PROVE 09 - Special Panel Session on Next Generation Collaborative Networked Organizations

copyright 2009

Next Generation Collaborative Networked Organizations
Special Panel Session

SPECIAL PANEL SESSION ON
Towards the Next Generation Collaborative Networked Organizations:
International Challenges, Trends and Research Opportunities

“Past, Present and Future of Collaborative Networks:
Moving from Theory to Practice”

Session Organizing Committee
David Romero (ITESM, Mexico City) Arturo Molina (ITESM, Mexico City)
Myrna Flores (CEMEX, Switzerland) Ricardo Rabelo (UFSC, Brazil) Michel Pouly (EPFL, Switzerland)

Universidade
Federal
De Santa
Catarina

PRO-VE’09
Thessaloniki, Greece, 7-9 October 2009

copyright 2009

Index

• Foreword
– David Romero, Panel Chair
• Aims and Scope
• Presentations:
– Panelist 1: IECOS Network, Manufacturing, Mexico
• Arturo Molina, David Romero, Joaquín Aca
– Panelist 2: Virfebras Network, Manufacturing, Brazil
• Rolando Vallejos, Ricardo Rabelo
– Panelist 3: Swiss Microtech Network, Manufacturing, Switzerland & China
• Michel Pouly
– Panelist 4: Orona Innovation Network, Manufacturing, Spain
• Joseba Arana, Luis Berasategi
– Panelist 5: ServQ, Consulting Network, Europe & US
• Andrew Crossley
– Panelist 6: Teaching, Research & Healthcare Networks, Australia
• Peter Bertok
– Panelist 7: CEMEX Network, Construction, Switzerland
• Myrna Flores
• Discussion Questions
• Conclusions
• Acknowledgements
• Event Pictures

copyright 2009

Foreword

The panel session offered to the audience an overview of the current industrial
and society practices regarding different emerging and established collaborative
forms, highlighting the challenges, trends and research opportunities to better
understand the Collaborative Networks paradigm and its implementation
requirements in the real world.
The case studies presented in this e-book are intended to provide a set of
examples of Collaborative Networked Organizations in truly industrial or
society environments, serving both the purpose of giving a brief account
of the state-of-the-art of implementation of CNO concepts, methods and tools
in real practice, as well as an evidence on what works and still remains as
a challenge or research opportunity for the Next Generation Collaborative
Networked Organizations in the industrial landscape and the academic world.
As the Collaborative Networks scientific discipline continues its consolidation
with a stronger theoretical foundation, a growing number of application cases
in industry and society are becoming important to document in order to better
understand the requirements for the creation of successful collaborative forms
and to provided best practices for their sustainable operation in different domains
and application environments.
Main conclusions reached during this lively interactive forum appointed towards
the need of a collection of successful and non-successful case studies of CNOs
for a better understanding of their lifecycle, and this e-book stands for a first effort
in this direction.
David Romero, Panel Chair

copyright 2009

Panel Aims and Scope

• The panel session was organized with the aim of sharing the experiences
and lessons learned from a group of practitioners for the establishment and
management of the Next Generation Collaborative Networked Organizations.

• The panel session will introduce a number of industrial cases that have been
studied from both a theoretical and practical perspective to validate and
demonstrate the applicability of collaborative networks concepts, methods
and tools as a contribution to help facing the Next Generation Collaborative
Networked Organizations challenges.

• The panel session scope will cover different regional manifestations of
collaborative networks, especially in the manufacturing industry, and will
depict their main strengths and current challenges in order to manage
successful Collaborative Networked Organizations.

copyright IECOS 2009


Integration Engineering
and COnstruction Systems
IECOS Network

Arturo Molina, David Romero, Joaquín Aca
armolina@itesm.mx, david.romero.diaz@gmail.com, jaca@iecos.com.mx

Tecnológico de Monterrey
IECOS S.A. de C.V., Mexico

PRO-VE’09


Agenda

• IECOS…
Virtual
– Creation Enterprise
Broker
– Business Model Virtual Enterprises

Product
– Business Framework Competencies Build-To-Order
Supply Chain
– Value Proposition Technology Processes Strategy

– Operational Model
– Build-to-Order Strategies Virtual Industry
Cluster

– Brokerage Experiences

Mexican-Industry

Mexican-Industry
– ICT-Infrastructure
– Key Successes Factors
– Evolution
– Lessons Learned


IECOS Creation

From the Academic World to the Industrial Landscape…

• IECOS was created in 2000 by the Center of Innovation in Design and
Technology of the Tecnológico de Monterrey, Mexico as a successful
spin-off from the COSMEGVE EU-ALFA Project in which concepts like:
Virtual Industry Cluster, Virtual Enterprise and Virtual Enterprise Broker
were developed.

• IECOS creation was triggered by the need of
having a brokerage company responsible for the
creation and operation of Virtual Enterprises
within a Metal-Mechanic Virtual Industry Cluster
named:
“Mexican-Industry”
…in Monterrey, Nuevo León, Mexico.


IECOS Business Model

IECOS creation was based-on two determining factors:

1. The need for identifying collaboration business opportunities as
the main strategy to bring together/attract the founding members of
the Mexican-Industry Virtual Cluster.

