INDEX 1.- Collaboration.- Why collaborate? 1.1 SPECIAL FEATURES OF A COLLABORATIVE NETWORK 1.2 KEY BENEFITS 1.3 COLLABORATION STRATEGIES 1.4 OBSTACLES TO COLLABORATION 1.5 SUCCESSFUL COLLABORATION 1.6 CONCLUSION 2.- How to find a Partner 2.1 FIND A PARTNER 2.2 TYPES OF COLLABORATION 2.3 HOW TO CONTACT A PARTNER 2.4 WHERE TO FIND PARTNERS 3.- Planning & Impact STAGE 1– BUSINESS WORKABILITY PLAN STAGE 2 – RESOURCES DEFINITION, ROLE SUBDIVISION STAGE 3 – DEFINITION OF A PLARFORM OF SHARED INFORMATION STAGE 4 – DEFINITION OF MONITORING METHODS ANNEX 1 BUSINESS PLAN GUIDE 4.- Financial 4.1 DEVELOPING AN EFFECTIVE PROPOSAL FOR FUNDING 5.- Communication & Management 5.1 HOW TO CREATE TRUST 5.2 EFFECTIVE COMMUNICATION 5.3 PRESENTATION SKILLS 5.4 LEADERSHIP 5.5 TEAM/ TEAMWORK 5.6 CONFLICT MANAGEMENT 5.7 NEGOTIATION SKILLS LEARNED LESSONS 6.- IT Tools for Collaboration 6.1 TRADITIONAL 6.2 COMPUTER-MEDIATED COMMUNICATION 6.3 EDI, INTERNET, INTRANET, EXTRANET 6.4 INTERNET TOOLS 6.5 COMMUNICATION ON INTERNET ON-LINE 6.6 COLLABORATIVE MANAGEMENT TOOLS 6.7 COLLABORATION AND LEARNING PLATFORMS 6.8 THE LIST OF COLLABORATIVE SOFTWARE (OR LIST OF GROUPWARE) APPLICATIONS 6.9 PROVIDE THE RIGHT TOOLS CONCLUSION www.smallcitycommerce.eu 2 1.- COLLABORATION The aim of this menu is to introduce the concept of the networked organisation and highlight the importance of inter firm collaboration. Collaboration is broadly defined as the interaction among two or more individuals and can encompass a variety of behaviours, including communication, information sharing, coordination, cooperation, problem solving, and negotiation. Collaborative networks are formed by a set of actors (institutions and/or enterprises - from private or public sector, independent professionals, and so forth) which have a pre-disposition to collaborate through a network in order to attend to a business opportunity or to a common interest making use of information and communication technologies. 1.1 SPECIAL FEATURES OF A COLLABORATIVE NETWORK Networks have special features or characteristics that can help to define and distinguish them. Collaborative networks are normally temporary in nature and all partners are considered to be equal players. Each of these features is discussed in more detail below. 1.1.1 Focused For networks to be effective, participants’ efforts must clearly link back to the strategic goals and value proposition of the organisation. This requires strong leadership and communication strategies. They must understand their role in fulfilling organisational objectives. When this understanding exists, members gain focus by first setting clear, compelling, and easy-to-grasp objectives, and then by prioritising and aligning their collaborative efforts toward those goals. 1.1.2 Boundary spanning Often, independent organisations are no longer capable of providing appropriate products or products of the right quality to meet specific customer needs. The need of reacting promptly to their customer's demand for individualised products is essential. 1.1.3 Complementary core competencies The primary characteristic of a collaborative network is the pooling of the participants’ core competencies or businesses. The participants in a collaborative network complement each other, making it possible to deliver a product or complete a project collaboratively. 1.1.4 Partner equality Increased dependence within collaborative networks leads to equality in participant relations. In this way, a culture based on the desire to share skills and information replaces the traditional control-based culture. Each participant can offer leadership in its area of specialisation during the process of product or service development. 1.1.5 Temporary nature The components of a collaborative network are constantly in flux. It is important to note that collaborative networks do not necessarily have a legal personality, nor do they have and organisational supra-structure. However, there is often has an international dimension in networks. 1.2 KEY BENEFITS This section identifies the key benefits that can accrue to an organisation if they establish or operate in a collaborative network: www.smallcitycommerce.eu 3 1.2.1 Faster knowledge transfer Networks are lauded to possess unprecedented speed in identifying and responding to new market opportunities, moving quickly from product/service concept. They are an effective mechanism for creating, sharing, and applying organisational knowledge. They also help companies leverage knowledge assets more effectively and enable participants to locate and communicate with experts more quickly. 1.2.2 Greater agility and productivity Networks are in a better position to optimize overall organizational responsiveness to a rapidly and unpredictably changing marketplace. They spend less time looking for information – and more time focused on applying it. They also make better decisions more quickly. 1.2.3 Higher profits Key performance indicators such as shorter lead times, lower costs, increased flexibility, better ideas and more satisfied customers have a significant impact on the bottom line and ultimately lead to higher profit margins. 1.3 COLLABORATION STRATEGIES Collaboration may take place at many levels within and between organisations. 1.3.1 Virtual Enterprise (VE) A Virtual Enterprise is a temporary alliance of enterprises that come together to share skills or core competencies and resources in order to better respond to business opportunities, and whose cooperation is supported by computer networks. 1.3.2 Collaborative Networked Organisation (CNO) A collaborative Networked organisation represents an association (also known as cluster) or pool of organizations and their related supporting institutions that have both the potential and the will to cooperate with each other through the establishment of a "base" long-term cooperation agreement and interoperable infrastructure. 1.3.3 Professional Virtual Community (PVC) A professional virtual community represents the combination of the concepts of virtual community and professional community. Virtual Communities are defined as social systems of networks of individuals, who use computer technologies to mediate their relationships. Professional Communities provide environments for professionals to share the body of knowledge of their professions such as similar working cultures, problem perceptions, problem-solving techniques, professional values, and behaviour. 1.4 OBSTACLES TO COLLABORATION What holds companies back from collaborating more closely with one another? Research has found that the most significant barriers are not technical ones. In fact, human barriers such as understanding the motivation to collaborate or agreeing on how to share costs and benefits loom much larger. Key problems with enterprise collaboration are highlighted and discussed. 1.4.1 Unclear Motivation and Lack of Skills Many people are do not know what are the drivers, advantages, rewards and returns of sharing information and resources with others. This makes it difficult for leaders to initiate successful inter firm collaboration. Unless mutual benefits to collaboration are established and communicated to all parties, people will remain unwilling to participate and reluctant to learn www.smallcitycommerce.eu 4 new procedures for information exchange. 1.4.2 Lack of Trust Organisations in general and SMEs in particular often lack the confidence to share propriety information with other organisations. Establishing trust is potentially the greatest barrier to overcome in collaboration, and it must be established from the outset to allow knowledge sharing. 1.4.3 Poor Communication and Access SMEs often do not know what information to share, where critical information can be found and how to transfer it to others. Software is a key enabler for collaboration and information sharing with the Internet playing a leading role. 1.4.4 Poor Methods and Tools Collaboration initiatives are just beginning to appear in organisations and there is little research and field data to guide the development and implementation of such initiatives. It is important to remember that a methodology for effective and successful knowledge transfer should: a) Focus on the customer. b) Be aligned with organisational goals and strategies. c) Help providing information and arguments to decision makers. d) Make appropriate use of proven and available management techniques and tools. e) Take into consideration the organisations culture and value systems. 1.4.5 Lack of Resources Effective knowledge sharing and transfer demands time, energy and resources. However these resources are often in short supply and most employees do not have sufficient time and support to rethink and redesign their knowledge processes. Attention must be paid to redesigning and restructuring internal processes to support this new collaborative business environment. It seems that organisational factors such as motivation and skill, trust, communication and access, methods and tools as well as resources impede effective collaboration between teams and organisations. Astute changes in the work environment can make substantial increases in knowledge transfer. Management can influence what the company wants to do and what it can do. Successful initiatives require top management support and backing to overcome the natural resistance of organisations to change. Inter firm collaboration may demand even greater leadership and support than previous internally focused initiatives. 1.5 SUCCESSFUL COLLABORATION The major elements for effective collaboration are summarised in the following table: Key Success Factors The network must achieve something that individual organisations Clear Need can not achieve on their own A shared vision with obtainable goals is necessary. These must also Objectives reflect the needs of the member organisations. The group should also develop clear roles for all members as well as policy guidelines. Networks need a strong leader who is able to clearly define the vision Leadership for the network and guide the members (a large organisation in the network or an independent broker). If a network is able to demonstrate at an early stage that it can Early Success www.smallcitycommerce.eu 5 positively contribute to the member firms, it is likely to increase their commitment to its continual evolution. Vital membership characteristics include above all mutual respect and Trust trust. Member companies must take ownership of the network and be Ownership willing to contribute financially to its development. Trust and independence is built over time and results in increasing Time flows of information throughout the network. There must be extra willingness and flexibility during the early stages of establishing a structure. Communication A network with a clear brand is likely to last longer and will find it easier to attract new members. Open and frequent meaningful and informal communication structures are also necessary. Table 2: Key Success Factors for Effective Collaboration 1.6 CONCLUSION This menu began by introducing the concept of the networked organisation and it emphasised the importance for collaborating and sharing knowledge, skills and resources organisations in general and Small to Medium Sized Organisations (SMEs) in particular in order to gain and maintain competitive advantage in turbulent markets and times of great change. www.smallcitycommerce.eu 6 2. HOW TO FIND A PARTNER This document contains the second menu of the training plan: Find a partner. For an SME that is looking for a partner, there are various possibilities. It can collaborate for example with other SMEs or with larger companies. There are different types of collaboration. The general purpose for collaboration is to make money (profit) or to save costs. Collaboration can take place in the field of product development, shared services or project work. A number of aspects are very important in a partnership, namely agreements on the content, trust, a contract, reference check and corporate culture. Partners can be found in suppliers, local companies, local networks, authorities, trade shows, seminars/conferences or on the internet. 2.1 FIND A PARTNER Research has shown that a lot of companies would like to collaborate, but do not know how. They do not know where to find a partner and in which way they can collaborate. Possibilities about how to collaborate. 2.1.1 With SMEs in the same sector SMEs frequently collaborate with other SMEs, specifically those from the same sector. Main reasons are the common interest in technology and know-how, cultural similarities pertaining company size and similar financial scope. 2.1.2 With SMEs in another sector By collaborating with other SME types, with common similarities in financial scope and company size, combined know-how is used for finding innovative solutions for specific problems. 2.1.3 Larger companies Collaboration between SMEs and larger companies is not often found. In most of these cases we find co-makership. 