|
Contracts
and Claims
Timely articles covering the most pressing issues
facing construction firms in the Midwest
How businesses can
win major contracts using Internet collaboration
networks
by Ken Thompson
TheBumbleBee
http://www.bioteams.com/
Small businesses are effectively excluded from
the global economy.
Small businesses from many different
industries, both traditional and high-tech, have
discovered a new way for them to succeed in the “global economy.”
It involves collaboration on large proposals,
R&D and fulfillment of orders assisted by
relatively low-cost, virtual collaboration
technology.
Traditionally many small businesses join
supply chains centered on larger companies.
Unfortunately the companies at the bottom of
such supply chains are often treated as commodity
players and replaced with cheaper alternatives
when the opportunity arises.
Some brave small businesses have attempted to “go it alone” by creating
sophisticated Internet e-business architectures
which directly link them to their major customers
and partners.
However the expense, risk and sheer management
effort involved in this approach put it beyond
the reach of most.
Virtual Enterprise Networks (aka VENs)
give small businesses scale
The “third way” which companies are
discovering is to join “Virtual
Enterprise Networks”
or VENs with other like-minded but complementary
businesses to market, sell and deliver collective
offers to the market beyond what the individual
companies could offer by themselves.
In addition these VENs are also undertaking
significant collaborative product development
work, often in partnership with applied research
institutes and universities, which would be
beyond the reach of the member companies
individually.
For example, a group of UK Engineering
companies are using the VEN approach to
collectively bid for many-million pounds of work
per annum from a large European Customer. Like
many corporates this customer has a supply chain
rationalization (aka small supplier reduction)
program which would stop them dealing with any of
the companies individually.
Another example is a group of European
component manufacturers who used VENs to move up
the value chain away from contract-specific
components to branded product solutions in the
face of stern cost-based competition from
Czechoslovakian companies exporting into their
home market.
A third example is a group of Mexican
manufacturers who used a VEN to support their
entry into a new, more sophisticated market (the
U.S).
So what exactly is the “Value
Proposition”
for a VEN?
A VEN connects businesses into peer networks
that are supported by appropriate technology to
give them the capabilities and competitive
advantages of global enterprises particularly:
While exploiting their inherent competitive
advantages in being able to be more agile in
areas such as:
So what are the critical success
factors for making a VEN a success?
All the experience points to four main ones:
CSF1. Not over-complicating
the technology support!
The surprising thing about virtual enterprise
networks is that the technology support companies
need to get started and win collective new
business is neither complex nor costly.
When companies are starting to collaborate all
they really need is a simple web-based
collaboration platform which they can access from
their companies (while traveling) which allows
them to securely communicate, schedule, discuss
and work on shared documents.
Typically numerous suppliers offer such
software as a hosted, pay-per-use service, which
requires no software, installed at any of the
client PCs.
Companies operating in a network also need
access to good shared business applications such
as campaign management/CRM –
these applications must be web-based as networks
of small companies do not have shared IT
infrastructures.
CSF2. Taking “Network Governance” Seriously
The biggest concern a customer will have in
dealing with a network is who is accountable when
things go wrong (and can I sue them if it has to
come to that!).
Also customers want to treat the network like
a single entity not like a collection of
different companies. Thus they need to see single
point of contact, seamless business processes and
common values from a network.
This can all be grouped together under the
term “Network
Governance.”
Networks which do not invest in building this
typically unravel in their first sales pitch to
any large customer once the customer's
procurement department starts asking probing
questions.
“Marriage of
Convenience networks”
rarely win collective contract work from major
organizations.
CSF3. Development of Common
Collaborative Working Practices
A virtual enterprise network is a virtual
team. However, it is made up of individuals from
many different organizations with different
ambitions, IT awareness, business cultures many
of whom do not know each other well.
It is therefore a classic Virtually Networked
Team and as such needs to agree the way these
people will work together, make decisions, handle
conflicts, share information and use the virtual
collaboration technology.
An aspect of VENs which seem to differentiate
them from other forms of networking is the
willingness of the members to invest in the
development of these shared working practices.
Without such practices it is unlikely that
trust will grow in the network to the extent
necessary to achieve anything significant.
The first conflict that happens will probably
destroy the network.
Strange as it may seem it is sometimes the
appearance of the first good business opportunity
that destroys a network as members revert to
non-collaborative styles with the smell of the
money!
CSF4. “ABC” Roles
The most successful virtual enterprise
networks are based around 3 key roles, which can
be remembered using “ABC.”
“A” is for the Architect
who knows what the network of companies can (and
cannot) deliver. The Architect is also
responsible for finding companies to fill gaps in
the virtual supply networks needed to deliver
specific customer opportunities.
“B” is for the Broker who
sources potential customer opportunities for the
network and then works closely with the Architect
to qualify them and configure the right virtual
teams to bid.
“C” is for the Coach who
works with the individuals in the different
companies to build trust, design accountability
structures, resolve issues, address conflicts of
interest and build them into effective
cross-company teams.
Ability to collaborate will be the defining
skill for successful businesses in the future
It used to be said that the ability to learn
quicker than your competitor was the only skill
that would guarantee your survival (Arie De
Geus).
The small-medium businesses, who are operating
virtual enterprise networks (aka VENs), are
demonstrating that real competitive advantage
lies in learning to collaborate better.
About the author
Ken is recognized as a leading expert in the
emerging area of Virtual Teams, Supply Chains,
Networks and Communities. Ken also helps
distributed business teams in medium and
large-sized organizations become successful
through a unique approach to team design and
workflow. His strategy includes the use of key
sets of team dynamics, multiple coaching
interventions and the effective integration of a
small toolkit of virtual collaboration
technologies.
http://www.bioteams.com/
>> Article Source: http://www.Marketing-Seek.com
<< Back to articles
|
