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This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at La inteligencia competitiva adaptada a empresas de máquina-herramienta
Within a defined life cycle of the product

The competitive intelligence adapted to enterprises of machine-tool

Juan Antonio Arrieta, Ander Azkarate, Nerea Aranguren.
Ideko technology centre
15/09/2004
Currently, the modern company involved in new product development processes, are forced to meet continuously the last movements of the market as well as the latest technological innovations, provided that it wants to maintain its competitiveness. Due to the effect of globalization, the situation of increasingly rapid change in the industrial environment and the intense competition prevailing, companies need to filter a large amount of information and translating it into knowledge, to allow it to guide strategic decision-making in terms of product and technology.

This research has been directed in principle to the field of machine tools, where there are vast quantities of information, knowledge and know-how (or intellectual capital). However, all this accumulated knowledge needs flow between persons of the company in an easy and natural way, and should be supported at all times make strategic decisions.

Therefore, the result of this research consists in a system of competitive intelligence (CI) manufacturers of machine tools, based on ICT tools and custom software that allows guide decision-making strategic decisions about product and technologyin this way to improve both the life cycle cost and the quality of the final product.

Necessity and relevance of the research work

Deko is a centre of r & d specialist in machine tools, belonging to the Danobat group. Its mission is to promote technological innovation for its customers (which is becoming a decisive factor in competitiveness), and its daily work responds to the commitment for the people,-based organization that promotes the creation of knowledgeresponsible social and internationally recognized for their manufacturing technologies.

For several years, industries involved in the processes of development of the new product, need to continually engage in activities of technological innovation, provided that they wish to maintain their competitiveness. Due to the increasingly rapid change in the industrial environment and large current competition (mainly derived from the effect of the globalization and opening of markets), technological progress as a philosophy aimed at the client are essential to meet and satisfy the requirements and demands increasingly greater customer, from the beginning of the life cycle of the product. Not all companies can afford to carry out by themselves this activity and if you deal with it, the industry is forced to work normally in collaboration with research centres.

Within this framework, the monitoring of technological applications recent, future trends of the market, the evolution of the processes of mecanizing or the subjects of property intellectual are of vital importance for the company. Currently, the industries seem to have too much information, however, what is really necessary is not the amount of information, but a strategic information previously analyzed and properly filtered, which directly becomes knowledge, both in the management of a company (responsible for the strategic decisions) and on all those involved in the same (Figure 1).

Figure 1: Identification and capture of knowledge
Figure 1: Identification and capture of knowledge.
Firstly, it is necessary to analyse the existing knowledge within the company. Then, it is necessary to obtain external information, to filter what is considered to be strategic, remove superfluous, both internal and external information. This last step is vital, bearing in mind that companies are currently overwhelmed information, but quite often very needy of knowledge. In short, the current industries require a system of competitive intelligence (CI) that really help and guidance in making strategic decisions appropriate to face successfully the process of new product development.

The developed system of competitive intelligence that brings a huge added value to the early stages of the life cycle of the new product, allowing optimizing the definition of their specifications, and is a crucial phase for the successive stages of the chain of the life cycle of the product (design) both the configuration phase(, manufacture, Assembly, industrialization, use and operation). In addition, the feedback from the phase of use by end users allows the collection of information and knowledge, dispersed but very important, in order to further optimize the setup phase.

Of course, the contribution of the technologies of information and communication technology (ICT) and the platforms and environments based on knowledge is essential. Thus, conventional companies will be transformed into partnerships based on knowledge in a learning society, prepared with situations of change, with all the competitive advantages that this involves.

Objectives

l main objective of this research work is the definition and implementation of a model of competitive intelligence adapted to companies manufacturers of machine tools, in order to guide strategic decisions concerning new developments within the phase of setting up a frame of life cycle of the product. This will guarantee significant reductions in the costs of development and the concept of time-to-market, also achieved a significant increase of quality of the final product.

