success and failure factors of collaborative networks of sme success and failure factors of...

Success and failure factors

of collaborative networks of SME


of collaborative networks of SME

USCO

Content of the presentation:

Introduction

Swiss Microtech and USCO networks


Conclusions

Introduction



Conclusions

Introduction

Collaborative networks in the manufacturing sector :

Now a rather well known concept

Few real applications

Only ~5 cases in Switzerland

Analysis of 2 networks running since a couple of years, one competitor based and a complementary one.

Stable industrialcluster

Virtual EnterpriseClient


Introduction



Conclusions

Introduction



Conclusions


First case study : Swiss Microtech

Founded in 2001 Legal form : association with lucrative goals 8 subcontracting SME (4 competitors, 4 complementary enterprises) Objectives :

To address together new markets and develop new products beyond the possibilities of each enterprise alone


Achieved results

10% reduction of the production costs through common purchases less investments needed through « outsourcing » within the

network reduction of monoculture (dependence on a few customers) common sales and marketing activities a few new products developed (medical sector) intensive exchange of information and knowledge a certain sense of security for the members


Second case study : USCO

Founded in 1995 Legal form : company with limited responsibility 11 broadly complementary subcontracting SME Objectives :

To deliver complete assemblies and machines and develop new products beyond the possibilities of each enterprise alone


Achieved results

delivery of assemblies and complete machines to their customers new customers found industrialisation and sale of a new hardness measurement machine

developed by a technical university reduction of monoculture (dependence on a few customers) few common sales and marketing activities a certain sense of security for the members


Introduction



Conclusions

Introduction



Conclusions


Common success and failure factors :

Customer orientation (added value) Careful selection of the partners (equal chances) Strategic goal for all partners Network size adapted to the goals Similar partners (size, resources, “the rich and the poor”) Common business ethics Transparency Presence of “motors” Balance between activities for the network and for its own

company First success quickly reached


Success and failure factors depending of the network characteristics

“Narrow band networks”

Common purchase of goods and services very interesting and motivating

Common marketing and sales make sense Exchange of information and knowledge very valuable High level of fear, at least at the beginning Transparency between members not evident Trust is crucial


Success and failure factors depending of the network characteristics

“Large band networks”

Common purchase less evident Common marketing and sales make sense Level of fear and risks of conflict considerably lower Equal participation to the benefits Common activities must be organized


Introduction



Conclusions

Introduction



Conclusions

Conclusions

Conclusions

Promotion of the concept of network is strongly needed in Europe

Further research is needed to answer the question “What would the participation to a network really bring to my company”, particularly to quantify the “soft” factors like

- created synergies for the customer

- exchange of information and knowledge

- reduction of the investments

- sense of security

- avoidance of monoculture

Conclusions

Thank you for your attention !

success and failure factors of collaborative networks of sme success and failure factors of...

Documents

usco networks success

introduction swiss microtech

members swiss microtech

failure factorssuccess

failure factorscommon

new products

companyfirst success

usco networksfirst case