© Mitja Jermol

NETWORKED ORGANISATIONS VISION

AND STRATEGY

Recent research results

Mitja Jermol

© Mitja Jermol

OUTLINE OF THE TALK

• NOs. Aims and philosophy• NO Context• Future and research trends • Critical assessment

• Status report– ECOLEAD– E4– TOOL-EAST

• Future research– COIN

© Mitja Jermol

CHALLENGES

As seen by EC• Stimulate collaboration• Manage complexity• Innovate together

• Networked organisations (NO)– …Formal and informal groups of SMEs – ... Formal and informal groups of individuals

© Mitja Jermol

NETWORKED ORGANISATIONS• Constituted by a variety of entities (e.g. organizations, people, machines)

that are: largely autonomous geographically distributed heterogeneous in terms of their:

operating environment, culture, social capital and goals

• These entities collaborate to better achieve common or compatible goals

• The collaborative interactions are supported by a computer network.

• Extended enterprises (hierarchical, supplier networks, 1-n relation)

• Collaborative network organisations (networked, n-m relation)

• Symbiotic organisations (human/machine symbiosis)

© Mitja Jermol

NO R&D STREAMS

• Collaboration• Interoperability• Living systems (labs), learning

organisations, business ecosystems• Network of individuals and network of

organisations• Symbiotic organisations

– Networks of agents (subjects+objects)– …tagging (RFID), sensor networks

© Mitja Jermol

INDUSTRY CONCEPTS CONTEXT

Commonreferences& goals

Cell Level

Shop floor level

Intra- enterprise level

Inter - enterprise level

CollaborativeNetworks level ?

70’ 80’ 90’ 00’

Products Services

© Mitja Jermol

HISTORIC CONTEXT

Manufacturing / Industrial Automation

Enterprise Engineering

Collaborative Networks

NEW

DIS

CIP

LIN

ES

© Mitja Jermol

RESEARCH CONTEXT

Extended enterprise

Supply chain

Virtual enterprise

Virtual organization

Virtual community

Community of practice

Professional virtual community

Collaborative networked

organization

Breeding environment

Business ecosystem

E-Business

Virtual lab

Virtual team

© Mitja Jermol

TECHNOLOGICAL CONTEXT

Widening scope ... Multiplication of tools

Year70’s 80’s 90’s

Enterprise integrationInfrastructure

VE/VO Infrastructure

Cell Inffrastructure

Robot languages. PLC

languages.Petri nets + control

. Simulation / Automatic programming

.IDEFs.RDBMS

.Planners.Reference models: CIMOSA, PERA, GIM, GERAM

.KBMS - rules, frames, reactive programming.Hybrid systems

.MMS.Fuzzy control

.Soft computing.MAS, Agentificationn

.Virtual reality

.Machine learning, Data Mining.OOP, UML, Software components

.Business process modelling / Re-engineering.STEP / EXPRESS

.MAS, Mobile agents

.Workflow, WfMC.EDIFACT

.Middleware: CORBA, DCOM,Java/ JINI, XML ....Federated systems

.Hypermedia.Safe communications

.E-business

.Java / Jini.Tele-operation

.Tele-presence

.Ontologies

. OAG model

Cell &Shop-floor

Intra-Enterprise

Inter-Enterprise

EJB, RMI, UEML, ...

Level

© Mitja Jermol

SOCIAL CONTEXT

And... ? ... And ... ?

VE?

SCM

Business Ecosystem

Extended Enterprise

VOPVC

?

What do you mean by VO ?

Can I establish my VO in 1 day?

How shall I behave in a NO?

What do I benefit from it ?

Which tools do I need?

Where can I buy them?

How do I measure it?

So, is this simply a management

issue?

What about my “life maintenance”?