Therefore, the result of this research consists of a methodology for competitive intelligence (as regards process, tasks, resources, sources of information...) and a few support tools based on software (information processor, information repositories, environments interactivos…)

Apart from the general objetivo-marco of the project to enable and facilitate the conversion of conventional industries in modern knowledge-based associations, we can enumerate some other partial objectives contained in this project plan:

  • Foster environments that promote the concept of "learning organization" or learning, sharing the latent knowledge within enterprises, and using it more efficiently, as support for making strategic decisions.
  • The know-how and expertise within the company, boosting collective (tacit) existing knowledge (collecting the information of the environment and promoting knowledge sharing), reducing the required period so that people recently incorporated to become experts or productivity product designers.
  • Detection, analysis and dissemination of technological innovations, market requirements, future trends, or the last movements of the competition, by means of computer platforms and environments that allow to develop techniques based on the knowledge management.
  • The increase and exchange of intellectual capital, both in the configuration phase of new product within a framework of management of the life cycle, as in the following phases, where each has a login information which is processedadding value through internal media of the company and turning it into a rich output information.
  • Quantification of the main advantages of the implementation of the project, for its further implementation of results in other companies in the industrial environment, regardless of the scope (although it is different from the machine tool sector). It is estimated that you will be significant savings in time and costs, more increasing of efficiency, quality of work and labour integration, of the impact of the image, of gender-related advantages....

Ultimately, the aforementioned systematic methodology of a model of competitive intelligence company-oriented is the core of this research, to be able to transform knowledge into competitive advantages for companies flexible and dynamic, systematically prepared for strategic decision-makingwith adaptability and preparation for change and a hypervideo know-how in terms of sharing knowledge.

Improvement of competitiveness and envisaged difficulties

The competitiveness of companies will increase significantly through the implantation of the competitive intelligence model defined in the project. Thanks to the optimum utilization of the knowledge internal (internal processes, existing problems, the end customer view) and external (market, competition, technology) model will allow an intelligent interpretation of that information, guiding the strategic decisions and ensuring a better and faster entry (time-to-market reduction) of the new products in the market.

The scope of this project will be the industry manufacturer of machine tools where there are many information and knowledge (or intellectual Capital), but nonetheless the knowledge needs to flow among the staff of an easier way and it should support strategic decisions, this system of competitive intelligence. All this will be a change of culture within the participating companies, with regard to the generation of knowledge and sharing it. This existing intellectual Capital will be in continuous feedback, which at the same time, the time required for new designers become experts will reduce significantly.

All of the above will enable the transition from the conventional industry to partnerships based on knowledge. This will be possible to facilitate the natural evolution from the Benchmarking technology watch and, in a step future, towards a system of competitive intelligence.

This system will directly influence the reduction of costs of the new product and the time-to-market, and a growing significance of the quality of new products, thanks to the support for correct strategic decisions relating to new product and technology within the phase of the Setup in a context of life cycle of the Product. So, the system will support the identification or development of platforms or custom software environments.

Finally, it is desirable to identify the risks that are presented for the implementation of a CI system. Firstly, between the technical risks, should be noted that the companies must provide computer equipment and software platforms suitable, as the resulting IC methodology will be based on a software tool.

But apart from the technical risks, will provide for more social and cultural risks in the project. In fact, the implementation of the project is facing a significant culture change. Often, companies have a little or no preparation for the change, internally there may be fears to share knowledge, because it implies that individual knowledge becomes collective knowledge, with the consequent lack of prominence or dispensability posed to the individual in question.

The context of work outlined in the project will need to change the routines and existing inertia, and will require persons that they transform in cooperating workers, on a proactive basis and even certain levels of self-management. In this way, companies can start walking towards a society based on knowledge, making use of electronic platforms with huge amounts of information (Figure 2).

Figure 2: Knowledge-based enterprises information platforms
Figure 2: Knowledge-based enterprises information platforms.