2.1.4 Public bodies There are several Public bodies to think of pertaining collaboration: Chamber of commerce City council Provincial authorities Employers organization 2.2 TYPES OF COLLABORATION Collaboration can take place in a lot of different ways. But most of the time collaboration has a general purpose. The reason for collaborating is either to make money (profit) or to save costs. The most common and suitable among Commerce companies is “Shared services”: this can save a lot of costs. If companies are established in the same building, they can share for example the toilets, a coffee-machine, the photocopier etc. www.smallcitycommerce.eu 7 2.3 HOW TO CONTACT A PARTNER Before a company is going to contact a potential partner, it has to select a number of companies first. This the company can do on the basis of a number of Evaluation criteria Agreements on the content If a company has the intent to collaborate with another company, the agreements on the content have to be very clear. Both parties have to know exactly what kind of role they are going to play within the partnership. Trust A company that would like to collaborate with a partner runs a lot of risks. Collaboration can have advantages, but how do you know if your partner is competent and trustworthy? An important condition for a good development of the relationship is mutual dependency. Mutual dependency means that both parties’ will do their best, because a good result would prove very helpful to them. When the dependency is disproportionate the most dependent party has a weaker negotiation position, what can lead to opportunistic behaviour at the stronger party. Then the chance of conflicts and an opportunistic atmosphere is big. When parties trust each other both the relationship and the final result has a bigger chance in succeeding. Contract Even if a company trusts its potential partner, a contract should be made. Agreements that you enter with partners, preferably has to be committed to paper. This prevents misunderstandings and valuable controversies. Although, this is not legally obliged. Corporate culture: understand other partner Every company has its own corporate culture. It might be easier to enter a partnership with a company in a branch that has the same corporate culture, but it is also possible to enter a partnership with a company with a total different corporate culture. It is important that all agreements are put down in writing, to prevent future problems. 2.4 WHERE TO FIND PARTNERS If a company has the intent to collaborate, it has to know where potential partners can be found. In this paragraph examples are given of potential partners or institutions that can help to find a partner. 2.4.1 Suppliers Collaboration with suppliers can yield a win-win situation. In the first place current suppliers are an option. They might be appropriate for cooperation. A second option for a company that is looking for a partner is a new supplier (national or international). The question is where a good supplier can be found. Every Chamber of Commerce has a lot of information about possible suppliers. Other sources are: Address files on the internet Bureau for Trade information What is important to know about the future supplier? His interests for the market His insight in the market situation Product documentation Selling conditions Delivery capacity’s and conditions www.smallcitycommerce.eu 8 Nature and size of the company His experiences Can the company rely on a punctual supply? (Does the supplier reply quick and alert; does he give clear and complete answers to questions?) Trust is an important factor in a business relationship. The company has to show his interest in the supplier right at the first contact and has to give the supplier a clear profile of the company. A visit to the supplier is a good way to start a business relationship. 2.4.2 Local companies If a company is looking for a partner, it can look in the first place in its surroundings. There are always companies who are willing to cooperate in a certain way. Durable development as part of a business park, can take place on three levels. In the first place on individual company level: this means optimise the proper management, for example by improved working conditions, decrease use of energy. Second in the field of collaboration between companies; exchange of energy, water and raw materials (exchange power), the joined use of utilities and business functions (utility sharing), combination of transport of goods and persons (transport management), joint collection and transport of waste products (waste management) and the offer of company focused commercial services (joint services). Third in the field of the set-up of the business park. 2.4.3 Local networks The easiest way for a company that is trying to find a new partner is through his business network. In the business area, networking is about connecting with people in order to share information, resources and leads. The emphasis is on relationship building: getting to know people, finding out how you can help them and determining what they can do for you. For businesses, networking is an invaluable tool. The main benefits are: Receiving targeted leads and referrals Raising awareness of your company Sharing ideas and solving business problems Building strong relationships and rapport Developing potential new business relationships Becoming more influential in the relevant industry Meeting potential investors Increasing efficiency and productivity By attending networking events, you get the opportunity to meet people in a safe and supportive environment.. 2.4.4 Trade shows Exhibiting at a trade show gives a company the opportunity to showcase its products and services to potential customers, suppliers and business partners. Even if someone is simply attending a trade show (and not exhibiting), he can still make contacts that lead to new business. To make the best of the time, it is a good way to look through the trade show materials and write down a list of the exhibitors the company wants to meet. www.smallcitycommerce.eu 9 2.4.5 Internet Internet offers a lot of possibilities in different ways: There are numerous portals which can lead to the right partner, e.g. or a Chamber of Commerce. A lot of trade-specialized mailing lists can bring companies in contact quickly and easily with interesting people. An internal company network should not be forgotten. Many companies have the disposal of an intranet. This is an easy way to contact people within the company. Through panel discussions or chat rooms, you can easily get in touch with many persons. You can exchange ideas and the enter barrier is low. Internet is the perfect tool to maintain contacts. A mail of thanks or a short message in which you ask how someone’s doing is mostly very appreciated. Besides, a mail is quickly written and sent. www.smallcitycommerce.eu 10 3. PLANNING AND IMPACT For SMEs, the difficulties to develop collaboration and networking policy is due both to their size and to their usual “isolation”: SMEs suffer especially from knowledge/cultural constraint that lower their resiliency to risks and prevent them from attaining market advantage and economies of scale. SMEs are generally affected by a strong reservations against Knowledge transfer and partnering with an increasing need for new organization and high qualifications of the personnel and learning/adapting of innovations. With a more and more integrated/networked policy a SME’s business might benefit by for example: Achieving best practice and quality standards Developing skills and knowledge Increasing its flexibility Planning more effectively Reducing production down time and boosting its capacity Cutting time to market Becoming more innovative ………. In order to assist SMEs to face and to overcome these challenges and to evaluate the feasibility of a new networked oriented development policy, this document looks at how to plan a stable information/knowledge networking and partnering actions and how it can be beneficial, helping SME’s business to become more responsive, efficient and improve quality. What follows is a multi stage approach to help SME’s managers to evaluate and building networking and partnering . The different stage might be identified as follows: Stage 1. Awareness and business workability plan – It means understanding at all levels (from economical to organizational point of view) in business, the potential, objectives and opportunities of partnering/networking Stage 2. Internal assessment/resources definition and role subdivision – Identifying partnering opportunities and internal implication at all levels Stage 3. Working together – agreeing objectives to create an effective networking/partnering arrangement. Partners need to have a clear understanding of what they can expect from each other and to have a genuine commitment to collaborative networking Stage 4. Definition of monitoring methods – after agreeing what network/collaboration value mean to the partners, the long term results must be monitored and evaluated Stage 5. Knowledge – benchmarking other partnering approaches to provide valuable insight (case studies). The followed training methodology goes direct to the above different steps, which each party in a networking establishing project has to analyse and to evaluate. It takes in consideration not only economic/cost point of view of the planning investment required for the network establishment, but even all the relationship implication between potential partners. For a SME’s manager, it’s essential to identify in which field a collaborative/networking knowledge process can increase its competitivity; to decide together with the potential partner/s the value it represents. For example, this advantage can be scheduled as follows: cost improvement product/service enhancement product/service development (although this may take time to involve) reduced time to market www.smallcitycommerce.eu 11 better communication and planning improved processes and efficiency optimal use of people and resources. After having established the leading elements, it is necessary to verify the technical, economical and financial workability of the term of the collaboration. A final checklist to each stage, will help the SME to respect of the main contents. Stage 1. BUSINESS WORKABILITY PLAN At this stage, SME must define the common understanding at all levels in business, the potential, objectives and opportunities of partnering/networking. There are both an internal and external level of awareness to this stage that must be clearly expressed. The Internal level regards the description and analysis of a successful and profitable partnering, which must be based on establishing realistic, well defined and achievable aims, matching the objective of the whole organizations involved. The external ones are more related to business partnering approach: especially for any businesses who want to work more closely and effectively with the market through a more networked approach The final concrete result of this stage is a collaboration/network business plan (annex 1). The drafting of a planning document aims to describe the term of the partnership/network meant to be realised together clearly and enable to verify the real workability of it, with considering the technical, economical and financial point of view. A Company network/collaboration planning document should be established with the following topics: Description of the business: This is the most important chapter of the BP document, because it has to summarize in few words the whole project that will be developed in the following chapters. Therefore it is essential that it has to be clear, as far as the target market and the human and financial resources needed. Analysis of the target market The target market is the field in which the networked collaboration should produce its effects. By thinking to the main products and service which will benefit from the networking plan, it is therefore necessary to define it in terms of size, development stage, type and quality of customers and competitors. It is possible to give a definition of a specific strategic placement for the new business that will be the starting point for a good marketing strategy. SWOT Analisys La SWOT analysis consists in identifying the opportunities and the threats, the strength and weakness points that can negatively or positively influence a firm’s collaborative/networking project. Exercise: To develop strategies that take into account the SWOT profile, a matrix of these factors can be constructed. The SWOT Matrix is shown below: www.smallcitycommerce.eu 12 Strengths Weaknesses Opportunities s-o strategies w-o strategies Threats s-t strategies w-t strategies S-O Strategies pursue opportunities that are good fit to the companies strength. A firm strength is represented by its resources, knowledge and capabilities that can be used as a basis for developing a competitive advantage W-O Strategies overcome weakness to pursue opportunities. The absence of certain strengths may be viewed as a weakness (for example lack of access to key information channels). On the other hand, the external environment analysis may reveal certain new opportunities for profit and growth (for example: taking part of an exchange information/knowledge firms network ). S-T Strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats. Change in the external environment also may present threats to the firms. (for example new regulation, increasing knowledge barriers,…) W-T Strategies establish a defensive plan to prevent the firm’s weaknesses from making I highly susceptible to external threats Economical/financial Analysis The workability analysis of the new network/collaborative business is not complete if the financial aspects, the economical advantage or, in general, the profitability of it are not considered. In this stage it is needed: to define the amount of capital to be invested in the networking/collaborative project to realize an investment plan to identify the most convenient financial sources for supporting the investments of partners to evaluate the profitability of the project analysing the expected sales and costs to undertake in order to achieve the target CHECKLIST 1. Which is the common target for the network/partnership? 