Centre for Strategic Manufacturing

1. Sustainable Collaborative enterprise: Understanding failures, create and distribute value based on contribution(based on the first year research) Joniarto Parung Supervisors : Professor Umit S. Bititci and Dr. Jillian McBride Centre for Strategic Manufacturing

2. Outline • Research design • Contributions • Background • Benefits of collaboration • Literatures review and analysis • Requirements • Proposed model • Preliminary Case study • Future research Centre for Strategic Manufacturing

3. Research Design Research Problem Literature review Previous study Theory Building Requirements Specification Centre for Strategic Manufacturing Develop Model validation Documentation

4. Contributions: • The contributions of this research will be: • To develop better understanding of the collaboration process and its key success factors • To develop a new comprehensive approach in creating and distributingvalue for collaborative enterprise. Centre for Strategic Manufacturing

5. Background Advanced Technology Government Policies Globalisation & Regionalisation Increased competition New Product & service Performance changing of customers expectation Increased Complexity & Uncertainty Product Varieties Centre for Strategic Manufacturing Product cost Short product lifecycles No time to learn and do by ourselves Collaboration (Adapted from KPMG, Netherlands, 1996)

6. Collaboration Benefits (Adapted from Lewis, 1990; Huxham,1996; Parker, 2000; McLaren et al., 2002) • 1. Planning and Design Process • reduce time in design • reduce cost • decrease risk of failure • increase capabilities and competences • 2. Production Process • increase asset utilisation • reduce time • increase quality • achieve scale economies in production • reduce inventory • increase skill, capabilities and competences • 3. Delivery and marketing Process • enhance customer services • increase market share • rapid access to the market • increase order fulfilment time • increase response to the customers’ complaint Centre for Strategic Manufacturing

7. Literature Review and Analysis Existing condition Initial Problem Literatures Review Analysis 70 % of collaborations fail What are the main cause of failures? Inter-personal/group relationship Ambiguous Criteria Among Partners Short-term assessment Centre for Strategic Manufacturing Outcome performance organisational

8. The main causes of failures Centre for Strategic Manufacturing

9. Requirements : Need to Create a comprehensive model Literatures Review and Analysis How to Create? • It is: • Relevant • Dynamic • integrated Differentiate collaboration Forms based on “things” to be shared Centre for Strategic Manufacturing Determine what are the Mutual Value proposition (and its priorities) To the key stakeholders Determine what are the contributions (and its level of importance) Of each participants

10. Proposed model ….(1) Form of Collaboration in term of “what are they shares” How to Share Benefit? Share risks & Benefits Cognitive Collaboration Centre for Strategic Manufacturing Share System Cooperative Collaboration Share data & Information Data exchange Adapted from PLAN technical Committee Collaboration, April 2002

11. Proposed model ….(2) Distribute benefit based on the contribution Share benefits based on companies’ contributions Collaborative enterprise increased Benefits to be shared among participants Collaborative enterprise Company -1 customers Centre for Strategic Manufacturing Company -n Customers get better products, better service, at a better price… etc External factors Value generator as contributor to CE

12. Example of value generator Centre for Strategic Manufacturing

13. Preliminary case study Centre for Strategic Manufacturing

14. Future Research • Developing and sharpen the criterion and value proposition of the model • Developing improved data collection and measurement of the participants’ contribution • Validation of the model