
Choose any one product and explain how its production, distribution and consumption can be seen as a 'network'. Identify relevant nodes, ties and flows in this network. Pay attention to the role of ICT and indicate where technology might fit into the network. If necessary, make a sketch of your network design and then scan and upload to your blog along with a brief explanatory note.
A network comprises of the following three elements;
1. Nodes: are usually 'physical' or 'set' places or areas but they can also be people. For example, cities, industries and primary resources are all nodes but so too are consumers.
2. Ties: are the links by which the nodes are tied together. Like nodes they can exist in the physical world. Examples of ties are the trucks that transport products from businesses to the consumers (nodes). Ties can also be concepts or social relations such as economic or capital factors. The need of the consumer for a certain product is also classified as a tie.
3. Flows: are what is transported between various nodes by the ties. Flows can be products or people or even capital. Knowledge and relations would also be considered to be flows.
The product I have chosen is Guinness.
The History of Guinness:
· 1759: It all began with a signature. Arthur Guinness signed a 9,000 year lease on a disused brewery at St. James’ Gate, Dublin in. It cost him an initial £100 pounds with an annual rent of £45.
· 1769: The first export shipment of six and a half barrels of Guinness beer leaves Dublin on a sailing vessel bound for England.
· 1803: Arthur Guinness dies. His son, Arthur II inherits the brewing mantle, ensuring the brewer stays in the family.
· 1840: The first shipment to be sent to America reaches New York.
· 1936: The first overseas Guinness brewery is built at Park Royal in London.
· 1950-1974: New Breweries open up all over the world, including Canada, Australia, Africa and South East Asia.
· 1997: Diageo is formed
· 2009: Guinness celebrates 250 years.
Production:
Until 2010, Guinness would buy the majority of its barley from the Greencore Group, a leading international manufacturer of convenience foods and ingredients. The Greencore Group would sell seeds, manure and sprays to Irish farmers who would go on to grow the barley. The farmers would then sell any grain that passed as malting barley back to Greencore. Guinness would then purchase the barley from Greencore and begin the brewing process. As of January 2010, Greencore sold its malting barley division to a French company named Axereal who are expected to do business with Guinness in the future. Another ingredient used to make barley is hops, which is used as a flavouring and stablilty agent in Guinness. Germany, the US and China are the biggest exporters of hops and Guinness is believed to purchase their supply from one of these nations.
The last ingredient added is Brewer’s yeast which is used to provide a nicer taste to the product.Once the Guinness brewery has obtained all of these ingredients then the brewing process can begin.
Distribution
Once finished brewing and once fully matured, the products are then packed up and ready to be distributed to consumers worldwide. From each of its many breweries around the world Guinness is transported to pubs, off licences and supermarkets worldwide.
Consumption
Guinness is sold in 150 countries around the world and in 2007 it was estimated that 10 million glasses of Guinness were enjoyed every day. One can purchase Guinness in just about every pub or off licence in Ireland.
ICT plays a big role in the Guinness network. The Guinness website allows the company to expand the variety of products that they sell. They’re no longer restricted to beverages but have also allowed themselves to sell merchandise such as hats, key rings, jerseys, etc. The website also acts as form of communication between the Guinness and their customers, allowing them to get feedback and to see where they can improve their product. I’m sure technology has also affected the brewing process making it much more efficient.
The illustration above names the specific Nodes, Ties and Flows in this network. The Nodes are illustrated by the large yellow font, the flows by the purple font and the ties by the smaller yellow font.