The document discusses Net-Challenge, a framework for enabling non-hierarchical collaboration between SMEs. It provides an overview of Net-Challenge's objectives to help SMEs form dynamic networks to design and manufacture complex products. It describes collaboration perspectives like risk sharing and innovation. Success stories show increased sales and margins from wine and electronics industry collaborations. The framework includes methodologies, processes, tools and infrastructure to support collaborative planning and virtual organization management for SME networks.

1. NET-CHALLENGE OVERVIEW Methodology for Non-Hierarchical collaboration Date, Place Presenter

2. Net-Challenge values 13. Overall process Net-Challenge motivation Net-Challenge overview Net-Challenge objectives Collaboration perspectives Collaboration lifecycle Success story of collaboration in wine industry Success story of collaboration in electronic industry Networking layers Outcomes of Non-Hierarchical Networks Net-Challenge integrated framework Collaborative planning: software application tool Agenda

3. Promotion of shared decision making process Support collaborative business environment Establish trust, honesty and integrity among partners Provide shared innovations, experiences, statuses, results and knowledge Enable sharing both risks and benefits among partners Net-Challenge values

4. Net-Challenge motivation European SMEs have to focus on innovative, customised and short lead time manufacturing in order to compete against low labour cost countries To be competitive, European SMEs have to collaborative with the objective to sharing costly resources and expertise among each other To be successful in collaboration, the SMEs have to share the knowledge of their product design and development processes

5. Systematically collect partnering information Share and integrate business processes Create a community to meet, share and build trust Bring business partners closer using modern technology Collaborate using shared predefined processes Use shared processes that really support the business model Move together from subcontracting towards shared products Change business model from capacity selling subcontractor to shared product platform based business model Net-Challenge overview

6. Net-Challenge objectives The Net-Challenge Framework aims to support SMEs in creating and managing successful non-hierarchical networks for complex products design and manufacturing, including: a methodology to help SMEs in the formation and operation of dynamic and non-hierarchical networks. define and explain approach on how to form and manage those Networks reference collaboration processes for the relevant business processes distributed decision support tools , including collaborative planning with dynamic capacity management and real-time order promising real-time monitoring with event management and performance management

7. Collaboration perspectives Selling larger projects together Reducing lead time by utilising resources efficiently Sharing resources Creating synergy between the partners Managing deviations in systematic way Improving quality by specialisation Enabling larger projects by sharing risks Better commitment by sharing profits Enabling new product/service Innovations Sharing performance results of the community Creating own products instead of subconstruction Knowledge donation

8. Collaboration lifecycle The methodology supports the management of: Business community ETO Virtual organisations CTO Virtual organisations

9. Success story of collaboration in wine business Lavradores de Feitoria Producers of wine in the Douro Valley region - individually they could hardly sell their wine (only part of it, at very low prices) Created a network (15 farms) to support activities in: distribution (new brand, advertising, new distribution channels) production (advanced support in the wine yards, new production facilities) Result: large improvement in sales volume and margins

10. Success story of collaboration in electronic industry Supply Network Shannon (Ireland) In 1997 a directory with 80 companies in the Shannon region was created (companies related with the electronics industry) The directory was the first step for the development of a community, including tools for benchmarking and partner searching There is a small structure responsible for the animation and development of the community - workshops and other events are used to promote trust between members, and to share and develop knowledge The small companies from this region got larger and better business opportunities, providing a better service by integrating competencies of partners Besides other direct advantages, this community facilitates the creation of specific business networks to respond to emerging market opportunities

11. Networking layers Business community is a long lasting business network to share knowledge and partner profile to qualify and manage performance of a partner Virtual organisation is project based consortium of partners To fulfill temporary business opportunities

12. Outcomes of Non-Hierarchical Networks Experience and expertise are shared new ideas and innovations are fostered More cohesive and collaborate partners SMEs will need to establish dynamic and non-hierarchical networks for complex products design and manufacturing , able to assure: quick response fast time to market differentiated offerings competitive prices Increase Flexibility Increase Profitability Reduce Risk

13. Net-Challenge integrated Framework Methodology Reference Collaboration Processes Decision Support Tools and Infrastructure Business Community Operational Management Aggregate collaborative planning Detailed collaborative planning Events Management Aggregate collaborative planning Performance Management VO Formation & Operational Management Business Community Management Performance Management ETO VO Management CTO VO Management Capacity Management Detailed collaborative planning Event Management

14. Collaborative planning: software application tool Partner B Partner C Potential partner Potential partner Planning at two levels: Aggregate planning Detailed planning VO detailed collaborative planning Partner A Partner D Core partner A Core partner B VO aggregate collaborative planning Core partner A Core partner B

15. Overall process Engineer to Order (ETO) scenario can be merged within the Customize to Order (CTO) scenario in case of configuring a customized variant from the basic product platform.