Virtual Office Resource

While tech news circulates about the hottest items in business networking and collaboration, it appears that the hype for new technologies and products is only making into the ranks of a select few European businesses.

A report from the Economist Intelligence Unit and Ariba, a networking product provider, released last week shows that many European businesses are not fully utilizing the collaborative tools available to them. The report, titled "No Business Is An Island," suggests that businesses are missing opportunities to advance themselves in their chosen markets even though many professionals note that they are aware of the benefits of collaboration. More businesses, for example, are taking advantage of information sharing, but fewer have invested in early payment situations or joint financing.

Pete Swabey, the senior editor of thought leadership at EIU, explains, "No business is an island. Whether it is through outsourcing, partnership or simple supplier-customer interactions, all businesses are reliant on the relationships they have with their peers. So the case for collaborating with trading partners effectively is clear," Swabey said. "However, few organizations are using the full range of collaboration options available to them."

The report also notes that the global economy depends on individual companies working together. From a survey of 281 executives in EMEA-based companies in Europe, the Middle East, and Africa, it notes that 93 percent of respondents said they derived value from collaboration with other companies. Respondents also indicated that they were most likely to choose the technological capabilities, the presence of an existing business relationship, and the partner's size and reach as the main factors when selecting a collaborative partner.

The most prominent consideration, technological capability, is becoming increasingly important for companies, especially those that manufacture and deal with high-tech goods and services do not have a monopoly on knowledge. David Loseby, the chief procurement officer for transport group Arriva, says "nobody has all the wisdom that is necessary to make high-tech products." As products and technologies become more complex, collaboration becomes more important than ever.

Some businesses may not be collaborating for fear of sharing too much knowledge or for being unfamiliar with methods of collaboration available to them. In any case, there are safe ways to share information and services with ones neighbors, and it is important to find out which services are available and how to take advantage of them in ways that will help and not hinder operations for any network partners.