Building the Concurrent Enterprise Breaking Cultural and Legal Barriers

1
Building the Concurrent EnterpriseBreaking
Cultural and Legal Barriers

• Milan, December 4th 2000
• Roberto Santoro EsoCE Italia President

2
The evolving scenario of Concurrent Enterprise in
the Internet Economy

• Scenario and Evolution of Competitiveness
  Strategy
• Concurrency concepts and Revolutionary Elements
• ESoCE Mission and Initiatives
• ESoCE Italy
• Conference Programme

3
Business drivers

• global operation and presence to increase market
  share
• shared risks and rapid adaptation to market needs
  and conditions
• shorter time to market
• reduction of transaction and development costs
• better quality and higher customer satisfaction

4
Scenario

• Almost all Manufacturing organization have
  presence on the web
• Only a tiny fraction uses web based technology
  for co-operative product development
• buz-words becoming biz-word E-commerce,
  e-business, c-commerce, collaborative product
  commerce (CPC), extended, concurrent and Virtual
  Enterprise
• The WEB is not a tool,is THE BUSINESS MARKET
• CO-OPERATION is THE STRATEGY
• ESoCE is supporting organizations to enter the
  WEB MARKET for co-operative product development
  and commercialization

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Elements of Competitiveness

• Business culture
• Focus on Market share instead of cost decrease
• Competition trough co-operation
• Increase specialization of core competences and
  ability to reuse and capitalize knowledge
• Readiness
• Processes adapted to cooperative environment
• ICT litteracy
• Legal litteracy
• Visibility
• Presence on the web with advanced capability for
  electronic agent interaction

6
Metrics

• Number of Companies ready to enter a Virtual
  Enterprise
• Quantum level of co-operation
• Time required to transform Business Concept into
  an Operational Virtual Enterprise
• Objective ZERO TIME
• Financial Resources to Virtual Enterprise
• User ICT investment (ICT available as on-line
  service in the WEB as needed)
• Objective ZERO ICT INVESTMENT

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Concurrent Enterprise

• Concurrent Enterprise is the new paradigm to
  build the Information Society, using ICT
  instruments and combining
• - Concurrent Engineering, a systematic approach
  to the integrated, concurrent design of products
  and their related processes, including
  manufacture and support. This approach, is
  intended to cause developers, from the outset, to
  consider all elements of the product life cycle
  from conception through disposal, including
  quality, cost, schedule, and user requirements.
• - The Virtual Enterprise concept, a distributed,
  temporary alliance of independent, co-operating
  Companies based on the creation of a network of
  enterprises, in which the participants
  co-ordinate their business processes to work on
  common programmes and opportunities.

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Virtual Vertical Enterprise VIVE

• VIVE approach enables groups of companies to
  develop and commercialise products, which
  individual participating company could not
  realise due to limited technical and financial
  capabilities.
• TWO ENABLING FACTORS identified
• a new entity, the "BUSINESS INTEGRATOR", capable
  of facilitating the creation of Virtual
  Enterprises
• Information and Communication Technology
  solutions to enable the operation of Virtual
  Enterprises

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Elements of Virtuality

• Business
• Shared risks and revenues by contractual
  agreement making of companies acting as a single
  Virtual Enterprise
• Organization
• No legal entity, temporary and dynamic,
  geographically dispersed, managed by the Business
  Integrator, enabled by a common/ interoperable
  ICT infrastructure
• Process
• Harmonised, distributed
• Management
• Event driven, delegation based
• Product
• Virtual Prototyping sharing models

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The Business Integrator profile

• Role
• co-ordinate activities performed by the
  industrial partners during the VIVE life cycle
• Profile
• general understanding of industrial issues,
  sufficiently deep to manage the technical and
  business interfaces among partners 
• Activities
• Negotiation of contractual agreements
• Project Management / Administration
• Process analysis and simulation
• Deployment of ICT solutions
• Engineering co-ordination

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Virtual Enterprise Phases
VE Constitution Phase
VE Bid Process Management
Business Opportunity Evaluation Phase
Virtual Enterprise Design Phase
VE Operations
Design of the process relevant to the management
of external request of offers and order
acquisition
Identification of specific candidate Industrial
Partners to carry out the development of the
product, responding to the identified business
opportunity
Identification of market opportunity in terms of
- potential market volume and timeliness
requirements - product requirements - commercial
strategy and plan
Identification of all the required functions and
skills necessary for the VE set up and their
relevant organisation
Implementation of the VIVE ICT infrastructure,
and elimination of gaps for a correct management
of the VE
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Region-based Enterprising

• Enacting co-operative exploitation of business
  opportunities through networks of enterprises
  co-ordinated by a Business Integrator
• Availability of regional and sectoral focal
  points for aggregation of enterprises to access
  common working spaces over the INTERNET

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Region-based Enterprising Deployment Mechanism

