helping companies collaborate
DESCRIPTION
Helping Companies Collaborate. Denis Kearney 13 th October 2005 Istanbul. Topics Covered. Overview of SMEexcel project Survey of user needs Assessing Organisational Readiness – the Synergy / Maturity model Collaborative Process Next Steps Summary. What is SMEexcel?. Problem. - PowerPoint PPT PresentationTRANSCRIPT
Helping Companies Collaborate
Denis Kearney
13th October 2005
Istanbul
Topics CoveredTopics Covered
• Overview of SMEexcel projectOverview of SMEexcel project
• Survey of user needsSurvey of user needs
• Assessing Organisational Readiness – Assessing Organisational Readiness – the Synergy / Maturity modelthe Synergy / Maturity model
• Collaborative ProcessCollaborative Process
• Next StepsNext Steps
• SummarySummary
What is SMEexcel?What is SMEexcel?
ProblemProblem
How to encourage How to encourage SMESMEss to embrace to embrace
collaboration as a key collaboration as a key tool for tool for
competitivenesscompetitiveness
Review Organisation Goals
Identify Strategic Assets
Develop Individual Competencies
Learn ‘How to Collaborate’
Develop Group Competencies
Manage Collaboration
Implement Business Processes
Sustain the Partnership
Identify Opportunities
Seek out RFQs
Deliver Order-winning Proposals
Manage Customer Expectations
Within the
Network
In theMarketplace
Within Each
CompanyNew Business New Business
Through Through CollaborationCollaboration
SMEexcel ConceptSMEexcel Concept
ExampleExample
Organisation Relationships
Interacts with
Goes to
Prepares / agreesSupport delivery of
Implements, complies with & uses
VECollaboration NetworkNetworkProductor serviceProduct
or service
......
StandardsStandards
ICT platformICT platform
ProceduresProcedures
Enterprise(legal entity)Enterprise
(legal entity)
CustomerCustomer
Participates inLeadsInitiates
Coordinates
co-delivery of
Shares,
collaborates using
PartnershipPartnership
Dissemination Manager
CME
Development Manager
CSM
Validation ManagerTusiad
Research Manager
SNS
Pilot TestingSmiths
Localisation Manager
IMIK/OTI
Exploitation / Accreditation
NITL
SME User GroupElectronics Scotland
SME User GroupPolish Welding Chamber
SME User GroupBEYSA
SME User GroupsSNS / Tsunami
Catalyst Enterprise Ireland
Catalyst Society for Strategic Management, Innovation and Entrepreneurship
Catalyst Shannon Development
Pilot TestingLitho
Pilot TestingSercom
Pilot TestingFarel
Pilot TestingMotgum
Catalyst Scottish Enterprise
Project Manager
SNS
Dissemination Focus
ITI
Survey of User NeedsSurvey of User Needs
SMEexcel SurveySMEexcel Survey
• Carried out over 5 countries – Carried out over 5 countries – Ireland, Scotland, Poland, Turkey and Ireland, Scotland, Poland, Turkey and the Czech Republicthe Czech Republic
• Follow up Focus Expert Group Follow up Focus Expert Group assessment in Irelandassessment in Ireland
How Important are Networks to How Important are Networks to you?you?
Importance of Networks
50%
23%
14%10%
3%
0%
10%
20%
30%
40%
50%
60%
Peer Collaboration Formal Cluster Supply ChainNetwork
Industry Network Chamber ofCommerce
25% 65%
Survey Findings –Survey Findings –What makes you more What makes you more
CompetitiveCompetitive
Importance to Competitiveness
21%
19%
13%
14%
11%
9%
7%5%
Delivery Reliability & Customer Service
Cost reduction
Increasing Product Quality
Operational Performance
Reducing Time To Market (TTM)
More Product Innovation
Improving Serviceability & Field Support
Styling, Design, Image & Branding
Barriers to SuccessBarriers to Success
Barriers to Success
17%
14%
11%
10%10%
8%
8%
7%
5%
5%5%
Not enough customers
Margins too tight
Not enough new products coming on stream
Shortage of Capital
Shrinking or Stagnating Markets
Lack of suitable partners for collaboration
Lack of formal strategic plan
Cannot support a broader customer base
Shortage of Skills
Shortage of Technology
Lack of Infrastructure[1]
Why would you collaborate?Why would you collaborate?
Why Collaborate?
22%
15%
13%12%
12%
11%
8%8%
Access New Markets
Improve overall capability bycombining competencies
Critical Mass to qualify for largecustomers
Benchmark / learn from partners
Access Technology
Network with Peers
Avoid Internal investment
Share development costs
What do you want from others?What do you want from others?
