PRO-VE 11 - Special Panel Session on Next Generation Collaborative Networked Organizations

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Next Generation Collaborative Networked Organizations
3rd Edition -Special Panel Session

3rd Edition
SPECIAL PANEL SESSION ON
Towards the Next Generation Collaborative Networked Organizations:
International Challenges, Trends and Research Opportunities

“Value Co-creation & Co-Innovation Strategies in
Collaborative Networks: Emergence in different Industrial Domains”
Special Session Organizing Committee
David Romero (ITESM, Mexico City), Ricardo Rabelo (UFSC, Brazil), Alexandra Klen (Axia),
Leandro Loss (Axia), Arturo Molina (ITESM, Mexico City), Fabiano Baldo (UFSC, Brazil),

Universidade
CNOs
Federal
Case Studies
De Santa
SIG
Catarina

PRO-VE’11
São Paulo, Brazil , 17-19 October 2011

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Index

• Foreword
– David Romero, Panel Chair
• Aims and Scope
• Presentations:
– Panelist 1: FAGOR GROUP´s Innovation Network, Spain
• Luis Berasategi and Xabier Gorritxategi
– Panelist 2: Dynamic and Collaborative Business Networks in the Fashion Industry, Italy &
Portugal
• Ahm Shamsuzzohaa, Timo Kankaanpaaa, Luis Maia Carneiro, Ricardo Almeida, Andrea Chiodi, and
Rosanna Fornasiero
– Panelist 3: Griffith University School of Information and Communication Technology, Australia
• Ovidiu Noran
– Panelist 4: The Portuguese Via-verde Case Integrated Mobility Services, Portugal
• Luís Osório
– Panelist 5: Evaluation of Collaborative Networks: Case Study of Brazilian Virtual Enterprises,
Brazil
• Paulo Stecklow, Ralfh Varges Ansuattigui, Antonio José Caulliraux Pithon
– Panelist 6: VIRTUAL CITY ERP NETWORK: A common ICT platform for enhacging buiness
collaboration, Colombia
• Manuel Fajardo
– Panelist 7: Aprovale e Aprobelo, Brazil
• Rolando V. Vallejos, Kadígia Faccin, Janina Macke
• Discussion Questions
• Conclusions
• Acknowledgements
• Event Pictures

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Foreword

Continuing the success of the 1st and 2nd Special Panel Session on “Next Generation
Collaborative Networked Organizations: International Challenges, Trends & Research
Opportunities”, as part of PRO-VE 2009 and PRO-VE 2010 - Working Conference on Virtual
Enterprises; this year for 3rd time in a roll, the special panel session took place as part of
PRO-VE 2011 edition, offering academics and industrials the opportunity to continue studying
current collaborative practices in emerging and established Collaborative Networked
Organizational forms in the market and society.
The case studies presented in this third e-book are intended to keep providing a set of real
practical examples of Collaborative Networks manifestations in different domains and
application environments, serving both the purpose of capitalizing on successful value
co-creation and co-innovation strategies as well as drawback approaches in order to help
network managers to improve their strategic planning and management towards more
effective and efficient processes to generate value and innovate in collaborative endeavors.
As the Collaborative Networks scientific discipline continues contributing with innovative
and competitive concepts, methods, models and tools to different research and business
practice communities to cope and respond to major challenges in times of economic
turbulence and rapid societal changes, documenting and disseminating how this large body
of empirical knowledge is being strategize (instantiated from theory to practice) by industrial
generals becomes a must to gather all possible contributions from successful and non-
successful strategies to develop better reference models and toolkits to support collaboration.
Main conclusions reached during this lively interactive forum appointed in the direction of keep
moving the experimentation beyond academic laboratories (theory) into living labs (practice)
to put into real test all collaborative theoretical innovations, and this e-book stands for a third
effort in this path after the publication of the first and second e-books in 2009 and 2010.
David Romero, Panel Chair

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Panel Aims and Scope

• The panel session was organized with the intention of sharing not just successful
CNO case studies stories, but also non-successful ones, aiming to make
the most of their positive and drawback experiences and lessons learned
from a group of practitioners for the establishment and management of
the Next Generation Collaborative Networked Organizations.

• During the panel session, the audience and the panelists developed a better
understanding on the current issues on creating and managing collaborative
networks in different domains and applications environments, and together
crafted potential solutions to face these challenges based on all the participants’
knowledge and experience.

• The panel session covered different regional manifestations of collaborative
networks, introducing a number of successful and non-successful industrial
cases that have been studied from both theoretical and practical perspectives
in order to capitalize on best practices and common errors (experiences)
towards an enhanced collaborative networks strategic planning and operation
management.

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FAGOR GROUP´s
Innovation Network

Luis Berasategi: Innovation Researcher & Practitioner
lberasategi@ikerlan.es
IKERLAN S. Coop.

Xabier Gorritxategi: Innovation Director
xgorritxategi@fagorelectrodomesticos.com
FAGOR S. Coop.

PRO-VE’11

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Panelist Short Biography

My professional background:
• Engineer … and frustrated musician.
• Since 2001, in IKERLAN´s Strategic Innovation.