• FOUR MAIN PHASES
• Consolidation of Service Centres Concept of
  Operation and Servicing Requirements
• Development of networked ICT infrastructure
• Pilot application and finalisation of Mechanisms
  and procedures
• Validated networked Services

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ICT Support environmentfor on-line web services
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Reference Code of Practice

• Standardised co-operative process and data model
  taylored to business sectors
• Plug and play philosophy, minimizing the set up
  and the negotiation time
• Legal Framework
• aim, form and duration of the Virtual Enterprise,
  applicable laws and fiscal problems
• project management rules and procedures and
  distribution of the duties among the partners
• obligations, liability and intellectual property
  rights among partners and toward third parties

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The Revolutionary Elements

• WEB agent based Partner Search
• Plug and Play Partnership
• Concurrent definition of product, processes and
  organisation, tailored on the specific business
  opportunity, taking into account Legal and
  Cultural issues
• Shared on-line ICT SERVICES

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ESoCE

• ESoCE is committed to support the transition to
  the CO-OPERATIVE BUSINESS MARKET
• Founded in November 1991, ESoCE (European Society
  of Concurrent Engineering)  is an European
  network of national initiatives regarding
  Concurrent Engineering. 
• ESoCE has developed collaborations with
  international organisations worldwide. ESoCE is
  also founder of CE-NET, the Concurrent
  Engineering Network of Excellence.

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CE-NET

• The goal of CE-NET is to support the creation and
  operation of the Concurrent Enterprise through
  three different phases
• 1st phase Awareness foundation, started on 1st
  October 1997
• 2nd phase Development and experimentation,
  started Dec. 2000, and lasting three years
• 3rd phase Training/education technology
  transfer
• 12 countries and 38 Organisations from Industry
  and Academia
• Denmark, Finland, France, Germany, Greece,
  Italy, Netherlands, Norway, Portugal, Sweden,
  Romania, UK
• Open membership

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CE-NET Organization
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CE-NET Events

• CE-NET Workshop, Nottingham, UK, 4 Oct. 97
• ICE97 Conference , Nottingham, UK, 5-6 Oct. 97
• CE-NET Workshop, Paris, France, 27-28 Nov. 97
• CE-NET Workshop, Bucharest, Romania,2-3 Jun. 98
• ISCE Symposium, Bucharest, Romania, 4-5 Jun. 98
• CE-NET Workshop, Göteborg, Sweden, 9 Oct. 98
• ICE99 Conference, The Hague, Netherlands, 15-17
  Mar. 99
• ICE 2000, Toulouse, France June 2000
• ICE 2001 Conference, Bremen (Germany) June 2001

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ESoCE Italy

• Founded in 1994. ESoCE Italy has organised
  conferences and workshops and launched several
  initiatives at National and European level
• ESoCE Italy
• makes available to associates all information on
  maturity of CE methodology and support
  technologies
• supports the preparation of qualified proposals
  for National and European financing.

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ESoCE Italy Events

• VIVE(Virtual Vertical Enterprise) Starting Real
  VIVE Business Cases - Rome, 24th March 2000, Rome
• "Building the Concurrent Enterprise Sharing
  Industrial Experience in the Implementation
  Process", 10 December 1999, Rome 
• "Evolution of co-operation processes in the
  Concurrent Enterprise", October, 24 1997 Rome
• ICE '96 "A Guided Tour to the Concurrent
  Enterprise", November, 7-8 1996 Milan
• "Standards and Information Technology for
  Concurrent Engineering", December, 11 1995, Rome
• "Industrial Experiences and Training for
  Concurrent Engineering", November, 3 1995, Rome
• "Research and Development for Concurrent
  Engineering", October, 16 1995, Rome
• ESoCE Italy annual conference, Rome December 2001

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Study Committees for Concurrent Enterprises

• Models and Co-operative Processes
• Legal Issues
• Business Culture and Human factors
• Information and Communication Technology enablers
• Best Practices and benchmarking
• Education and simulation games
• Knowledge sharing and Capitalisation
• Within each Committee the experiences and
  knowledge of members (also resulting from
  European RTD Project) are collected, elaborated
  and disseminated

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Conference Programme

• 10.00 The evolving scenario of Concurrent
  Enterprise in the Internet Economy
• 10.30 Enacting integration of suppliers within
  the Concurrent Enterprise 
• 10.50 Building Virtual Vertical Enterprise among
  SMEs,
• 11.10 Coffee Break 
• 11.30 The connected world survey and analysis of
  trends for e-Business practises 
• 12.00 Legal issues in the constitution and
  operation of Virtual Enterprises 
• 12.30 Enacting the generalised adoption of
  Concurrent Engineering principles and methods by
  SMEs 
• 13.00 Lunch 
• 14.00 Workshop 1 Legal issues for Virtual
  Enterprises  
• 14.00 Workshop 2 Adopting CE principles in
  practice 
• 17.00 Concluding Plenary session  (RTD) funding
  at European level
• 17.30 ESoCE Italy general Assembly
• 1800 Closure