2. The necessity to support the development of SMEs competences
and the integration of their capacities to approach those opportunities
recognized by means of Virtual Enterprises creation.

IECOS business model is based-on a “competency integrator model”
between engineers and manufactures to satisfy high volume and
high variability in products in the manufacturing industry.


IECOS Business Framework

Virtual Enterprise Broker Virtual Enterprise
Search/Select Business Operation/
Business Opportunity Dissolution
Opportunities Exploitation

Operation/
Dissolution

Search/Select Formation/ Operation/
Partners Commitment Dissolution

Identify CC Protect CC
Competence
Information
Conception

Design
Product
Enterprise Cluster
Competences
Qualification Marketing

Operation
Technology Processes

Cluster
Building
Implementation
Build CC Deploy CC
Virtual Industry Cluster Enterprises
Molina et al. (1998): Framework for Global Virtual Business


IECOS Value Proposition

IECOS is an engineering company which is focused on innovation
technology projects through the integration of the capabilities and
competences of its allies (universities, research centers, technological
companies) and partners (Mexican-Industry and other enterprises)

IECOS Services

• IECOS Supply: Offering manufacturing services through the integration
of the competences of its associated manufacturing partners in order
to fulfill the customer requirements.
• IECOS Engineering: Offering the development of new manufacturing
processes and manufacturing systems as solutions for the efficient and
effective production of customers’ products.
• IECOS Technology: Offering technical and managerial capabilities for
the development and commercialization of new products.


IECOS Operational Model

CNC Machining
Product Mold
Design Making
Die & Tools

Injection
Engineering Molding
Design

Plastics &
Rubbers

Assembly &
Fabrication

Universe: Virtual Industry Clusters: Virtual Enterprise Broker: Virtual Enterprise:
Availability of Capabilities and Capacities Core Competence Selection & Development Core Competence Deployment & Protection Operation and Execution

HUB of Integrated e-Services
e-Marketing

e-Brokerage

e-Planning
e-Engineering and e-Supply

e-Productivity

Molina et al. (1998): Framework for Global Virtual Business


IECOS BTO Strategies (1/3)

Molina et al. (2007): Virtual Enterprise Brokerage: A Structure Driven Strategy to Achieve Build-to-Order Supply Chains


IECOS Brokerage Experiences

Enterprise
Collaboration Opportunity Business Process Configuration
Participation
New Product Development
P1 Product P1: Research P1+P2: Design
Realization
Process P3: Engineering P3: Prototype
P2
Customer P1+P2: Product Design
Driven
Design P3+P4: Product Development

P3 P4

Collaborative PCM
Product Manufacturing P1 Order P1:Sourcing P1+P2: Production
Fulfillment P3: Package P3:Distribution

P2 Supplier P3: Supplier’s Evaluation P3: Suppliers Monitoring
Relationship
Management P3: Supplier’s Development
P3

Product Commercialization
P1 Obtaining P1: Market Analysis
Customer
Comercial Commitment P2: Sales Process
Biomédico
Ramírez

P2 Customer P1: Understand Necessities P3+P4: Product Support
Relationship
Management P2: Commercialization P2: Promotion
P3
P4


IECOS ICT-Infrastructure

Virtual Enterprises www.pymecreativa.com
Virtual Organizations

Creation of Information Technologies
e-HUB
Integrated e-Services for Added Value Industrial Networks
Center for Virtual Business

e-Productivity
e.g. Virtual Enterprises
e-Engineering
e-Brokerage
e-Marketing

Virtual Industry Clusters
e-Planning

Virtual Breeding Environments
e-Supply
Virtual Enterprise Broker

User Request User
Enterprises
Profile
e-HUB
PYMECREATIVA
Information
Base
e-Business

e-Productivity e-Marketing e-Brokerage e-Supply e-Engineering

IMMPAC Promotion Suppliers Production Engineering
Diagnostic Search Order Functional Services
Following.
e-Quality Products Clients
assurance Catalogue Search
Manufacture CAD CAE CAM DFMA Others
Execution
Improvement Match-making
Opportunities Simulation File transfer Inverse
Identifier Engineering
Wizard for New Products
Development

Allies + Tools New Products

CO-SOURCING


IECOS Key Success Factors

• IECOS success depends on its capacity to guarantee customer
satisfaction in terms of quality, cost reduction and delivery time
based-on an efficient supply chain management.

• IECOS Build-to-Order strategy provides a well recognized competitive
advantage to the firm over its rivals, thanks to a unique build-to-order
supply chain approach to respond to the demands of new business
opportunities requiring: (a) high levels of customization, (b) customer
driven innovation, (c) volume flexibility, (d) short-cycle time,
(e) none inventory costs and (f) supply chain integration.

• IECOS ICT-Infrastructure known as “e-HUB” (Integrated e-Services
Center for Virtual Business) makes possible to reduce the critical
troublesome that traditionally limits SMEs competitiveness, allowing
the exploitation of new collaboration business opportunities through
Virtual Enterprises creation.