Desirable Complimentary Competencies
17%
12%
10%
10%10%
9%
9%
9%
9%6%
Market Knowledge / Sales Force
Management of Collaboration
Access to Finance
Systems – IT skills
Critical Technologies
Research, Design and Development(products or processes)
Logistics Management / FieldSupport
Efficient Production Capacity
Critical Skills
Summary of Survey FindingsSummary of Survey Findings
• Marketing and particularly Sales, are the priority of most Marketing and particularly Sales, are the priority of most SMEsSMEs
• ““What’s in it for me?” – must see early returnWhat’s in it for me?” – must see early return• ““Show me where it was done”Show me where it was done”
• Collaboration is important for companies that want to growCollaboration is important for companies that want to grow• Prefer Market Pull rather than Network PushPrefer Market Pull rather than Network Push• Trust and IP are important issuesTrust and IP are important issues
• SMEs tend not to strategise, particularly in the marketing SMEs tend not to strategise, particularly in the marketing arenaarena
• Individual skills training not a priority. Business Capability Individual skills training not a priority. Business Capability skills for the organisation areskills for the organisation are
• The jargon is a turn-off – keep it simpleThe jargon is a turn-off – keep it simple
Are you Ready to Are you Ready to Collaborate?Collaborate?
Synergy Model – Maturity ScaleSynergy Model – Maturity Scale
Optimising (5) Fully competent and able to
demonstrate leadership
Standardised (4) Well understood. Good
competency and application
Defined (3) Some understanding. Basic
capability to apply
Embryonic (2) Basic Understanding of
requirements Not able to apply
Initial (1) Unpredictable or Does not
exist
CommercialSynergy
StrategicSynergy
CulturalSynergy
Operational Synergy
Maturity AssessmentMaturity Assessment Maturity Level
Synergy Level 1
Initial Level 2
Embryonic Level 3 Defined
Level 4 Standardised
Level 5 Optimised
Strategic No strategic awareness Informal strategy generally internal to the Owner / Manager
Limited visibility within organisation
Documented strategy Communicated throughout
organisation
Strategy document derived from rigorous and multi-level debate within and external to the organisation
Strong ownership throughout the organisation for implementation
Impacted by collaborative partners
Operational Short term planning Heroic efforts to deliver
results No or ad-hoc
measurements Unpredictable delivery
performance
Basic operational management systems in place
Rudimentary tracking Documented
procedures
Strong process & project management
Integration and prioritisation among projects / initiatives
Clearly defined internal business processes
Continuous operational improvement in terms of cost, quality and time
Highly predictable Strong skills base
Cultural Hero culture Employees seen as inter-
changeable production units
Top-down decision making No or poor-performing
teams
Some team activity Strong personnel
management systems Some level of trust Top-down
communications
Functional teams responsible for operational and improvement targets
Good communications Good level of trust
Employees viewed as assets
Decision-making devolved to the most appropriate level
Cross-functional team work Self-driven employees Pervasive trust
Commercial Defensive regarding quality of assets
No appreciation of risk management
No knowledge of how to protect intellectual property
Poor access to finance
Some understanding of value of assets
Understands risk management
Interested in IP Reasonable financial
position
Understands clearly the value of core assets and competencies
Structured risk management approach
Structured IP management Good financial position
In addition, appreciates fully the overall value of the combined partner assets
Demonstrated leadership
Systematic continuous improvement
Driven by breakthrough goals and identification / development of new business opportunities
Crawl before you Walk!Crawl before you Walk! Maturity Level
Level 1 Initial
Level 2 Embryonic
Level 3 Defined
Level 4 Standardised
Level 5 Optimised
Collaborator Features
Unreliable as a collaborative partner
May be unable to fulfil commitments
Use only as a sub-contractor
Collaborative follower
Requires strong direction and management
Control systems must be rigid
Characterised by strengths in one or two areas
Collaborative partner Responsible for own activities
and controls Contributes substantial
benefits to partnership Characterised by substantial
key competencies
Collaborative leader Drives overall
development of collaboration
Develops key competencies
Collaborative leader and ground-breaker
Failure Low-level collaboration – needs tight control
One-off informal cooperation
Experienced collaborators working on ‘bet the company’ projects with like-minded organisations
Optimised collaborative ventures focused on breakthrough results for the overall partnership
Collaboration Features
Highly optimised collaborative ventures focused on breakthrough results for both the partnership and each partner
Building on prior learning, these organisations continuously develop new methods for collaborating which deliver a competitive return.
