Kick Off Meeting Island of San Servolo - Venice, Italy 11th to 13th February 2008

1. Kick Off MeetingIsland of San Servolo - Venice, Italy11th to 13th February 2008 Management of Collaboration in Networks Martin Ollus VTT

2. Agenda • Concepts • Challenges in the Management of Networks • Management of Networks (Breeding Environments) • Management of Virtual Organizations/Enterprises • Connection to EURIDICE • Further Challenges

3. Some Buzzwords Business ecosystem Collaborative networked organization Breeding environment E-Business Virtual enterprise Virtual organization Virtual team Virtual community Professional virtual community Virtual lab Extended enterprise Community of practice Supply chain

4. Some Characteristics of Networks • Constituted by a variety of entities (e.g. organizations and people) that are: • largely autonomous • geographically distributed • heterogeneous in terms of their: • operating environment, • culture, • social capital and • goals • Collaborate to achieve common or compatible goals • Collaboration supported by computer network In our context: Collaboration is an intentional propertythat derives from the shared belief that together the network members can achieve goals that would not be possible or would have a higher cost if attempted by them individually

5. VT PVC Concepts: VBE, VO, PVC, VT VO Opportunity driven Preparedness VBE Different levels of commitments and rules possible Long-term strategy

6. Management in networks Challenges for the management • Independent organizations -> little/no forcing power -> own internal procedures & behaviour • Collaboration voluntary -> objectives & motivation not fully known -> hidden agendas -> opportunism • Incomplete information -> measurements mainly at interfaces • Different cultures & business practices -> impact on management means Objectives for management: Achieve the "common" goal by collaboration • Performance measurement based real-time VO management • Management structure & measurements: VO specific • Set-up phase short as possible (Ideally in days) • Management has to be beneficial during the life-time of VO • Build on existing applications in partners’ organizations

7. VBE MANAGEMENT SERVICES Support for preparedness

8. VBE MANAGEMENT SERVICES VMS functionalities Supporting Information Management (INMS) Profiling & Trust Management (PTMS) Management Decision support (MDSS) Structure/Membership Management (SMMS) • Members roles /rights /responsibilities • Profiles, competency and validation information • Trust criteria and members’ trust information • VO inheritance information • Historical performance information • VBE competency gap identification • Members low trustworthiness warning • Lack of performance identification • Members profile / competency mgmt (PCMS) • Trust Appraisal & management (TrustMan) • Ontology adaptation & evolution (ODMS) • Member registration • Member rewarding • Registration of created VOs

9. DYNAMIC VO CREATION MANAGEMENT VO Creation & Negotiation

10. DYNAMIC VO CREATION MANAGEMENT

11. Challenges for VO Management (VOM) VO features • VO consists of independent organizations • With their own objectives • Organizational culture • Internal processes • VO is by definition temporary • One-of-a-kind activity • Management set-ups etc may be VO specific • VO specific efforts need to have pay-back during the life-time of the VO Consequences for VOM • Management means are different • Management power is different • Little/no forcing power • Organization specific objectives (hidden agendas) • Incomplete information • Partners’ objectives & motivation partly unknown • Measurements mainly at interfaces • Qualitativve information, sometimes even subjective • Different cultures & business practices

12. VO Management • In ECOLEAD, VOM is considered as the management of business processes going over and across the VO members • Does not cover the management of the constituent members themselves VO Management is defined to contain "the organisation, allocation and co-ordination of resources and their activities as well as their inter-organisational dependencies to achieve the objectives of the VO within the required time, cost and quality frame" VOM can be considered as a control loop

13. Focus for the VO manager • View of the ongoing work • Homogeneous across the consortium • Independent of internal operations • Based on business activities - not on local enterprise functions • Performance of the virtual organization • Quantitative output • Cost and revenues • Quality • Time • Qualitative output • Collaboration performance • Trust • Credibility

14. VOM supported by performance management Based on available knowledge Collaboration supporting management Focus on future

15. Objectives For VO Management • Performance measurement based real-time VO management • Management structure & measurements: VO specific • Set-up phase short as possible (ideally in days) • Management has to be beneficial during the life-time of VO • Build on existing applications in partners’ organizations

16. Realization of VOM Monitoring of status and performance Instantiation of VO specific models Means for decision support Definition of performance indicators Collection of measurement information