Scientific and technological innovation

Firstly, it is convenient to clarify the technical limitations of existing products. Today, as mentioned above, in addition to a number of huge information there is a great accommodation in regards to search the Web, meta search engines and advanced systems of last generation systems. However, despite the great variety of all these systems, all of them are generic and horizontal software developments, and its potential scope could be anyone. But for a given application oriented to a specific sector (for example the manufacturer of machine-tool sector) hardly they can find developments or consolidated methodologies.
Although in non-national enterprises, these platforms may still have a greater degree of development, and in many European companies can be found quite often "cold" databases, in an environment unattractive. It is more, the changing environment where moving companies are the main cause of a high "expiration" of databases, and this carries the risk that they are not up to date and become obsolete within a short period of time.
Therefore, as there are many generic solutions based on software but no platform or systematic methodology for the machine tool sector, there is a growing need to customize the current solutions or develop new platforms for ease of use. In addition, a personalized information repository, with continuous feeding of strategic information to support strategic decision-making of a company is required.
In this context, the support of the technologies of information and communication technology (ICT) is essential, since a CI methodology based on an attractive platform (interactive portals or multimedia tools, for example) fosters an environment where shared information and knowledge of high specialization, and enables a more efficient internal communication within the company.
In recent years, in the European Community r & d programmes, had many projects in the line of knowledge and management of the product life cycle management, which gives us idea of the State of the art at the moment. However, the novelty of the research addressed resides in that defines a system of competitive intelligence that provides both environments at the same time, and this combination has been rare so far in European research projects.
In this context, note that it is increasing the number of American companies that is guiding and directing their policies for innovation through competitive intelligence activities, while in Europe so far it has not been so common to hear of this term (Figure 3). These competitive intelligence activities can carry out by internal departments within the company or by companies outside consultants.

Figure 3: Dedication to competitive intelligence in the U.S...
Figure 3: Dedication to competitive intelligence in the U.S. Europe v:s
(source: SCIP, Society of Competitive Intelligence Proffesionals)
Imagen

Research method

Work methodology

Firstly, it is necessary to clarify the main differences between data, information and knowledge. The 'cool data' needs an interpretation to become 'information'. In addition, this 'information' analyzed and filtered requires a context and a contrast to the internal expertise, transforming it into 'knowledge'. And the aim is not only collect and store that knowledge, but communicate it, make it flow, up to make it reach the people involved to make it useful in any future strategic decision. (Figure 4).

To achieve the objectives set out in the present research, an initial methodology (Figure 5) has been followed with some steps to follow:

Figure 4: Capture and analysis of knowledge, in order to support strategic decisions
Figure 4: Capture and analysis of knowledge, in order to support strategic decisions.
Figure 5: Phases of the initial methodology followed, to define a system of competitive intelligence
Figure 5: Phases of the initial methodology followed, to define a system of competitive intelligence.
Imagen
Identification of knowledge:

Firstly, it is necessary to identify the major 'players' a framework for competitive intelligence (Figure 6), i.e. information sources most appropriate (techniques, product of process...), news of market, sectoral trends, information and economic developments. At this point of departure, is a key factor the correct identification of the database more comprehensive, technical issues, congresses and conferences, specialized fairs, competitors, suppliers, customers.

At the same time, this methodology requires the identification of the most appropriate ICT tools that can serve as support to competitive intelligence (meta, processors of databases, intelligent agents, repositories of information, specific software and personalizados…)

Figure 6: Identification of sources of information, both external and internal to the company
Figure 6: Identification of sources of information, both external and internal to the company.
Capture and analysis of knowledge:

Once identified the data and information of interest, that information through ICT tools, in a systematic and automated way, is must capture since it is not a task where adding value and can be optimized with the technologies of today.

Then comes one of the crucial phases of the methodology, analysis and filtering of information, put it in context (to thus transform it into knowledge) and contrast it with the knowledge and the expertise already existing within the company. At this stage it is too early to try to replace human intelligence, and for the moment, not be easy provides automate her through ICT tools, while it is true that are being made very important progress of semi-inteligentes tools (data mining)(, text mining, summarizers…)

The fact of filtering information and extract the strategic core is essential at this stage, even more so at this time that has too much information, which can be as harmful as failing.