2. Which is the medium and long period strategy? 3. What is the competitive advantage for the partnership? 4. When is the operation going to be profitable? 5. Which experiences can be vaunted by the team for its capacity of achieving a business? 6. Which is the geographical size of the market? How can it develop? 7. If the target market is going to increase, is your share going to increase or decrease? 8. Which are the endogenous and exogenous elements that can positively or negatively influence the success of your business? 9. Who are your target customers? 10. Who are your competitors? 11. Which is your competitive advantage? 12. How the financial need of the operation can be divided? 13. Are other financial sources necessary? If they are, which are they? 14. When are you going to achieve the break-even point? www.smallcitycommerce.eu 13 Stage 2. RESOURCES DEFINITION, ROLE SUBDIVISION Partnerships may be strategic or tactical. Whatever the circumstances, there must be a clear shared understanding about role and purpose. In fact, the operativeness of every company is based on a specific organization through which the work is done in different ways; in order to harmonize these structures and come to a flexible organization supported by the whole network team it is necessary to subdivide the roles, the functions and the tasks. The concept of division of labour is therefore essential for a good organization: it contains a clear definition of competences and of concepts of authority and delegation. In order to get to a definition of the organization it is necessary to proceed trying to implement the following steps: Subdivision of the process in activity steps Identification of each member’s specific attitudes. Identification of everyone’s limit Attribution of roles The creation of such an efficient team is often the most difficult stage. The risk is that Partners become impatient and begin arguing. Feelings include resistance to change and negative attitudes towards the success of the partnership. Signs include: Arguing about less important issues Becoming defensive or competitive (choosing sides) Developing unrealistic goals Increasing tension and jealousy The process comes to a balance as well as ground rules (or norms) are settled. Conflicts are reduced and competitors become more cooperative. Feelings include acceptance of team membership and relief that things seem to be working out. Some activities are: Achieving harmony by avoiding conflict More friendliness and sharing of problems A sense of team cohesion and common goals At the end of the path, the partnership has become an effective and close-knit unit. People begin to work together properly. This often works better spending time to know each other, establishing ground rules, and agreeing to individual roles and responsibilities. It’s necessary to: Think of each problem as a team challenge (rather than as an individual problem). Make best use of talents. Build the partnership around members' interests and strengths. Partnerships do not naturally develop to their highest potential without some help. Three exercises that can be used to build a more successful partnership follow. The key figures in a partnership are the people who get the partnership process going and coordinate the activities. They must be dynamic and excellent communicators whose professionalism, authority, neutrality and integrity are clear to all. CHECKLIST 1. Which are the team-work’s criteria selection adopted? 2. Whom is the team work composed by? 3. What are the functions/roles and responsibilities of the partners? 4. Have you got a clear set of procedures for partnership working? Are these written down anywhere? 5. Do the members of the partnership work well together and behave as if they really are partners? 6. What kinds of behaviour- if any – cause difficulties or at worst offend others? www.smallcitycommerce.eu 14 7. Do you know how to deal with conflicts in the partnership, for example over should be done by the partnership or whether it is being done well? 8. Who has got the most power and they use it or abuse it? what Stage 3. DEFINITION OF A PLATFORM OF SHARED INFORMATION In order to make a partnership run, an efficient communication is essential. A quick circulation of information becomes fundamental. This obstacle is cut down to size if the partnership is made up by legal entities of the same nationality. E-mails are usually the main communication channel used between partners, perfect for sharing files and agreements. For a partnership to be really effective, it has to be able to save files and grant the access on request to the single members as well as to transfer technologies, or parts of them, in a safe environment. The result of this proceeding is dual: decreasing the onerous phone bills and increasing effective transparency between partners. CHECKLIST 1. Has the partnership got a communication strategy to let local people know what is going on and to involve them in partnership working? 2. Which are the economic/financial resources that partnership intend to mobilize in communication development? 3. What is the timesheet established for briefings? 4. Has the partnership got an “external” communication strategy to inform other people outside the area about what is being done and what has been achieved? Stage 4 . DEFINITION OF MONITORING METHODS If the collaboration has to produce the desired effects, it is necessary to identify clear performance indicators that allow both to measure the expected performance levels and to sense the warning signals of potential problems. Thanks to the monitoring and the assessment in progress you can: support effective implementation procedures and the management of actions; contribute to define the added value of collaboration; contribute to the validation and to the mainstreaming of good practices; learn from experience and use that experience in the next planning period. implement some changes/corrections where needed. So the networking managers have to: constantly monitoring and assessing their own activities, their results and the work done according to the set common targets so as to improve management, performance and impact; document their experiences and results; gather information for the shared computer networks. The Collaboration Agreement will include the mechanisms implemented to monitor and assess one’s performances and results. Monitoring and assessing is a must for all concerned partners. He/she will have to: write periodical monitoring reports for the meetings; each partner, in fact, owns a great deal of important information. All these information have to be organized and shared. www.smallcitycommerce.eu 15 gather reliable information so as to judge the performances considering the achieved results and the set goals; grant to each partner the access to the information of partnership concerning the development of the partnership. CHECKLIST 1. Which are the Key performance indicator selection criteria? 2. Which is the planned results’ system of measures? 3. Has been planned a selection criteria audit in case of not respect of the potential planned results? ANNEX 1 BUSINESS PLAN GUIDE The contents document represent the different parts of a Business plan that SME has to prepare in order to evaluating and planning every development project. The document is structured as a questionnaire just to help entrepreneurs to write their “networking” business plan. It is made up of several major questions, where each question is broken down into minor questions and by answering all of the minor questions (where applicable), the entrepreneurs will have answered the major question fully. It might be summarized as follows: A. Description of business/networking relation 1. Describe in more detail what is (or will be) the business, include: a. The goal of your Business plan? b. The type of business. Is your business primarily merchandising, manufacturing or service? c. How are you going to run it? d. Why do you think your business will be successful? e. Which will be your partners? f. What is the date you plan to start the business? 2. If yours is a new/innovative business, please answer the following: a. Why will you be successful in this business? b. What is your experience in this business? c. What managerial and/or technical help will prospective partners (for ex. trade suppliers) provide? d. If you will be doing any contractual work/cooperation agreement, what are the specific terms of the contract? (Reference any firm contract or letter of intent, and include it as a supporting document.) B. Description of market 3. Describe the market you are intend to service, the size of the market and your expected share of it by the following sections: a. How is your market? b. What is the present size of the market? . c. Have there been any independent marketing studies performed which conclude a demand for your product? If so, please describe the study and the results and indicate the name of the market research group. d. What percent of the market will your business have? e. What is the market's growth potential? f. As the market grows, does your share increase or decrease? g. How are you going to satisfy your market? www.smallcitycommerce.eu 16 h. How are you going to price your service, product or merchandise to make a fair profit and, at the same time, be competitive? i. How did you arrive at the price? Is it profitable? In marketing terminology, define your target market: n. Who needs your service? o. Who needs your product? p. How will you attract and keep this market? q. What is the geographic location of your market? r. How can you expand your market? s. What form of customer service do you intend to provide of each product? Who will be providing the service (i.e. distributor, sales representative, field service engineer, outside service agency, etc.)? 4. Why can your company service that market better than your competition? a. Who are your five nearest competitors? b. How will your operation be better than theirs? c. How is their business? steady? increasing? decreasing? why? d. How are their operations similar and dissimilar to yours? e. What are their strengths and/or weaknesses (include the areas of price, customer service, market share, geographic penetration, distribution channel, product quality and financial position)? f. What have you learned from watching their operations? g. Evaluate the strengths and weakness of your marketing strategy for your product. Include: price, customer service, market share, geographic penetration, distribution channel, product quality and expected annual revenue. C. Product description 5. Which is your product? 6. If it’s a new product, what is the stage of development of your product? When will it be completed? 7. Which is its market price? 8. List the remaining milestones required to complete your product successfully and when they will be completed? D. Company professional profile and organization 9. What management and other personnel are available and required for the operation? Include: a. Personal history of owner(s) b. Personal history of key managers; c. Related work experience; d. Duties and responsibilities; e. Salaries; f. Resources available/required to the business 10. Related work experience: a. Direct operational experience in this type of business; b. Managerial experience in this type of business; c. Managerial experience acquired elsewhere-weather in totally different kinds of business www.smallcitycommerce.eu 17 E. Marketing strategy 11. Select all the promotional action that you will adopt to promote the new project/products. Please list the relative costs. 