IECOS Evolution

VEB VE
COSME Project:
1997 GVE (Global Virtual Enterprise)
VIC Enterprise
Collaborative Work

Mexican Industry Project:
Seven clusters in
2000 metal mechanic and
plastic industry
Broker:
Agent looking for business
2001 opportunities, executing
projects by joining cluster
members´ competencies

European COllaborative
networked organization
2006 LEADership Initiative

Creation of Information
Technologies for Added-
Value Industry Networks


IECOS Lessons Learned

• A brokerage service is a must to find business opportunities and
to coordinate properly their development within a Virtual Industry
Cluster towards Virtual Enterprises creation.

• Main VIC members’ characteristics should be:
– Interest and commitment from their managers,
– Acting with ethical values in any negotiation,
– Willingness to collaborate and cooperate, and
– Trust between partners.

• SMEs priorities are:
– Find new customers, and
– Participate in business opportunities development (new revenues).

• Project management is key successful factor.

Panelist Short Biography

• Prof. Arturo Molina is the President of the Tecnológico de Monterrey,
Campus Mexico City. He received his PhD degree in Manufacturing
Engineering from Loughborough University of Technology, England in
1995, his University Doctor Degree in Mechanical Engineering from
the Technical University of Budapest, Hungary in 1992, and his Master’s
Degree in Computer Science from the Tecnológico de Monterrey,
Campus Monterrey, in 1992.
• Prof. Molina is member of the National Researchers System of Mexico
(SNI-Level II), Mexican Academy of Sciences, and member of IFAC
TC-WG5.3 on Enterprise Integration and Enterprise Networking,
IFIP WG5.12 on Enterprise Integration Architectures and IFIP WG5.3
Cooperation of Virtual Enterprises and Virtual Organizations.
• Furthermore, Prof. Molina has been involved in many Latin-American
and European projects oriented to the creation of virtual industry clusters,
virtual organization breeding environments and virtual enterprises, and
together with Mr. David Romero*, he has co-authored the first complete
toolkit integrated by a VBE reference model, a business process
management framework and an instantiation methodology to create,
operate, evolve and dissolve breeding environments.
*Romero & Molina: Virtual Organisation Breeding Environments Toolkit: Reference Model,
Management Framework and Instantiation Methodology, Journal of Production Planning & Control

copyright Virfebras 2009


Virtual Organization of Mould and Die
Industries of Brazil
VIRFEBRAS

Rolando Vallejos, Ricardo Rabelo
rolandovallejos@ftec.com.br, rabelo@das.ufsc.br

Ftec – Faculty of Technology – Caxias do Sul, Brazil
UFSC – Federal University of Santa Catarina – Florianópolis, Brazil

PRO-VE’09


Agenda

• VIRFEBRAS overview

• VIRFEBRAS creation – history and processes

• VIRFEBRAS operation

• Lessons learned and best practices

• Current difficulties and challenges


Network Overview

• Network of mould & die SMEs.
• Placed at Caxias do Sul City, South of Brazil.
• Created in 1999, but legally established in 2004.
• Initially having 13 members, including some competitors.

Second largest pole of
M&D in Brazil:
~200 companies
~1800 employees


Network Creation (1/6)

Motivation for its creation: enhancing companies’ competitiveness

Market Reality:
- More demanding customers
- Market volatility / instability
- Much higher competition & Market Requirements:
number of M&D companies in the World - Lower costs
- Higher quality
- Shorter delivery date
Operation Requirements:
- Quicker response to quotations
- More precision in the quotations
- Lower production costs
Loss of business due to low
production scale and capacity



Strategy

Reality (before the VBE creation):

- Low level of people qualification (at all levels).
- Difficulty to keep up to date to advanced
technology and manufacturing processes. CNO /
Virtual Enterprise
- Very low level of R&D as well as of
paradigm
collaboration with universities and other
companies.
- Very traditional business model.



FIRST PHASE

VIRFEBRAS was essentially created without solid methodologies, i.e.
fundamentally in an ad-hoc way.
Some concepts from the European PRODNET project (ended in 1999)
have been taken into account besides some studies on similar
initiatives over the world.
Its creation was lead by University of Caxias do Sul, but extremely
pushed by a group of 13 M&D companies.



FIRST PHASE
Main difficulties & goals:
Too heterogeneous companies:
Need for harmonizing them in terms of collaboration culture, processes
and basic IT (only CAD systems and e-mail were used);
Lack of trust among partners:
Several meetings, travels and visits among companies.
Exchanging of contacts, best practices, etc.
Lack of awareness about how good and how bad they were:
Preliminary and basic benchmarking.
Lack of basics on CNO:
Some training, short courses and many talks from experts.
A number of research experiments were developed together with UFSC.



SECOND PHASE (still current)
Main difficulties & goals:
IT covering only very classical processes:
Basic IT is used, and a centralized web-based information system was
implemented. More advanced ICT is now required. Many actions are still
carried out in face-to-face meetings.
Still need for trust reinforcement:
Expansion of trust from operational / information levels to strategic /
business levels.
Lack of awareness about how good and how bad they were:
Second phase of a comprehensive benchmarking.
Need of more solid foundations for guiding VIRFEBRAS to evolve:
AMBIANCE methodology, which is based on knowledge management.


Network Creation (6a/6)

KM Reference E-Cognos ECOLEAD
Models (EC Project) (EC Project)

AMBIANCE Methodology & Framework & System (Vallejos 2005)


Network Creation (6b/6)

Why a Knowledge Management centered approach ?!

