Case presentation, IS 904 22.10.2010 Christoph Merschbrock

1. Implementation and use of collaboration technologies in a multinational engineering group: The case of KværnerMunkvold (2003) Case presentation, IS 904 22.10.2010 Christoph Merschbrock

2. Agenda • What is the main idea? • What are the technological functionalities / applications involved? • How mature is the technology? • What new does that idea bring, if compared to related previous ideas or solutions? • How is that technology applied to in the business / organization discussed in the materials? • The feasibility of the idea(s) in relation to another organization/business • 2 questions

3. Main idea • Implementation of collaboration technologies within a multinational organisation • Challenges and lessons learned about the implementation and use of collaboration technologies • Case study based on interviews conducted with selected IT managers in the group (both Australia and Norway) • Background: today Kværner corporation ceased to exist -> Aker ASA

4. Agenda • What is the main idea? • What are the technological functionalities / applications involved? • How mature is the technology? • What new does that idea bring, if compared to related previous ideas or solutions? • How is that technology applied to in the business / organization discussed in the materials? • The feasibility of the idea(s) in relation to another organization/business • 2 questions

5. Applications envolved KINET -> frame relay WAN (wide area network) providing permanent virtual circuits (PVC) for Group wide E-Mail& Intranet via regional hubs Engineering applications Project management tools Integrated engineering data repository CAD applications Enterprise Document Management System project archieves; Work flow function for documents app roval (EDMS products: Documentum; DocuLive) Desktop Conferencing /Application sharing Videoconferencing

6. Agenda • What is the main idea? • What are the technological functionalities / applications involved? • How mature is the technology? • What new does that idea bring, if compared to related previous ideas or solutions? • How is that technology applied to in the business / organization discussed in the materials? • The feasibility of the idea(s) in relation to another organization/business • 2 questions

7. Maturity of the technology • Frame relay technique found in the mid eighties • First practical software solutions and implementations in the early ninetieth • (Cisco Systems 1990) • At project initiation relatively new (1996) and inmature technique • Today a widely used technique • Data terminal equipment (DTE) • Data circuit-terminating equipment (DCE)

8. Agenda • What is the main idea? • What are the technological functionalities / applications involved? • How mature is the technology? • What new does that idea bring, if compared to related previous ideas or solutions? • How is that technology applied to in the business / organization discussed in the materials? • The feasibility of the idea(s) in relation to another organization/business • 2 questions

9. What´s the News • Lessons learned - might be usefull to companies planning to start similar projects • An insight into a 6 year major IT project is valuable • The implementation of collaboration systems within a multinational setting can be challenging • Establishing collaboration within a group that works with conflicting IT systems is difficult • Some threads to a sucessfull implementation could be identified • The project goals should be realistic from outset • Some problems throughout operation of the collaboration tools could be identified

10. Agenda • What is the main idea? • What are the technological functionalities / applications involved? • How mature is the technology? • What new does that idea bring, if compared to related previous ideas or solutions? • How is that technology applied in the business / organization discussed in the materials? • The feasibility of the idea(s) in relation to another organization/business • 2 questions

11. Application of Collaboration technologies • More efficient collaboration between companies in Kværner (Data sharing, Videoconferencing, Desktop Conferencing, Application sharing,…) • Used to support distributed projects • Development of “Centres of Competence” that could be accessed by other companies in the Kværner group (metals in London; oil and gas in Perth…) • Increased coordination between the companies in the Kværner group enabling large scale benefits in purchasing, service contracts, etc. with third party companies

12. Application of Collaboration technologies • reduction in communication costs (at outset) • Electronic communication in oil and gas prerequisite for tenders • Overall increased collaboration and information exchange between buisness units • Training of temporary workforce (agency engineers) needed -> they don´t use it • Difficult to get engineers to populate the repositories with data that has no direct use at the time • Still many people prefere using hard copies • Some people don´t trust computers

13. Agenda • What is the main idea? • What are the technological functionalities / applications involved? • How mature is the technology? • What new does that idea bring, if compared to related previous ideas or solutions? • How is that technology applied in the business / organization discussed in the materials? • The feasibility of the idea(s) in relation to another organization/business • 2 questions

14. Pihl & Son • Danish contracting company with an international profile • Pihl is one of Denmark’s oldest contracting companies ranking number 97 among the world’s 250 largest contracting companies working on the international markets. • The company’s many activities in Denmark and abroad are coordinated between the head office in Kgs. Lyngby, subsidiaries and consortiums. • Pihl is currently working in 16 different countries and has approx. 3,000 employees.

15. Similarities to pre implementation Kværner • Pihl has permanent subsidiaries in Iceland, Greenland, Faroe Islands, USA and UK • Due to decentralized structure little data sharing and collaboration between subsidiaries • Possibility to create competence clusters (infrastructure, habours, tunneling,…) • Possibilities to generate benefits in purchasing (eg. Construction steel for company wide use, eg. machinery, economies of scale) • Enable corporate learning

16. Possible challenges for implementation • Technological heterogeneous IT cultures /incompability with existing solutions • Resistance from local IT departments • Probably high adoption cost • Cultural differences/ factors • Top management support required • Construction managers will firstly regard these techniques as hindrance to their daily work before benefits are realised • E.g. Many of the lessons learned by Kværner

17. Agenda • What is the main idea? • What are the technological functionalities / applications involved? • How mature is the technology? • What new does that idea bring, if compared to related previous ideas or solutions? • How is that technology applied in the business / organization discussed in the materials? • The feasibility of the idea(s) in relation to another organization/business • 2 questions

18. Questions • Do you think it would be easy to convince a senior (construction) project manager to implement and use corporate wide collaboration techniques within his/ her project? • Where do you see problems and chances of corporate wide collaboration?

19. Thanks for your attention!