12. Please list the criteria followed to define the above promotional activities ( cost effectiveness, client target, geographical market size, etc.) 13. Over a period of three years, estimate your expected sales by quantity and economic value. Please list the criteria adopted. F. Finance/economic statements 14. Financial/Economic statements: Include as supplementary documents the following financial statements: Balance sheet Income statement Cash flow statement The company's financial statements should cover the following time periods: Historical data for the past three years, if applicable; Annual financial statements for the first three/five years of the company's operations. 15. Project financing: a. What amount of funds will you be seeking? b. Describe how you intend to use the funds and cover the financial needs? c. In what form do you want to receive the funds? d. From whom do you intend to receive the funds (i, e, owners, venture capitalist, bank, small business associations, government program etc.)? G. Management, risk assessment and impact/measurement 16. Schedule all the single actions involved in the project development (Gant) 17. Identify the risk factors your company will experience a. Economic risks b. Financial risks: obtaining financing / payment of financing c. Legal risks d. Technological risks e. Marketing risks f. Other risks (unless stated above, include in your response critical success factors and the risks involved with not achieving them) 18. Identify measures to ensure product and process quality, to control manufacturing/personal costs, to evaluate the project impact on company growth. www.smallcitycommerce.eu 18 4.- FINANCIAL This module shows you how to develop an effective project proposal. The key stages in writing an effective project proposal are identified. Much attention is placed on the essential components of a proposal. 4.1 DEVELOPING AN EFFECTIVE PROPOSAL FOR FUNDING The topics that are covered in this section include the key stages in writing an effective project proposal, the components of a proposal, the ground rules for preparing a proposal for funding. The key stages involved in writing a proposal are: a) Define the project. What is your project about? What do you want to achieve? b) Identify the provider and obtain guidelines and deadlines. Understand the funding agency and the reviewers. What are their criteria for assessment? c) Gather Background Information. Identify key trends and statistics, determine the changing environment, and clarify the need or opportunity. d) Write first draft of full proposal. Many revisions may be necessary. Give yourself time for amendments and additions. 4.1.1 Components of a Proposal The key elements or components of a project proposal are: a) Executive Summary b) Statement of Need c) Project Description d) Budge e) Profile of your organisation and the network f) Conclusion g) The Cover Letter. Each of these components are discussed in more detail: A) The Executive Summary This first page of the proposal is the most important section of the entire document. Here you will provide the reader with a snapshot of what is to follow. Specifically, it summarizes all of the key information and is a sales document designed to convince the reader that this project should be considered for support. Be certain to include: a) Problem: a brief statement of the problem or need your agency has recognized and is prepared to address (one or two paragraphs); b) Solution: a short description of the project, including what will take place and how many people will benefit from the program, how and where it will operate, for how long, and who will staff it (one or two paragraphs); c) Funding requirements: an explanation of the amount of grant money required for the project and what your plans are for funding it in the future (one paragraph). d) Organisation and its expertise: a brief statement of the name, history, purpose, and activities of your network, emphasizing its capacity to carry out this proposal (one paragraph). B) The Statement of Need The statement of need will enable the reader to learn more about the issues. It presents the facts and evidence that support the need for the project and establishes that your www.smallcitycommerce.eu 19 organisation understands the problems and therefore can reasonably address them. Identify facts or statistics that best support the project. Be sure the data you present are accurate. The statement of need does not have to be long and involved. C) The Project Description This section of your proposal should have five subsections: objectives, methods, staffing/administration and evaluation. - Objectives: Objectives are the measurable outcomes of the project. They define your methods. Your objectives must be tangible, specific, concrete, measurable, and achievable in a specified time period. - Method: The methods section describes the specific activities that will take place to achieve the objectives. It might be helpful to divide our discussion of methods into the following: how, when, and why. - Staffing/Administration: You now need to devote a few sentences to discussing the number of staff, their qualifications, and specific assignments. It needs to be crystal clear who is responsible for financial management, project outcomes, and reporting. - Evaluation: An evaluation plan should be built into the project. D) The Budget The budget for your proposal may be as simple as a one-page statement of projected expenses. As you prepare to assemble the budget, go back through the proposal narrative and make a list of all personnel and other items related to the operation of the project. You can create "Notes to the Budget," with footnote-style numbers on the line items in the budget keyed to numbered explanations. E) Profile of the Network It is not necessary to overwhelm the reader with facts about your organisation. This information can be conveyed easily by attaching a brochure or other prepared statement. In two pages or less, tell the reader when your network came into existence; state its mission, being certain to demonstrate how the subject of the proposal fits within or extends that mission; and describe the organisation's structure, programs, and special expertise. Describe the kinds of activities in which your staff engage. Explain briefly the added value you provide. F) Conclusion Every proposal should have a concluding paragraph or two. This is a good place to call attention to the future, after the grant is completed. This section is also the place to make a final appeal for your project. Briefly reiterate what your network wants to do and why it is important. G) Cover letter A good cover letter will include the following: - A statement of who you are and what you do, why you are approaching the funder, and what you are requesting. - If your proposal does not meet the funding organisation’s guidelines, state why you decided to apply to them. - Briefly describe the project and who it will benefit. - If you spoke with someone at the organisation, be sure to mention it. - Indicate what you are including in the proposal package. www.smallcitycommerce.eu 20 - Offer to provide them with additional information, if necessary. Make sure that a phone number is in your letterhead or in the body of the letter. 4.1.2 Ground Rules for Preparing a Proposal The following points should be considered to develop an effective proposal. a) Know the funder. b) Always work to a timetable. c) Keep it readable and concise. d) Number the pages. e) Use charts and statistics only where appropriate, since they tend to disrupt the flow of the narrative. f) Add a limited number of attachments, press releases, news clippings, resumes, etc. 4.1.3 Writing Style Consider the following regarding the appropriate writing style to adopt: a) Use the active rather than the passive voice. b) Do not use jargon or acronyms unless absolutely necessary. c) Use simple sentences. d) Write your proposal from the point of view of those who will benefit from it. e) Write in a positive manner. f) Tell the reviewers who you are and make a case for why you are the best person(s) to carry out this project. Do not be modest. If your proposal doesn't win support, keep calm. Try to get more information, and ask whether it would be worth submitting another application in the future. Go back over your proposal with care, and see if you can find places where it might have been stronger. Funders are looking for a proposal that will succeed, so keep things clear, factual, supportable, and professional. www.smallcitycommerce.eu 21 5.- COMMUNICATION & MANAGEMENT A large number of knowledges and abilities are necessary for working with partners, some of these knowledges are involved in the type of relation you will have with them, from the simple collaboration agreement for using or sharing knowledge, materials, etc., till the fusion between enterprises. 5.1 HOW TO CREATE TRUST Trust is one of the most important needs in networking. Persons will not share their ideas, information, knowledge if they do not trust in the members of team. The concept of trust is simple: Build individual confidences and eliminate fears as an operating principle. The creation of trust needs a long period of time, it is necessary a continued way of performance, where all actions are directed towards the creation of trust, because Once trust is broken it is almost impossible to re-establish it. You cannot always control the trust you experience in your larger organization, but you can act in ways that promote trust within your immediate work environment. The following are ways to create and preserve a trusting work environment. Keep your commitments and Deliver what you promise and promise only what you can deliver. promises Effective interpersonal relationships can only be created when Share yourself honestly with people are willing to share and to accept the information presented open communications in a non judgmental way. Show interest and respect by paying attention to what the other person is saying. Accept the other person’s ideas as valid, even if Listen you disagree. Keep confidences The problems of the specific labour situation of your employees are only interesting for your employees, please, be discret. Cooperate and look for ways Your cooperation during uncomfortable situations indicates your willingness to help even in the most difficult of times. to help 5.2 EFFECTIVE COMMUNICATION Effective communication is crucial for working successfully with others. It enables us to maintain relationships and accomplish tasks with both individuals and groups. The effectiveness of any communication is judged by how closely the receiver’s understanding matches the sender’s intent. In the final analysis, the only message that matters is the one the other person receives. 5.2.1 A Communication Model The Sender’s Message Before the sender speaks, he or she has an idea of what to send to the receiver. The idea could be a thought, a feeling or a fact. The sender’s goal is to transmit that idea so clearly that the second person understands it just as the sender does. www.smallcitycommerce.eu 22 Some messages are easier to transmit than others. Factual messages are generally easier to transmit clearly then abstract thoughts or emotions. But all can be misinterpreted if the sender has not considered the best way to send the message. Communication is irreversible. Once a message is sent, it cannot be retrieved. Once sent, it is completely out of the sender’s control and firmly in control of the receiver to make of it what he or she chooses. Filters In the communication process, the sender’s filter consists of several individual factors that affect the sender as he or she composes the message. The sender’s opinions, experiences, education, values and stereotypes (about the message or the receiver) tend to be fairly constant filters. Others, such as the sender’s mood at the time the message is conveyed, may vary considerably from time to time. The sender’s filters influence how he or she expresses the message-which words, gestures and voice tones to use. The message must also pass through a similar set of filters belonging to the receiver. The two sets of filters in communication double the chance for misunderstanding. Being aware of your filters and your ability to adjust to them, both as a sender and a receiver, is important for reducing the chances for misunderstanding. Channels We send our messages through both verbal and non-verbal channels. The verbal signals are the words of the message, the content. The non-verbal signals transmit the relational dimension of the message. Our postures, body movements, touches, tone of voice, eye contact, pauses, rate of speech and volume all indicate how we feel about the message, how we feel about ourselves and how we feel about the receiver. Non-verbal behaviour has stronger impact on impressions than the accompanying verbal message. When the verbal message and the non-verbal message are not congruent, we usually believe the non-verbal message. Receiver´s understanding The receiver’s understanding is the meaning the receiver gets from the sender’s message. The effectiveness of the communication is a measure of how closely the receiver’s understanding matches the sender’s intention. Feedback Feedback is the receiver’s acknowledgment that the message has been received. It may be verbal, non-verbal or both. Barriers to effective communication Barriers can arise during the communication process that prevents accurate message reception. The barriers may be caused by either the psychological characteristics of the communicators or factors in the environment. The effective communicator considers both sets of factors. 