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Digital technology at the center of the extended enterprise

· 5 min read
olome team
olome team
olome

The economic transformation initiated 30 years ago has profoundly changed the productive landscape. Companies, by specializing, today delegate part of their activities to external partners. They "have done", "have produced" to refocus on their core business. This dynamic gives rise to inter-company exchanges, or Business to Business (B2B), around the ordering and manufacturing of parts intended to be integrated into a global assembly.

From now on, the company operates in a complex ecosystem combining internal collaborators and external partners. This ecosystem includes: suppliers, subcontractors, direct and indirect clients, representatives, franchisees, distributors, consultants, startups, design offices, and service providers.

Stakeholders collaborate within the framework of common projects, often structured around two types of groupings:

  • Companies exercising complementary activities.
  • Companies sharing the same core business.

A notable example is that of Dassault Aviation, a pioneer in the field. In order to reduce its labor needs, the company relies on a network of suppliers with whom it shares the same database.

Thus was born the concept of the extended enterprise, networked enterprise or complex enterprise.

Digital technology at the center of the extended enterprise

The digital revolution, an essential catalyst

Since the 2010s, the digital revolution has played a decisive role in the rise of this collaborative model. With the digitization of exchanges, information circulates at unmatched speed, creating an environment conducive to inter-organizational cooperation.

The advantages are numerous:

  1. Real-time information: Digitization of exchanges allows instant and simultaneous dissemination of information, facilitating collaborative work.
  2. Gains in time, energy and expertise: By focusing on their core business, companies achieve economies of scale and mobilize specialists for specific missions, like Dassault Aviation.
  3. Close and transparent collaboration: Internal and external boundaries blur in favor of synergistic work, where information flows fluidly and responsibly, fueling a culture of shared knowledge.
  4. Increased agility: By relying on a network of partners, the company becomes more responsive to unforeseen events and market trends, strengthening its competitiveness.
  5. Optimized performance: The dynamic created by these factors contributes directly to improving overall performance.

An emblematic example is that of the nuclear sector, characterized by a complex chain of contractors and subcontractors (sometimes up to 3000 partners). These actors, from varied and regulated disciplines, intervene throughout the life cycle of complex systems. In such a context, the company can only be extended.

The challenges of digital continuity

Already 3 years ago in an interview with SFEN, Corinne Spilios, former director of performance at ORANO and president of the GIFEN Digital Commission, highlighted the particularities of the nuclear sector: "Managing complexity, long timeframes and the volume of information generated constitute its main specificities." She highlighted the notion of digital continuity, defined as "the ability to access all information relating to a product throughout its life cycle via digital technologies" in an article in Journal des Entreprises. The objective is to establish a collective dynamic favoring overall performance.

However, in such a sensitive sector, shared data must be secured and authorizations adapted. Critical points include:

  • Guaranteeing a healthy, solid and secure environment to prevent data leakage thanks to a digital workplace and secure sharing solutions
  • Adapting authorization sharing to deliver the right information to the right interlocutors and eliminate silos.
  • Guaranteeing increased cybersecurity in this co-design and database synchronization space

The pilot company at the center of the ecosystem

Within this collaborative ecosystem, the pilot company plays a central role. It coordinates projects, distributes roles, shares information and defines authorizations for suppliers, partners, clients or subsidiaries. As a leader, it sets the tone and ensures respect for converging interests.

Extended enterprise olome

To fulfill this role, it relies on high-performance digital tools guaranteeing data traceability and standardization of procedures. Cloud Computing, for example, offers an infrastructure where "applications and data are no longer on a single computer but in a cloud composed of numerous interconnected remote servers", according to the [CNIL](https://www.cnil.fr/fr/definition/cloud-computing#:~:text=Le%20cloud%20computing%20(en%20fran%C3%A7ais,et%20li%C3%A9s%20par%20un%20r%C3%A9seau.).

Technologies like Connected Industry© by olome reinforce coordination between stakeholders by facilitating information sharing and homogenization of digital culture. These tools allow SMEs and VSEs, often lagging behind in digital transformation, to catch up and compete with large groups often at the forefront of the latest technologies.

Conclusion

The extended enterprise represents a major evolution in the way modern organizations are conceived. Favored by digital technology, it relies on fluid collaboration between internal and external partners, allowing performance and agility to be improved while reducing costs.

However, this model is not without challenges: sensitive data management, cybersecurity and coordination of complex ecosystems remain major issues. By relying on advanced digital tools and a clear strategy, companies can take advantage of this model while minimizing its risks. Thus, the extended enterprise imposes itself as an indispensable lever of competitiveness in a world where innovation and collaboration are more crucial than ever.