The SMEexcel Collaborative The SMEexcel Collaborative ProcessProcess
The Collaboration Process
IDENTIFICATION
FORMATION
IMPLEMENTATION
EVALUATION
Gate 2
Gate 3
Gate 4
Gate 5
ATTRACTION
Gate 1
Company A Company B Company C
Interested inCollaboration
Driver for Collaboration(Market opportunity,Product Opportunity,
etc.)
Sort out basicConsortium
Building Issues
DetermineIndividual
Competencies andNeeds
Determine OverallCompetencies and
Gap
OtherCompetencies
Needed?
Source additionalCompanies
Integrate NewMembers (ifnecessary)
Set up Structureand Responsibilities
Set up BusinessPlan,
Targets/Metrics,Information Systems
Set up ManagementSystems
Manage the CollaborativeProject
Repeat
Audit the Process
Review Performance andAdjust as necessary
Y
N
Y
N
Elements of AttractionElements of Attraction
Awareness
Cost Benefit Analysis
Case Studies
Checklist for AttractionChecklist for Attraction• Do you understand the potential benefits of Do you understand the potential benefits of
collaboration to your organisationcollaboration to your organisation• Do you understand the commitments that have to be Do you understand the commitments that have to be
made and the costs involved in collaboratingmade and the costs involved in collaborating• Do you understand the time / duration of a ventureDo you understand the time / duration of a venture• Do you understand any IP and other issues involvedDo you understand any IP and other issues involved• Are you aware of how it may impact the ‘way things are Are you aware of how it may impact the ‘way things are
done around here’ – i.e. sovereignty, decision making done around here’ – i.e. sovereignty, decision making etc.etc.
• Do intermediaries understand how to encourage client Do intermediaries understand how to encourage client companies to collaboratecompanies to collaborate
• Do intermediaries understand how to support Do intermediaries understand how to support collaboration among client companiescollaboration among client companies
Elements of IdentificationElements of Identification
Partners strengths and weaknesses
What new-value the collaboration is going to create
Each partners needs / objectives / motivation for collaborating
What value each partner will contribute
Are other partners needed
The collective know-how of an organization that gives it a competitive advantage. This know-how is a result of learning that is driven by business strategy
and built through a process of continuous improvement and enhancement that may span a
decade or longer. (Grady, Successful Software Process Improvement)
• Are you Good (very good) at it?
• Is it Difficult for others to Replicate / Imitate / Copy?
• Is it Valued (highly) by the Customer?
An area of specialised expertise that is the result of harmonising
complex streams of technology and work activity
(Prahalad &Hamel, Havard Business Review)
Core CompetencyCore Competency
Honda - engine design and manufacture• lawn mowers• cars• trucks• snow blowers Example
Competencies
Capabilities Competencies Core CompetenciesWhat we can do What we are really What is difficult to
good at doing replicate
E.g. CSM
• Supply chain management• ISO9000• EFQM• Six sigma• Kaizen• MRP/ERP• Strategy development• Performance measurement• Product development• Innovation• IT Strategy• BPR• Benchmarking• SPC• Collaborative enterprise dev.• Change management
• Supply chain management• MRP/ERP• Strategy development• Performance measurement• BPR• Benchmarking• Six sigma• Collaborative enterprise dev.• Change management
• Strategy development• Performance measurement• Collaborative enterprise dev.• Change management
E.g. CSM
• Supply chain management• ISO9000• EFQM• Six sigma• Kaizen• MRP/ERP• Strategy development• Performance measurement• Product development• Innovation• IT Strategy• BPR• Benchmarking• SPC• Collaborative enterprise dev.• Change management
• Supply chain management• MRP/ERP• Strategy development• Performance measurement• BPR• Benchmarking• Six sigma• Collaborative enterprise dev.• Change management
• Strategy development• Performance measurement• Collaborative enterprise dev.• Change management
Opportunities!Opportunities!What Opportunities?What Opportunities?
Ansoff Growth matrix
Business Opportunities
L
HL
H
RISK
Revenue /Year €,000 (steady state)
• Assess the identified ‘Opportunities’ in relation to Risk and Gain. • Use circles of different diameter to signify the projected investment to realise
each opportunity.• Risk = Likelihood of occurrence X Impact X Ability to take advantage
Assessment of Opportunities
RISK
GAIN
Do it yourself
High
Low
High
RISK/BENEFITS ANALYSIS
Don’tdo it
Is it worth it?
Low
Collaborate
Checklist for IdentificationChecklist for Identification
• Has a company or group of companies identified Has a company or group of companies identified a potential business opportunity for a potential business opportunity for collaboration?collaboration?
• Have individual members of the group assessed Have individual members of the group assessed their readiness for collaboration?their readiness for collaboration?