5.2.2 Overcoming barriers Obviously, barrier-free communication is not likely to occur. Nevertheless, we can reduce or overcome most barriers. First, we must continually strive to improve the message we send. www.smallcitycommerce.eu 23 Second, we must continually strive to improve our understanding of the messages we receive. We must strive, not only to be understood, but also to understand. 5.3 PRESENTATION SKILLS Before starting this training section let’s see why our presenting skills are so important? Because, it defines our abilities to present information to others and is a critical skill we all must develop. Our people skills and our communication presenting skills are the tools we need to use on a daily basis to meet the ever increasing demands placed on us to present our messages and proposals effectively in our daily lives and in the business world. From here you begin your learning about developing your presentation skills. 5.3.1 What are your objectives? The first step you need to do is answer these questions: "What do I want to accomplish?" Will I be… Sharing information? Identifying a problem? Teaching a new skill?... The highest priorities during your objective planning of your presentation are… Can I reach my objectives realistically? Does this make sense? Does it flow logically? Will they understand it? Can they accomplish it? Determining your objectives for a presentation is much more than just a simple task of writing them down on a piece of paper. In simple terms, an objective is an outline of what you want to achieve, and the steps required to reach a predetermined goal or produce the desired effects you want or your audience to achieve. The next step of your learning is organizing… 5.3.2 What to organize? Successful presentations that are powerful, dynamic, innovative, and inspired the listeners to action, have one thing in common, they are well organized. Everything the presenter used during their presentation was carefully organized and checked and rechecked. For you to obtain the same results, you must pay the same attention to details. This includes checking and rechecking everything that you will use during your presentation also: Handouts - Workbooks Overheads, Flip charts, Charts, Slides Audio/Visual equipment The instant that you discover something is out place during your speech or presentation, commonly and more often than not, it forces you to stop your presentation to correct them. www.smallcitycommerce.eu 24 5.3.3 The presentation format The contents and outline/format of your presentation should be developed and written in a simple standard outline format: Introduction (build interest, motivate, and outlines purpose of presentation) Body (core of subject material or information) Closing statements (wrap-up, ending remarks) 5.3.4 Using Visual aids The use of visual aids can greatly enhance your presentation and make clear to your audience your teaching points or objectives. We humans take more information in visually, even when we are reading something, it’s processed and stored as a visual thought in our minds. 5.3.5 Energy and motivation From the very first moment you step out in front of your audience to begin your presentation, you have, on the average, between one and two minutes at the most to set the tone of your presentation. Many say you have even less time to capture their attention, motivate and hold it. Your job as presenter, speaker, and trainer, is to provide them with the information necessary to hopefully motivate them to accomplish something or learn more. 5.3.6 How to manage questions? Learning how to manage questions and answers are a part of your presentation and people skills building process. Interacting with your audience by asking or answering questions can make for a very dynamic presentation and learning environment where everyone comes away from the presentation feeling good at being a part of it. 5.3.7 Conclusion Ending your presentation is just as important as the beginning of your presentation when you set out to capture their attention, motivate, and inspire your audience. As you begin to close your presentation, your closing remarks must remain as strong as when you started! Conclude your presentation with positive statements that motivate, innovate, inspire, and leave them with a sense of accomplishment. 5.3.8 TOPS Case Study: The Oral Presentation Skills After this introduction to the presentation skills, we chose the following case study to illustrate the oral presentation approach. This approach proposes a two phases' organization: 1- Preparing 1-1 Decide the purpose of your presentation 1-1-1 Choose your topic 1-1-2 Decide the purpose of your presentation 1-2 Gather, organise & select 1-2-1 Gather your information 1-2-2 Select what to include 1-2-3 Organise your ideas 1-3 Write an outline 1-3-1 Preparing your outlines 1-3-2 Rehearsing the presentation 1-4 Prepare your visual aids 1-4-1 Designing your visual aids www.smallcitycommerce.eu 25 1-4-2 Preparing visual aids 2- Practising 2-1 Introduce your presentation 2-1-1 Introduce yourself 2-1-2 Prepare your audience for your topic 2-1-3 State your topic 2-1-4 Give a plan 2-2 Give the body of your presentation 2-3 Handover to another speaker 2-4 Use your visual aids 2-5 Conclude your presentation 2-5-1 Signal the conclusion 2-5-2 Summarise the main points/arguments/findings 2-5-3 End the presentation and ask for questions 2-5-4 Repeat question before answering For a better comprehension and illustration, audiovisual examples (real cases) are used in this case study. Link of the case study: http://ec.hku.hk/tops/html/default.asp 5.4 LEADERSHIP 5.4.1 Leader Vs Boss Leadership is a complex process by which a person influences others to accomplish a mission, project, task, or objective and directs the organization in a way that makes it more cohesive and coherent. Although your position as a manager could give you the authority for ordering or directing the different tasks for doing, this authority does not make you a leader. Leaders make people want to achieve high goals and objectives, while, on the other hand, bosses tell people to accomplish a task or objective. 5.4.2 Leaders are born or made This is the question made by a large number of young executives, experts in business management, etc. There are three important theories which try to explain this question. One of these theories is the Trait Theory. Some people present personal traits which allow to lead leading them into leadership roles. The second theory is the Great Events Theory. At certain moments, an important event extracts the qualities of leadership of a normal person. Finally, the most accepted theory of leadership is the Transformational Leadership Theory. This theory suggests that people can learn the leadership skills and become leaders. 5.4.3 Principles of Leadership (Leadership skills) A leader must carry out several actions in order to generate a feeling of trust. Some of these behaviours are shown in the table below. Understanding the needs and characteristics You must know your job and the area of working of your employees. of the post Knowing and using the resources of the group The same said thing can cause different reactions, depending on the person who hears it. You must know your capacities and abilities and these could be improved becoming you in better leader. Communicating Communication is the key to this responsibility Planning Plan always taking into account not only your thoughts but all the environment of your workers. Understanding the Human Nature www.smallcitycommerce.eu 26 Controlling group performance Use the full capabilities of your team. Evaluating Evaluate taking into account final objectives and not only the dialy actions of your workers. Setting the example Be a good role model for your employees. Counselling It is a good ability to integrate workers in a real team. Representing the group Train your people as a team. Effective teaching Leader must establish the basic pillars for a effective knowlledge management 5.4.4 Leadership Styles: All leaders have different styles of leadership. In this table, you can find different characteristics of the more used styles of leadership. Authoritarian Characteristics: When effective: When ineffective Participative Delegative Tells others what to do Asks before tells Gives little or no direction to group/individuals Limits discussion on ideas and new ways of doing things Involves group members in planning and carrying out activities Opinion is offered only when requested Group does not experience feeling of teamwork Promotes the sense of teamwork A person does not seem to be in charge Time is limited Time is available High degree of skill and motivation Individuals/Group lack skill and knowledge Group is motivated and/or a sense of team exists Sense of team exists Group does not know each other Some degree of skill or knowledge among members of group Routine is familiar to participants Developing a strong sense of team is the goal Group is unmotivated Low sense of team Some degree of skill/knowledge is in members No skill/knowledge is in members Low degree of skill/knowledge is in members Group wants an element of spontaneity in their work High degree of conflict present Group expects to be told what to do 5.4.5 Leadership Trends The changes in the Business Management and the different relations between leader and workers and among leaders in network have caused new leadership`trends for the future. Some of these trends are the following: Continuous Learning Opportunity: To create a Work personality, all actions done by this enterprise must be directed towards this goal. Leaders must have coaching skills, not control skills. In network, when the relation is among leaders, the guidelines actions are different for motivating than when the relation is among leader and workers. The desire of continuous learning, is a key characteristic of the talent workers and the high-performance teams. The Self-Motivating Work Force: The self-motivating is a characteristic of talent workers. A good leader must allow and lead it. Narrow Knowledge Gap: Leader must establish the pillar to an effective Knowledge Management Enterprise Personality: Motivation Management: 5.4.6 Sharing leadership www.smallcitycommerce.eu 27 One of the problems of work with partners is to share the leadership. This section only want to exemplify in a quote from the ancient Chinese philosopher Lao-Tzu: “But of a good leader . . . When the work is done, his aim fulfilled, they will say, ‘We did this ourselves.’ ” The leader wants to give post participants the skills he or she possesses, not to use those skills in ways that keep the post weak or dependent. He or she offers leadership opportunities to post participants and teaches them the skills they need. 5.4.7 Exercises and Tools 1. The star of David The team is made up of 4 people. Pick up the ropes and give them to the Team. They are then briefed that they will be given 5 minutes to decide on a plan, then blindfolded and given 15 minutes to re-create the star/ pattern on the floor exactly as it was. For Staff - Make sure you use good blindfolds, as if one person can see then it completely spoils the exercise - This exercise "Nearly Always" goes quicker when there is a leader in charge and they assign roles to their team members and stick to a plan - Try and have 2 seperate teams, one to do it leader based and one to do it leaderless, so they can't use any knowledge gained by already having done it once. - Once both methods have been done then give the teams the chance to do it using the other leadership style to see the differences - Be flexible on the time limits - if 15 minutes is too short then extend it for the next time you run it. When finished - Debrief the team just having done the task, also if spectators are present get them to add comments on the performance 2. Leadership Questionnaire: 1 I believe I can recognise gifts and potential in people. 1 2 3 4 5 2 I place a high degree of trust in others in my organisation. 