My real job:
1. Make new friends with the innovation staff of the company.
2. Think up good questions that help my new friends to find
good answers.
3. ‘Know who knows’, contact them and introduce to my new
friends.
4. Organize happenings to meet all these people.

Our blog
• Blog: http://redesdeinnovacion.net/

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Agenda

• Introduction

• Network Overview

• Network Creation

• Network Operation

• Network Management

• Conclusions

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Introduction (1/3)

FAGOR´s History
A cooperative group called Fagor
founded more than 55 years ago,
a true social innovation, and a revolution at the time.

ECONOMICAL BENEFIT + SOCIAL BENEFIT

FAGOR´S Mission
A European group, made up of people
committed
to offering innovative products
solutions
to improve the quality of life of
people in the Home

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Introduction (2/3)

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Introduction (3/3)

Sector context:

• Lowering of retail prices

• Increase in prices of raw materials

• Concentration of the distribution

• Loss of negotiating power

• Appearance of Low Cost manufacturers

• Slow-down of Western European markets

• Manufacturers moving to Low Cost Countries

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Network Overview (1/3)

Billing
Business group
€ 10.459 million
made up of 210
companies 7th in the ranking in
Spain

Near 90.000
workers

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Cooling, Hobs, Kitchens,
Front loading Top loading Front loading
Products Washing-machines, Washing-machines,
Washing-machines,
Dishwashers, Top loading
Home Tumble dryers,
Ovens, cookware, Washing-machines
Dishwashers,
solutions Comfort, Ovens,
Furniture Microwave ovens,
Extractor hoods

SP FR PL

Electronics, Electronics Gas
Thermodynamics, Design,
Knowledge Vibrations and noise, Interaction design
Mechanical Engineering,
Nutrition,
Technology Design, Interaction design,
Anthropology

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FAGOR
GROUP
Innovation
Network

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Network Creation (1/4)

axis1: cross & axis2: efficient &
international open

our networked
collaborative
innovation
system

based on a practical axis3: Home appliances & axis4: multi-product, &
multi-technology
and open Home solutions multi-competence
methodology adapted
to our needs

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®TALAI-SAREA REFERENCE MODEL

INTERVENTIONS DIRECTORY

INNOVATION CNO ACTIVITY MODEL

INNOVATION CNO ACTOR MODEL
®TALAI-SAREA METHODOLOGY

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INNOVATION CNO ACTIVITY MODEL

THE ORCHESTATION OF INNOVATION CNO

THE STRATEGIC THE RESULTS
ORIENTATION THE INNOVATION FACTORY MEASUREMENT

THE COLLABORATION SPACE

THE DNA OF THE COLLABORATIVE INNOVATION

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INNOVATION CNO ACTOR MODEL

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Network Operation (1/2)

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VBE: INNOVATION MANAGEMENT

WHAT MUST WHO KNOWLEDGE AREAS
WE KNOW ? KNOWS?
KNOWLEDGE PARTNERSHIP
PVC
PVC: KNOWLEDGE AREAS INTELLIGENCE

RESEARCH & SIGNS
EXPLORE INTERPRET
BUSINESS OPPORTUNITIES
VT
VT: NEW CONCEPT IDEATION

IDEATE ASSESS &
CHOOSE IDEA CONCEPTS
PATENTS
VO
VO: PRODUCT INNOVATION
PROJECT CONTINUE/
DEVELOP HOLD/KILL
DECIDE PRODUCT CONCEPTS
PRODUCT PROTOTYPES

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INTRA Innovation Network Orchestration
FGkA: KA Coordination Meeting (each KA)
BGiC: BG Innovation Committee (each BG)
FGiF: Innovation Forum
FGiC: Innovation Committee IF IF

IF IF

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INTER Innovation Network Orchestration
KIpB: Knowledge Intensive partners board

BGsP: Business Group strategic partnership

IF IF

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INTER Innovation Network Orchestration
KIpB: Knowledge Intensive partners board

BGsP: Business Group strategic partnership

IF IF
PERSON OPEN channels Orchestration
LLmB: Living Lab management board
CAsN: Cooper-Activistas Social network

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Network Management (1/4)

Which main lessons have been learned as a CNO/VBE manager?

• The fundamentals of the strategy should be transparent to the members of
the CNO to leverage resources and intentions.

• An efficient and not excessively bureaucratized focus is needed when deploying
the Governance mechanisms, while bearing in mind that orchestration must be a
never-ending task throughout the existence of the CNO.

• To create and strengthen ties and relationships with agents outside the organization
avoid hiperconectivity and promote decentralization permitting “free-radicals”, people
that mistrust bureaucracy but believe in what they do, to act with independence.

• To manage very different cultures respecting openness and collaboration in
innovation within the CNO (among countries, among BGs, between BGs and KAs,
among partners, etc.) requires leadership.

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Which managerial best practices have been adopted along the CNO/VBE life?

• The project team, led by the Innovation Director with the support of a process
facilitator, which coordinates interventions for the deployment of the CNO. Also helps to
build a sense of partnership and cooperation, by fostering an atmosphere of trust
and collaboration amongst network actors in the various scenarios.