Essentially because it was realized that the most natural way
VIRFEBRAS members collaborated and made the VBE to evolve
was via an intense exchange of information and knowledge “alive”
and somehow informally.

Therefore, it was essential, regarding this VIRFEBRAS culture,
that this knowledge could be captured and organized as well as
could be used as the basis to pave its evolution.

Benchmarking was the main key element which has been
leveraging VIRFEBRAS evolution.

From VBE Foundation to
VE Operation & Dissolution
- Current Status Next Generation Collaborative Networked Organizations

1999-2004 2004-2009 2010-201…

VIRFEBRAS / VBE VE VE VE VE
VBE foundation Creation Creation Operation Evolution Dissolution

1st Phase 2nd Phase 3rd Phase

Ad-Hoc AMBIANCE AMBIANCE
+
gradual &
“ECOLEAD”
evolving way


Network Operation (1/2)

• Virtual Enterprises are created with members of VIRFEBRAS.
• There is not a global broker. Instead, the company which gets
the business look at VIRFEBRAS members and acts as
the VE manager, selecting any members it wants.
• Usual criteria applied in the partners’ selection:
1. VIRFEBRAS information system (partners’ capabilities and capacities).
2. VIRFEBRAS benchmarking (comparison between performance indicators
related to operational / technological processes).
3. Previous businesses involvement.
• Once members are selected, they share the mould design, discuss
quotation, processes, etc., in meetings.
• A member can be involved in many VEs simultaneously, either as
manager or partner.
• A member can do business out of VIRFEBRAS.


Some Observations

• The establishment of the VIRFEBRAS VBE helped companies
to create a new culture of work – now much more based on
collaboration – and to be better prepared for the market.
• VIRFEBRAS entrepreneurs started sharing information and
learned that they usually have similar problems. Nowadays they
normally share solutions and practices.
• The creation of the VBE brought several standardization
initiatives, reflected in the processes, sheets, forms, mould
models and ontologies.
• VIRFEBRAS members affirmed that the VE theory applied to
SME competitors is valid, and that through joining forces it was
possible to have access to new technologies, to share information
and knowledge, to qualify employees, to contract research
projects and to tune consultancy’s works.


Some Observations

• VIRFEBRAS members are convinced that a VBE is a
collaborative network that must be in constant evolution, where
the first paradigm to be broken is trust.
• It is possible to conclude that through joining core competencies,
SMEs, even being competitors, became more competitive,
offering a larger spectrum of products, developing new markets
and serving additional potential customers.
• All VIRFEBRAS members grew in infrastructure, technology,
knowledge and hired more employees.


Lessons Learned & Practices

• The start up phase of a collaboration network between competitors needed
specific efforts for generating trust among the network members. At least in
the beginning, no sophisticated approaches are necessarily required.
• The members of a network can not be forced to share sensible information.
They should realize this importance for themselves (i.e. for the business) and
for the success of the whole.
• The written formulation of ethic rules and of operational procedures seems
to be one of the key success factors in networks between competitors. These
written documents support the growing of trust into the operational system.
• Regarding the particular way VEs are created inside VIRFEBRAS, members
realized that the CEO position should be alternated among the members.
• ERP systems have been introduced too early, provoking some fears in
the managers. It is only now been re-introduced.
• Benchmarking showed to be a crucial mechanism to boost VBE
competitiveness.
• From 13 to 8 companies: the importance of adequate methods for selecting
& preparing companies to get into the VBE.


Lessons Learned & Practices

“After growing 30% in the last couple of years,
we keep on enlarging our physical installations as
well as investing on newer technologies and
human resources. We never imagined the power
we had working together, in a co-operative way”.
Mr. Gelson de Oliveira, current VIRFEBRAS CEO.


Current Difficulties & Challenges

Lack of tools for CNO processes has been an obstacle for the
application of CNO concepts at a larger scale.
It is not possible to measure how much businesses and profits
have increased due to the VBE e AMBIANCE. However, it is very
much clear the benefits they brought and how better companies
are nowadays.
A more comprehensive IPR & governance models start to be
extremely important as long as companies reached another level of
maturity and professionalism.
VIRFEBRAS is now in a crucial decision point:
– stay as is = “basic” level compared to other VBEs & competitors;
– or invest a lot towards a new level of competition = high
investment on non-machinery issues.


• Prof. Ricardo Rabelo is an associate professor of the Department of
Systems and Automation at the Federal University of Santa Catarina in
Brazil, where he heads the Intelligent Manufacturing Systems group. He
obtained his PhD in Robotics and Computer Integrated Manufacturing
from the New University of Lisbon, Portugal, in 1997.
• His current areas of interest include: collaborative networks, service
oriented architectures and interoperability, multi-agent systems,
knowledge management, and human-centered decision support
environments.
• Prof. Rabelo has been involved in many Brazilian and European
research projects and program committees of international conferences.
He has supported the creation of VIRFEBRAS network and he is
currently supervising a pos-doctoral research by Dr. Fabiano Baldo
towards creating a methodology for the creation of VBEs as well as
launching the basis for the creation of a new VBE in the south of Brazil.

