Network_itcoop.pdf

Answers to Suggested Key Issues
Vanni Rinaldi
NEW TECHNOLOGY OFFICE MANAGER - LEGACOOP
ITCOOP PROJECT COORDINATOR (IT)
Relationship-building and networking
1. Are there tried examples of methodologies for cluster developing?
ITCoop was implemented as a network of industrial cooperatives associated with Legacoopwith the aim to provide its members qualified information and communication, technicalassistance and consultancy services free of charge, thereby acting as a means of info-mediation, a support to decision-making, an interface and intermediate between the Supplyand Demand for ICT.
ITCoop is therefore an extremely ICT-oriented network of resources, expertise and serviceswhich advances the potential of new technology to develop collaboration and collective action(joint research and design, information sharing, collectively representing interests, aggregatedacquisition of products and services, etc.) to single cooperatives and a number of outside ICTsuppliers and providers via a central node connected to various sector and regionalcooperative networks or clusters (both vertical and horizontal). Basically, KRN is: centralized,open and informal and comprises joint partners.
Technically, the ITCoop site is a Portal (“a site of sites”), comprised within the LegacoopExtranet, offering info-mediation, brokerage, assistance and, in the future, e-commerceservices.
It may be said that this experiment led to the creation and operation of horizontal and verticalcooperative clusters, beginning with an initial interactive network comprising medium industrialcooperatives, though open to the outside world, and internally homogenous, mainly due to twospecific factors: common reference and belonging to a unique universe of association and values; sharing the same needs, information and services with regards to Information &Communication Technology.
2. What are the pre-requisites for cooperation and clustering? Are there cooperation
profiles? What are the external and internal barriers for cooperation?
An intrinsic element of cooperatives is their principal to collaborate for mutual benefit andconsequently “to network” and/or “cluster”. The ITCoop Project began with the assumption that,in consideration of modern-day “digital Economy” or “Internet Economy”, ICT could become themain means of implementing and redefining the cooperative network by providing the new andindispensable connecting link for networking. However, this leads to at least another two types of pre-requisites that currently characterizethe construction of a network, which now inevitably involves new technology: 1. the first relates to the general (organizational, economic-productive, relational and social- cultural) orientation/capability to network (communicate, interact, connect, collaborate,exchange and share information with other persons, etc., as the main elements ofnetworking considered as a means of acting, relating and organizing); 2. the second is connected with the orientation/capability (technical and economic-productive, however also organizational and social-cultural) towards new information andcommunication technology, i.e. towards a special kind of networking (ICT-Capabilityreferred to networking as a specific technological method for physical and virtualconnection between units in a network).
In our opinion, these two elements are inter-related. On the one hand, if you are not oriented,interested, willing, able or forced to network from an organizational-productive, relational andcommunicational viewpoint, you do not feel the need to use technology specifically created forthis purpose. However, if you are not oriented, able or forced to use new technology, you willundoubtedly encounter greater problems creating and/or using a network structure or system.
Having said this, the pre-requisites for cooperation and clustering, which may differ inimportance or way they are combined depending on who is involved (organizational, economicand social-cultural), are generally as follows:• sharing common needs, interests and objectives, thereby differentiating potential network • acknowledgement of the mutual advantage and benefit of working together• the sense of belonging to the same “real or virtual community”• the presence of a body with “domain expertise” who can assume the role of network • reciprocal “trust” among the members, or at least in the promoter, coordinator and However, an open mind and the determination of those involved to become part of a “networkcommunity” and to approach the world of new information technology and its applications incompanies in order to strengthen and renew know-how on the matter are of vital importance. Acertain degree of resistance can be found from both viewpoints, not only in the world ofcooperatives, but also in the economic and productive system in general, with regards to theorganizational, relational and communicational aspect of networking. The main barriers comefrom within the companies, most of which are due to the lack, in many companies, of a“network culture” (above all in terms of willingness to share information and knowledge) or, asfar as cooperatives are concerned, the need for redefinition.
3. How can one best present the economic and other benefits of networking?
We managed to convince cooperatives of the general benefits gained through networking andparticipating in the ITCoop Project via our workshops.
The direct action involved a smaller group of 10 cooperatives which were provided on siteassistance from a personalized consultant which, together with the other project actions, aimedat encouraging a mentality and capability for self-diagnosis.
The IT-based action led to creation of the ITCoop Project Web site, which initially provided aPortal for offering info-mediation services aimed at extending the awareness and renewedinformation on cooperatives.
The information provided here was selected and the routes differentiated and customized intotwo levels of know-how (low and high tendency) easily recognized via two very distinct colours.
This differentiation was established following ICT-Capability tests during the assessment stage.