17. Dashboard The dashboard indicates when an indicator is beyond the acceptable corridor (red) or if a task is not on track (yellow) MAF provides more details and advanced features for analysing the exception (here: monitor the budget and the completeness of each task ) MonitorKPI Schedule Activities DefineKPI MeasureIndicators What-if-analysis

18. Performance Measurement • Supports the VO management and the VO management function, based on • VO objectives • Contractual obligation • Related target values • Serves • VO Manager and involved employees • Involved partners • Breeding environment • Operational and strategic aspects have to be covered The main scope related to: • Cost and revenues • Quantitative output • Quality • Time • Collaboration performance

19. Measurement Principles Measurement set-up Measurement collection Build up of pre-defined indicators Monitors status Configured for specific VO Based on VO model Generates measurement schedule Collects info from partners Schedule generated during set-up

20. Decision Support (DSS) • Decision Support System (DSS) helps VO manager to • Evaluate the status of the VO • Decide about possible actions. • Main approach is (agent based) simulation. • Tasks of DSS • What-if analysis • Rescheduling • Reconfiguration • DSS is based on • Initial VO configuration • Up-to-date state of the VO • Outcomes from DSS are provided to VO manager • Alyses • Alternative schedules and configurations

21. Transfer of Experience (inheritance) Experience, knowledge, liabilities, rights

22. VBE Processes 1 2 VO Creation 4 3 5 VO Operation VO Evolution VO Dissolution Data exchange Dynamic VO management; interactions to VBE • 1. Customer, partners, WBS • 2. VO Details • 3. Feedback from ongoing VO • 4. Partner information • 5. VO Inheritance Interactions with value systems in VBE during creation and disclosure

23. Connection to Euridice

24. Some problems/needs • Good knowledge and control of what is inside or on the loading unit • Which goods for which customer are in/on which loading unit, gross and net weight of unit etc. • With which vessel, train, air flight or truck the unit is scheduled • Final destination, itinerary and requested delivery date • Poor control of the loading unit itself, especially when unloaded and when in transport in other countries • Rail freight wagon: in transport only 12-15 % of the time (Europe) • Sea container (TEU): 1/3 of all TEUs stands empty in ports, 1/3 empty onboard vessels and only 1/3 is loaded with cargo • Air container (ULD): of 20 ULDs, 19 are standing on the ground and only 1 is in the air • Truck trailer: 30-35 % utilization degree • Status control (monitoring) of the goods and loading unit during transport is a challenge

25. Some findings • Tracking and tracing of wagons • 70 % of wagon identification and more than 90 % of wagon positioning in Europe is done manually • Information registered in national IT-systems • Difficult to follow border crossings • Identifying available wagons • Decisions based on unreliable/missing information • Overuse of wagons • Bad delivery precision, losses of slots, increased costs • Productivity control • Wagon fleet productivity is on a low level – rail freight wagon is in transport only ca 15% of the time • Need to maximize the using time of wagons – better rotations, increased commercial actions and less empty traffic • Pro-active information • Customers require shipment information – lack of information and bad quality of information is one of the biggest challenges

26. Monitoring and managing transportation • Access to appropriate information for stakeholders • Support for management actions ICT platform Management system

27. Conclusion and outlook • Solution and tools for VO management have focused on monitoring • Mainly quantitative measures • Task fulfillment • Efficiency of virtual organisations depends on • Performance of the partners • Collaboration between partners • Trust between partners • Configuration of the VO • Management approach (incl. measurements, icentives, etc.) • Modelling relationship between partners’ performance and task fulfilment still a major challenge • Needed for definition of management actions • Measurements • All interesting measurements are not available • Some of the measurements qualitative and even subjective

28. Some dimensions of management in networks Interoprability Business process, People Integration platforms, ERP integration web-based, etc ERP integration Focus so far System Data formats, standards (XML, Rosettanet, etc) PMBOK, SCM, data acquisition, etc Transaction Management Model based active management Monitoring Information exchange

29. Some possible areas for future research Interoprability Communication Performance, collaboration, trust, etc Understanding & modelling behaviour & relationships Business process, People Info from many different systems (web/semantic based) Intelligent decision support systems (e.g simulation based) System Coordinated actions over company borders Transaction Management Model based active management Monitoring Information exchange

30. Aspects on Model Based Management Management structure, Measuring/Monitoring approach Work break down structure, Task allocation Communication COST Trust TIME Management actions? Collaboration QUALITY Individual attributes OTHERS? Incentive system Others????

31. Thank you Further information martin.ollus@vtt.fi