copyright Swiss Microtech 2009


Swiss Microtech
Enterprise Network
SMT Network

Michel Pouly
m.pouly@swissmicrotech.ch

Swiss Microtech
Tramelan, Switzerland

PRO-VE’09


Agenda

• Swiss Microtech…
– Overview
– Creation
– Operation
– Management
– Conclusions


Network Overview

SMT is a network of industrial SME founded in 2001
7 small SME (12-80 collaborators) of the mechanical
manufacturing sector in Western Switzerland

Production of high
precision parts, 90%
export worldwide



SMT creation reasons
Strengths Weaknesses

- strong technical skills - small / very small SME
- high productivity - highly specialized SME
(machine and manpower) - poor commercial skills
- stable social environment

Opportunities Threads

- Become complete - customers reduce the
solution suppliers through number of their suppliers
alliances and cooperation - competition from low
wages countries



SMT creation process
1998 report on the current strengths and
weaknesses of the regional screw
machining industry
1999 10 enterprises ask for support to start a
network research project (EPFL)
2000 - 2001 project running
2000 6 enterprises leave the boat…
2001 the “Fab Fours” create SMT



SMT creation process
2001 - 2004 3 new members join SMT
2005 - 2007 Research project with EPFL
to set up and collaborate with
a partner network in China
2006 - 2008 ECOLEAD research project
(pilot CNO)



Questions about the creation process
more than 80 companies attended the report
presentation event
Why only 10 were interested to collaborate ?

6 companies left the before the end
What are the reasons of this ?



A typical Virtual Organization for business…

Milling of the semi-finished product :
RAVINE SA
Centerless grinding : ADAX SA
Surface treatment : ESTOPPEY-
REBER SA

VO creation : - requests coming from different sources posted
- first VO for quotation set up, partner selection
is the “best constellation” (prices, delays etc.).
VO execution : - one unique company takes the lead.



Milling

Ravine SA

QC
Normal QC
outsourcing
Centerless grinding Surface treatment

ADAX SA Estoppey-Reber SA

Trust allows workshop to workshop direct transfer of parts
with the minimum of time, costs, papers and control !


Network Management (1/4)

Main lessons learnt as a VBE manager…

Managing SMT is like managing a club :
- there are very active, active and less active members
- the members’ rights and duties must be clear
- the workload must be low and equally shared
- conflict resolution must be defined in advance
- “management by persuasion” style
The network management is based on :
- a charismatic President
- a broadly accepted Coach



Main lessons learnt as a VBE manager…

The condition of success are :
- high trust level between the members
- a shared common business ethic
- strict respect of the SMT chart of rights and duties
- long term thinking : not all members can have an
immediate profit
- be ready to give before receiving
- get rid of free riders
Almost only human aspects !



Adopted best practices within the VBE live to improve
its management…

• Reach first successes (common buying and participation
to fairs, business) as soon as possible
• Monthly face to face meetings to enforce trust
• Install a simple remote conference tool (GotoMeeting®)
• Launch common research projects to improve SMT
ECOLEAD : - competence management
- knowledge sharing
- common ontologies with the Chinese network
DecoCHina : - partnership with Chinese companies



Current problems or challenges faced…

SMT could become a closed club reluctant to admit new
members:
- which additional competences should be added
- until now, no entrance fees requested

Change of ownership / CEO

Collaboration spirit to be transferred to the lower levels


Conclusions

Questions and research needs (1) :

CNOs are now well known and studied :
- Why so few industrial applications ?
- How to foster the collaboration spirit ?
- How to motivate SME to join CNO ?
- How to boost the creation of CNO ?

What is missing and what can researchers do ?


Conclusions

Questions and research needs (2) :

ERP / CAD
Database

CNO IT network
ERP/ CAD User
Database

ERP / CAD
ERP / CAD database
database

Data sharing between legacy IT systems


• Mr. Michel Pouly is an Electrical Engineer from EPFL.
• His background covers an extensive industrial curriculum in the field of
automatized flexible manufacturing systems.
• He is a part time senior scientist and lecturer at EPFL and also a
consulting engineer.
• Leader of the study on the turned parts supplier industry in Western
Switzerland, Leader of the Swiss Microtech creation project, Leader of
the DecoCHina project (Swiss-Chinese industrial CNO), Responsible for
piloting the Swiss Microtech participation as demonstrator of state-of-art
CNO concepts, methods and tools as part of the FP6 ECOLEAD project.
• Author of different articles on CNOs; particularly interested by their
human aspects.

copyright Orona 2009


New Products and Services
for
Elevation Sector
Orona Innovation Network

Joseba Arana, Luis Berasategi
jmarana@ikerlan.es, lberasategi@ikerlan.es

IKERLAN Techn. Research Centre
Arrasate - Mondragón

PRO-VE’09


Agenda

• Introduction

• Network Overview

• Network Operation

• Network Management

• Conclusions


Introduction

Offer market
Characteristic 1: Customer demand
ADAPTABILITY
Customisation
Vision,
STRATEGIES
Alliances
Characteristic 2: Globalisation
Effectiveness, Production costs
COMPETENCE PROCESSES Efficiency, Differentiation
Flexibility
Interoperability New markets
Characteristic 3: APPLICATIONS
New likes
Movility
EVOLUTION SYSTEMS
Internet Novelty
DATA Standards
Characteristic 4: INFORMATION Semantics Products
INTEGRAL OFFER Responsibility Services
PEOPLE Self Mgmt
Cooperation Products
Characteristic 5: Processes
TECHN. EVOLUTION Re‐adaptation