Info-mediation should increasingly become a service for inter-mediation and connectionbetween the supply and demand for ICT in the future. This fundamental Portal function ispossible via creation (currently underway) of the following:• on-line assistance and consultancy through the ITCoop Web channel• a brokerage service to encourage the establishment of a purchase group (an “offers” area for ICT services and products is currently available) This set of actions aimed at providing tangible proof of the benefits of networking by showingassociates how to access low-cost (or cost-free) access to services that they would notnormally have access to and which are essential for increasing a company’s competitiveness(strategic elements such as internationalization, RST and technological transfer which SMEsdo not normally have) and which comprise the offer of a method and means of assessment tohelp develop the cooperatives’ capacity to self-assess their IT-Capability.
4. How can one maximise knowledge-sharing within a cluster and overcome the
competition barrier?
In order to confront this problem, the participants must be encouraged to increase theircompetitiveness by being given tangible proof of the benefit of overcoming barriers andresistance to collaboration through a concrete offer of services which can only be accessedby belonging to an aggregating network. Clustering provides unquestionable benefits when ithelps achieve targets and results that are impractical alone (e.g. entering internationalmarkets, RST, etc. – see above).
The ITCoop Project developed information circuits on the subject of ICT and provided constantupdates on new developments via the “service on line”, along with other parallel initiativeslinked with the chance to join the “purchase group”/”users group” (for accessing ICT productsand services by taking advantage of the associative element). This led to a situation wherebythe cooperatives were able to experience the proposed benefits, despite initial reluctance, andconsequently agree to form a network circuit.
The feedback from the direct actions throughout the country and constant information andreminders demonstrated that the experimental service was of such quality as to encourage thecreation of an interactive network of clustered companies willing and interested in sharinginformation and knowledge.
The objective of the IT-based activity was to create a WEB-based virtual network within theLegacoop Extranet, through which the cooperatives realized that Internet is a fundamentalmeans of ensuring long-term competitiveness. The Web site also offered the followingfunctions: • a communication channel that cancelled out distance from the ICT global market for all • comprehensible information on new technology and consequently safer purchases• rapid fulfillment of the needs of cooperatives• a multitude of communication means providing them the opportunity to relate with other The Web site became an important means of providing organizational information on theProject, however it was also a qualitatively different tool that provided knowledge and thediffusion of ICT subjects which encouraged and brought to light the needs of cooperatives withregards to IT-based organization and communication.
5. What concrete activities, information services, ICT tools can be implemented to
favour networking?
The way to favour clustering, knowledge sharing and networking is through an approach thattakes a multitude of actions aimed at increasing and making information exchanges moreeffective and efficient into account. This basically involves:• using a blend of innovative and traditional tools and approaches (press, workshops, on-site consultancy, etc.) and encouraging direct experience and collection of feedback • encouraging all the associates to actively participate in the selection and production of the contents and services involved (bottom-up approach) • analyzing the demand for personalized services• identifying and promoting best practices• promoting the use of innovative media (low cost) as an element for sustaining information The method used in the ITCoop Project for generating targeted and customized routes thatthe users could use differently depending on their orientation and needs became an essentialelement for encouraging access to and sharing of information, as stated earlier.
For this purpose, an ITCapability Test was included in the “Service” to assess how far ICTwas adopted and understood within the cooperative. This was based on a summary of theICT Check-up which helped outline the level of ICT-orientation via an on-line questionnaire.
The result of this test led to two different coloured routes - red (scarce orientation) and green(extensive orientation).
The route the User was assigned helped him/her to navigate around the Service. All thetechnical information, dates, News bulletins, offers and FAQs are classified according toITCapability and consequently coloured differently depending on how complex the subject is.
The User has complete access to the information and the test simplifies understanding of theinformation.
The interviews held with the cooperatives demonstrated the importance of a coordinatingstructure (Legacoop), from which the cooperatives (and their market interlocutors) expect thefollowing:• info-mediation • inter-mediation and links for the connection between both internal and external supply and demand (technological interface, brokerage, etc.) • validation, certification and accredit offers• guarantee of a “brand” function• animation for the network.
The last element was considered as particularly important. No network can work or develop if itis not intensely and continuously animated. This is demonstrated by statistics from theinteractive site areas (forum, assistance, etc.) which have great difficulty taking off if the Webservers do not animate them.
This may appear to oppose the tendency towards “non-intermediation” connected with Internet,i.e. the disappearance of the role of intermediary. When we talk of the need for intermediation,we are referring to a new way of providing this function which is commonly accepted as beingprovided by a Portal. This is a kind of “transparent” info-mediation provided by a central nodeand which is able to act as an “access and addressing ramp”. It is therefore a new means ofintermediation which must guarantee rapid flows.
Intermediaries (if they are useful) are no longer linear/hierarchical (an accumulation ofknowledge - diffusion), which currently risks “slowing down” the process. They become a kindof “catalyzer”, facilitator, designer and animator for a competence network (“domain expertise”)directly used in the innovative process.
6. Developing effective public-private partnerships to promote networking and
clustering
This Project was promoted and implemented by just one organization - Legacoop - with thesupport of a number of partners, although this partnership was not actually formalized to form aconsortium.
The partnership involved non profit-making companies (Legacoop and the cooperatives),private companies and mixed consortiums (in addition to the funding Community organismsand participants in Epsilon Projects), and was based on the principle of mutual benefit, or atleast their having common interests to a certain extent.