• The framework serves to bring order to all the networked activities and actors with
an integrated vision and permits us to share a common language amongst
partners.

interventions are small and rapid actions that have been launched early and
• The
continually throughout the life of the project. They are iterative and incremental with
the emphasis on laying the foundations of the Innovation CNO operation.

• The development of managerial tools has enhance efficiency as:
1) the innovation roadmap; and 2) the innovation portfolio

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What problems are you facing in the administration of your CNO/VBE?

Solutions orientation requires new knowledge & new actors
Intra-entrepreneurs supported by general manager
New resources allocation
Empowerment of “Free radicals” inside/outside the organization
Business Model innovation

Non linear process and non tangible assets
Common language setting and use
Innovation activities and actors recognition and integration
All produced assets in the innovation portfolio
Networked Innovation scorecard (to improve)

High complexity of the network:
Network of network design and maintenance (to improve)
Templates and ways of doing kept under the same format to enhance efficiency.
Logic and flexibility focus

IP management with partners
Clear and shared IP strategies definition (on going)
Lawyers intervention

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What problems are you envisaging in the administration of your CNO/VBE?

• What happens if the leader goes? How to maintain necessary skills in the CNO?

Comprehensive set of skills. How to implement OI. Mortara et al, 2009

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Conclusions

Where it is headed the FAGOR GROUP´s Innovation Network in the future?

• Sustenance:
• of non-stop orchestration activities oriented to effectiveness and results.

• Enhancement:
• of buy-in of the general framework from the intra-organizational network.
• of trust amongst all agents from the inter-organizational network.

• Transformation:
• from a product oriented organization to a solution oriented organization.
• from a firm-centric organization to a person-centric organization.

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Dynamic and Collaborative Business
Networks in the Fashion Industry

Ahm Shamsuzzohaa, Timo Kankaanpaaa, *Luis Maia Carneiro,
Ricardo Almeida, Andrea Chiodi, Rosanna Fornasiero
luis.carneiro@inescporto.pt

University of Vaasa, Finland; INESC Porto, Portugal;
Synesis Consortium, Italy; CNR-ITIA, Italy

PRO-VE’11

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Agenda

• Business Case 1: Textile and Apparel

• Business Case 2:Footwear

• The Net-Challenge Framework

• Conclusions

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Business Case 1:
Textile and Apparel Next Generation Collaborative Networked Organizations

• Network members (initial situation):

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Business Case 1:

• Context
- This business is related with the production of uniforms
that are made of three pieces of clothing.
• Members of the Business Community (12 members):
Garment
Fabric Dying Components Manufacturing Logistics
design
(Riopele) (1) (3) (3) (3)
(RFS)

• Concept and production
- Engineer-to-Order
- Objectives
- To produce thousands of pieces;
- To respect functional and technical aspects;
- To get good prices and the best delivery dates.

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Business Case 1:

• Relations between members:
– Customer supplier in the begining, evolving to higher levels of
collaboration.

• Governance model:
– Riopele is assuming the coordination of the Business
Community and its operating costs.

• New members:
– New members are carefully selected to join the community.
– Members have to be qualified before they can be selected for
critical operations. Qualification information can be shared.

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Business Case 1:

Form Phase

Goal:
• To create a quotation for a Business Opportunity;
• One VO is created for each Business Opportunity.

Actions:
To define main activities and its dependencies;
Collaborative planning assumes a critical role;
To establish the characteristics for each activity:
– Starting date and finish date;
– Partial deliveries;
– Responsible partner;
– Price.

Critical Partners:
Fabric Partner, Printing Partner (Dying), Manufacturer.

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Business Case 1:

Adopted methods and tools
(from the Net-Challenge Share ideas

framework) Performance
management
Share
documents
and technical
files

Monitoring & Exchange
Event user to user
management messages

NetX-
TechFashion

Promote
Collaborative
forums and
planning
blogs

Classify and
Organize
organize
physical
major
partners Publish meetings
and
promote
the
business

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Business Case 1:

Performance Management

Key Success Factors:
• Lead Time;
• Response time to quotations;
• On-time delivery;
• Cost;
• Quality.

Key Performance Indicators:
• Percentage of on-time deliveries;
• Lead time;
• Response time (time needed to produce a customer quotation in response to
a request for quotation);
• Quantity promised;
• Quality (in the material, in the final product);
• Percentage of rejections.

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Business Case 2: Footwear

• Today the footwear market requires more and more high
value products where aesthetic and functional features
need to be merged together.
• Production of high value added shoes in terms of comfort,
healthy and sustainability requires skilled and experienced
actors to be involved along the whole value chain.
• Need of flexible networks to answer to many small orders
–lot 1.
• Footwear production is very much modularized and SMEs
are collaborating and adapting production to the needs.