© Mitja Jermol

A LARGE “HISTORY” OF NO PROJECTS

BIDSAVERBusiness ArchitectECAMPJASMINESTARFISHeLEGALVIVASOSSE-ARBITRATION-TENTERAESOPB-MANMARKET MAKEROBELIXPLEXUSGLOBEMEN

Virtual Organizations

EXTERNALECOLNETE-COLLEGDYCONETWHALESSCOOPLENSISLINK3D

THINKcreativeVOSTERCE-NET IIALIVEVOSTERUEMLVOmap

Collaboration

Accompanying Measures

ADRENALINAPMCHAINFEEDDAMASCOSCO-OPERATESMARTISAN

SMARTSMARTCASTPATTERNSSOL-EU-NETDISRUPT IT

Supply Chain Management

Others

… & moreTeleCAREFETISH-ETF…

CE-NETCHAMAN COBIPCOVECOWORKDELPHI ELSEwiseEVENTFREEGLOBEMAN 21 ICASLogSMEMARVEL OUS MASSYVEPLENT PRODNET II SCM+ SPARSVEGAVENTOVIRTECX-CITTIC ...

VE (Past)

ESPRIT

IST

INCO

ALFA

IMS

NIIIP

Nationalprograms

DBE

INT

ER

OP

VE-FORUM

ECOLEAD

TrustCoM

ATHENA

Spider-Win

CrossWork

No-Rest

MyTreasury

SATINE

V-CES

CodesNet

XBRL ILIPT

LIAISON

VERITAS

.... .... ....

6th Framework Programme

Collaborative networksInteroperabilityBusiness EcosystemsKnowledge Management

7th Framework Programme

Integration of results in a common frameworkOperationalisation – putting into practice

Inclusion of new technologies – Semantic Web, Tagging systems, Sensor networks, embedeed systems

Self-organised systemsIntelligent systems of humans and objects

© Mitja Jermol

Dynamic Enterprise Networks

Technologies for Interoperability

Dig

ital

E

cosy

stem

s

Kn

ow

led

ge

to

sup

po

rt

Inn

ova

tio

n

eBu

sin

ess

fo

r S

ME

s

NETWORKED BUSINESSES – STRATEGY IMPLEMENTATION

Interoperability• SW components• novel reference architecture• modelling techniques• Semantics

Business-Ecosystem• self-evolving systems• collaborative environments• local network business ecosystem• Socio-economic research

Collaborative Networks• Framework, models• Network theory• Complex adaptive/self organising• Managing distributed operations

Knowledge management• K sharing, brokering• K modelling• K leveraging creativity and productivity

© Mitja Jermol

IT IS ALL ABOUT NETWORKING

• Networks– Nodes– Relations– Meta structures – granularity and fractal structure

• Power law• Patterns• 2n complexity• Self-organisation

© Mitja Jermol

UNDERSTANDING NETWORKS I

Web domains in 1998

© Mitja Jermol

Users of MSN Messenger?

© Mitja Jermol

0 5 10 15 20 25 3010

0

101

102

103

104

105

106

107

108

Distance (Hops)

Num

ber

of n

odes

Pick a random node, count how many nodes are at distance 1,2,3... hops

Hops Nodes1 10

2 78

3 396

4 8648

5 3299252

6 28395849

7 79059497

8 52995778

9 10321008

10 1955007

11 518410

12 149945

13 44616

14 13740

15 4476

16 1542

17 536

18 167

19 71

20 29

21 16

22 10

23 3

24 2

25 3

UNDERSTANDING NETWORKS III

© Mitja Jermol

UNDERSTANDING NETWORKS IV

• Network analysis– Analysis and modeling (Betweenness, Closeness , Centrality

Degree, Density, Reach,…)– Monitoring (hubs, authorities, patterns, cliques,…)– Predictions (network evolution)– Simulations

• Social network analysis – social factors• Complexity (management)

– Chaordic systems nature– Self-organisation– Creativity at the edge of chaos

© Mitja Jermol

UNDERSTANDING COLLABORATION I

© Mitja Jermol

UNDERSTANDING COLLABORATION II

Joint goalsJloint identititiesWorking together(Creating together)

Joint responsability

Compatible goalsIndividual entities

working apart(with some

coordination)

Compatible goalsIndividual entities

working apart(with some

coordination)

Complementary goals

(aligning activities for mutual benefit)

Complementary goals

(aligning activities for mutual benefit)

Complementary goals

(aligning activities for mutual benefit)

Communication and Information

exchange

Communication and Information exchange

Communication and Information exchange

Communication and Information exchange

Network Coordinatedwork

Cooperativework

Colaborativework

Coalition’stype

Inte

gra

tion

leve

l

© Mitja Jermol

UNDERSTANDING COLLABORATION III

• Network intelligence– from Egoism to Altruism– from Self to Group– from Taking to Sharing

Is the society ready for collaboration?

