The system of Prato is one of a "closed management system" in that the impannatores are "well-identified firms that manage the relationships of final marketing." The impannatore holds the authority and power to change the flow of orders as well as the orders themselves at a moment's notice. Figure 1-3 is more likely to offer an example of the Praetorian system because the new forms of interorganizational relationship have been included in this model. In fact this model is considered to be that of the "ideal" system in knowledge systems.
III. Knowledge Management Systems in Prato:
Therefore the supply chain system of Prato is one that would benefit from institution of what is called a "Virtual Enterprise" which is an enterprise relying on a "stable network of partner firms from which they can rapidly create temporary projects....one partner can be a member of several parallel projects and two firms can simultaneously be partners in one project and competitors for another." Katzy (1999)
Due to the power of the impannatores to make changes so rapidly the knowledge management systems most suited to the Prato industry would be that of the Virtual Enterprise due to the flexibility in the system. The virtual enterprise is utilized in the business environment where opportunities of business change quicker than adaptation can be accomplished by the organization. Virtual Enterprise management and the specialization applied creates strategic options in the environment of the impannatore-based marketing system.
According to a report by "IST Results" the distributed supply chain in the textile and clothing sector present complications. However IST Results suggests a XML-based communication solution called Moda-ML. Moda-Mo is a peer-to-peer exchange framework which doesn't require "middleware" for enabling exchanges and is said to offer the benefits of being easily set up with a very low technological threshold that is scalable and is free and public as well. The system can be embedded in other solutions and does not require royalties.
However, due to the social and business integration in the society/industry of Prato's industrial district there exists "economic relationships that are based on social rules and traditions as well as the strength of social ties among individuals within and across organizations," a "strong mix of competition and co-operation among firms, where relationships generally...
There are many research initiatives in process concerning the unique economics in Prato.
The Local Merchants of Prato: Small Entrepreneurs in the Late Medieval Economy, Baltimore and London, John Hopkins University Press, 1999. 191 pages ISBN 0-8018-6057-1. [Online] available at http://www.sussex.ac.uk/Units/arthis/sharp/issues/00 02/pPDF/pTheLocalMerchantsOfPrato.pdf
Researchable Directions for ERP and Other New Information Technologies (2000) Editor's Comments [Online] available at: www.misq.org/archivist/vol/no24/issue1/edstat.pdf
Kumar, Kildeep & Bielli, D. et al. (1998) The merchant of Prato-revisited: toward a third rationality of information systems. MIS Quarterly; June 1, 1998.
Dirksen, Vanessa (2001) The Cultural Construction of Information Technology (2001) Journal of Global Information Management 2001 Jan 1.
Researchable Directions for ERP and Other New Information Technologies (2000) MIS Quarterly 2000 March 1.
Katzy, Bernard Dr. (1999) The Virtual Enterprise: Thriving on Turbulent Change 1999 Jan Barcelona Management Review [Online] available at http://64.233.167.104/search?q=cache:qVsrPHtBYZEJ:portal.cetim.org/file/1/71/KatzyMiralles-Barcelona_Management_Review_Virtual_Organizations.pdf+Prato+supply+chain+defined&hl=en&ie=UTF-8
Weaving the Fabric of B2B Communication, IST Results [Online] available at http://istresults.cordis.lu/index.cfm/section/news/BrowsingType/Long%20Feature/Tpl/article/ID/59401
Chiarvesio, Maria (2003) Reinventing Regions in the Global Economy: Innovation and Internatiolisation of Italian Districts 2003 April [Online] available at http://64.233.167.104/search?q=cache:_YOesGrYkHcJ:www.regional-studies-assoc.ac.uk/events/pisa03/chiarvesio.pdf+Prato+supply+chain+defined&hl=en&ie=UTF-8