1 2 3 4 5 3 I enjoy reconciling different points of view. 1 2 3 4 5 4 When I join a group, others tend to look to me for a lead. 1 2 3 4 5 5 I prefer to work alone than to work in teams. 1 2 3 4 5 To obtain the result: [q1 + q2 + q3 + q4 + (6 – q5)] The possible results of this questionnaire which can be obtained can be: 5-25, being 25 the maximum punctuation and will mean that you are prepared to be a great leader of teams. 5.5 TEAM / TEAMWORK 5.5.1 Introduction (What is a team?) People work in the same group does not mean they are a team, and conversely, people from different groups can work together as a team. A team is a cohesive entity whose members share a common purpose and are committed to each other’s success. To create and to maintenance a team it is necessary a hard work. In some cases the leader must change some aspect of him personality as the need to control of actions, etc. www.smallcitycommerce.eu 28 First step for creating, improving and achieving a high performance team is the conviction on behalf of leader, department or enterprises of working in team and to know that this kind of work will increase the level of results obtained. 5.5.2 Benefits of high performance teams Vs a group of people The difference among high performance teams and the rest of ones are a lot, from the time horizon, leadership style till the role of the different members of team of the use of the technology. In the table below, it is shown some attitudes carried out in different types of team. Reactive Structure Roles Relationships Communications Work management Leadership style Use of technology Present and Future Organization and processes Hierarchy Heterarchy Defined/stable Assumed Competitive Collaborative Inward and vertical Outward and lateral Workflow and Command and control co-ordination Directive Coaching and Facilitation Procedural/ Informational As needed Regular sesing 5-stars teams Network Negotiated/dynamic Mutual Commitment Open and extensive Pattern filling Self-managed Team knowledge Exploratory 5.5.3 Types of Team within an Organization There are many different types of teams (project teams, management teams, virtual teams, etc.), and the composition of these teams vary according to the work to be done. The structure of teams are also different depending of the work management. Some teamworkers work permanently, another ones work only occasionally; there are teamworkers which work alone whilst another workers work in group every day. For this reason, it is necessary to know the needs of each worker in order to extract all abilities of the component of team. Within the Team Context are involved several areas as Vision and Culture of the company, role of the different teamworkers in the process, leadership, etc.. 5.5.4 Teambuilding Teams commonly go through a sequence of development steps before they become a fully effective. Team development take time. There are factors which have influenced in a Team motivation, and almost always try to asnswer the follwing question: Why Be Part Of A Team? What is the purpose of the team? Is it a topic that interests me? Who will be on the team with me? What kind of authority will we have? Is it important to management? What is the reward for participating? Among the factors which have influence in the motivation in the teamworkers we can find the following: Purpose: Challenge: Camaraderie: Responsibility: Growth: Leadership: The purpose of the team must be aligned with the purposes and missions of the teamworkers. There many examples of mediocre groups that responded to a challenge with heroic success. The team is well balance in both technical and human skills. Responsibility can be desmotivating if the consequences of error or failure are too reat. When people feel they are moving forward, learning new concepts, adding to their skills base, and stretching their minds, motivation tends to remain high. The best leaders create the conditions for the team to motivate itself. Talent workers do not only look for money, they have other motivations as continuous training, a mission, balance between personal and professional life, development of profession. www.smallcitycommerce.eu 29 5.5.5 Specific Problems Almost all problems can be grouped in seven categories, and depending of the category where the problem is involved, its resolution can be different. The seven categories are: Procedures Hierarchy When the tasks for doing are not perfectly determined Problems with different members in different organizations when we are working in net. Knowledge When the level of knowledge existing in the organizations involved in a teamwork is different Technological When organizations have not the same level of technologies Social Skills To know the Human Nature and the Different Cultures will help us to understand and work in teamworks. Group The competition between teamworkers can be a generator of problems Once you know the motivation through which the conflict was generated, the different strategies to solve it are in the section conflict management. 5.6 CONFLICT MANAGEMENT 5.6.1 Introduction Conflict is a natural disagreement resulting from individuals or groups that differ in attitudes, beliefs, values or needs. It can also originate from past rivalries and personality differences. Conflict is not always negative. In fact, it can be healthy when effectively managed. 5.6.2 Definition of Conflict We can find some definitions of conflict management. Conflict can be produced between individuals or groups; between ideas or persons and this conflict can be solved or unsolved. When we look for conflict definition, we almost always find ideas, feelings from a negative point of view; few definitions see the conflict as a start point to improve. 5.6.3 The ingredients of the conflict Personal and Cultural differences are usually the reasons for which conflict arise. The different visions every people have of the same event, give rise to misunderstanding. These events can be summarized in the table below. Needs: Conflicts arise when we ignore our own needs or the group’s needs. Feeling: Values: Many people let their feeling and emotions become a major influence over how they deal with conflict. Values are beliefs or principles we consider to be very important Power: How people define and use power is an important influence Perceptions: People interpret reality differently. 5.6.4 Conflict Management Definition of Conflict Management: The ability to manage conflict effectively. One of the most effective tools in managing conflicts is establishing a set of “Group Norm” or a “Group of Basic Rules” in order to establish a comfortable, safe and respetuous environment. Some guidelines for establishing group of basic rules are the following: ¬ When to engage in the conflict must be chosen and agreed upon by group members. ¬ Goal: produce a successful and productive solution. www.smallcitycommerce.eu 30 ¬ ¬ ¬ ¬ Everyone’s contributions are received respectfully and valued equally. Members are critical of ideas, not of people who express them. All views are brought out and explered before new, creative solutions are sought. As much as possible, situational ower must be balanced to promote free and honest exchange of ideas. ¬ Incentives for finding a creative resolution must be defined. 5.6.5 Steps to managing conflict: Conflicts are generally complex. Many years ago, the strategy used by the boss was “the boss win and the partners loss”. Nowadays, the transformation of the work environment, has given rise a conflicts management with different approaches depending of the type of conflict to manage. Phases of conflicts Spend time for calming you and evaluating the situation Evaluation Collect the appropriate information and documentation Value the points in which you are ready or not for giving up Value the expected results of the different parts of the conflict Acceptance Listen all the different parts of the conflict have to tell you Try to understand the different points of view Avoid to resort to stereotype and prejudice Attitude Try to keep the objectivity Keep you all the flexible and open you can Control both verbal as well as non-verbal language See the language (verbal and non-verbal) of your “competitors” Action Tackle only the subjects related with the conflict Promise only what you are able to carry out Do not convert the conflict in a war where one part wins and the rest lose Be sure that interests and objectives of all parts have been tackled Analysis Summary and clarify all decisions Check all procedures for carrying into practices any change 5.6.6 Strategies for managing conflicts The main necessary skills for each strategy are summarized in the table below. Collaboration The best solution is defined as a creative solution to the conflict that would not have been generated by a single individual. Collaboration strategy takes a great deal of time and energy. Skills ¬ ¬ Active listening Identifying concerns ¬ Nonthreatening confrontation ¬ Analysing inputs Compromise Compromise is defined as “giving up more than you want”. Compromise strategy is used when you are dealing with issues of moderate importance, when you have equal status, or when you have a strong commitment for resolution. Skills ¬ Negotiating ¬ Assessing value ¬ Finding a middle ground ¬ Making concessions www.smallcitycommerce.eu 31 Competition Competition strategy is appropriate when quick action needs to be taken, when unpopular decisions need to be made, when vital issues must be handled, or when one is protecting self-interests. Skills ¬ ¬ Arguing or debating Standing your group ¬ Using or influence ¬ Stating your position clearly ¬ Asserting your opinion and feeling Accomodation The accommodation strategy is appropriated when the issue or outcome is of low importance to them. Skills ¬ Forgetting your desires ¬ Ability to yield ¬ Selflessness ¬ Obeying orders ¬ Ability to withdraw ¬ Ability to leave things unresolved ¬ Ability to sidestep issues ¬ Sense of timing Avoidance Many times people will avoid conflicts out of fear of engaging in a conflict management skills. Skills 5.7 NEGOTIATION SKILLS 5.7.1 Introduction If everyone -an individual or a company- had everything they wanted, there would be no particular reason to negotiate. It means that the business life is a permanent negotiation with others people who are defending their own interests. When you improve your negotiation skill level, you gain the ability to increase value in numerous aspects of your life simply by increasing the effectiveness of your communication skills. Nearly all negotiations are characterized by four steps - preparation, opening, bargaining and closing. 5.7.2 Steps in a negotiation process In spite of the complexity of the negotiation process, the steps to follow are similar and can help you to know the negotiation environment and the posture to adopt. Preparation and prenegotiation In this phase the listen skills could contribute for collecting interest information. Some factors must be identified and determined: Key players, the Willingness to collaborate with the others, Reasonable deadlines and Sufficient Resources to support the effort must exist. Opening Involves both sides presenting their starting positions to one another. Parties need to determine which issues are negotiable and which are not. Bargaining In this phase your aim is to narrow the gap between the two initial positions and to persuade the other side Closing Opportunity to capitalize on all of the work done in the earlier phases. The partners must get support for the agreement from organizations that have a role to play in the agreement. Communication and collaboration should continue as the agreement is carried out. 5.7.3 Principles of negotiating www.smallcitycommerce.eu 32 Negotiating have different approach, some of them are related with the mode to prepare and another approach are related with the aptitute to tachle it. In this table is summary the different approach and you must to study in depth in each approach. Negotiation Approach Prepare the negotiation Horizontal Approach Be honest Each negotiation is different Understand your goals and priorities the ones of your adversity Understand the uncertainty Understand the phase of the negotiation The objective is to achieve your goals, not to win. Know when to quit bargaining Be creative Be carefully with post-negotiation 5.7.4 How and What to negotiate Can everything be negotiable or not? Some experts think that there is nothing non-negotiable, meanwhile other experts think the opposite. You must assess your situation before beginning with your negotiation. In this table, you will fin how, what you must evaluate before negotiation process. How to Discuss - Be prepared to be vulnerable. If you are forming an alliance by choice you are always in control, but you must be willing to 'open the books' and be honest about your resources and capabilities. This can be particularly risky when competitors are meeting. - Ensure confidentiality, especially when dealing with financial information. - Maintain objectivity and declare any potential conflict or future plans. Ensure that all the information is out on the table. What to Discuss If it appears that this alliance could work, you will want to get into specifics. 