IQ EQindividual, cognitivecomplex reasoning

Self awarenes& empathy

NQ (CQ)connecting, integrating& sharing

© Mitja Jermol

A CONCEPTUAL SHIFT I - WORKING INDIVIDUAL

VBE

VO

Long-termstrategy

Opportunitydriven

Preparedness

VT

PVC

© Mitja Jermol

AGENTS

A CONCEPTUAL SHIFT IIA NETWORK OF AGENTS

Object with basic functionalities

Com

mon C

omm

unication interfaces

Knowledge sharing skills

Col

labo

ratio

n fu

nctio

nalit

ies

Extended functionalities

Self-aware,context aware,

self-healing,…functionalities

HUMAN

MACHINE

GROUPORGANISATION

© Mitja Jermol

Time

Limits to Growth

FFE xNTE x

E x+1

FC xE xComplexitylevel x

Complexitylevel x+1

NTE x+1

Complexity and Coherence

A CONCEPTUAL SHIFT IIICHAORDIC SYSTEM

© Mitja Jermol

COMPREHENSIVE VIEW ON ORGANISATION

AG

EN

TS

' KN

OW

LE

DG

EG

RO

UP

KN

OW

LE

DG

EO

RG

AN

ISA

TIO

NA

L

KN

OW

LE

DG

E

Community – interest based

Group

Agent (Individual)

Agent (Individual)

Agent (Individual)

Agent (Individual)

Agent (Individual)

Agent (Individual)

Organisation – rule based

Individual

Knowledge

Competences

Abilities – creativity and

innovation

Beliefs

Values

Trust

Group dynamics

Social network

Operational knowledge

Knowledge of the structure

Business Knowledge

Organisational Culture

Group

Group Group

Knowledge MapSocial Network

Business Process Rules

© Mitja Jermol

HOLISTIC APPROACH

Concepts, Models, Frameworks, Architectures

Organisation structures,

Processes,Methodologies,

Rules,Guidelines

ICT Tools,Solutions,

ICT Infrastructure,

Pilots,Case studies,

Roadmapping,

Dissemination

Theoretical foundations,

Culture

Society

Business Technology

Science

© Mitja Jermol

RESEARCH TRENDSIN NETWORKED ORGANISATIONS

© Mitja Jermol

DEVELOPMENT TRENDS

Hierarchical

Symbiotic

ClosedIntegratedTop-Down

Main principle:Directed

ClosedConnectedBottom-up

Orchestrated

OpenCollectiveBottom-up

Self-organised

Networked

Agents’ autonomy and responsibility

© Mitja Jermol

CHALLENGES

• Research– Intelligent, self-organised network of subjects and objects– Self-aware networked objects– Collective intelligence and responsibility– Symbiotic organisations

• Business– Putting results into practice – integration, implementation, building

awareness– Managerial and organisational models– Intellectual property in NOs, legal support, trust monitoring – Creativity networks – “out of the box” thinking– Serendipity management

• Society and Environment– Adaptive development– NO in non business environments

© Mitja Jermol

MAIN MODELS

Model Organisation Management Control

Mechanical Hierarchical Programming Hierarchical

Biological Reticulate Piloting Interactive

Chaotic Fractal Catalysis Autonomous

Adapted from de Rosnay

© Mitja Jermol

SYMBIOTIC ORGANISATIONS

Catalytic

Structured Self-organised

Collaborative

Directed“Stupid

machines”

Intelligent machines

© Mitja Jermol

SYMBIOSIS VS COLLABORATION

• Symbiosis always occurs between two or more different agents• Between the same agents it is collaboration

Individual

Group

Organisation

Collective organism

Individual

Group

Organisation

Collaboration

Sym

bios

is

© Mitja Jermol

TECHNOLOGIES ARE THERE

• Wire-ing (IPv6)– 252 addresses for every star in the known universe or 5×1028 / human.