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Synesis can offer to its customers a full support over the complete life
cycle of footwear, starting from conception to production and distribution.
Focus is on global market for customized products:
• Product customization is based not only on style but also on structure of
the product.
• Special attention is given to customization aspect that strongly depends on
morphological differences, e.g. body measures and proportions.
Specific target groups are: fashion shoes, healthy and personalized
shoes.
Italian Converter is a fabric provider which can be both:
• Supplier of Synesis - when Synesis has to produce a shoe collection in
ETO scenario for a customer.
• Customer of Synesis - when Italian Converter has to test some
fabric to see its applicability in the footwear sector.

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The companies of the business case in the overall scenario...
FOOTWEAR PRODUCERS,
STYLISTS LAST MAKERS

MATERIAL SUPPLIERS LAST
EXTERNAL DESIGNERS MAKERS CAD-CAM SUPPLIERS
Italian Converter FACTORY

LEATHER CAD/CAM/CAE
DESIGN
SUPPLIERS
(TANNERIES)
LASTING &
INJECTION
CUTTING MOULDING MANUFACTURING
SYNTHETIC
MATERIAL
SUPPLIERS STITCHING FINISHING
&
SOLE, INSOLE, PACKAGING PACKAGING
ACCESSORIES SUPPLIERS COMPONENT INTEGRATED PRODUCER
MANUFACTURERS DISTRIBUTION
Synesis NETWORK

MACHINE TOOL BUIDERS
EXTENDED ENTERPRISE

ERP, PDM SUPPLIERS
REGISTERED CONSUMERS
CUSTOMERS

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Needs of the companies:

• Objectives
– Sharing information and data on product and components both
during design and production.
– Increase speed in comunication among different partners
producing different components.
– Increase flexibility during operations to answer quickly to customer
requests.

• New members in VO are invited to the BC by members already in
the community.

• Performance management of partners to be monitored.

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Screenshot of the Product Concept Module:

General info on the product

Detailed info on components

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ETO scenario – Form VO – description of components:

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ETO scenario – Operate VO – Deploy order during
manufacturing process:

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CTO -Make a product variant:

• Making a customized product
variant basically depends on
the need of specific customer
requirement.
• Customer can configured
a variant through selecting
component/feature from
the basic platform. In making
a product variant, VO broker
calculate the price and lead
time and send the quotation
to the customer.

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• Benefits:
– Shorter response times.
– Flexibility.
– Easy access to information from different user.
– Shared environment where to find.
– Synesis, in its role of “innovation supporter” for SMEs could.
help them to use such a platform.

• Barriers/difficulties:
– Low IT background in SMEs.

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Net-Challenge Framework

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Focus in the Development of
Methods and Tools Next Generation Collaborative Networked Organizations

• Complex products:
– Large number of components and/or
– Customized products.

• Non-hierarchical networks:
– No single organization dictating or defining the rules.
– Collaborative decision making.
– Where SMEs can avoid getting their margins squeezed by large
companies in traditional supply chains.

• Examples of non-hierarchical networks:
– Business Communities that are not controlled by a large company.
– Virtual Organizations where several organizations share the risk
and the decision making process.
– Different organizations coordinate different VOs (projects).

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NET-CHALLENGE: ICT Platform

Product Monitoring
Partner Concept Collaborative and
Search & Planning Event Product

Management
Performance
BOM Management Platform
& CTO

VO Formation and Operations Management

Business Community Management

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Community management and
Collaborative planning Next Generation Collaborative Networked Organizations

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Event management

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Product configurator

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Conclusions and
Future Developments Next Generation Collaborative Networked Organizations

• Business Communities were promoted to allow SMEs to Form VOs
to respond to market opportunities and avoid the dominance of large
companies.
• The ICT tools allow the quick and easy creation and operation of such
VOs.
• Specific scenarios for ETO and CTO were developed for complex
products design and manufacturing.
• A product configurator was used to facilitate the configuration and
customization of products.
• In the analysed cases the qualification of the claimed capabilities
by community members or independent entities was considered
an important factor.

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Griffith University
School of Information and
Communication Technology

Ovidiu Noran
O.Noran@griffith.edu.au

Griffith University
Brisbane, QLD Australia

PRO-VE’11

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• Dr. Ovidiu Noran is a lecturer at Griffith University (IT, Enterprise Architecture).
• He is a Structural and Civil Engineer, Master of Info & Com Technology and
has a PhD in Enterprise Architecture.
• 10 years commercial experience in building and IT consultancy.
• 7 years teaching / research in IS / IT / Enterprise Architecture.
• Author of several book / chapter / journal / conference publications on CNOs.
• Member in program committees, professional associations, standardization
committees.
• Interested in developing methods to create specific methods for the creation
and operation of CNOs and their VOs in various areas: manufacturing,
environment, disaster management, etc.
• Other areas of interest: service oriented architectures and interoperability,
knowledge management, serious games application to Enterprise Architecture.

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Introduction

This case study presents the application of Collaborative Network (CN)
and Virtual Organisation (VO) concepts in the tertiary education sector.
Although the scenario presented does not fit completely in the current
definitions of these concepts, adopting CN and VO concepts has
significantly benefitted the project.