1. Define objectives. 2. Establish responsibility. 3. Assess risks. 4. Determine how proceeds will be distributed. 5. Establish evaluation criteria. Now is the time to ask the tough questions. What Should Be Accomplished In the course of your discussions with your potential partner, you should achieve the following: - Agreement on what the alliance is to accomplish. - Clear understanding of the resource environment. The question "Can we do it?" should be answered. - Potential members must see the benefits and that they can be achieved. - Trust and confidence evolves to form a working relationship. - Participants are convinced that the risk and cost are worth the benefits. - Partners, and their employees, are assured they will be treated fairly, and are clear about their role and the roles of others. 5.7.5 Exercises and Tools Exercises for confronting conflicts www.smallcitycommerce.eu 33 Please, answer yes or no and add it separately. If finally, you have more yes than no, you can begin the conflict but if you have more no, please, do not begin it. Yes No Have you got experience? Do you have possibilities to win? Do you have the possibility to consult with experts? There are interests at stake risk Could you have reactions from the contrary part? The level of confidence of the contrary part Are there mutual benefits? Is it the best moment to tackle? TACKLE IT Top Ten Reasons to Become a Better Negotiator Improve personal and professional profitability. Achieve desired outcomes and create synergy while fostering relationships. Maximize financial returns and value in negotiations. Avoid being cheated. Neutralize difficult negotiators and their tactics. Enter into and conduct negotiations with confidence. Know when and how to walk away from a negotiation. Improve personal relationships with colleagues, clients and loved ones. Build leadership and team building skills. Turn cultural differences into assets rather than liabilities. www.smallcitycommerce.eu 34 How Good Negotiator Are You? Choose the number that reflect your common practice and then think about the answers you have chosen. 1 2 3 4 Never typical of me 1. I enjoy dealing with other people, and I am committed to building relationships. 2. I have good self-esteem and tend to have a high level of aspiration and expectation. 3. I work to create a comfortable, professional atmosphere. 4. I enjoy coming up with creative solutions to problems. 5. I am able to think clearly under pressure. 6. I am well prepared prior to entering a negotiation. 7. I am able to clearly identify my bottom line in every negotiation. 8. I am willing to ask as many questions as it takes to get the information needed 9. I communicate clearly and concisely. 5 Extremely typical of me 10. I work to see each issue from my counterpart's point of view. 11. I confront the issues, not the person. 12. I focus on shared interests, not differences. 13. I do not take my counterpart's strategies, tactics and comments personally. 14. I like to uncover the needs, wants and motivations of counterparts so I can help them achieve their goals. 15. I recognize the power of strategies and tactics and use them frequently. 16. I know how to effectively counter a counterpart's strategies and tactics. 17. I am willing to compromise when necessary to solve problems. 18. When a counterpart and I come to an agreement on an issue, I ensure that the issue is measurable and time-bound. 19. I am a great listener. www.smallcitycommerce.eu 35 6.- IT TOOLS FOR COLLABORATION The goal of Menu 6 is to get a listing of IT tools suitable for SME collaboration. IT TOOLS AND SERVICES FOR COLLABORATION/ COMMUNICATION 6.1 TRADITIONAL Communication is a key component to the success of businesses today. Many methods of communication are used. Traditional communication involves the way people interact with each other face to face. It is not only the words of the individuals, but also the tone of voice and body language that is used when speaking to one another. Among traditional equipments/machines we can count telephone and fax machines. 6.2 COMPUTER-MEDIATED COMMUNICATION In virtual management an important issue is computer-mediated communication. The view people take toward communication is changing, as new technologies change the way they communicate and organize. The latest trend in communication, decentralized personal networking, is termed smartmobbing (decentralized organizational structure powered by readily available technology is termed a Smartmob). Computer-Mediated Communication (CMC) is any form of communication between two or more individual people who interact and/or influence each other via separate computers through the Internet or a network connection. CMC does not include the methods by which two computers communicate, but rather how people communicate using computers. CMC mostly occurs through e-mail, video, audio or text conferencing, bulletin boards, listservers and instant messaging. CMC is examined and compared to other communication media through three common aspects of any forms of communication: synchronicity, recordability, and anonymity. Each of these aspects varies widely for different forms of communication. For example, instant messaging is highly synchronous, but rarely persistent since one loses all the content when one closes the dialog box. 6.3 EDI, INTERNET, INTRANET, EXTRANET EDI (electronic information exchange): realisation of automated order of goods, money transfers between companies and between companies and banks; is a private network that usually limits its connectivity to its members Internet: global network, public, TCP/IP architecture Intranet: public company network using the Internet architecture, usually connected with Internet by means of firewall system (safe separation from Internet); it may use a tunnel via Internet as the communication means with a remote section (coding at the beginning of the tunnel, and decoding at the end of the tunnel) Extranet: Intranet enabling safe communication with partner companies not included inside the Intranet; it uses safety technologies usual for the Internet. The Internet is not just another application; it is neither software nor hardware. It is the environment for the business and communication of the future. The Internet combines many existing technologies into one framework. Computer networks and communication networks, like www.smallcitycommerce.eu 36 fax, telephone and mobile are already integrated into the Internet. This enables businesses that use different methods of communication to come together more easily. The Intranet uses Internet standards for electronic communication. People on the Intranet are able to see organization-specific web sites. People from outside of the organisation are not able to see these private pieces of information. The Extranet consists of two Intranets connected via the Internet, whereby two organizations are allowed to see confidential data of the other. No matter in which of these areas a company wishes to do business, they must ask the right questions before going online. Just having a web page or the infrastructure for the Intranet, Extranet or Internet is no help. They need to decide on target group and think hard about the processes that need to be done electronically. Technically there is no difference between the Intranet, the Extranet and the Internet. The Extranet and Intranet are subsets of the Internet, which can be viewed only by certain groups. 6.4 INTERNET TOOLS The Internet originated in order to spur communication between researchers and the military. In addition, people in general wanted to be able to connect to any computer on the network, no matter where it was located. What follows are some of the tools developed to meet these needs. 6.4.1 Electronic mail E-mail was the original and is still the most important service provided by the internet. E-mail allows users to send messages to one another. Currently, all types of files can be attached to email messages, including word-processing documents, video and audio clips, as well as images. 6.4.2 World Wide Web The World Wide Web ("WWW" or simply "Web") is an information space in which the items of interest, referred to as resources, are identified by global identifiers called Uniform Resource Identifiers (URI). The term is often mistakenly used as a synonym for the Internet, but the Web is actually a service that operates over the Internet. The web is available to individuals outside mass media. In order to "publish" a web page, one does not have to go through a publisher or other media institution, and potential readers could be found in all corners of the globe. Many different kinds of information are now available on the web, and for those who wish to know other societies, their cultures and peoples, it has become easier. The increased opportunity to publish materials is certainly observable in the countless personal pages, as well as pages by families, small shops, etc., facilitated by the emergence of free web hosting services. 6.4.3 WWW browsers To view HTML pages, you need a browser such as Microsoft Internet Explorer or Netscape, Opera. Different browsers can be distinguished from each other by the features they support. Modern browsers and web pages tend to utilize many features and techniques that did not exist in the early days of the web. As noted earlier, with the browser wars there was a rapid and chaotic expansion of browser and World Wide Web feature sets. 6.4.4 Internet forum An Internet forum is a web application which provides for discussion, often in conjunction with online communities. Internet forums are also commonly referred to as web forums, message boards, discussion boards, discussion groups, or simply, forums. www.smallcitycommerce.eu 37 Comparison with other web applications One significant difference between forums and electronic mailing lists (2.4.5.) is that mailing lists automatically deliver new messages to the subscriber, while forums require the member to visit the website, and check for new posts. The main difference between newsgroups and forums is that additional software is usually required to participate in newsgroups, a newsreader. Visiting and participating in forums normally requires no additional software beyond the web browser. Forums do not allow people to edit other's messages. Some users, however, may be given this ability in order to moderate content (for example, if spam is posted to the forum). Unlike weblogs, forums typically allow anyone to start a new discussion (known as a thread), or reply to an existing thread. Forums differ from chatrooms and instant messaging because they usually deal with one topic and personal exchanges are typically discouraged. Participants in Internet forums should realize that what they have to say will be public knowledge for years to come. 6.4.5 Listserv It is an electronic mailing list software application. Electronic mailing lists are a special usage of email that allows for widespread distribution of information to many Internet users. Software is installed on a computer which processes incoming email messages, and, depending on their content, either acts on them internally or distributes the message to all users subscribed to the mailing list. Some mailing lists are open to anyone who want to join them, while others require an approval from the list owner before one can join. In even more strict mailing list, every message must be approved by a moderator before being sent to the rest of the subscribers. 6.4.6 NetNews/Newsgroup It is a repository, usually within the Usenet system, for messages posted from many users at different locations. Typically, a newsgroup is focused on a particular topic such as "shellfish". Some newsgroups allow the posting of messages on a wide variety of themes, regarding anything a member chooses to discuss as on-topic, while others keep more strictly to their particular subject, frowning on off-topic postings. The news admin (the administrator of a news server) decides how long articles are kept before being expired (deleted from the server). Usually they will be kept for one or two weeks, but some admins keep articles in local or technical newsgroups around longer than articles in other newsgroups. 6.5 COMMUNICATION ON INTERNET ON-LINE 6.5.1 IRC Internet Relay Chat (IRC) is a form of instant communication over the Internet. It is mainly designed for group (many-to-many) communication in discussion forums called channels, but also allows one-to-one communication. 