• Storage capacity – 4x1026 bytes = 64Tb/human and is doubling every year

• Knowledge technologies (concept within the context)– Knowledge discovery– Machine learning– Language technologies– Deep and shallow reasoning mechanism (Cyc)

• Cognitive systems– Self-aware systems

• Sensor networks and MEMS• Man-machine technologies

– Between "Mechanically Extended Man" and "Artificial Intelligence"

© Mitja Jermol

INFORMATION ARE THERE

Knowledge is there…• Internet

– Web 2.0 – collaborating, cleaning and adapting– …constant inflow of information

• Structured information– Models, schemas, standards, rules

• Semantically structured information– …+ methods that gives knowledge

• Emotions– Detecting bias and sentiments– Emotion recognition

© Mitja Jermol

SOME SKEPTICISM

• Selfish agents’ nature (Dawkins)– …opposed to altruistic behavior

• Symbiotic man (deRosnay)– …meta-being

• Collective intelligence and memory (Levy)– …managing complexity (at the edge of chaos)

• Spiritual machines and the law of accelerating returns (Kurzweil)– …second order cybernetic systems (control?)

© Mitja Jermol

7th FRAMEWORK PROGRAMME

6th FRAMEWORK PROGRAMME

EU RESEARCH PERSPECTIVE

STREPTargetedresearch projects

STREPTargetedresearch projects

STREPTargetedresearch projects

STREPTargetedresearch projects

Network of excellence

IPStrategic research projects

IPStrategic research projects

ECOLEAD ATHENAMYCAREVENT

E4TOOLEAST

COIN

© Mitja Jermol

ECOLEAD

Collaborative Networked Organisations

© Mitja Jermol

WHAT WE UNDERSTAND BY CNO?

Constituted by a variety of entities (e.g. organizations and people)that are:

largely autonomous geographically distributed heterogeneous in terms of their:

operating environment, culture, social capital and goals

Nevertheless these entities collaborate to better achieve common or compatible goals

The collaborative interactions are supported by a computer network.

Unlike other networks, in CNO collaboration is an intentional property that derives from the shared belief that

together the network members can achieve goals that would not be possible

or would have a higher cost if attempted by them individually

Network ...

© Mitja Jermol

WHAT WE UNDERSTAND BY CNO?

Collaborative Networks (CN)

Collaborative Networked Organizations (CNO)

CNO Breeding Environment

Virtual Organization (VO)

Virtual Enterprise (VE)

Extended

Enterprise

Virtual Laboratory (VL)

ProfessionalVirtual

Community (PVC)

© Mitja Jermol

ECOLEAD - HOLISTIC APPROACH

VO

Bre

edin

g E

nviro

nm

ent

Pro

fess

iona

l V

irtua

l C

omm

uniti

es

Dyn

amic

V

Os

“Horizontal” ICT infrastructure

Theoretical foundation

Preventing the limitations of fragmented research ...

A holistic approach combining:

• Breeding environments • Management of (dynamic) VOs• Professional Virtual Communities • Horizontal Infrastructures for

collaboration• Theoretical foundation

towards the establishment of collaborative networks as a new scientific discipline

© Mitja Jermol

VO BREADING ENVIRONMENTSThe operating principles of VO breeding environments are understood and formalized, the framework and services to support the full life cycle of the collaborative networks are developed in a generic way but coping with different specificities and SME needs

VBECreation

VBEOperation

VBEMetamorphosis

VBEEvolution VBE

Dissolution

Results:

VBE reference framework - Entities, structure, roles, behavior

Competencies management

Ontology evolution

Trust management support

VO creation framework

VBE management tools

© Mitja Jermol

VO MANAGEMENT

Well-defined business models and tools for systematic VO management (planning, control, organization and leadership), taking into account the social mechanisms in multi-interest collaboration networks, as well as the transitional nature of VO.

Results:

Dimensions:1) Behavior / processes2) Resources / assets3) Dynamics

Structure, actors, rolesNetwork-centric models

Performance indicators & supervisionValue systems Business models

Support tools

VBEcreation

VBE operationVBE

metamorphosis

Time

VOcreation

VO operation& evolution

VO dissolution

© Mitja Jermol

PROFESSIONAL VIRTUAL COMMUNITIES

The human centered management and exploitation of knowledge and value creation are leveraged by well-supported Professional Virtual Communities (PVC), which are synergistically integrated in the business ecosystem.