Although Legacoop and the funding organisms were mainly driven by the objective of providinga service to help develop the companies involved (the cooperatives), the other partners mainlyaimed to implement communication and promotion channels to help outline a service tospecifically fulfill the needs of cooperatives.
The joint funding from Epsilon was of great importance as it provided an essential means of“entering” cooperatives with an offer of targeted and highly innovative offers of action. Asemerged during a number of the interviews held during assessment, “the Project ensured wecould acquire top class information services without effecting the budget, which often has noroom for such expenses”.
The subject of partnerships is generally closely linked to the sustainability of a project based on“clustering” and “networking.
In our opinion, sustainability mainly depends on achieving critical mass for efficient marketaccess which provides economic benefits and ensures that a network is able to support itselfby ensuring economies of scale.
Consequently, the following was provided both during the project and on its termination:⇒ on the one hand, a guarantee that the ITCoop Portal be integrated with all the other existing on-line structures, including the “Service” in the Legacoop Extranet specificallycreated for this Project ⇒ on the other hand, exploration of the various opportunities regarding funding and self- financing currently available. For this purpose, specific projects aimed at maintaining,developing and perfecting the products and services implemented via ITCoop have alreadybeen outlined and presented to the appropriate structures (both within and outsideLegacoop) with the aim of transforming this “Service” into a permanent and continuousstructure.
7. Re-engineering the relationships between membership bodies and their members, to
promote networking
As far as relations within the Legacoop System are concerned, the Project led to animprovement in the association network, thereby providing new communication channels andspecific offers for cooperatives and favouring the adoption of new work methods andcollaboration on the network.
It is therefore not a coincidence that the Project began with the assumption that ICT couldbecome the main means of implementing and redefining the cooperative network by providingthe new and indispensable connecting link for networking, even revitalizing the associative linkitself. In other words, modern technological networks not only “encourage” relations, butactually “create” them.
Our experience demonstrates that this potential is real. Furthermore, the encouragement and services provided by ITCoop to both the country andcompanies led to revitalization of the links between national and local Legacoop structuresand, above all, cooperatives. This has led to a new channel of communication with the heart ofcooperatives, which is essential for networking and recovering the sense of belonging to a new“virtual community”.
The interviews held in Legacoop demonstrated that the main objective is to “animate both thevirtual and real Legacoop System networks” by permanently implementing, maintaining,rationalizing, updating and developing the Legacoop Web site (http://www.legacoop.it/) andrelative Extranets and Intranets.
This network has not been used by the Legacoop structures to the full as yet, in other words ithas only offered information and info-mediation services until now. This role should beimproved by increasing use of the site as a vehicle and encouragement for producing know-how and information in the various departments and offices of cooperatives and increasing anddiversifying the range of services on offer. This would lead to the creation of Portals (horizontaland vertical) to help encounters between product and service Supply and Demand (and notonly ICT-oriented).
The Legacoop site should become the System’s “virtual link” by offering cooperatives and theirvarious local branches a space in which to communicate and interact and thereby encourageactive participation using a “bottom-up” approach in order to strengthen and improve the localoutlook.
8. What cluster-building criteria result in easier interaction between members: sector,
geographical groups, members of same supply chain, etc.?
In general terms, companies to be clustered must be integrable and networkable from alocation, sector affinity, supply and/or customer type viewpoint and share the same potentialinformation needs, thereby ensuring they can be grouped and consequently achieveeconomies of scale (costs) and scope.
Information technology and the global extent of markets (goods, services, labour, capital)force SME’s and districts to extend from local-based markets, thereby leading to “virtual district economies” which tend to gradually extend their geographic sector. This makes
vertical clusters for specific sectorial specialization the most suitable choice.
The main factors leading to successful aggregation and interaction in our case are:• cost-free access to KRN for associated cooperatives• tangible and measurable benefits for Users as the KRN and connected “purchase groups” help achieve economies of scale by sharing information and providing access topersonalized and innovative products and services, specifically designed to fulfill theirneeds regarding strategic functions which they are not normally able to acquire • the use of innovative media to sustain low-cost information flows• the fact of being members of Legacoop and the consequent principle of trust and “brand • the sharing of common problems regarding ICT that are difficult to face alone (information, assistance, ICT-check up, brokerage, e-commerce, etc.) • adoption of a mixed approach comprising a number of actions and methods to fulfill the • domain expertise• awareness of the importance of an ICT-oriented networking strategy for cooperatives • Legacoop’s role as encourager and animator for the ITCoop Project.
From this viewpoint, the success of ITCoop and its potential for future development on the onehand depend on the implementation of interactive communication flows and, on the other,reaching common and tangible objectives and results that they could not achieve alone bytaking advantage of the associative principle of cooperatives for mutual benefit. However, themost important aspect is to acknowledge and interpret the needs of its specific user group(“acting as an antenna”).

Source: http://www.ll-a.fr/eu-epsilon/download/Network_ITCOOP.pdf