CollaborationCollaboration The Future Enterprise The Future Enterprise

James S.PickensJames S.Pickenswww.jspickens.comwww.jspickens.com

Collaboration Creates ValueCollaboration Creates Value

Much of today’s business is headed into a horizontal future.

Vertically-integrated enterprises are unbundling their horizontal components as they focus on their core competencies and outsource non-core activities.

This has the virtue of allowing them to concentrate on increasing capital efficiency and maximizing technologies.

Collaboration Creates ValueCollaboration Creates Value

Global customers, however, require global contracts, global account management and globally consistent levels of service.

They demand solutions that necessitate multiple organizations to quote, propose, design, sell, deliver and service together.

Partner organizations must work in unison to meet customer requirements.

Collaboration Creates ValueCollaboration Creates Value

An enterprise must assemble its partners, creating visibility and coordination using strategies referred to as “Value Webs.”

Value Webs are the pragmatic application of business and technology logic that expand the collaboration footprint across multiple organizations to achieve virtual end-to-end connectivity.

The Five Challenges of The Five Challenges of CollaborationCollaboration

Collaboration presents five challenges. – First, it requires a sharp identification of the

sources of business value *. – Second, it must motivate the partners who need

to collaborate *. – Third, it needs a process framework that imposes

only minimum commonality. – Fourth, it must create the right organizational

alignment for partners to interact effectively and flexibly*

– Fifth, effective collaboration must be underpinned by an insightful technology architecture *.

Traditional Technology Traditional Technology ArchitecturesArchitectures

Traditional technology architectures fail to provide the necessary platform for virtual Value Web collaboration.

This type of collaboration requires a strategic framework based on a new technology model.

Traditional Technology Traditional Technology ArchitecturesArchitectures

Over the last decade, ERP (Enterprise Resource Planning) systems have served as the primary technology to facilitate collaboration within the enterprise.

Traditional Technology Traditional Technology ArchitecturesArchitectures

ERP technology creates tight coupling of processes and data, mostly in real time. This is valuable, but practical only within a limited organizational scope: typically functional, country, or product group operations

Traditional Technology Traditional Technology ArchitecturesArchitectures

Tight integration due to its lack of flexibility is risky to implement across multiple participants.

What is required, instead, is a new technology architecture that enables a flexible, “ loosely” coupled collaborative model.

New technologies are emerging that enable enterprises to connect in more flexible ways.

e-Hubs e-Hubs Using Web Technologies to Using Web Technologies to

Enable Loosely Coupled Enable Loosely Coupled CollaborationCollaboration

e-Hubse-Hubs

e-Hubs are the set of systems and connectors that enable internal and external collaboration.

Generally e-Hubs globally focus on:– Enterprise Application Integration (EAI)– Information Access– Content/Document Management– Unified Messaging (e-mail, calendaring, tasks)– Instant Messaging (chat, video, voice, etc.,)– Personalization

e-Hubs are usually implemented using Portal technology (Amazon.com).

Getting StartedGetting StartedDeveloping and Implementing a Collaboration StrategyDeveloping and Implementing a Collaboration Strategy

By creating a strategic framework for planning and implementing an e-Hub collaborative model, today’s limited eco-systems become true “Value Webs” that generate value for all partners.

Getting StartedGetting StartedDeveloping and Implementing a Collaboration StrategyDeveloping and Implementing a Collaboration Strategy

Four steps comprise the strategic framework for planning the implementation of an e-Hub collaborative model:– Understand and develop the strategic

context and direction– Translate the collaboration strategy into an

operational blueprint– Develop a collaboration business case for

the enterprise and its partners– Develop an implementation roadmap

e-Hub Case Studye-Hub Case Study A New Way to Harmonize Disparate Systems A New Way to Harmonize Disparate Systems

e-Hub Case Studye-Hub Case Study

This case study illustrates the collaborative challenges of traditional high-tech companies with de-centralized governance structures.

e-Hub Case Studye-Hub Case Study

•A semiconductor division of a large Asian systems manufacturer, has recently changed its product focus from commodity products to proprietary solutions for global OEMs, in high-growth segments such as networking and wireless communications.

e-Hub Case Studye-Hub Case Study

While market dynamics had changed dramatically, the company’s internal structure, processes and culture – wildly successful in the past – have failed to keep pace.

e-Hub Case Studye-Hub Case Study

To regain its earlier dominance, the company needed to transform its business from a merchant supplier of commodity products, to a strategic partner providing system-critical solutions

e-Hub Case Studye-Hub Case Study

To address these issues:– A case for business transformation was created – A global team of senior executives was

assembled to develop new model– A review of the gaps between current and

desired model was conducted– Options were explored– An operational blueprint was constructed

e-Hub Case Studye-Hub Case Study The Case for Business Transformation The Case for Business Transformation

e-Hub Case Studye-Hub Case StudyTechnical Architecture OptionsTechnical Architecture Options

e-Hub Case Studye-Hub Case StudyImplementation Challenges and ResultsImplementation Challenges and Results

Challenges– Struggle for standards– Obtaining global buy-in

Results– The company was able to improve

turnaround time to customer requests and increase global visibility and global cooperation

– By building an e-Hub, it was able to accomplish this at a fraction of the cost and time that it took some competitors

e-Hub Case Studye-Hub Case StudyKey Lessons LearnedKey Lessons Learned

For a supplier to effectively meet a customer’s collaboration requirements, internal integration across key touch points with that customer is essential.

It is possible to integrate internally without standardizing all aspects of a company’s operational model.

e-Hub Case Studye-Hub Case StudyKey Lessons LearnedKey Lessons Learned

A prerequisite for success is the active involvement and support of senior leadership of key functions.

To successfully implement a new operational model, it is necessary to minimize the changes to the organization, and proactively manage the change process.

General ConclusionGeneral ConclusionReal World Business TransformationsReal World Business Transformations

Industry experiences demonstrate that building value webs is not easy. However, they also establish that with the right strategy and tactical framework, the benefits of collaboration are positive and profound.

ConclusionConclusionReal World Business TransformationsReal World Business Transformations

Lesson learned:– Business transformation of any magnitude requires

the vision and leadership of senior management– Effective value webs require compelling win-win

propositions that drive internal and partner adoption– Internal connectivity is a prerequisite for external

collaboration– Targeting minimum commonality is the key to

balancing integration and flexibility– It is vital to manage change across the value web and

minimize organizational impact– Success depends on adopting relevant industry

standards and collaborative governance