Results:

Organizational formsBehavior, roles, rulesSkills & competenciesSupport institutions

Value systemsBenefits, performance, ...Business models

Collaboration platform& tools

Knowledge People

Technology

VALUE

© Mitja Jermol

ICT INFRASTRUCTURE FOR COLLABORATION

The ICT infrastructure will be developed as an open, transparent, easy to use, and affordable enabler of collaborative behaviors in networked organizations.

ICT Infrastructure

SupportService

SupportService

SupportService

SupportService

ebXML… ?

RosettaNET…?

GRIDMAS…?

Networking, Web, ...

Sliding “borders”

ECOLEADand others

Intermmediate support for collaborationTechnology “independence” and prototypingRequire specific business models

© Mitja Jermol

THEORETICAL FOUNDATION AND TRAINING

Understand and model the principles of collaboration, emerging behavior and self-organization in collaborative networks

Reference models of CNOs

New scientific discipline: Collaborative Networks

Modeling foundation

Creation of a Virtual Learning Community for knowledge sharing

Reference curricula for CNO

Training events – traditional, ICT based, combined

© Mitja Jermol

Other results

ECOLEAD Strategic results

CNO modeling frameworkCNO reference modelsCNO EU curriculaICT-I Infrastructure

© Mitja Jermol

E4Extended Enterprise management in

Enlarged Europe

© Mitja Jermol

SMES AND NETWORKED ORGANISATIONS

• Joining forces to enhance competitiveness

• Networking• …exchanging resources, markets, plans and

ideas• …collaborating and competing• …complementing

• Connecting and integrating• Agile organisational structures

• …few rules and a lot of freedom• …bursting creativity and innovation

© Mitja Jermol

WHAT IS NEEDED?

• Solutions in:• …efficient models• …organizational solutions• …ICT infrastructure and solutions

• Solutions that are• …cheap and affordable• …open and Integrative• …flexible and easy to use• …dynamic and based on the similar structures

like network organizations

© Mitja Jermol

OBJECTIVES

Enhancing collaboration between SMEs by:• supporting the integration of OEM and suppliers in the network

enterprise• supporting distributed processes related to new products

design.

Planed results:• integrated engineering environment to support suppliers in a

design network • integrated services in a basic framework:

© Mitja Jermol

E4 PROVIDES

• Effective, integrated, easy to understand, user friendly and low cost platform combining:• Project Management, • Project Monitoring and Control, • Project Traceability and Quality Control, • Product Structure Management, • Knowledge Management in just one platform • Connectivity to local OEM systems

• The platform concept and the underlying business model

© Mitja Jermol

E4 DEVELOPMENT STATUS

1st Release To be integrated In development

© Mitja Jermol

CURRENT RESULTS

© Mitja Jermol

Tool-East

Open Source Enterprise Resource Planning and Order Management System for Eastern European Tool

and Die Making Workshops

© Mitja Jermol

TOOL-EAST PROVIDES

• Open source ERP system• Web services for data and info

exchange• Community services• Open source development community

support

© Mitja Jermol

PORTAL FUNCTIONALITIES

ERP Development ERP Exploitation Public CommunityPortal

Services

Users

CVS / SVN Bug trackingContent

ManagementMailing listsNews feed

ERP hosting

CAD & Project File hosting

Capabilities &Expertise DB

AutomatedERP

backupsDocumentation

Partnermatching

Discussion &Comments

File formatconversion

Guests

Softwaredownload

SuppliersSupportDocumentors

Developers T&D ISP Clients

Admins

Advertising

© Mitja Jermol

© Mitja Jermol

Proposed Tool-East Portal Architecture

Standardized interfaces and processes at the portal enabling Integration of new services Cost reduction

Hosted as well as non-hosted solutions are supported.

OEM Adapter assure continuous and provider comprehensive business processes.

Protected, OEM specific tools and information are available via a separate link and may require a separate log-in by the user.

Single-Point-of-Access approach leads to increased traffic for the OEMs’ information.

Quality of Service

Security

Account andIdentification

Service D

ata bac

kbo

ne

Directory service

&

Data Organization

HostedData

Tool-East Portal

BackupService

OEM Front office and Client

HT

TP

S

SM

TP

Inte

rnet

X X

OEMOEM

© Mitja Jermol

COIN

COllaboration and INteroperability for networked enterprises

© Mitja Jermol

VISION: “By 2020 enterprise collaboration and interoperability services will become an

invisible, pervasive and self-adaptive knowledge and business utility

at disposal of the European networked enterprises from any industrial sector and domain in order to rapidly set-up, efficiently manage and effectively operate different forms of business

collaborations, from the most traditional supply chains to the

most advanced and dynamic business ecosystems.”

