Networkability van Netwerken?
Bedrijvendag Gridforum – 25 juni 2007
Dr. Martin Smits Center for Research on Information Systems and Management (CRISM) School of Economics and Business Administration
[email protected] 1 of 35
Tilburg University
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“Wat zou het mooi zijn als je de mogelijkheden van meerdere computers en de randapparatuur die daaraan verbonden is op een simpele manier kan ontsluiten?” “… zo eenvoudig als met een stekker stroom uit een stopcontact halen ….” (‘Wat is een GRID’, Foster en Kesselman, 1998)
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Bediening via RT3?
Belkin TuneCast™ Mobile FM Transmitter
GRID: een zegen voor de consument?
Signaal naar Aux? Voeding? Bediening via ipod?
en…… Navigatie op postcode? 4 of 35 Navteq? MagnetiMarelli?
Networkability van Netwerken? • B2C → B2B • Intro: – – – –
Netwerk business bus networkability performance
• Voorbeelden: – Unitech netwerk – Aces Direct netwerk – Kantonal Bank netwerk
• En dan? 5 of 35
Take aways • Succes van je bedrijf wordt bepaald door succes van het business netwerk. – Hoe ontwikkelt zich zo’n business netwerk? – Wat kun je daar als bedrijf aan doen?
• Succes business netwerk wordt bepaald door – Networkability (van Producten, Processen, Organisatie, IT) – IT investeringen: interne IT => IOSintern => IOSextern – Governance mechanismen in het business netwerk 6 of 35
Aandeel van de transactiekosten in US-BNP steeg van 25 % (1870) naar 55% (1970) en 60% (2000) [Wallis/North 1986; Mertens et al. 2000]
Verklaring is de verticale differentiatie in veel industrieen [Corsten/Gabriel 2004, 23]
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(1) Business Netwerk • Drie of meer organisaties, onderling verbonden, zodanig dat een gezamenlijk doel kan worden gerealiseerd (Provan ea, 2007) – 1985-2005: 26 empirische “whole network” studies – Hoe ontwikkelen netwerken zich? – Hoe worden ze bestuurd? (netwerk governance?) – Hoe worden collectieve resultaten gerealiseerd?
• “teveel focus op 1 organisatie betekent het missen van succes uit collectief gedrag”
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Netwerkorganisatie Firm performance Firm 1
IOS/ relationship
Whole Network; ‘Smart Business Network’ Firm a
Firm b Network performance Firm c
Firm N 9 of 35
Veel voorbeelden van de behoefte aan efficiente netwerkvorming Netwerkvorming
Opstarten samenwerking
Entry barriers
Uitvoering samenwerking
Beeindigen samenwerking
Stroomlijnen Transacties
Exit barriers
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(2) Business Bus
Netwerkorganisatie en IT infrastructuur 11 of 35
(2) Business Bus ... Insurance
... Rent-a-car
Accessories Producer e.g. Car manufacturer
Garage
... Police Driver
Integrator e.g. Dealer
Customer e.g. Car owner
Product documentation
Publish
Information
Production planning
Configure
Configure
Finance
Finance
Payment
...
...
...
Business Bus e Service e.g. Bill presentation
eService e.g. Credit rating
eService e.g. Directory service
eService ...
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(3) Networkability Product en Services (Modularization; digitization..) 4
• efficiently cooperate with internal and external partners
3 Employees (ability to.. acquire inf)
Organization Structures (power distribution; granulariteit; etc)
2 1 0
Networkability is an organization’s capability to ...
Process Proces (transparatie Conflict mgmnt)
•Quickly establish, develop and dissolve IT-based business relationships (Wigand et al, 1997)
Information Systems (standaarden; integratie)
Networkability bepaalt de efficientie van netwerkvorming door een individuele organisatie [Oesterle, Alt, 2002]
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Vier soorten netwerk-onderzoek (IT performance, business performance)
(e.g.: Structuur, Processen, Relaties, Governance, IT gebruik, Business bus Networkability)
Provan ea, 2007 Alt & Smits, 2007 14 of 35
Onderzoek naar Netwerken • Wat gebeurt er met het netwerk als geheel? – Longitudinaal; vergelijkend; good cases
• Aandachtspunten: – Structuur: Positie van organisaties in het netwerk (centraal/ perifeer); Relaties (direct/ indirect) – Processen/ functioneren/ governance – Business Bus: IT, applicaties, standaarden – Networkability (product, proces, staf, IT) – Performance
• Wat betekent dit voor organisaties in het netwerk? En voor IT leveranciers… 15 of 35
Unitech
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Unitech (in 2000: 360 fte, $ 170 m) ‘handheld scanners (ADC) for commercial logistics’
Apple HP ea
sales, distribution Taiwanese customers
BU1 design, production, sales, distribution
(40) material BU2 suppliers in Taiwan
Sales, distribution
USA
Sales, distribution
China
design, production
Sales, distribution
EMEA
BU3
Sales, distribution
Japan 17 of 35
Netwerk structuur 1997 Material Supplier 1 Material Supplier 2 Material Supplier 3 Material Supplier N
<
retailer
<
retailer
< < <
Unitech Taiwan R&D, Manufacturing Marketing, Sales
0 retailer = retailer >
Customers
retailer
> Intel NEC, Sony, Philips 18 of 35
Netwerk structuur 2001 Unitech Other branches
Material Supplier 1
retailer retailer
Material Supplier 2 Material Supplier 3
Unitech Taiwan
Unitech Europe
R&D, Manuf
Sales, Distr
Material Supplier N
Intel NEC, Sony, Philips
retailer
Customers EMEA
retailer retailer
Third party Solution Providers Taiwan
40 Third party Solution Providers Europe
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Netwerk structuur 2007 Unitech Other branches
Material Supplier 1 Material Supplier 2 Material Supplier 3
Unitech Taiwan
Unitech Europe
R&D, Manuf
Sales, Distr € 8 M/yr
Material Supplier N
30% 10 System Integr
retailer retailer retailer
7 Value Added Distributors
Customers In Europe
retailer retailer
65%
Intel NEC, Sony, Philips
Third party Solution Providers Taiwan
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Governance? Unitech Taiwan
Large & small Suppliers
Da Db
Df Dc
Lb
Lb La
Dd Lc
Ic
b
Ia
a
De If
Lf Ld
Le
Ie
Lf
Lc Ib
Retailers & Solution providers
Unitech Europe
Ic
Id
c
d
Ie
e
If
f 21 of 35
6 x governance & busformatie? • • • • •
•
Alignment a. IT infrastructure did not meet the business requirements. UT aimed to achieve better internal fit: business strategy (Da) affected the organizational structure (La), finally impacted IT applications (Ia). Alignment b. Strategies (Db) and SCM processes (Lb) of large UT-suppliers forced UT SCM to use on-line inquiries of inventories (Lb) and to implement application b, a web site (Ib) to support this. Alignment c. Business strategy in UT (Dc) drives IT strategy (Lc), impacting the ERP system and SCM in UT and UE (Ic). Alignment d. In order to achieve the new business strategy objectives (Dd), UE had to re-build the company structure (Ld), and acquire a proper (but simple) IT infrastructure (Id), to meet the basic requirements of internal control (Ld). Alignment e. UE decided to further develop its own IT infrastructure to enable downstream SCM by developing a simple web site (system e). UE strategy drives (De) UT SCM processes (Le), resulting in a website and influencing SCM in downstream partners (Ie). Alignment f. In 2003, UE decided to develop an ERP based on-line ordering system (system f) to improve process efficiency, accuracy of internal and external management reports and to provide online order fulfillment to regional partners (Df), influencing SCM and SC structure (intensify the linkages between the business processes and IT architecture) and a planned IT strategy (Lf), leading to the implementation of a website (If). 22 of 35
Networkability Scores UnitechTaiwan Unitech Europa
Product 4 3 2 Employee
1
Process
0
Organization Structures
Information Systems
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Unitech Netwerk Performance • Business – Improved customer satisfaction (=> top 5) • Rapid responses? swift repairs and upgrading • More customer services, customized products, prices
– Improved annual sales & revenues (1997-2002-2006?) – Inventories => 30% of sales (1000 products; 3000 spare parts)
• IT – – – –
No standards (ERPs Oracle en Navision) Basic information sharing (e-mails) Simpele web-portals en catalogues Geen netwerk business bus 24 of 35
Bevindingen Unitech Case • Complexe relatie tussen ‘structuur van netwerken’, ‘networkability van organisaties’ en ‘netwerk performance’ • Aanwijzingen dat netwerk performance sterk kan verbeteren zonder substantiele networkability van IT … maar verdere ontwikkeling wordt belemmerd als IT networkability laag is …. (?) 25 of 35
ACES DIRECT
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Aces Direct IT retail in Nederland Lease Companies
DHL BB Physical distribution services OEMs
Microsoft
BB lease services
Ingram Micro Copaco
HP
TechData
HP
ECT Pluz
Toshiba
SMEs
IT retail markt (NL): € 2 mrd /jr AD 1-2% markt aandeel; 17 fte TD (NL) € 400 mln/yr
6
Aces Direct
7
Business client
BB IT services BB product specification services
BB order processing services
Onetrail
IT companies Icecat 27 of 35
Networkability Scores
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Bevindingen Aces Direct Netwerk •
Structuur van het netwerk – – – –
•
AD = focal actor, ketenverbreding New ties with Camera and TV suppliers; leasing; maintenance… #direct ties ↑ (7) & # indirect ties ↑ (>20) Firm level = standardization of products, services, processes
Netwerkprocessen – Shared objective: ‘fulfilling IT services’, varying per actor – Chain becomes Service network – Competition with other IT- retail networks (MISCO, price Ù quality)
•
Business Performance – Fast growth in market “IT for SME in NL” – Customers evaluate overall AD performance; AD evaluates suppliers – Shared performance indicators?
•
IT performance – Network level = several (vertical) 1:1 IOSs – National/ industry level = several N:1:M b-buses; product standards 29 of 35
Bevindingen Aces Direct Netwerk • Ook hier complexe relaties tussen structuur, processen, networkability en performance • Performance AD improved, due to (?) – Specific (vertical) IT investments within the network – Generic (horizontal) IT investments outside the network 30 of 35
Swiss banking
• Group of 24 cantonal banks in Switzerland founded in 1907 • Total of 17‘000 employees • 90% of revenues within Switzerland • Large tradition of shared services, e.g. financial products, production centers • Shared IT operations began in 1971 with RTC, followed by AGI in 1987 and Unicible in 1992 31 of 35
Eén network voor de cantonal bank group (1995) Internal services Swisscanto Funds
RTC ERP
Schaffhausen
RTC ERP
Appenzell
RTC ERP
RTC ERP
Glarus Uri Wallis Neuenburg
RTC ERP
Schwyz
RTC ERP RTC ERP
Graubunden Nid & Obwalden Frbourg
RTC ERP
Jura
RTC ERP
Aargau
RTC ERP
Bern
RTC ERP
Basel
RTC ERP
Zurich
RTC ERP
Lucerne
RTC ERP
St. Gallen
RTC ERP
Thurgau
RTC ERP RTC ERP
VESECA Credit Card RTC Business Bus
SWIFT Foreign Exchanges Reuters Bloomberg
External services
centralized services (e.g. product data)
RTC ERP
Business customers
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Drie netwerken voor de cantonal bank group (2006) Internal servics Swisscanto Funds VESECA Credit Card
SWIFT
Bloomberg
External services
Schaffhausen
FINOVA ERP
Appenzell
FINOVA ERP
FINOVA Business Bus (Data en Process standards)
RTC Business Bus
Foreign Exchanges Reuters
FINOVA ERP
AVALOQ Business Bus
Glarus Uri FINOVA ERP Wallis FINOVA ERPChallenges on network Neuenburg FINOVA ERP
FINOVA ERP
level
Schwyz
FINOVA ERP
Graubunden • Redundant services (e.g. Niddata & Obwalden product service within FINOVA ERP each network) Frbourg • Platform-specific services (e.g. RTC ERP Jura Avaloq-services not usable RTC ERP within RTC network) Aargau when banks RTC ERP • Sunk costsBern change service providers FINOVA ERP
RTC ERP
Basel
AVALOQ ERP
Zurich
AVALOQ ERP
Lucerne
AVALOQ ERP
St. Gallen
AVALOQ ERP
Thurgau
Business customers
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Bevindingen Swiss Banking • Structuur – Clustervorming
• Networkability – Afname tussen de 3 groepen – Toename binnen 1 groep
• Business performance – Meer diensten (per netwerk) – Kostenstijging van services (minder economies of scale)
• IT performance – minder interoperability tussen de netwerken – Hogere IT kosten op netwerk niveau (3 verschillende platforms) 34 of 35
Conclusies literatuur & 3 cases • Networkability = f(Product, Process, Org., Pers., en IT) • Networkability(organisatie) Ù Networkability(netwerk) • Cases: – Unitech:
Netwerk Performance ↑ ook als NW IT =
• Maar voor meer performance is NW IT voorwaarde?
– Aces Direct:
Netwerk Performance ↑ ↑ als NW IT ↑ ↑
– Kantonnal Banken:
Netwerk Performance ↓ als NW IT ↓
• Maar misschien tzt per cluster NW IT ↑ ↑ en performance ↑ ↑
•
Governance van netwerk en IT – Vanuit focal actor perspectief (?) – Balans tussen interne IT, IT binnen netwerk en IT met andere netwerken 35 of 35
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Netwerkvorming in de bancaire sector: Swiss survey shows increasing outsourcing activities by 2010 100
ADM
90
Loans Securities Payment execution
80 70
Value adding activities of banks (n=54)
60 50 40 30 20
Competence centers
Support
Settlement
IB
CB
IVV
PB
RB
HYK
KOK
ZAA
ZAE
ZBE
WAA
WHA
WAE
KAA
KRT
KAE
SD
DP
KR
RIM
KWO
RES
APM
FPL
IT
PEW
BS
HR
MK
0
RW
10
Sales
100
90
80
70
60
50
40
30
20
2005 10
IB
CB
IVV
PB
RB
HYK
KOK
ZAA
ZAE
ZBE
WAA
WHA
WAE
KAA
KAE
KRT
SD
DP
KR
RIM
KWO
APM
FPL
RES
PEW
IT
BS
HR
MK
2010 0
RW
Degree of inhouse organization (n=54)
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Networkability – design objects •
Products and services – Degrees of modularization/ specificity of adaptations/ multiple usability
•
Processes – Transparency for partners/ openness of information exchange/ existence of conflict management system/ inter-organizational monitoring/ coordination scenarios
•
Organization structure – Distribution of power/ homogeneity of organizational structures/ granularity and flexibility of organizational units/ ## internal&external partners
•
Employees – Ability for personal networks/ ability to acquire information
•
Culture – Distribution of benefits between the partners (reciprocity)/ intensity of exchange of knowledge and experiences/ lived openess/ dealing with trust
•
Information Systems – Use of application and communication standards/ form of IT integration (EDI; remote login; ERP@Web)/ security mechanisms & access rights
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