Contents:

• Network Overview
• Network (and VO) Creation
• Network (and VO) Operation
• Network (and VO) Management
• Conclusions

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Network Overview

Griffith University comprises several schools located at different
geographical locations. The School of Information and Communication
Technology (ICT) within Griffith University comprises three members
(previously within a Faculty of IT, now dissolved) situated in three
locations. Griffith University schools act as a Collaborative Network that
is able to create Virtual Schools such as the School of ICT.

Uni (CN)
ICT VS H I
B E
D A Loc4
Loc2 F G
C

Loc1
Loc3

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Collaborative Network Creation Reasons

• To meet changing conditions, there was a need to create preparedness
within the Faculty and University to offer multidisciplinary / combined
programs.

• This should happen promptly when an opportunity is present.

• The organisation (‘school’) offering the programs should look like a
single unit from outside (single point of contact, public image, etc.).

CONCLUSION: There was a need to create a structure similar to
a Collaborative Network creating Virtual Organisations with various
life durations to meet opportunities in tertiary education.

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ICT Virtual School Creation Reasons

Pre-Virtual School situation: three organisations with similar profile and
under same Faculty and the University ‘umbrella’, however:

• products (programs, courses) with the same name having different structures,
e.g. ‘Bachelor of Information Technology’ containing different courses and
courses with same name but different structure.

• different organisational structure – inter-operation problems.

• different funding approach by the University – frictions between schools.

• different approach to clients (student intake) – different performance.

• competition rather than cooperation (e.g. rejecting students when full rather
than sending to the other two schools!).

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Collaborative Network / Virtual School Creation Process

• Insufficient previous experience available within the Faculty or
University.

• Initially driven from above (Pro Vice Chancellor) and via Human
Resources / ad-hoc.

• Subsequently Working Party and Implementation Committee /
subcommittees created.

• Initial lack of trust by schools’ staff fuelled by improper consultation.

• Lack of a roadmap / method obvious in initial meetings.

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Collaborative Network / Virtual School Creation Process

• Subsequently an Enterprise Architecture advisor provided a three-
stage method creating a specific activity set for the project at hand:
– Elicit important concepts / entities.
– Create models detailing the interactions between these.
– ‘Tell the life story’ of the project and product (CN and VOs) = create
activity models showing ‘what to do next’ (always the biggest problem).

• CN and a VO were created using the models (albeit lack of model
detail triggered teething problems).

• CN formed directly by schools within University (Faculty
subsequently dissolved for different reasons).

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Collaborative Network Operation – Specific Aspects

• The schools typically have less autonomy than enterprises on
whether to join or leave the collaborative network. However,
it is their decision on partner selection and product creation.
• When an opportunity is identified (e.g. market for programs / degree
requiring multidisciplinary knowledge), relevant schools get together
and design (curriculums of) the product(s) required.
• The options available are 1) offer product(s) under an existing school
name (lead partner) or 2) create a ‘virtual school’ offering it.
• Whichever option is selected, the resources belong to
the participants, local management structures do not change
and participation duration is linked to the products’ life cycles.
Hence, VO principles are observed to a large extent.

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Virtual School Operation - Specific Aspects

• An additional management layer is added to the existing participant
schools management – typically a Head of (Virtual) School and a
(Virtual) School Committee (plus other committees only if necessary).

• While not operating under own names during the Virtual School, after
its dissolution the participant schools are able to promptly resume
operation under initial conditions.

• Participant schools also offer ‘local flavours’ of products – e.g.
specialisations in Virtual School programs available only locally.

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Lessons Learned (from problems encountered):
During CN / VO creation:

• Network and Virtual Organisation creation and operation require a
method understood and agreed upon by all stakeholders.

• The models created for this purpose must be detailed
to the necessary level.

• Especially the human aspects – roles, duties, etc. must be clarified in
advance to avoid chaos on VO operation start.

• Thus, proper time and resources must be allowed for
the Collaborative Network creation and for building preparedness
for prompt VO creation.

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Lessons Learned (from problems encountered):
During CN / VO operation:
• Conflict management must be addressed during CN/VO creation,
not operation.

• Trust must be gained between participants within the CN in advance.
Human processes cannot be successfully rushed.

• Infrastructure (high speed link, teleconferencing) help but cannot
always substitute face to face interaction – especially the top layer
(for VO) management must travel and spend time in all participants’
locations.

• Enforcing product consistency at the lowest detail is not feasible
here.

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Some current and future problems and challenges:

• Interventionist style of top layer management, sometimes required
to get things moving or reach agreement - resulting in conflicting
perceptions of staff about its role, authority, etc.
• Reduced, but still significant effort required to maintain consistency
in the products offered by and resources allocated to participants.
• Continuing low level of financial independence / discretionary funds
of the network and VO from the University (contrary to plans and
expectations).
• Change of high-level policies at University level following legislative
changes due in 2012 in Australia (changes in CN / VO membership).

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Conclusions

Although perhaps not perfectly fitting the typical descriptions,
adopting CN and VO paradigms in this tertiary education project has
helped significantly as the wealth of experience in this domain could
be put to good use. Thus, among others:
• it has given a sense of direction and brought structure to the project.
• the potential problems were identified in advance, most were solved.
• solutions / scenarios were able to be built based on previous
CN / VO case studies.

