COLLABORATION IS BEGINNING TO DEMONSTRATE ITS VALUE

We can see that in spite of the reluctance to work with external business
partners, collaboration can and does occur, as the firm moves through its maturity
model.
Beginning in the inform level, there are a series
of one-way communications set up, primarily to handle design changes, to enter
data through an electronic data interchange system, and to process electronic
funds transfer. In the interact level, the firm breaks down its internal resistance
to cooperation and begins to carefully exchange data important to optimizing
across the full organization with a select group of business allies, often on a
pilot or experimental basis.
As the chasm to level 3 is crossed, the firm enters the transact area and
begins conducting business with some of its external partners on an electronic
basis, usually by linking some part of its planning system with selected business
allies. Further progress becomes difficult, for the reasons cited, particularly the
reluctance to share information externally. Fortunately, some firms prove the
value by making customers, suppliers, and distributors a part of their supply
chain effort, providing services to each other as another means of reaching
optimum conditions across the end-to-end network that forms. In the fifth level,
a community environment is achieved, where the linked firms fully utilize a
collaborative business/operating model for interaction, with elements of
customization, personalization, and community building appearing.
While many firms resist this type of progression, a growing body of evidence
shows that more value is generated as enterprises overcome their normal
proclivity not to collaborate and do share vital information outside of the four
walls defining the firm�s business. Examples where business allies, such as
Tesco and Nestl� or Procter & Gamble and Wal-Mart, share database information
on consumer trends and current market conditions to improve the results
from special sales events form one such basis.
Using electronic collaboration is common practice within the four walls of
Barclays, and Swan intends to extend its use across the firm�s external network,
into the area he calls �the virtual space between [Barclays�] external and internal
firewalls.� The model being employed is one that blends applications ranging
from instant messaging to knowledge management, to introduce a �new breed
of collaboration software and a new level of communication.� The idea is to
allow real-time interaction for employees handling information that can change
in a matter of minutes. The most sophisticated companies, Kontzer reports,
�want to imbed presence awareness � the ability to detect the online status of
others on the network � throughout their networks, so employees can find
available experts without looking away from their screens� (Kontzer, 2003, pp.
29�30).