PERF RMANCE 04 - The Performance Portal - Ernst & Young

Foreword
One of the fundamental sources of organic
growth in an increasingly competitive
market is innovation. New products
or services developed and brought to
market speedily and effectively is what
differentiates high- and low-performing
global organizations. Innovation
management can be described as the
application of external evolution on
internal business processes. As
external evolution becomes more
varied and volatile, the challenge for
organizations to keep ahead of the pack is
increasingly difficult.
In this issue of Performance, we
examine different aspects of innovation.
For example, in “Choosing the right
technology,” we consider a framework
which can help organizations make
informed decisions about their
technological development. The article
explains the four challenges which
businesses need to confront in order to
master technological change.
The importance of networks and
connections on innovation is explored in
two different articles. The first looks at the
powerful impact of online collaborative
communities. By harnessing the power
of these networks, organizations can tap
into a collective knowledge which is far
broader than could be achieved by more
traditional methods. The article introduces
the concept of “coolfarming,” enabling
companies to lead in the development of
the next hot phenomenon.
“Connection as competitive advantage,”
examines some of the risks inherent
in these new social, collaborative
communities, and offers some options as
how to manage those risks well.
The theme of effective collaboration
is also strong in “Making a world of
difference,” which gives some great,
practical insight into how to improve the
performance of intercultural teams. In
the past, cultural awareness training has
tended to focus solely on communication
whereas, in reality, when problems occur,
they are due to dissimilar expectations
about how the work should be done and
how performance should be managed.
If your challenge is more around how
to improve the speed with which your
organization can react to or anticipate
change, then there are two case studies
which will be of interest. “Advanced
Solution Center” examines how you can
drive change at a faster pace. In a separate
case study, we explain how transforming
Fresenius Medical Care’s supply chain
enabled the organization to respond more
quickly to changes in customer buying
patterns and, as a result, make cash
savings of over 15 million euros from a
reduction in stock holding.
I hope the articles in this edition of
Performance provide inspiration as you
rise to the challenge of how to grow
your business.
Enjoy reading this issue!
Markus Heinen
Chief patron, Performance