Take a non-technical look at the potential of the digital B2B opportunities Cyber Partnering - Are we ready?

When Alexander Graham Bell invented the telephone there is a question mark as to how long he waited to find someone to call. This may seem glib but perhaps there is a sense of realism that needs to be invoked. If business organisations are to reap the massive potential that the new Internet technology lays out before them.

Thankfully the hype that we saw in the past has subsided. Many who lost may not feel as magnanimous. The realism that is now being seen will perhaps herald a more constructive focus on the true potential that can be generated. There is no doubt in my mind that we have only just begun to realise what may be possible. Along with the impact that the digital age will have. Not simply in the development of technology but in every aspect of our lives. At least in the case of those who can access the web. It should be noted that perhaps 80% of the world are a long way from even establishing contact.

To make the journey into the cyber world is no easy venture. Many who still struggle with the PC and a keyboard will shudder with bewilderment at the changes that are just around the corner. This is true, in my experience, for both the private and business world. In fact perhaps the first lesson the commercial world needs is to under stand the gulf that exists even within individual companies. This was aptly outline to me by a talk from Dr Oliver Sparrow. The management has to understand from below what is possible and the front line has to understand what is wanted. Examine how many CEO’s can’t or wont use a PC.

The danger of were we currently stand in the evolution of technology is that we strive for technological goals, whilst ignoring their practical commercial benefit. The striving for technology has often overshadowed its true value added. It is commonly held that 80% ‘IT’ projects are deemed failures. This is probably correct if my own experiences are any benchmark.

The real problem however, may not be the technology but the dreams and expectations that are created prior to the realities of implementation. It was often said that if you could not do it on paper you cannot computerise it. So perhaps the problem of these ‘IT’ projects was that the process did not work properly before hand. Their application being compensated for by the best computers of all e.g. the human brain.

Taking this view forward one has to be somewhat sceptical of the current rash of claims that digital technology will enable business to create global virtual networks. Developing supply chains with a focus on delivering new value proposition hitherto impossible without the Internet. I believe the premise to be true and from what I have seen myself there are specialist out there that can deliver the software. I would go further and suggest that the true long-term benefit of the web in business will be in the B2B arena. Not though in commoditisation but in the application of integrated processes and creation of virtual organisations.

These digital virtual structures will enable organisations of all sizes to mix and match over time to generate new propositions and solutions. These groupings may bring together previous competitors or create short/medium or long term alliances to challenge significantly larger monolithic companies. The net puts not only the customer /supplier relationship on a face to face basis. It has the potential to interlink business processes across multiple organisations. Bringing together specialist in their field as a common unit but maintaining their independence as companies.

This vision of the future was clearly seen by Partnership Sourcing long before we all got excited about the Internet. Established in 1990 as a special initiative jointly by the CBI and DTI its vision was to help UK industry improve performance and share best practice. Using the concepts of partnering for profit by sharing knowledge and focusing on what each party did best. Driving cost out of the supply chain by co-operation. These principles and the efforts of PSL continue today. It is from this perspective and the experience behind PSL that one looks at the current claims for Internet technology and asks ‘’ are we ready’’.

In truth, whilst there are many in industry that have adopted the partnership approach, many more have not. Therefore the premise once again that technology will fill the gap can only lead to more shattered dreams and disappointment.

Senior leaders of industry must realise that the concept of ‘so let it be written.so let it be done ‘ is not practical. Building a new business concept on the technology alone will not deliver. Business is at its core about relationships buyer/seller, customer/supplier and consumer/deliver. Each has its role within the supply chain .To maximise the value each must be considered and this will not happen simply by linking technology platforms. It can certainly facilitate the flow of information but it will not build a relationship.

In order to see what can be achieved one needs to understand both the technology and the dynamics of the participants. It is not a question of either/or. PSL produced a report called vision 2010 which saw the potential of virtual networks .It devotes its time to helping organisations realise their ambitions. The focus for partnership, PSL would suggest, is a fundamental facilitator if the promise of the new digital age is to be realised.