“Enterprise Interoperability and Enterprise Collaboration are the two sides of the same COIN”

COIN

© Mitja Jermol

COIN INTEGRATES

ECOLEAD ATHENADBE

COIN - “COllaboration and INteroperability for networked enterprises ”

INTEROP

Col

labo

rativ

e ne

twor

ks

Dig

ital

ecos

yste

ms

Inte

rope

rabi

lity

Inte

rope

rabi

lity

© Mitja Jermol

COIN IN ONE SLIDE

Software as a Service

SP3 COIN Service Platform

WP3.2Evolutionary

WP3.3TSD

WP3.4Bus. Know.

WP6.2-6.3 Business: ISU, MMs

SP4 COIN EC Services

WP4.2Product

WP4.3Manuf.

WP4.4Project

WP4.5Human

SP5 COIN EI Services

WP5.2Information

WP5.3Knowledge

WP5.4Business

WP3.1 Baseline Service Platform

WP4.1 Baseline EC Services

WP5.1 Baseline EI Services

WP6.1-6.4,5,6 UR Take-up Demo

EC form / EI challenge

Knowledge i/op

Business i/op

Supply Chains

Aerospace DTA Lazio

(ITA)

Automotive Slovenian Net

(SLO)

Collaborative Networks

ICT Network (HUN)

Aeronautic Cluster of Andalusia

(SPA)

Business Ecosystems

Pulp & Paper Poyry (FIN)

Healthcare VEN (UK)

© Mitja Jermol

USEFUL LINKS

• Join Virtual Learning Community at http://seminars.ijs.si/ecolead• Watch open video courses at http://videolectures.net• Project websites:

– http://www.ecolead.org– http://www.tooleast.org– http://e4.cognovis.de/xowiki/

• Other relevant online sources:– Training DVD– http://www.ve-forum.org– http://www.brint.com– http://www.ist-world.org– http://www.workteams.unt.edu/– Pro-VE and ICE conferences

© Mitja Jermol

© Mitja Jermol

Market turbulence

FOCUSING

Business opportunity

(Collaboration opportunity)

Networked organisation

Short windowof opportunity

Fast configuration of a temporary consortium wellsuited to the market needs

Successful & Effective collaboration

© Mitja Jermol

FROM CO TO SUCCESSFUL COLLABORATION

CO identification

CO characterisation& VO/VT rough

planning

Partners search & selection

Negotiations & agreements

Who?Where and How?Which brokerage policy?What is of interest?

Who?Which partners?How to structure VO/VT?Any initial template model?

Who?Where?Which criteria?Profiles?Decision support?

Who?Negotiation process?Contracts, rules, templates?Agreements?

Actors and rolesModelsRules and principlesReference modelsSupport functionalitiesSupport information…

© Mitja Jermol

VO/VT creation

FROM CO TO SUCCESSFUL COLLABORATION II

VO/VT launching

VO/VT operation

VO/VT dissolution

Common infrastructure?Governance principles?Detailed planning?

Who?Where?Which criteria?Negotiation support?

Who?Management approach?Monitoring/Supervision/Coordination?Performance management?

Responsibilities & liabilities?Inheritance?Lessons learned?Performance summary?

CO identification

CO characterisation& VO/VT rough

planning

Partners search & selection

Negotiations & agreements

VO/VT evolution

© Mitja Jermol

Ali Imtiaz / Celje / 17th – 20th April 2007

OPENTAPS ERP FUNCTIONALITIES

• eCommerce• Point of Sales• Order Entry• CRM• Financials• Accounting• Marketing• Inventory and Warehouse• Manufacture• Product catalog• Content management• Users and party management

© Mitja Jermol

HIERARCHY OF BUSINESS PROCESSES

Value chain

BP1

BP2

BP3

Business process level

Business process

MP1

MP2

MP3

Microprocess process level

Microprocesses

AC1

AC2

AC3

Activity level

Top-down m

odeling

Bot

tom

-up

mod

elin

g

experts

data