Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Collaboration is a Competitive Advantage

25.11.2008
Two Norwegian high-technology companies took a chance on a collaboration to exploit each others' competence more effectively – with good results, shows a doctoral thesis from BI Norwegian School of Management.
“Production costs were cut in half, better performance and shorter development time were achieved,” observes Fahad Awaleh in his doctoral thesis.

The electronics industry has experienced explosive development over the past few years. Strong market growth and increased globalisation have changed the rules of the game.

This has intensified international competition for Norwegian high-technology export companies. They operate in a world of frequent takeovers and mergers.

It has also become increasingly common to outsource all or some of production to low-cost countries.

Often, international competitors have significant advantages associated with access to cheaper labour and generally more favourable local conditions.

The Key to Increased Competitiveness

“How in the world can Norwegian high-technology companies deal with increased competition from global and international actors?” asks Fahad Awaleh in his doctoral thesis from BI Norwegian School of Management.

According to Awaleh, the key to increased competitiveness is to find smarter ways to manage logistics and purchasing in the process of developing and producing new products.

These costs can represent as much as 70 to 80 per cent of total production costs. “Product developers and producers must find solutions that lead to winning designs and technological advantages, while also maintaining adequate control over production costs,” maintains Fahad Awaleh.

Norwegian high-technology companies and competence organisations can achieve this by taking a fresh look at how they collaborate, both as customers and suppliers.

Productive Collaboration

Fahad Awaleh has, in his doctoral thesis from BI Norwegian School of Management, conducted a study of collaboration projects between Kongsberg Defence and Communication and Kitron, which are two leading Norwegian electronics companies.

Kongsberg Defence and Communication and Kitron have, over the course of several years, collaborated on developing and producing radios and advanced communications equipment. The Kongsberg company develops new product concepts, while Kitron is responsible for production.

These two companies established a collaboration project where both were prepared for radical changes in the way they collaborated on the development and production of new products.

“Confronting well-established work methods is no joke. It means challenging each others' competence, dropping preconceived notions about each other, and showing each other openness and trust,” emphasises Awaleh.

“The object was to exploit each others' competence in the best possible way,” says Awaleh.

Cheaper, Faster and Better Products

The BI researcher followed the two company’s efforts to work together in new ways over a period of four years.

Awaleh shows how the two parties managed, over time, to develop a common strategy for developing their relationship and collaboration in a direction that made both companies better able to achieve both their individual and common goals. The companies took a chance testing new collaboration routines and delegation of responsibility in a new industrialisation project, and were willing to make mistakes. The journey toward a smarter way of working has given both companies a competitive advantage.

Together, Kongsberg Defence and Communication and Kitron are in a position to produce radios and other advanced mutations equipment with increased technological performance, better functionality, and at half the production cost. At the same time, both companies have preserved their individual goals and needs.

Reference:
Fahad Awaleh defended his doctoral thesis, “Interacting Strategically within Dyadic Business Relationships – A case study from the Norwegian Electronics Industry”, at BI Norwegian School of Management, October 10, 2008.

Audun Farbrot | alfa
Further information:
http://www.bi.no
http://web.bi.no/forskning/papers.nsf/wSeriesDissertation/24962CD888E59956C12574C200429710

More articles from Business and Finance:

nachricht How Strong Brands Translate into Money
15.11.2016 | Kühne Logistics University - Wissenschaftliche Hochschule für Logistik und Unternehmensführung

nachricht Demographic change depresses tax revenues
04.11.2016 | Fraunhofer-Institut für Angewandte Informationstechnik FIT

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Significantly more productivity in USP lasers

In recent years, lasers with ultrashort pulses (USP) down to the femtosecond range have become established on an industrial scale. They could advance some applications with the much-lauded “cold ablation” – if that meant they would then achieve more throughput. A new generation of process engineering that will address this issue in particular will be discussed at the “4th UKP Workshop – Ultrafast Laser Technology” in April 2017.

Even back in the 1990s, scientists were comparing materials processing with nanosecond, picosecond and femtosesecond pulses. The result was surprising:...

Im Focus: Shape matters when light meets atom

Mapping the interaction of a single atom with a single photon may inform design of quantum devices

Have you ever wondered how you see the world? Vision is about photons of light, which are packets of energy, interacting with the atoms or molecules in what...

Im Focus: Novel silicon etching technique crafts 3-D gradient refractive index micro-optics

A multi-institutional research collaboration has created a novel approach for fabricating three-dimensional micro-optics through the shape-defined formation of porous silicon (PSi), with broad impacts in integrated optoelectronics, imaging, and photovoltaics.

Working with colleagues at Stanford and The Dow Chemical Company, researchers at the University of Illinois at Urbana-Champaign fabricated 3-D birefringent...

Im Focus: Quantum Particles Form Droplets

In experiments with magnetic atoms conducted at extremely low temperatures, scientists have demonstrated a unique phase of matter: The atoms form a new type of quantum liquid or quantum droplet state. These so called quantum droplets may preserve their form in absence of external confinement because of quantum effects. The joint team of experimental physicists from Innsbruck and theoretical physicists from Hannover report on their findings in the journal Physical Review X.

“Our Quantum droplets are in the gas phase but they still drop like a rock,” explains experimental physicist Francesca Ferlaino when talking about the...

Im Focus: MADMAX: Max Planck Institute for Physics takes up axion research

The Max Planck Institute for Physics (MPP) is opening up a new research field. A workshop from November 21 - 22, 2016 will mark the start of activities for an innovative axion experiment. Axions are still only purely hypothetical particles. Their detection could solve two fundamental problems in particle physics: What dark matter consists of and why it has not yet been possible to directly observe a CP violation for the strong interaction.

The “MADMAX” project is the MPP’s commitment to axion research. Axions are so far only a theoretical prediction and are difficult to detect: on the one hand,...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

ICTM Conference 2017: Production technology for turbomachine manufacturing of the future

16.11.2016 | Event News

Innovation Day Laser Technology – Laser Additive Manufacturing

01.11.2016 | Event News

#IC2S2: When Social Science meets Computer Science - GESIS will host the IC2S2 conference 2017

14.10.2016 | Event News

 
Latest News

Predicting unpredictability: Information theory offers new way to read ice cores

07.12.2016 | Earth Sciences

Sea ice hit record lows in November

07.12.2016 | Earth Sciences

New material could lead to erasable and rewriteable optical chips

07.12.2016 | Materials Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>