Replenishment of knowledge and communication (sharing knowledge):

Once the information has been captured, filtered and analyzed (with which the data have been transformed in information, and then knowledge), it is essential to realise that not even the last phase, the largest, consisting of communicating this information and strategic knowledge to persons of the company involved in the decision-making process about of the plans for the future, investment, development of new productos…

It is a serious mistake to think that the ultimate goal is to collect all possible information. What is intended is transmit this knowledge and make it flow in the company, who is considered necessary and timely, as you face support strategic decisions. For this reason, it is necessary to collect this information analyzed and filtered in a software platform, properly categorized and classified to speed up future queries and searches, and so it is accessible to the appropriate staff, in attractive and easy to use.

Finally, would highlight the desirability of enabling systems of feedback to the initial phase, which optimizaría the methodology, correcting possible deviations and adding new sources of information. In short, it is once defined the system of competitive intelligence, keep it updated own methodology both in terms of content.

Degree of innovation, results and future work

In short, a competitive intelligence system oriented to mediano-pequeño-sized companies that are not serial products (e.g. machine tool) has been defined. In fact, there are similar systems for the case of large multinational with a fully serial product, but they have not adapted a methodological way to the case which concerns us.

It is appropriate to recall once again the key of this system of competitive intelligence advantage. The most strategic decisions of the company shall be taken according to the latest information and the latest movements on market, technology and competition (something absolutely necessary in today's 'accelerated world'), and at the same time, it will be to share knowledge between people involved in the definition and development of new products. This will result in an improvement of the quality of the final product and a significant reduction in the parameter of time-to-market.

Naturally, when the system of competitive intelligence is consolidated, will make a cultural change for business, since that will take their strategic decisions in a systematic manner and in accordance with the evolution of today's industrial world (instead of taking them exclusively guided by intuition), and this will enable the transition from the conventional industry to flexible, and dynamic knowledge-based companies.

For future needs to refine the initial methodology defined and defining and implementing some pilot projects in our industrial environment. The conclusions that can be drawn from these experiences may be retroalimentadas and optimize both the final methodology and the adaptability of ICT tools to provide us the work. At the same time, it is necessary to measure or quantify the progress that is experiencing, by defining appropriate indicators of success for this.

Finally, subtract mentioned the framework in which fits this system of competitive intelligence, that is, the early stages of the process of development of new products, when it is necessary to define your specifications on the basis of current market and technology developments. This framework will have a natural evolution towards a system of total management of product covering each of the phases within the life cycle of the product, influencing the possible interrelations between phases (relationship causal and feedback systems). Terms as the cost of life cycle, management of knowledge, configuration and development of new products, competitive intelligence, or learning environments are common concepts of this holistic approach that is going to give to the process of creating new products.

References

  • Allen, T. j. (1985), Managing the flow technology. Cambridge, MA: MIT Press.
  • Ashton, W.; Stacey, G.S. (1995), Technical intelligence in business: understanding technology threats and opportunities, International Journal of Technology Management, Vol.10, no. 1, pp.79-104.
  • Coburn, M. M. (1999), Competitive Technical Intelligence. Oxford: Oxford University Press.
  • Dou, H. (1997), Technology watch and competitive intelligence: the european way, Competitive Intelligence Review, Vol.8, no. 1, pp. 78-83.
  • Dumas, S. (1994), Développment d´un Veille Stratégique Système dans a technical Centre. Doctoral thesis. Universite de Droit et des Sciences d´Aix-Marseille. France.
  • Escorsa, P.; Rodríguez, M. (1997), the information technological intelligence: strategic breakthrough, VII Latin American Seminar on technological management, Altec.
  • Escorsa, P.; Rodríguez, m.; Maspons, r. (2000), Technology mapping, Business strategy, and market opportunities, Competive Intelligence Review, Vol. 11, no. 1.

Related Companies or Entities

Danobat, S.Coop.
IDEKO, S.Coop.

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