From our point of view, the CNO and VO concepts and experience can
be used and benefit projects in situations that do not always seem
to completely match the current definitions provided.

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The Portuguese Via-verde Case
Integrated Mobility Services

ISEL
Luís Osório
aosorio@deetc.isel.ipl.pt

ISEL/GIATSI

PRO-VE’11

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History Sketch

• The Via-verde company was created in 1985
to manage highways and bridges toll payment.
• It was a partnership between Brisa (Highway
concessionaire) and SIBS (bank clearing company).
• The Via-verde brand becomes associated to electronic
payment in highways.
• By 2001… The Via-verde company/service was
exclusively tolling.
• Meanwhile other concessions were created joining
the Via-verde and making this way a National wide
electronic toll payment service.

ISEL

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CNO Creation

• In 2001 Brisa developed in a partnership with Galp and
Caixa Geral de Depósitos (CGD bank) a new business
model:
• Extend the electronic toll payment to parking lots and gas
stations;
• The toll payment is based on an on-board-unit (OBU)
based on the Dedicated Short Range Communication
(DSRC) technology based on 5.8 GHz;

• The first approach was difficult considering:
• The underlying technology complexity (costs).
• Organizations were not prepared (fear to share existing
profits; misunderstanding potential business growth).

ISEL

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Identified Problems

• In 2002, Brisa has established an innovation department
now Brisa’s owned independent company,
Brisa Innovation and technology (BIT).

• Identified problems:
• The business model missed to construct a common
understanding about the value to use DSRC based
electronic payments in parking lots and gas stations:
• Clients that pay close to the dispenser do not go to
the forecourt (gas station) shop.
• Costs for clients to adhere to the new service were not
accepted.
• Participating organizations had to share new costs
(technology and payment transaction costs).
ISEL

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Understanding Problems (1/2)

• A first R&D project “Brisa-Park” was developed in a
partnership between Brisa Innovation and ISEL/GIATSI
to understand the problem and propose a new strategy:
• The key DSRC was exclusive from a unique technology
supplier (Q-free);

• Costs to adapt parking barriers and parking management
systems to cooperate with Via-verde were very expensive;

• Six different parking infrastructure architecture were
identified, making integration efforts expensive, complex
and sensitive to failure.

ISEL

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Understanding Problems (2/2)

• In gas stations the Via-verde underlying technology
became many times no operational:
• Gas station concessionaires didn’t see too many advantages
to promote the new payment service.
• Printer paper was not substituted on time making the payment
with Via-verde un-operational.

• A poor perception of mutual advantages of participating
organizations:
• Maintenance management became also a problem considering
the complex interdependency among installed systems.

ISEL

copyright 2011

Rethinking the Network (1/2)

• A process to develop an open technology infrastructure
was initiated:
• Obtain competencies in DSRC technology.
• Invitation of a second supplier for the DSRC technology:
• Interoperability problems resulting from specific
implementations (“proprietary” standards).
• The cost of a road side equipment (RSE) also known
by antenna reduced to 1/3.

• To reduce investments of new adhering organizations:
• The new open infrastructure (ITSIBus SOA) was deployed
(integrated) by Via-verde as a service (monthly renting).

ISEL

copyright 2011

Rethinking the Network (2/2)

• The Brisa Innovation and Technology (BIT) company
plays the role of technology integrator (provider) for
the Via-verde network.
• In a partnership with parking and gas station system
providers.

• The business relations among the network partners.
• Contractual relations follow predominantly manual
procedures.
• The technology management is managed by BIT.

ISEL

copyright 2011

The future

• An integrated workbench to manage such a
collaborative network (CNO).
• Tools to support:
• (creation in this case was a long process difficult to model
and automate ?).
• Manifestation/negotiation/joining.
• Operations management.
• Evolution (new services).

• Establish a novel preparedness level (VBE).
• IT infrastructures prepared for the cooperation.
• Adaptable (preferably dynamically) to new services or
changes to existing services.
ISEL

copyright 2011


Evaluation of Collaborative Networks:
Case Study of Brazilian Virtual Enterprises

Centro Federal de
Educação Tecnológica
CEFET/RJ

Paulo Stecklow, Ralfh Varges Ansuattigui, Antonio José Caulliraux Pithon
paulo.stecklow@gmail.com, varges@globo.com, caulliraux@gmail.com

PRO-VE’11

copyright 2011

Panelists Short Biography

• Paulo Enrique Stecklow graduated as Electrical Engineer at Gama Filho
University and is obtaining a Master´s Degree in Technology at CEFET/RJ and
his research focus is Awareness in Work group.

• Ralfh Varges Ansuattigui graduated as Electrical Engineer at CEFET/RJ in
1984 and worked at The Military Institute of Engineering until the end of 2001.
After concluding a specialization and several other courses on the ICT area,
started to work as a Systems Analyst at The Technological Center of The Army
in Rio de Janeiro, Brazil, where he stays up to now. He is about to obtain a
Master’s Degree in Technology and his research focus is Knowledge
Management.

