Collaborative Strategies

Innovations in E-Business
Customer
Service

Catalysts
of
Innovatio
Technolog n Total
y Quality
Enhancem Manageme Botkins, p. 35-43
 Product Development
Bringing New Ideas to Market

 Define Your Idea

 Assess Your Idea

 Develop a Prototype

 Find a Manufacturer

 Finance Your Invention

 Name & Packaging Your Product

 Scams to Watch Out for

 Expanding Your Product Line

 Think like an Entrepreneur
 Pursue your idea as a business.
What's My Business Idea Worth?

 Know the real purpose of a business: Create and keep

customers. Deliver what you say you’re going to deliver.

 Develop your business vision and maintain clarity of who

you are and what you stand for

 Determine the right business description

 Determine your mission and metrics to measure

 Focus strategic planning, marketing, sales, policies and

procedures

 No one is great at everything; know when and how to bring

in the right people
 Transactional vs. Developmental
Collaborative Relationships
 Transactional: to accomplish specific tasks or transactions. Ex.
Eliciting the expertise of an advertising agency to bring a specific
product to market.
 Developmental: to establish a relationship of trust from which
mutually accepted goals and processes can be accomplished.
Ex. Small innovative company partnering with an incubator or
venture capital company in order to bring innovations to market.
Inventor’s long term relationship with marketing/accounting firm.
Value chain specialists whose primary business is partnering
actively advertise their services to potential customers are
typically skilled in establishing relationships; however, tend to be
more transactional in nature. Botkin, Mathews, p. 110
 The Value Chain
The process by
which a new idea Research
gets to market.
Development
Phase 1
Design

Production
Phase 2
Marketing

Sales
Phase 3
Distribution

Botkin, Mathews, p.27

 Roberts and Berry Model on
Acquiring Capabilities
Venture Capital Venture Capital

Joint Venture Educational Educational Acquisition

New but familiar

Acquisition

Internet market Internal ventures Venture capital

Market

capabilities
development Acquisitions Educational Acquisition
New and unfamiliar

Acquisition
Licensing

Internal Development Internal

(or Acquisition) Technological
capabilities Development Strategic Alliance
Existing

Acquisitions
Licensing

Existing New but familiar New and

unfamiliar
Technolog Roberts,p. 3-17
 The Collaboration Challenge
 “The twenty-first century will be the age of alliances,” says
Harvard Business School professor James Austin.

 “Well managed collaborations can help build brand identity

and goodwill, reinforce employee commitment, uncover
new business opportunities and sources of revenue, and
provide powerful opportunities for organizational learning”.

 Not just new business opportunities and revenue

generation, but brand building and social responsibility.

 “In these complex times, no organization can succeed on

its own. Nonprofits know they must become more
businesslike, and businesses know they must become
more socially responsible”. Ex.
Boeing, A New Leash on Life, Paypal
http://www.pfdf.org/collaboration/partners.html
 Reasons Large Corporations form
Relationships with Small Companies
 The small company specializes in an area that a large
company wants to move into.
 The risk is reduced because the small company has
already developed the idea or technology.
 If things work out between the two companies, the
relationship can be expanded down the line.
 Realization that few companies can excel at every stage
and phase of the value chain in a timely manner.
 Ex. Ebay’s purchase of Paypal,
PeopleSoft’s Acquisition of Vantive…..
Botkin, Mathew, p. 67
 Reasons Companies are teaming
up with Non-profit Organizations
 Exhibit social responsibility and good citizenship;
 Build brand awareness,
 Reinforce employee commitment,
 Even more important for companies whose
products are viewed socially or environmentally
conflicting. Ex cigarettes, alcohol, oil companies.
 Ex. Amoco, Ebay, Boeing offer philanthropic
fundraising
 Collaborative Continuum in
E-Business Partnerships
The following continuum plots various
e-business relationships in terms of
increasing amount of time, energy,
money, complexity, and level of
commitment and involvement. M
ss e S C
A f oc d M
s / r ze :
e s p P g ni i p
t
a so r l l
a sh g i i c s
s in ro h
ci e r
n rs e r te es e
s in r ch c rs
s o o n n n e a c t re s u n n e
e a e e n tr n in tu u so y
As liatSp h
C r tn G
a rt S li a Jo n B ut S O
w
fi P a P Al e O
V
 Collaborative Relationships in eBusiness
 Associate/Affiliate Programs: Organized to create virtual business
relationships, they are an agreement between two companies or
individuals to steer business in the form of Web traffic from one Web
site to another in return for compensation. ex. Half.com,
Affiliate story
 Sponsor: advertiser or supporter, can be of a program or specific
event,often a way for companies to demonstrate social responsibility
and support by supporting philanthropic or sporting activities ex.
iVilliage, Ericsson Tennis Open, Special Olympics, How Stuff Works