Orona
Innovation
Network


Introduction

• > 250 independent companies
• > 100,000 workers

ORONA
stands as the Spanish leading • 3,500 workers
company in the lift industry • 85 countries


Network Overview

Core Group

Industrial
companies

Consulting

Sectorial
R&D

Applied
Research

Basic
Associated companies
Research Centres
Research
+++ Other Universities
Subsidiaries


Network Creation

In 2002, ORONA promoted the creation of ORONA Innovation Network
in order to:
• Discover new technological opportunities
• Translate them into innovative product ideas

Challenges:

• Generate value based on technology to increase competitiveness
• Generate critical mass with advanced knowledge
• Leverage resources:
– Share cost
– Share risk
– Concentrate knowledge
– Favour co-specialization

• Create trust based on collaboration:
– Increase knowledge acquisition
– Develop new competences


Network Creation

• No formal methodology
• Based on the history of collaboration in specific projects
• 3 fundamental axis:
– Growth of R&D investments
– Creation of EIC (Elevation Innovation Centre)
– Stable Framework Agreement with University (Mondragón University)
and IKERLAN for technology collaboration.
• Defining the “Collaboration Spaces”:

Projects Projects Projects Projects Projects Projects Projects

Tecnology Innovation Framework Tecnology Innovation Framework

Strategic Planning Strategic Planning


Network Operation

INDUSTRIAL PARTNERS EXTERNAL CUSTOMERS
Technology Platform Innovative products 1. VBE-OIN
Research consortium
Common research strategy
Managed by Technical
Committee & Roadmap plan
ELECTRA

ORONA EIC
ZABALA
2. PVC/VT-Technology
watch
MCC New technological
IKERLAN opportunities & concept
MGEP ideas

HERREROS

3b. VO-New Product
Development
Inter-company projects for
3a. VO-Technology Platform Dev.
3a. VO-Technology Platform Dev. New Product Development
Technology platform development
Technology platform development


Network Operation

Estructura autoportante Foso 200 y HUP 2500
metálica. Cerramientos
de hueco de pladur Reconocimiento Autopropulsado
(absorción-aislante) personalizado con contrapeso

Puertas de piso ultraplanas. Rendimiento de hueco >70%
Ej. empotrables en tabique

Puertas de cabina Contrapeso
ultraplanas motorizado

Grupo viajero ligero. Ej.
Sector de automoción

Deslizaderas de alto rdto. + Batería para
Sist. Seg. mecatrónico auto rescate

Pantalla LCD de plástico
Botonera con carátula
flexible.
cambiable

Paneles cambiables con
Base y techo modulares estética personalizada (tipo
cambiables: obra, fin obra Irizar). Paneles para obra y
fin de obra


Network Management

Lessons learned:
• Manage an Innovation Network is based on managing the Networked
Innovation process
• A long term view must be share among the partners
• Efficiency and effectiveness is compulsory
• Trust is essential. Trust is based on facts.
• Involvement of managers is required as well as involvement of people.
• Different focus: All are needed.


Network Management

Three basic elements support the
management of the network:

• Strategic roadmap definition
• Monitoring of project status
• Monitoring assets and results

But the key point is:

Orchestrating


Network Management

Current challenges:
• Involve new partners and networks through the core group
• Go into process innovation
• Go into service innovation
• Build the Innovation Network open to the “persona”
• Go into Business Model Innovation


Conclusions

• Management of the innovation networks is not only management
of partners and competences. The most important task is
the orchestration of the activities.
• The content of the strategic roadmap should be shared and
sufficiently internalized by the members of the core group.
• Reinforce the importance of articulating innovation according to
parameters of efficiency and effectiveness when obtaining
results.
• Collaboration space (physical and digital) is needed.
• A innovation network scorecard is the best test for the proper
operation of the innovation system as a whole.


• Mr. Joseba Arana is an Industrial Engineer that belongs to IKERLAN,
a Technological Research Centre located in the Basque Country.
• He has over 25 years experience working-in and heading different
departments within the areas of Design and Production Technologies.
• He has been involved in national and European research projects as well
as industry transfer projects within the areas of mass-customization and
product configuration.
• Nowadays, he belongs to the Strategical Innovation knowledge area
in IKERLAN.
• Present research topics are Innovation Networks and Business Model
innovation.

copyright ServQ 2009


A Decade of Enterprise Networks
Practical Experience
in Implementing Networks

ServQ
Delivering the Collaboration Premium

Andrew Crossley
andrewdcrossley@servq.com

www.servq.com
UK

PRO-VE’09


Agenda


ServQ Overview

• Founded in 2001 and specialises in collaborative
systems advising on:
• Strategy Formulation
• Organisational Alignment
• Partnering & Alliancing
• Implementation
• Designed as a ‘virtual partnership’ with good links
to authors and researcher.
• Most of our work is in the EU and USA.
• www.servq.com


Our Network

• Our firm has 5 people but interfaces with:
• 20+ Associates based on their ‘partnering competence’
and technical delivery skills.
• 3 UK universities, 1 with ServQ sponsorship.
• 2 US thought leaders on strategy and alliances.
• 2 US firms in ‘cloud software’ for strategic cost
management.
• 4 research and best practice institutions.
• We are a network by design created to compete
effectively with minimum overheads.


