has been; but infinitely
more dangerous to the individuals attacked by it. More persons have
died of the influenza in the present year than died of the cholera
when it raged in 1832; but then a vastly greater number have been
affected with the one disease than with the other. I suppose that
nearly one-half of those who were seized with the cholera perished;
while but a very small fraction, indeed, not more probably than two
per cent. of those who suffered influenza have sunk under it.”
Leichtenstern remarks on the very low mortality of 1889–90. In
Munich 0.6 per cent. died; in Rostock 0.8 per cent.; in Leipzig 0.5
per cent.; in fifteen Swiss cities 0.1 per cent.; in Karlsruhe 0.075 per
cent.; in Mecklenburg-Schwerin 1.2 per cent. This does not, however,
include the numerous deaths from complications, as from
pneumonia, and does not express the true mortality.
Newsholme gives the following table for mortality from influenza,
bronchitis and pneumonia, in England and Wales during the
epidemic years and the years immediately preceding them. The
figures express annual death rate per million of population. The
highest rate was reached in 1891. The table does not include deaths
registered as from other diseases, but due directly or indirectly to
influenza. Respiratory diseases in general show a greatly increased
death rate in years in which influenza is epidemic. Such is also true
to some extent with diseases of the nervous and the circulatory
systems.
 Death rate
per million Non-epidemic years. Epidemic years.
of
population 1887 1888 1889 1890 1891 1892
from
Influenza 3 3 2 157 574 533
Bronchitis 2,117 2,041 1,957 2,333 2,593 2,266
Pneumonia 1,113 1,093 1,022 1,404 1,471 1,250
In a report by the United States Public Health Service early in 1919
the death rates from all causes in twelve large cities of this country
were compared for 1889–90 and for 1918–19. It was found that while
considerable irregularity in the curves was evident, the curves of the
two epidemics manifested on the whole quite a striking similarity for
the same cities considered individually and for the group as a whole.
The death rate rose to a much higher point during the autumn wave
of the 1918 epidemic than in the epidemic of 1889–90 in nine out of
the twelve cities. During both epidemics the rate was relatively low in
St. Louis, Milwaukee and Minneapolis. The mortality in all of these
cities was 26.7 in 1889, as against 35.2 for 1918. In the peak week the
rate rose to 55.6 in 1918 as against 35.4 in 1889.
The influenza deaths in Massachusetts in the year 1890 during a
period of fifty days were estimated by Abbott to have been 2,500. In
1918 Jordan estimates the mortality for the same state to have been
six times as great. The population of the state had not doubled in the
interval. The highest mortality from influenza in Massachusetts
during the 1889–93 epidemic occurred in January, 1892, during
which month the total deaths amounted to 6,309 which was greater
by 2,246 than the mean monthly mortality of the year, and greater by
more than 1,000 than the mortality of any month in the ten year
period 1883–92.
A comprehensive comparison of the damage done by influenza in
1918 with the deaths from other plagues has been made by Vaughan
and Palmer.
“The pandemic of 1918, when compared with that of 1889–90 is
estimated to have caused six times as many deaths.
“During the four autumn months of 1918, 338,343 cases of
influenza were reported to the Surgeon General. This means that in
the camps of this country one out of every four men had influenza.
 “The combination between influenza and pneumonia during the
fall of 1918 seems to have been closer and more destructive than in
any previous pandemic. During the autumn season there were
reported to the Surgeon General 61,691 cases of pneumonia. This
means that one out of every twenty-four men encamped in this
country had pneumonia.
“During the same period 22,186 men were reported to have died
from the combined effects of influenza and pneumonia. This means
that among the troops in this country one out of every sixty-seven
died.
“This fatality has been unparallelled in recent times. The influenza
epidemic of 1918 ranks well up with the epidemics famous in history.
Epidemiologists have regarded the dissemination of cholera from the
Broad Street Well in London as a catastrophe. The typhoid epidemic
of Plymouth, Pa., of 1885, is another illustration of the damage that
can be done by epidemic disease once let loose. Yet the
accompanying table shows that the fatality from influenza and
pneumonia at Camp Sherman was greater than either of these.
Compared with epidemics for which we have fairly accurate statistics
the death rate at Camp Sherman in the fall of 1918 is surpassed only
by that of plague in London in 1665 and that of yellow fever in
Philadelphia in 1793.
“The plague killed 14 per cent. of London’s population in seven
months’ time. Yellow fever destroyed 10 per cent. of the population
of Philadelphia in four months. In seven weeks influenza and
pneumonia killed 3.1 per cent. of the strength at Camp Sherman. If
we consider the time factor, these three instances are not unlike in
their lethality. The plague killed 2 per cent. of the population in a
month, yellow fever 2.5 per cent. and influenza and pneumonia 1.9
per cent.
“In four months typhoid fever killed 1.5 per cent. of the soldiers
encamped in this country during the war with Spain. Influenza and
pneumonia killed 1.4 per cent. of the soldiers in our camps in 1918
and it also covered a period of four months.”
The Bureau of the Census has made the following report
concerning influenza deaths in the United States: