TJTS E50 Yritysverkostot ja niiden informaatiojarjestelmat ...TJTS E50 – Yritysverkostot ja niiden...
Transcript of TJTS E50 Yritysverkostot ja niiden informaatiojarjestelmat ...TJTS E50 – Yritysverkostot ja niiden...
TJTS E50 –Yritysverkostot ja niiden
informaatiojarjestelmat 2006
Jukka Heikkilä[email protected]
Marikka Heikkilä[email protected]
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Systemic view on an organisation
Res
&
developm
Modularization
Strategy
Sourcing
Prod
plans
PDM
Production
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Make!= DIY
Persuasion
Delivery
Commitments
Finance
Supplier
Customer
Res
&
Developm
Modularization
Strategy
Sourcing
Prod. planning
PDM
Production
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Production typologies
• Make-to-Stock (MTS)• Make-to-Order (MTO)• Assembly-to-Order (ATO)• Engineer-to-Order (ETO)• Hybrid• Effects companies needs for
– Making material acquisitions (Scarcity)– Production schedules– Overall strategic planning for the individual company
as well as for the whole value net• As a result, the typologies influence the composition of a
network
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Make-to-Stock(Kankaanpää, 1999)
• Standard goods produced prior to customer order
• Production amounts based on forecasts– Demand histories
• Finished goods stored in warehouses until actual demand arises
• Goods shipped to retailers or directly sold to end-consumers
• E.g. a factory producing standard goods.
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Make-to-Order(Kankaanpää, 1999)
• Similar to MTS-typology• Produces standard goods based on forecasts
– BUT, when customer order is received the production method changes
• Instead of producing goods for the inventory (warehouse), the produced goods under the MTO-typology are (in a way) “sold” by the time they are produced
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Assembly-to-Order(Kankaanpää, 1999)
• Goods assembled from standard assemblies and semi-finished components based on customer specifications
• Combines the different production typologies • Produces semi-finished standard components
– Based on the forecast– Stored in a warehouse
• Customer order converts the production to the final assembly of the product
• E.g. An automobile assembly plant
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Engineer-to-Order(Kankaanpää, 1999)
• Customer order driven product design• Final product is not fully specified at the
moment an actual customer order is accepted• Order triggers the engineering tasks that define
the final specifications of the product• The customer orders mould the process all the
way until the actual production
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Customer Order DecouplingPoint (CODP) 1/2
• Defines which part of the SC is customer orderdriven– Identifies investments made independently of
customer orders – Beyond CODP no anonymous stock exists
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Production typologies and value chain vs. network
• Combining a value chain with varyingproduction typologies– Forecasts– Processes– Inventories
• Scarcity
– Changes in production• Is it a network or a value chain?
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Interconnected business
• Exchange of information between partners, subcontractors, even competitors– Pooled resources
• Breeding environment– Outsourced services, universities, science parks,
financiers, etc.
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Defining a value net (orvalue creating network)
c.f. Bovet & Martha, 2000
• One size fits all• Arm’s lengt and sequential
• Rigid, inflexible• Slow, static• Analog
• Customer-aligned• Collaborative and systematic
• Agile, scalable• Fast-flow• Digital
Value netSuppliers
Company
Customers
’Traditional’ supply chain
Demand … Manufacturing… Warehousing…Customer forecasting
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Drivers of networked business(Kumar & Van Dissel, 1996)
• Environmental forces– Globalization– Environmental turbulence
• The support role of IT in reducing transaction costs and transaction risks
• Enabling role of IT in making the collaboration feasible• The motives of the co-operating parties dealing with
issues such as:– Resource pooling– Risk sharing– Utilizing relative advantages– Reducing supply-chain uncertainty– Increasing resource utilization.
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The Game of Business (Nalebuff & Brandenburger, 1996)
Competitors
Suppliers
Complementors
Customers
Company
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The Game of Business (Nalebuff & Brandenburger, 1996)
Competitors
Suppliers
Complementors
Customers
Company
A player is your competitor if customers value your product less when they have the other player’s product than when they have your product alone
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The Game of Business (Nalebuff & Brandenburger, 1996)
Competitors
Suppliers
Complementors
Customers
Company
Traditionally, the other companies in your industry- those companies that make similar products to yours in a manufacturing or engineering sense
Example:Coca cola vs. Pepsi
As people think more in solving their customer’s problems, the industry perspective becomes irrelevant.
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The Game of Business (Nalebuff & Brandenburger, 1996)
Competitors
Suppliers
Complementors
Customers
Company
Intel and Air France may end up as competitors as videoconferencing takes off and becomes a substitute for business trips
Paper producers and computer industry can end up as competitors as both offer tools for graphical and textual presentation
What else might my customers buy that would make my product less valuable to them?
How else might customers get their needs satisfied?
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The Game of Business (Nalebuff & Brandenburger, 1996)
Competitors
Suppliers
Complementors
Customers
CompanyA player is your complementor if customers value your product more when they have the other player’s product than when they have your product alone
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The Game of Business (Nalebuff & Brandenburger, 1996)
Competitors
Suppliers
Complementors
Customers
Company
Product & spare parts, maintenance
What else might my customers buy that would make my product more valuable to them?
Hot dogs & mustard
Computing power & sophisticated software
Digital cameras & SoftwarePrintersSpecialty papers
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The Game of Business:Co-opetition (Nalebuff & Brandenburger, 1996)
Competitors
Suppliers
Complementors
Customers
Company
Players often occupy more than one role
-> try to co-operate and compete at the same time (Co-opetition)
Clothing shops are gathered together in a mall
Museums -Compete for paintings etc.-Compete for customers-Co-operate in weekend passes etc.
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The Game of Business:Co-opetition (Nalebuff & Brandenburger, 1996)
Competitors
Suppliers
Complementors
Customers
Company
With whom should With whom should we cowe co--operate operate with?with?
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Tree
• Each link connects exactly to one other linkActor D
Actor CActor F
Actor GActor B
Actor E
Actor A
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Definition of business network
• The network of – connected and interdependent
organisations– mutually and cooperatively working
together – To control, manage, and improve – the flow of materials and information
from suppliers to end-users. (Christopher, 1998)
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Why interest in Networks?
• Individual organisations are already trimmed to be ‘lean-and-mean’,
• Already efficient Supply Chains• improvements easier to achieve in network
relations– Instead of efficiency also agility, adaptiveness
and alignment of goals needed
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What is Smart business network?(Vervest, Preiss, van Heck & Pau, 2005):
• A network of participating businesses – With compatible
goals,– Interacting in novel
ways,– Perceived by each
participant as increasing its own value,
– Sustainable over
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Smart Business Network?
Dynamic, chancing pool of local/case-dependentsubcontractors
Subcontractors, static
Network of partners, static
Customer
Dynamic network: Companies ready to be pulled together for a given run and then disassembled to become part of another temporary alignment (Miles & Snow, 1992, pp. 66–67).
Static network: tight relationships with a limited set of actors that also serve organizations outside the network.Business partners carefully selected and tied with contracts