Confidentiality

• Client confidentiality is important.
• These are our collective and objective observations
from designing, advising on, working with and
delivering a series of networks over the 00s. As such
they do not necessarily represent the views of
individual Clients.
• We have given practical examples around successes
and many of the challenges - for delegate reference.


Competition to Collaboration



Business Network A is a VBE

• US based.
• Founded mid 00s.
• Non-profit focused on bolstering U.S. manufacturing.
• Core tenet is Network Centric Manufacturing, which is the rapid assembly
and seamless coordination of dynamic supplier networks to accelerate
production and reduce costs.
• Developing solutions that increase supply chain agility, collaboration and
coordination.
• Has done considerable work with Department of Defense and NASA
to develop and prove out model.
• Now moving into commercial environment, starting with aerospace,
defense and energy.
• Has delivered quantifiable results that demonstrated ability to shorten
time, reduce costs and lower risk.


Business Network B is a VO

• UK based.
• Founded early 00s.
• Private funded by retained surpluses and originally time in kind.
• Over 20 active participants but managed by shareholding members,
board and trusted contributors.
• Designs processes, delivers training and oversees implementation.
• Challenges in implementation mid 00s – around balance of network’s
input and outcomes – Leaders vs. Followers.
• Overcoming challenges through transparency and engagement of whole
team in strategy.
• Growth constrained through some client resistance to engage with good
quality networks compared to large firms/ staff numbers.
• Partnering and people skills a core competence by design.
• Issues of inputs and outcomes can resurface in slow economy.


Business Network C is a VBE

• EU based.
• Founded mid 00s - part public funded.
• Has 100+ participants who have had variable inputs.
• Managed to date by public sponsored board and staff.
• Regionally based & therefore geographically constrained.
• Original specification, legal and policy constraints meant cannot
commercially trade, lead or take risks i.e. Cannot be a PRIME VE.
• Good ‘how to’ manuals and processes supplied by EU programme.
• Funds initial brokerage of opportunities - now has a procurement and bid
support role therefore morphed from a CNO to a VBE.
• Facilitates VEs especially in environmental technologies.
• Restructuring out original complexity but funding now constrained due
to tightening public sector purse.
• Less focus on people aspects. High emphasis on due process, reporting
and governance relates to public sector input.


Knowledge Network D is a CNO

• US based, founded mid 80s.
• Membership funded NFP with over 150 active participants.
• Managed by elected Board, 2 FT staff and Interest Group Heads.
• Produces well regarded ‘how to’ books and manuals i.e. knowledge
creating.
• Reviewed strategic direction late 00s – overcome by good membership
teamwork.
• Good at building partnerships through a strong President.
• US centric until 2007. Expanding internationally because of a strong and
ambitious leadership.
• Funding and growth constrained on rate of expansion of new
membership in current recession – made membership more accessible.
• Needing to keep output rate up to reinforce member value.
• Focus on delivery and marketing of deliverables/knowledge.

Knowledge Network E is a CNO

• UK Based.
• Founded 2007.
• Hosted by a major university.
• Has over 40 active participants.
• Very senior representation from industry and government.
• Assesses practical policy matters relating to engineering, assets and
whole life cost/sustainability.
• People attend to network with each other and contribute to national level
policy matters.
• Started as a forum from 2009 has a new ‘spin out’ institution.
• Has a web-site for distributing information and proceedings.
• Doesn’t yet have a portal so too little interaction between major events.
• In the ‘set up stage’ but very good quality teams involved.


IT Deployment

• Network A - Leveraged existing technologies until needs and value were
better defined.
• Network B - Specified its portal needs right up front and still uses the
same system today. Its ISO9001:2008 & 14001 certification is based
around this so IT used – daily.
• Network C - Started off with a bespoke IT approach which has led
to some implementation challenges and vendor ‘lock in’ which proved
very expensive and risky when compared to A&B
• Network D - Transformed its productivity by investing in a good portal –
took a week.
• The advent of SharePoint, on line costing systems, management and
measurement systems together with WEB 2.0 is driving more cost
effective approaches than were possible even 3 years ago.

• Buy what you need not what the IT people want!


The Collaboration Premium?

● Premium Delivered ○ Partial Premium ◘ Room for Improvement



Technology Design - Lessons

• Information systems enhance networks
• Definitely needed for geographically remote teams.
• Do not need a bespoke design to get started.
• IT people too influential in network set up and design -
when they are the support service.
• Where IT is not a core competence outsource it.
• Grow IT as you need it not at outset
• IT ‘portal’ service providers will outstrip a network’s
in-house skills, unless the network is there to design
IT portals.