• Antonio José Caulliraux Pithon is a professor of the Department of Electrical
Engineering at the Federal Center of Technological Education in Rio de Janeiro
(CEFET/RJ), Brazil, where he heads the NTC research group. He obtained
his Ph.D. in Production and Systems Engineering from University of Minho,
Guimarães, Portugal in 2004. His focus of research covers collaborative
networks, knowledge management and awareness in CSCW.

copyright 2011

Agenda

• Prodweb overview.

• Prodweb creation – history and processes.

• Prodweb operation.

• Lessons learned and best practices.

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Network Overview

• Established in Passa Quatro, south of The State of Minas Gerais,
Brazil.
• Created in September 2008.
• Started with 4 members, presently has 13 members.

copyright 2011

Network Creation

Prodweb’s establishment was based on two determining goals:

1. Development of software and solutions for the web.

2. Management of sites and digital contents to promote its
customers on the web .

Prodweb strives for “quality and flexibility to serve –
unconditional support” to quickly meet their customers needs.

copyright 2011


CRM/HelpDesk

Communication Technology

P
Skype A
MSN R
Social Network T
E-mail N
E
R

copyright 2011


Main lessons learnt as Prodweb’s manager...

♦ The main conditions for success are:
- Perfect communication with customers;
- Shared common business ethic;
- Trust among members of the group.
♦ Physical proximity of members of the production team
facilitates:
- Quickly resolve disagreements;
- Provide better customer service.

copyright 2011


Best practices adopted:

• Service training;

• Quality of production;

• Frequent briefings / brainstormings to improve
communication and design;

• Production by iterations;

• Weekly face to face meetings.

copyright 2011


Currently detected problems are:

• Communication failures are major weaknesses;

• Difficulties operating in an abstract and virtual

environment;

• Collaborative climate is not a reality.

copyright 2011

Conclusions

Questions and research needs:

♦ Collaboration space (physical and virtual) is needed;

♦ Greater integration between virtual and physical group;

♦ Improve research on human aspects during interactions.

copyright 2011


VIRTUAL CITY ERP NETWORK
A COMMON ICT PLATFORM
FOR ENHANCING BUSINESS
COLLABORATION

Manuel Fajardo
manuelh.fajardo@gmail.com

Colombian Entrepreneur

PRO-VE’11

copyright 2011


• Mr. Manuel Fajardo currently is an independent speaker and consultant on
collaborative networks and value co-creation.

• Mr. Fajardo holds Bachelor degree in Systems Engineering and Master’s
degree on Knowledge Engineering from the Universidad Politécnica de
Madrid. Also, he is a certificated international coach on Balanced Scorecard.

• During 14 years he worked as the Chief Administrative Officer (CAO) of
ISAGEN, Colombian company dedicated to energy generation, construction
of projects, and commercialization of energy solutions.

• As a CAO, Mr. Fajardo had the opportunity to lead and manage high level
teams based on modern working practices towards the achievement of
business units operating as enterprise integrated processes. Particularly, Mr.
Fajardo was responsible for the project management to establish a corporate
collaborative strategy, and designing and implementing a virtual organizational
model at ISAGEN.

copyright 2011

Introduction

Initiative Drives

• High costs for consulters.

• A growing market in the software industry against a limit offer.

• Corporate Responsibility: Strategy & Society.

• Productivity and Competitiveness at Enterprise level and Regional level.

• Human Capital Potencial.

copyright 2011

City Framework (1/7)

ERP Implementation
Big companies case*
Cost : MM US$
Certification Cost/ employee: > US 5000
Capabilities: Own
Manteinance Cost/consultant/day: > US 600
Collaboration level: Few
Market: Dominated by 1 o 2 suppliers

• ERP Suppliers
• Software suppliers
• Hardware suppliers
• Professionals
• Consulting
Camarinha-Matos & Afsarmanesh, 2008

copyright 2011


ERP Implementation
SMEs Case*
Implementation cost: US1 Millón
Certification cost/employee: > US 5000
Capabilities: Own
Mainteinance Cost/consultant/day: > US 600
Collaboration Level: Few
Less than 5% with ERP solution

• ERP Suppliers
• Software suppliers
• Hardware suppliers
• Professionals
• Consulting
Camarinha-Matos & Afsarmanesh, 2008

copyright 2011


AN OPPORTUNITY TO COLLABORATE

THE IDEA

• Many SMEs and Big Firms decide to adopt the same ERP.
• Make their own market.
• Students and professional are in the base of the solution.
• Universities and support institutions play an important role.

.

THE COLLABORATIVE NETWORK PARADIGM
IS USEFUL AS A SOLUTION APPROACH

copyright 2011


Solution Approach – CHARACTERISTICS

• SMEs share the same platform over the Cloud.
• SMEs use ERP as a network service.
• The ERP implementation is not payed (this one is personalized).
• The generated productivity is higher than costs per use.
• Integrated enterprises, partners and support institutions participate in
a CO-CREATION process with market/society.
• CNO members are clients as well.
• In a near future, the CNO will sell its competence to potential clients in
an evolving process.

