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 Microtechnology industry is hiring – positive developments of past years continue
09.04.2018 | IVAM Fachverband für Mikrotechnik

nachricht RWI/ISL-Container Throughput Index with minor decline on a high overall level
20.03.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung

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: First evidence on the source of extragalactic particles

For the first time ever, scientists have determined the cosmic origin of highest-energy neutrinos. A research group led by IceCube scientist Elisa Resconi, spokesperson of the Collaborative Research Center SFB1258 at the Technical University of Munich (TUM), provides an important piece of evidence that the particles detected by the IceCube neutrino telescope at the South Pole originate from a galaxy four billion light-years away from Earth.

To rule out other origins with certainty, the team led by neutrino physicist Elisa Resconi from the Technical University of Munich and multi-wavelength...

Im Focus: Magnetic vortices: Two independent magnetic skyrmion phases discovered in a single material

For the first time a team of researchers have discovered two different phases of magnetic skyrmions in a single material. Physicists of the Technical Universities of Munich and Dresden and the University of Cologne can now better study and understand the properties of these magnetic structures, which are important for both basic research and applications.

Whirlpools are an everyday experience in a bath tub: When the water is drained a circular vortex is formed. Typically, such whirls are rather stable. Similar...

Im Focus: Breaking the bond: To take part or not?

Physicists working with Roland Wester at the University of Innsbruck have investigated if and how chemical reactions can be influenced by targeted vibrational excitation of the reactants. They were able to demonstrate that excitation with a laser beam does not affect the efficiency of a chemical exchange reaction and that the excited molecular group acts only as a spectator in the reaction.

A frequently used reaction in organic chemistry is nucleophilic substitution. It plays, for example, an important role in in the synthesis of new chemical...

Im Focus: New 2D Spectroscopy Methods

Optical spectroscopy allows investigating the energy structure and dynamic properties of complex quantum systems. Researchers from the University of Würzburg present two new approaches of coherent two-dimensional spectroscopy.

"Put an excitation into the system and observe how it evolves." According to physicist Professor Tobias Brixner, this is the credo of optical spectroscopy....

Im Focus: Chemical reactions in the light of ultrashort X-ray pulses from free-electron lasers

Ultra-short, high-intensity X-ray flashes open the door to the foundations of chemical reactions. Free-electron lasers generate these kinds of pulses, but there is a catch: the pulses vary in duration and energy. An international research team has now presented a solution: Using a ring of 16 detectors and a circularly polarized laser beam, they can determine both factors with attosecond accuracy.

Free-electron lasers (FELs) generate extremely short and intense X-ray flashes. Researchers can use these flashes to resolve structures with diameters on the...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

Leading experts in Diabetes, Metabolism and Biomedical Engineering discuss Precision Medicine

13.07.2018 | Event News

Conference on Laser Polishing – LaP: Fine Tuning for Surfaces

12.07.2018 | Event News

11th European Wood-based Panel Symposium 2018: Meeting point for the wood-based materials industry

03.07.2018 | Event News

 
Latest News

Microscopic trampoline may help create networks of quantum computers

17.07.2018 | Information Technology

In borophene, boundaries are no barrier

17.07.2018 | Materials Sciences

The role of Sodium for the Enhancement of Solar Cells

17.07.2018 | Power and Electrical Engineering

VideoLinks
Science & Research
Overview of more VideoLinks >>>