The ‘C’ Words

The Good
The Bad



Overcoming a Lack of Commitment

• Passion and belief
• Understand needs and wants - right up
front.
• People, trust and transparency issues:
1. Find network’s leaders and followers
2. Use a formal partnering process
3. Focus on quick wins
4. Beware of transient teams creates
‘conflict’ and underperformance.
• Some conflict is a natural part of the team
forming process
• How we handle conflict depends on our
emotional and Partnering Intelligence.
– See www.partneringintelligence.com


Towards the Collaboration Premium

• Collaboration needs a driver
• Look for consensus on how to collaborate
• Assess alignment and which
organisations complement core team -
supplier network
• Use a conflict resolution system
• Difficulties arise from a lack of
transparency and ‘audit’ on inputs and
outcomes – gather inputs and outcomes.
• Collaboration Premium comes from
coaching and mentoring a ‘trust dividend’
and balances of outcome, risk and
reward.
• Use some form of Scorecard to set and
agree network targets and refer to it.


• Mr. Andrew Crossley is a Director of ServQ, ASC Management and
the UK Principal of Partnership Continuum, a leading US firm specializing
in building partnerships and alliances.
• He has worked in the engineering, project management, construction
and consulting industries for over 25 years.
• He is a chartered civil engineer with an MBA from Manchester Business
School and an MSc. in Infrastructure Asset Maintenance and Management
from the University of Leeds.
• Mr. Crossley is a Fellow of the Chartered Institute of Marketing, has
qualifications in Value Management and is a member of the Institute of
Asset Management.
• He is on management and steering groups in the UK and the USA and
has held directorships at four UK businesses.
• Mr. Crossley was seconded part time to set-up a not for dividend group
sponsored by a government agency between 2006 and 2008.
• He is currently working on a major leadership improvement initiative for
small to medium sized businesses in Wales.

copyright Bertok 2009


Virtual Organisations for Teaching,
Research and Healthcare
in Australia

Peter Bertok
Peter.Bertok@rmit.edu.au

Royal Melbourne Institute of Technology

PRO-VE’09


Introduction

Virtual organisations in different fields
Australian examples
• Research
Bringing together different organisations for specific
research
• Teaching
Offering courses from different universities in a unified
framework
• Healthcare, community care
Efficiently manage and deliver services


Research Organisations

Aim
Support the forming of research groups with critical
mass
Organisational support
Cooperative research centres
Government supported (https://www.crc.gov.au )
Funding provided for a period of several years
A CRC allocates funds to mission-related projects
Project-oriented teams
Team members delegated by the member organisations, but
not representing the member organisation
Teams have their own resources


Teaching

Aim
Flexible delivery of university courses on-line
Organisational example
Open Universities Australia (https://www.open.edu.au)
Alliance of seven universities
Offers degrees in Arts, Business, Education, Engineering,
Health, Information Technology, Law and Science
A degree can include courses offered by different universities
Courses needing hands-on laboratory work are not offered
Separate entity (OUA) for coordination only
Members individually deliver services (courses)
Relies on members’ resources


Healthcare, Community Care

Aims
To deliver health services in a flexible and efficient
manner
To protect people at risk of abuse, maltreatment or
neglect
Organisational examples
Aboriginal health CRC
Alliance of government health agencies and research
institutions
Brotherhood of St Lawrence (charity organisation)
Cooperation with local government, assessment authorities
and healthcare providers.
Protocols for interagency information sharing, privacy and
confidentiality
Loose coupling between member organisations’ teams


Technical Infrastructure

Teaching and research
Australian Academic and Research Network (AARNet)
Rents and operates high-speed links between institutions
Provides specific technical services for cooperation
e.g. Video conferencing and desktop sharing, research
applications


Technical Issues

Security and privacy
Information access and usage control
• Access rights
Access control for VO participants
• Within a member organisation (local access control)
• Between member organisations (remote access control)
• Dissemination rights (confidentiality constraints)
– Internal data (relating to the VO)
– External data (about clients/customers)
Confidentiality of personal information (e.g. medical)


Conclusion

Virtual Organisations
– operate in many fields
– have specific missions but general organisational frameworks
(organisational setup reflects the nature of the task, not the application
area)
Different organisational models
Project-oriented team model
Team members from different member organisations
Umbrella organisation model
Service delivery by individual member organisations
Loose cooperation model
General support
– Organisational
Government funding
– Technical
Specialised support for different needs


• Prof. Peter Bertok is an associate professor and member of the
Distributed Systems and Networking Discipline Group of the School
of Computer Science and Information Technology at RMIT University,
Australia.
• He is the Group Leader of the Distributed Systems Research Group
which studies topics related to: Distributed systems, Real-time systems
and Security in computing.
• He has been involved in different national and international research
projects in topics such as: Security in Ad-Hoc Networks; Stateless and
State Aware Middleware in Mobile Computing Environments; Peer-to-
Peer Computing in Mobile Environments; Security in SCADA systems;
Performance of Web Services; Mobile Services; Integrated Infrastructures
for Dynamic and Large Scale Supply Chains; Scalable and Robust
Mobile Middlewares; and Computer Anomaly Intrusion Detection.

copyright CEMEX 2009


Collaborative Networks for Innovation
Challenges for Breeding Environments of
Enterprises & Universities for Innovation

Myrna Flores
myrnafatima.flores@cemex.com

CEMEX Research Group AG
Switzerland

PRO-VE’09

PROVE 09 - Special Panel Session on Next Generation Collaborative Networked Organizations

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