Multienterprise Collaboration Network

Moving from Silos to connected enterprises for operational efficiency and cost savings

What are Multienterprise Collaboration Networks (MCN)?

Gartner defines multienterprise collaboration networks (MCNs) as solutions that support a community of trading partners of any tier and type that need to coordinate and execute on business processes extending across multiple enterprises. Gartner considers cloud-based MCNs to be a key technology to coordinate, orchestrate and automate an organization’s extended supply chain within the overall business ecosystem they operate in. The key capabilities of MCN solutions include three layers: Network representation and management, Application functions, Embedded analytics and intelligence.

Connecting, coordinating, collaborating and executing on business processes that extend across multiple enterprises for joint value generation will allow supply chain organizations to drive resilience in times of disruptions and address the following top priorities:

Why Multienterprise Collaboration Network Solution?

In its latest Market Guide for MCN, Gartner highlights the relevance of Multienterprise Collaboration Networks in addressing today’s business challenges such as supply chain disruptions and environmental risks. To tackle these challenges, creating resilient and sustainable supply chains as well as collaborating in a multitier environment across multiple levels is the way to go.

Despite increasing disruption, many companies still lack the ability to gain a more holistic, end-to-end view of what is happening in and with their supply chains. For this reason, MCNs have never been more important.


Gartner, Market Guide for Multienterprise Collaboration Networks, Christian Titze, Brock Johns, 18 April 2023

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Organizations leverage MCNs for multiple reasons

The Current MCN Solutions in marketplace

In order to achieve multienterprise collaboration, solution providers have developed solutions that can connect multiple enterprises for data and document interchange, and facilitate collaboration limited to specific functions. These solutions are mainly grouped as below:


Limitations of Collaboration Solutions on offer

The MCN solutions available in marketplace have inherent limitations, especially for SMBs.

Scale of the Problem with EDI

While Electronic Data Interchange (EDI) can enhance collaboration among enterprises using such solutions, it doesn’t automatically resolve the challenge of data duplicity. EDI, itself, can be a complex deployment for a large business network. It may function well for a network of manageable enterprises, but for a more extensive network, it can become highly intricate and challenging to manage, not to mention the potential for prohibitive costs. The magnitude of the problem can be assessed from the illustration given below.

Barriers in Existing ERP Software to build a true MCN

The existing ERP Software providers may find it difficult to transform their ERP softwares into a true MCN. When the architecture of the ERP software was designed, it considered an enterprise only and there was lack of focus or comprehension that it will need to communicate with other ERP softwares of other enterprises. As a result, each ERP software deployed by an enterprise or even the same ERP software deployed by different enterprises creates enterprise specific data sets resulting into duplicity of data and records to manage business of each of the enterprises.


If these long-standing ERP softwares decide to convert their ERP software into true MCN without requiring additional software or resources, it will require complete change of existing data structure and architecture and thus may not be possible as the cost may be exorbitant and migrating existing customers to a new architecture may result into data loss and redundancies. This can be illustrated as below:

Zumbido Express offers Virtual ERP

It’s a first of its kind offering in the world. When you onboard, you get a virtual ERP hosted on most secured cloud servers to manage all your business functions. The access to full featured ERP does away with need of managing multiple softwares and data duplication in each of them to manage business functions, right from managing your customers, human resources, financial transactions to order processing and inventory.

MCN Solutions have No Data Duplication

Why should you manage data for other organizations? Zumbido Express empowers subscribing organizations to own their data and manage themselves. Other subscribing organizations simply use your data to complete transactions with you. Thus, all your partners need not duplicate and manage your data separately to keep record of transactions that they carry out with you. No worries of incorrect or inconsistent data.