Business homework
Collaborative Advantage
What? Why? How? And Why Not?
WHAT?
What is:
1- Collaboration or A World of Collaboration
2- Collaborative Advantage
3- Collaborative Inertia
4- Are the Common Basis of Collaborative Advantage?
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I - WHAT IS COLLABORATION/ A WORLD OF COLLABORATION?
Shared vision via the development of a relationship and exchange of information
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A world in which it is possible to feel inspired
Anything is possible through collaboration
No limit to your own resources and expertise
Purpose
II- WHAT IS COLLABORATIVE ADVANTAGE?
Collaborative Advantage is when collaboration between several bodies (industries, agencies, governmental bodies, etc.) allow to achieve efficiency, growth, progress, etc. reference their alliance.
For example, partnership between public organizations, and those with and between non-profit organizations, do tackle social issues that would otherwise fall between the gaps.
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III- WHAT IS COLLABORATIVE INERTIA?
Collaborative Inertia is when a collaboration between two or more entities induce a slow progress without achieving any tangible outcome.
But why Collaborative Inertia is often found in practice rather than Collaborative Advantage?
What is the nature of Collaborative situations that makes them so prone to frustration?
Managing Collaboration
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Collaborative Advantage
Collaborative Inertia
FOCUS
Before explaining the bases of collaborative advantage as to explain at a second stage how to manage to collaborate, we need to emphasize the fact that the interest is that of collaboration (collaborative relationships) between organizations and not between individuals
Two types of Collaboration :
Examples:
1- Strategic Alliance between airlines and car manufacturing industry
2- Public – private partnerships especially at the level of social services
3- Industry networks between regional and national governments to promote wealth creation and mutual support
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Promoted by the government
(collaboration between public agencies, non-profit organizations)
Collaborative relationships such as partnerships, alliances, joint ventures, networks of various sorts, collaborative forms of contracting and outsourcing, joint working, etc.
IV- WHAT ARE THE BASES FOR COLLABORATIVE ADVANTAGE?
1- Access to Resources
2- Shared Risk
3- Efficiency
4- Coordination and Seamlessness
5- Learning
6- The Moral Imperative
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IV- WHAT ARE THE BASES FOR COLLABORATIVE ADVANTAGE? (CTND.)
1- Access to Resources:
Organizations often collaborate if they are unable to achieve their objectives with their own resources.
Collaboration with other organizations allows to bring together different resources including technology or expertise.
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IV- WHAT ARE THE BASES FOR COLLABORATIVE ADVANTAGE? (CTND.)
Example 1:
Inter-Company collaboration over taking a product to the market One company provides the product and the other provides the access to the market .
Example of types of industries that choose this type of collaboration:
1- Very small entrepreneurial businesses
2- Large companies such as pharmaceutical industry (where both activities – marketing and production are complex),
3- Companies seeking new markets in new geographical areas
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IV- WHAT ARE THE BASES FOR COLLABORATIVE ADVANTAGE?(CTND.)
Example 2:
Collaborations involving organizations in the non-profit and public sectors as to share resource, expertise, knowledge and connections.
For instance, the police, legal professions, probation services, schools and neighborhood and youth groups collaborate over youth criminal justice issues.
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IV- WHAT ARE THE BASES FOR COLLABORATIVE ADVANTAGE? (CTND.)
2- Shared Risk:
Organizations collaborate because the consequences of failure on a project are too high for them to risk taking it on alone They share the risk
Example: Collaboration between cost-intensive research and development organizations
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IV- WHAT ARE THE BASES FOR COLLABORATIVE ADVANTAGE? (CTND.)
3- Efficiency:
Governments have often seen private organizations as being more efficient than public ones. The latter has promoted public-private partnerships (collaboration).
Four different perspectives on efficiency:
Efficiency stems from the notion of economies of scale
Efficiency related to outsourcing activities (example: companies may outsource support activities such as cleaning and catering to other companies who can gain economies of scale)
Operational efficiency: many purchasing and supply chain alliances are of this sort. Purchasing companies gain efficiencies by ensuring that the delivery of product is done on time and as per the agreed price. Supplying organizations gain efficiencies by having a relatively predictable market.
Coordination of services as to avoid duplication and thus ensure efficiency
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IV- WHAT ARE THE BASES FOR COLLABORATIVE ADVANTAGE? (CTND.)
3- Efficiency:
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Economies of Scale
Outsourcing Activities
Operational Efficiency
Coordination
IV- WHAT ARE THE BASES FOR COLLABORATIVE ADVANTAGE? (CTND.)
4- Coordination and Seamlessness:
As seen above, coordination is an important element to achieve efficiency.
Coordination is the act of organizing, making different people or things work together for a goal or effect to fulfill desired goals in an organization. Coordination is a managerial function in which different activities of the business are properly adjusted and interlinked.
Yet, coordination and seamlessness are not always inter-related:
Repetition (duplication of an activity)
Omission (leaving gaps in activity)
Divergence (diluting activity across a range of activities)
Counter production (pursuing conflicting activities)
are pitfalls obstructing collaboration.
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IV- WHAT ARE THE BASES FOR COLLABORATIVE ADVANTAGE? (CTND.)
5- Learning:
Basis of collaboration pursue joint activities Mutual learning
Example: staff from automobile industry acting as trainers for their suppliers of components/parts
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IV- WHAT ARE THE BASES FOR COLLABORATIVE ADVANTAGE? (CTND.)
6- Moral Imperative:
The most important reason for being concerned in collaboration is a moral one.
Issues facing society (such as crime, drug, poverty, conflict, health promotion, economic development, etc.) cannot be achieved if the organization acts alone.
Collaboration is essential to alleviate any problems at the organization, industry, society and national levels.
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WHY?
WHY COLLABARTION IS ESSENTIAL?
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WHY?
Two reasons:
To protect territory against violation by others (for instance, large public agencies employ senior managers to:
take responsibility of their collaborative activity, and
manage a particular collaboration on behalf of the member organizations
To improve physical facilities or support infrastructure to address needs of the community
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