 Channel Partner: sales and marketing partnerships leveraging a

Value-added reseller (VAR) relationship, ex. Websense, Nortel

 Partnership: a blurred difference between partnership and strategic

alliance, however, partnerships are agreements to leverage from
each other’s expertise and may not be fundamental to core
business. Another definition requires some ownership. Nortel and
IBM, Blackboard.com, PeopleSoft, Amazon and ToysRus
 Collaborative Relationships in eBusiness
 Strategic Alliance: Mutually beneficial cooperative relationship where
decision-making is shared between the partners, and the parties achieve
strategic goals and value that they could not accomplish on their own. ex.
Ebay and Sotheby’s, Nortel to build infrastructure
 Joint Venture: in some instances can also be considered a strategic
alliance, and is noted as a joined effort and ownership of a common
project
 Business Process Outsourcing: Delegation, by the customer, of the
operational responsibility for a business process's execution and
performance within the customer's environment. Outsourcing Institute,
BPO bound for Bombay
 Synchronized Supply Chain: a conglomerate of collaborative partnerships
from supplier’s supplier to customer’s customer.
 Ownership via Mergers and Acquisitions: The process of either purchasing
or combining companies. ex. PeopleSoft’s Acquisition of Vantive,
resources: IMABC, M&A Reference, story
 Today’s best practices in supply-chain management all center on
one basic concept: interdependence and collaboration
100 Great Supply Chain Partners

 Reliability:
Visibility: dependable
Whether service orders
it is shipments, that was
or on time, every
inventory, time with
companies no
want
surprises
technology and service providers that on
canany
provide real-time information
Can-do attitude: vendors that take challenge and find a way to
accomplish a goal without complaints or excuses
 Cost savings
Continuous improvement: Companies want help improving their own
processes, and they expect vendors to constantly improve their own
Supply-chain integration ability: Technology and service vendors that
 Inventory reductions and cycle time improvement: Supply chain
can help extend the supply chain and make it as seamless as possible
improvement
Value-added
to internal is primarily
andknowledge
external andmeasured
users expertise:by lowering inventories
Consultants are paid and
increasing
specifically their wisdom,
for their velocity but companies also expect their technology
and service providers to offer special expertise and innovation
Global coverage: While not a universal requirement among carriers
 Flexibility and problem solving ability: Few supply chains run smoothly
and 3PLs, the ability to provide service backed by local knowledge
Ease so of
theuse:
anywhere ability to
Both
in the adapt quickly
technology
world to service
and
is important change
to without
largeproviders
and missing
smallhave toamake
companiesstep istheir
highl
prized,
offerings along with the ability to customize solutions to meet evolving
intuitive
needs
One-stop shop: vendors whose range of services covers as many
needs as possible.
Collaboration Planning Process
The planning process commonly involves
the following activities:
 Establishing a common vision;
 Developing a mission statement;
 Pooling resources;
 Conducting a needs assessment;
 Developing a strategic plan outlining
outcomes, goals, objectives, strategies;
 Defining roles; and
 Designinga delivery system to address
mutual goals.
http://www.dssc.org/pdp/textonly/chap_1.txt
 Implementation Process
Brings together partners, commitments, and
capacity in an effort to put the goals and
objectives of the partnership into action. This
will involve several activities, including:

 Modifying or developing new policies;

 Developing programmatic guidelines;
 Modifying job roles and descriptions; and
 Modifying service delivery structures

http://www.dssc.org/pdp/textonly/chap_1.txt
 Strategic Alliance
 Companies are forging strategic alliances at a fast clip: according to Booz
Allen & Hamilton, more than 20,000 alliances were formed worldwide in
1998 and 1999.
 1999: Such alliances are the most favored form of combining companies
for improving corporate performances, winning out over acquisitions,
mergers or outsourcing. 2004: Although, today outsourcing growing at
incredible rate.
 The potential benefits are enormous: alliances have consistently produced
an ROI of 17 percent for the top 2,000 companies in the world.
 Technology and e-business is often a vital part of these alliances.
 Companies are enabling information to flow between the partners and
evaluating the technology capabilities of potential allies. CIOs are
becoming part of the team that develops strategy and looks for
opportunities to develop new products, services and markets.
A CIO's Guide to Forming a Strategic Alliance
Benefits of Strategic Alliances
 Access to more Patents and technology