THE NETWORK POWER MAKES POSSIBLE TRANSFORMING
INDIVIDUAL EFFORTS INTO CITY INITIATIVES

copyright 2011


CITY INITIATIVE CHALLENGES

• Formalize public-private alliances within a long-time
frame perspective, but with results in the short-term.

• Generate high-quality jobs with ERP global and business
management certifications.

• Generate collective knowledge to transform them in city
assets for new developments.

GO FORWARD TO A NEW WAY TO WORK TOGETHER
BASED ON A HIGHER INNOVATION AND
SOCIAL STRUCTURE CONFIGURATION
WITH ECONOMIC SENSE

copyright 2011


BENEFITS
• ICT costs reduction.
• A collective leapfrog towards higher productivity.
• SMEs provided with global connectivity
• Achievement of city goals impossible to reach individually.

copyright 2011


WHY SOFTWARE?

Key factors:

• Community formation.
• Business growing.
• Promote communication between people, places and ideas.

WHY ERP?

Key factors for a digital platform construction:

• Productivity improvement.
• Making part of a global supply network.
• Facilitate experiences to customers.

copyright 2011


LONG-TERM GOALS GENERIC STRATEGY

1. Implement the basic software in 1. Network collaborative working.
SMEs alliances.
Base case = 300 SMEs 2. The ERP as a city service.
Implementation cost = US$ 0.00
3. Development of Triple-Helix
2. Provide support and maintainace (Academia + Government +
service in the ERP Industry).
Base case = 800 persons
Certification cost = US$ 0.00 4. Leadership, culture and human
capital.
3. Develop competences in
software development *

* See Capabilities Network Creation

copyright 2011


VALUE PROPOSITION CUSTOMERS
1. FREE ERP
• SMEs
2. Helpdesk + Cloud computing • Big firms
services • City
3. 50% reduction of consultation
costs

4. Intangible assets construction
based on knowledge.

copyright 2011


KEY PARTNERS
• Universities
• ERP supplier.
• Graduates + undergraduates
• Equipment (hardware) suppliers.
• Telecom suppliers.
• Public Institutions.
• Financial Institutions.

VALUE CONFIGURATION
CAPABILITIES
• Long-term public-private
• ICT services managed alliances (e.g. VBE)
based on ITIL© • Virtual community of certified
Governance. graduates (e.g. PVC) VALUE
• Project Management • Brokers, Projects (e.g. VO), PROPOSITION
based on PMI©. Teams (e.g. VT) and service
• Business analytics for management.
innovation. • Government Network
• Collaboration. • Strategy

copyright 2011


VALUE
VALUE CONFIGURATION PROPOSITION
CUSTOMERS

COSTS
Network Creation
REVENUES
Implementation
Network Creation
US$ 13,800,000.00
(300 SMEs)
SMEs (300 x US$15,000)
Education
Big firms (40 x US$50,000)
US$ 8,000,000.00
TOTAL US$ 6,500,000.00
(800)
Cloud computing
Network Operation
US$ 7,500,000.00
Year 1
Communications
Pay per Use
US$ 4,000,000.00
US$ 51,400,000.00
Staff (5%)
US$ 1,665,000.00
TOTAL
US$34.965.000.00

copyright 2011


Challenges ahead… Leadership

• Resolving conflicts of
Institutional interest.
• Avoid the “NIH”
syndrome.
Knowledge • Collective interests
• Combine different preservation rather
institutes in the same than individual
project. interests.
• Awareness about • Find sponsors. • “Holism” and long
networks nature and • Universities network term development.
potential. as a VBE with active
• Methodologies and members.
practice deposition.

copyright 2011


Reasons for belonging to the alliance…

Organizational

Financial/
Social
Economical
Trust Perspectives

Behavioral / Technological
Management

Msanjila & Afsarmanesh, 2008

copyright 2011


Organizational

Financial/
Social
Economical
Trust Perspectives
SMEs
• PMI project practices.
• ITIL service standards.
• Certified consultants.
Behavioral / Technological • City project.
Management

Undergraduate and Graduate
• City project.
• Perspective and mobility.

copyright 2011


Organizational

Financial/
Social
Economical
Trust Perspectives
SMEs
• Members contributions
• Productivity higher than
operational cost
Behavioral / Technological • Free ERP Implementation
Management

• Free certification.
• Competitive returns.

copyright 2011


Organizational

Financial/
Social
Economical
Trust Perspectives

SMEs
• ERP world‐class.
• Digital platform.
• Preparing for the future.
Behavioral / Technological
Management

• Global knowledge.
• New access.
• Professional formation.

copyright 2011


Organizational

Financial/
Social
Economical
Trust Perspectives
SMEs
• Ethic code.
• Good management code.
• Members recognized by
Behavioral / Technological their economic authority.
Management
• Ethic code.
• Good management code .
• Possibility to be a
shareholder.

PRO-VE 11 - Special Panel Session on Next Generation Collaborative Networked Organizations

PRO-VE 11 - Special Panel Session on Next Generation Collaborative Networked Organizations

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