• Has each member identified how the Has each member identified how the collaboration will benefit him or her?collaboration will benefit him or her?
• Is a facilitator needed to assist the group in the Is a facilitator needed to assist the group in the next stages? If so has a facilitator been invited to next stages? If so has a facilitator been invited to join the group?join the group?
Formation StageFormation Stage
Elements of FormationElements of Formation
Confidentiality / NDA
Project Management Methodology
Stakeholder Analysis
Business Plan
Risk Analysis
IPR Agreement
Collaboration Agreement
Integration between partners• Info Systems• Health & Safety• Environmental Mgmt• Quality Mgmt• Financial Systems
Collaborative Partnership2008
Business AmbitionsObjs for Customers Objs for Capabilities Objs for Technology Objs for Employees
Projects for Customers Projects for Capabilities Projects for Technology Projects for Employees
Owner:
Owner:
Owner:
Owner:
Owner:
Project Cu1
Project Cu2
Project Cu3
Project Ca1
Project Ca2
Project Ca3
Project T1
Project T2
Project T3
Project E1
Project E2
Project E3
Portal House Partnership2008
Business Ambitions• 1 m€ revenues within 3
years
• 60% of revenue to be generated in new sectors (medical devices?)
Objs for Customers
• To provide full turnkey solutions within 6 months
Objs for Capabilities
• Clean room assembly
Objs for Technology
• To develop an integrated IT management system by end of 2006
Objs for Employees
• To double the return per employee by 2006
Projects for Customers Projects for Capabilities Projects for Technology Projects for Employees
Innovative Culture
Market Focussed
Collaborative Management
Controls and Procedures
Continuous Improvement Env
Implement Innovation Culture
Owner: F. Keohane
Client Management Process
Owner: ???
Web-based Project Management process
Owner: ???
ISO9000 procedures generation / management
Owner: ???
Implement Lean / 6 Sigma culture
Owner: F. Keohane
Project Cu1
Project Cu2
Project Cu3
Project Ca1
Project Ca2
Project Ca3
Project T1
Project T2
Project T3
Project E1
Project E2
Project E3
To be the world’s best at providing niche customer focused design and
prototyping support services to industry in the Electronics and
Medical sectors. We will provide Innovative solutions utilising our
technical and business competencies in a collaborative environment.
Checklist for FormationChecklist for Formation
• Business plan including metrics and targets signed offBusiness plan including metrics and targets signed off
• Benefits to each partner estimated Benefits to each partner estimated
• Reward and recognition arrangements for people agreedReward and recognition arrangements for people agreed
• Management structure, accountabilities, review Management structure, accountabilities, review mechanisms and conditions for termination in placemechanisms and conditions for termination in place
• Systems for sharing information / allocating resourcesSystems for sharing information / allocating resources
• Overall control policy agreedOverall control policy agreed
• IPR implications (if any) knownIPR implications (if any) known
• Auditing process agreed for the initial stagesAuditing process agreed for the initial stages
• Financial arrangements between partners – investment, Financial arrangements between partners – investment, bank accounts, invoicing, spending authorisation etc.bank accounts, invoicing, spending authorisation etc.
Elements of ImplementationElements of Implementation
Monitoring & Control Processes
Performance Metrics
Resource Coordination
Business Process Management
Checklist for Checklist for ImplementationImplementation
• Performance metrics agreed and implementedPerformance metrics agreed and implemented
• Resources from partners integratedResources from partners integrated
• Information systems from partners integrated Information systems from partners integrated
• Collaboration review mechanism in place and Collaboration review mechanism in place and functioningfunctioning
• A decision-making process established and functioningA decision-making process established and functioning
• Targets being achieved and any shortfalls being Targets being achieved and any shortfalls being addressedaddressed
• Effective leadershipEffective leadership
• Is each partner achieving benefits from the Is each partner achieving benefits from the collaboration? collaboration?
Next StepsNext Steps
Next StepsNext Steps
• Test the SMEexcel methodsTest the SMEexcel methods
• Develop On-line support toolsDevelop On-line support tools
• Localise for Turkey, Poland and the Czech Localise for Turkey, Poland and the Czech RepublicRepublic
• Launch the final methodologyLaunch the final methodology
• License the methodology throughout License the methodology throughout EuropeEurope
SummarySummary
• Overviewed SMEexcel projectOverviewed SMEexcel project
• Describer the results of our SurveyDescriber the results of our Survey
• Described the Synergy / Maturity Described the Synergy / Maturity modelmodel
• Outlined the steps in the Outlined the steps in the Collaborative ProcessCollaborative Process
Thank YouThank You
Denis Kearney
Supply Network Shannon
13th October 2005