 Develop strategic customer-supplier

relationships

 Access to new markets

Botkins, Mathews, p73

 5 Issues in Alliances
 Trust and Liability
 Control and Failure
 Perception of Time
 Value and Compensation
 Cross-National Differences
Botkins, Mathews, p. 144
 SCM Collaboration: 6 Pillars of Excellence
1. Planning, which includes such activities as
• Advanced planning and scheduling
• Constraint-based optimization
• Distribution planning
• Inventory planning
• Collaborative planning, forecasting and
replenishment
2. Sourcing, which includes such activities as
• Indirect or MRO e-procurement
• Direct material sourcing
• Services procurement (including logistics)
• Contract management
• Spend management
• Supplier relationship management
3. Manufacturing which includes such collaborative
production activities as
• Product lifecycle management
• Collaborative manufacturing management
• Collaborative product commerce
4. Management, which includes such
inter-enterprise activities as
• Supply-chain event management
• Process management
• Supply-chain visibility
• Extended enterprise relationship
management
5. Execution, which includes delivery-
related tasks such as
• Warehouse management
• Fulfillment
• Transportation management
• Logistics collaboration
• Global trade management
6. Selling, which includes such sell-side
activities as
• Order management
• Customer-relationship management
• Customer-facing portal solutions
Top 100
 12 Principals that make
Collaborative Partnerships Work
I. Finding a Partner II. Creating a III. Managing the
Contract
Partnership
 Follow a stage-by-  Focus on mutual
 Emphasize the
stage partnering benefits
strategy. partnership
mentality.
 Start simple
 Put a Motivated
“networker” in  Set Benchmarks
 Develop a team of
charge of the champions.
search
 Involve the Lawyer-
later  Communicate
 Develop a profile of frequently.
the partner you
seek.
 Think long term,
 Contact multiple but deliver short-
candidates term successes.
Botkin, Mathews,
 Avoiding Issues of Legal Liability
 Take time to develop a sense of trust regarding the
other party.

 Ensure that the other party has the capacity to follow

through and deliver what has been promised.

 Develop clearly worded legal Agreements between the

partners.

 Establish appropriate organizational structures within

which the partnership can function.
Botkin, Mathews, p. 148
 5 Elements of Win/Win Collaborative
Agreements
 Desired results (not methods): identify what is to be done and
when.
 Guidelines: specify the parameters (principles, policies, etc.)
within which results are to be accomplished.
 Resources: identify the human, financial, technical, or
organizational support available to help accomplish the results.
 Accountability: sets up the standards of performance and the
time of evaluation.
 Consequences: specify -good and bad, natural and logical-
what does and will happen as a result of the evaluation. Covey, p.
223
 Hindrances to Effective Collaborative
Relationships
 Sharing information exposes you to risk of information
used against you, so reluctance to share information:
 Fear of reduced power
 Supply chain members could share info with competitors

 Increased collaboration means a greater interdependence.

 If one partner experiences problems, it quickly spreads to others
 If add greater redundancy (additional “backup suppliers” leads to
greater operational inefficiency and complexity

 Conflicting goals, objectives and incentives between

partner companies.
 Failure to get into alignment will circumvent objectives attainment
and successes. Krishnamurthy, p. 192
 3 Categories of Metrics for
Evaluating Collaborative Systems:
1. Usage statistics,

2. Business process and outcome metrics,

3. System usability metrics

http://collaboration.mitre.org/
 Power of Collaboration
Genuine participation in collective decision making
demonstrates respect, and respect fosters trust. Trust is
fundamental to a collaborative relationship. Elements of
trust include:
• mutual need
• strong personal relationships
• keeping promises
• sharing agendas and information
• Aligning goals, objectives and incentives.
The power of collaboration comes from combining
partners' core competencies in mutually reinforcing ways.
(Principles for Partnership)
“The power of We is stronger
than the power of Me!”
--Red Holzman, Basketball Coach New York Knicks