6.5.2 Instant messenger - ICQ An instant messenger is a client which allows instant text communication between two or more people through a network such as the Internet. Recently, many instant messaging services have begun to offer video conferencing features, Voice Over IP (VoIP), and web conferencing services have begun to integrate both video conferencing and instant messaging capabilities. Hence, the boundaries between these media have become blurred. www.smallcitycommerce.eu 38 6.5.3 Netmeeting It is a real-time communications tool that allows individuals to communicate in pairs or groups over the internet or intranet (an IP enabled LAN) using audio, video and data communication. NetMeeting has a number of characteristics that make it better than other similar tools: it is free it is standards based it operates with 2 or more individuals in a meeting it has built in audio, video, whiteboard, chat, file transfer, program sharing and collaboration functions 6.5.4 Videoconferences, web cams A videoconference is a live connection between people in separate locations for the purpose of communication, usually involving audio and often text as well as video. At its simplest, videoconferencing provides transmission of static images and text between two locations. Videoconferencing can take place either over high-speed data networks (such as fiber optic) or satellite-based networks. Video conferencing can be used as an imperfect substitute for many face-to-face meeting requirements where the cost or time required for physical transportation of parties is undesirable. A web camera (or webcam) is a real time camera whose images can be accessed using the World Wide Web, instant messaging, or a PC video calling application. 6.5.5 Voice over IP Voice over IP (also called VoIP, IP Telephony, and Internet telephony) is technology enabling routing of voice conversations over the Internet or any other IP network. The voice data flows over a general-purpose packet-switched network, instead of the traditional dedicated, circuit-switched voice transmission lines. One of the most popular is Skype, peer-to-peer internet telephony (VoIP) network. The network is provided by all combined users of the free desktop software application. Skype users can speak to other Skype users for free, call traditional telephone numbers for a fee (SkypeOut), receive calls from traditional phones (SkypeIn), and receive voicemail messages. 6.5.6 Chat A chat is a casual conversation. The term has come to be associated mostly with online chat services or computer programs to access same, including telephone services (where the program is on a voice mail server). Online chat is a generic term for what are now mostly known as instant messaging applications. Today there are many chatrooms, some incorporating instant messaging features without having to install additional chat software. These chatrooms often have friend finders built in. Some of these systems also provide telephone voice mail access. These are usually known generically as just chat systems. 6.5.7 Virtual communities A virtual community is a group of people exchanging messages or other types of information and is a community in this sense. Here, the members usually share an interest. www.smallcitycommerce.eu 39 A virtual community is a group whose members are connected by means of information technologies, typically the Internet. Similar terms include online community and mediated community. 6.6 COLLABORATIVE MANAGEMENT TOOLS Collaborative management tools facilitate and manage group activities, for example: o electronic calendars (also called time management software) — schedule events and automatically notify and remind group members o project management systems — schedule, track, and chart the steps in a project as it is being completed o workflow systems — collaborative management of tasks and documents within a knowledge-based business process o knowledge management systems — collect, organize, manage, and share various forms of information o social software systems — organize social relations of groups Collaborative software can be either web based (such as UseModWiki or Scoop), or desktop systems (such as CVS or RCS). 6.7 COLLABORATION AND LEARNING PLATFORMS CollabFab is a free web based collaboration tool designed for small workgroups. CollabFab is easily customizable and it is designed to run on inexpensive, low powered servers using free server software. When using CollabFab user can manage and share information about multiple projects with his clients, coworkers, customers, suppliers... with anyone! CollabFab organizes information by project and publishes it on the web. The information is password protected. Each project has a Meetings section, a Discussion section and a Documents session. WorkZone is an online collaboration tool for easy online project collaboration. Facilitate collaboration throughout your company and with your key partners. Use the WorkZone online collaboration tool from any location to share work with product teams, the sales organization, your agencies and vendors, and senior management. The Open Remote Collaboration Tool (OpenRCT) is a multidisciplinary effort to enhance collaboration - between students working together, between students and instructional staff, and between researchers who are not co-located in time and space. OpenRCT is an Open Source platform-independent, multimedia tool that supports synchronous and/or asynchronous communication. It can be used for group discussions, collaborative assignments, collaborative research, and distance communication. Twiki is a flexible, powerful, and easy to use enterprise collaboration platform. It is a structured Wiki, typically used to run a project development space, a document management system, a knowledge base, or any other groupware tool, on an intranet or on the internet. Web content can be created collaboratively by using just a browser. TWiki looks and feels like a normal Intranet or Internet web site. However it also has a Edit link at the bottom of every topic (web page), everybody can change a topic or add content by just using a browser. CollabraSpace software enhances the key component in propelling business forward - effective collaboration. www.smallcitycommerce.eu 40 The world's leading businesses have progressed beyond rigid procedures and rote tasks. Today, knowledgeable workers are a company's most essential resource. Smart, well - developed ideas have become the building blocks of success. CollabraSpace recognizes that these ideas are a result of people working together and have created software solutions that allow people to come together to communicate, brainstorm, build knowledge, and drive your business initiatives. There are several products: CollabraSuite (suite of graphical collaboration components can be used to build a customized collaborative environment to suit the needs of unique organizations), LineOne (solution for customer relationship management programs is a dialogue tool equipped with real time collaboration capabilities), Rooms (comprehensive collaborative solution includes a complete selection of the most valuable collaboration tools in a single, easy-to-install product), SecureChat (entry level collaboration tool features secure versions of instant messaging and text chat applications). 6.8 THE LIST OF COLLABORATIVE SOFTWARE (OR LIST OF GROUPWARE) APPLICATIONS The following are open source or free software applications. Groupware o classic client-server solutions Citadel is community-oriented collaboration combined with classic email and calendar features; MoreGroupware; phpGroupWare; Kolab; OpenGroupware.org; Open-Xchange; eGroupWare KDE PIM ready. o web based solutions eGroupWare; phpGroupWare; Nuxeo Collaborative Portal Server: content management and collaborative platform based on Zope; The Open For Business Project; Simple Groupware. o distributed solutions Lucane Groupware a distributed groupware platform and applications; Collaborative Media o web based solutions Scoop; SlashCode software that runs Slashdot; everything engine backing the everything2 site; bricolage used by salon.com; Nuxeo Collaborative Portal Server: content management and collaborative platform based on Zope. o Other Croquet project. Project Collaboration o web based solutions Project/Open; dotProject; eGroupWare; PHProjekt; Tutos; phpGroupWare includes a project collaboration module; phpcollab; NetOffice. 6.9 PROVIDE THE RIGHT TOOLS True collaboration simply isn't possible without the creation and maintenance of a shared space. It takes a shared space to create shared understanding, if there's no shared space, there's no collaboration. Technologies that create shared space and tools for collaboration fall into two categories: real-time and asynchronous/persistent. Real-time technologies, such as Web conferencing and instant messaging, require collaborators to log on at the same time to, say, conduct an online meeting to review design specs or to resolve an issue by chatting through IM. Asynchronous tools, such as online collaborative workspaces and ewww.smallcitycommerce.eu 41 mail, allow collaborators to contribute on their own schedule, a particularly useful feature for managing projects that span time zones. Asynchronous tools also serve as a persistent, always accessible archive for discussions and document versions, keeping track of who decided what and when. This can be especially valuable for supporting sophisticated, long-term collaborations and for building trust. The line between real-time and asynchronous tools is beginning to blur, however, as some collaboration tools are starting to offer both real-time and asynchronous/persistent functionality. For B2B collaborations, establishing a shared workspace on neutral territory, administered by a third party, can help put collaborators on equal footing and allay concerns about who controls shared data. CONCLUSION New technologies enable to spread information not only within companies and organizations, but also toward their clients and customers, and together with the increasing popularity of internet they create completely new conditions for big, medium and small companies, and collaboration. In this context, electronic technologies can be considered technologies referred to as Internet technologies. Particularly the web is a virtual space where companies can interact with a great commercial success. A great boom of new technologies, tools, devices, services, techniques and methods happened mostly in the last decade. Due to this hectic development, non-uniform terminology emerges – manufacturers and users use different expressions for the same things. There are a lot of IT tools with varied and integrated functions. Sometimes there are so many offers that SME have a problem to orient themselves. SME should be therefore cautious when using IT tools as it is not always a rule that more funds invested in new technologies yield more benefits. It is more the matter of a combination of techniques and procedures. Hardware is certainly important, but even more important is the ability and suitability of its use for business activities and collaboration. Collaboration using electronic media is sometimes called e-collaboration. Whether we use collaboration or e-collaboration, it is obvious that the commercial success stems among others from synergy of groups of companies (called "cluster") that cooperate and compete as well. In doing so it is important to achieve a certain marginal concentration from which the synergic effect unfolds. In this respect we are talking about achieving a critical mass. By the way, the idea of Technological parks and today’s trendy wave of creating an all-European network of cooperating companies are based on this principle. However, technologies are tools that people can simply choose to use or not. Their effectiveness requires organisational changes rather than technical ones. The digital revolution can only be successful if managers are trained and skilled to run an updated organisation - and if the people want to use it. The successful modern manager will need new skills which have developed through the use of information systems like the Intranet. S/he will more than ever need to decentralise information. The company is no more an sum of different kinds of jobs (functions) but of different kind of processes (information flows). The Internet revolutionises the dynamics of international commerce and, like any other medium will become a major force in democratisation of capitalism. For example, SMEs will be able to compete more easily in the global marketplace. Consumers will also benefit from the expanded range of products, services, information, learning materials to which Internet gives them access. And if the company is a new market player such as Peapod.com or choix.com, linking the producer and the end consumer in a direct relation, then it is possible that traditional wholesale monopolies will fall. The emerging digital market is not only a challenge for companies but for the whole society. www.smallcitycommerce.eu
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