Leyla Arsan CEO of TAGES, spoke on Competition, Trends for Increasing Innovation: Cooperative Networks’ on May 26th in ‘EUROPUMP&CEIR Joint Annual Meeting 2006’ in Antalya.
The joint annual meeting of EUROPUMP (European Pump Manufacturers Association) and CEIR (European Committee for the Valve Industry) was organized by POMSAD (Turkish Pump Manufacturers Association) in Antalya on May 20th-28th 2006. On the meeting where the members of the 30 associations participared, Leyla Arsan CEO of TAGES, spoke on Competition, Trends for Increasing Innovation: Cooperative Networks’ and in her speech said; ‘We are all living in the same sphere, we are all effected by everything together, so we are competing a lot, and we have to be innovative at the same time. As the economy is driven mostly by SME manufacturers which are 90% of the industry, the real need of innovation is in SMEs. Nevertheless, SMEs can not be innovative itself by meeting all required components of innovation but, SMEs having different competencies and capacities can be innovative by cooperating with each other.’
The main theme of the speech was the creation of cooperative networks where named also ‘virtual enterprises’ in order to facilitate SMEs to access to new markets, providing more integrated supply organisation and product and services, increasing efficiency and effectiveness, manufacturing innovative products with less costs and higher quality and access to new technology and know-how. She also pointed out that Co-operating companies are significantly more successful than the average of the sector; 25% increase in turnover, 12% increase in productivity and 3% in capacity utilization according to the survey results of Fraunhofer Institute 2002.
‘ In ten years, in response to fast changing market conditions, most enterprises and specially the SMEs will be part of some sustainable collaborative networks that will act as breeding environments for the formation of dynamic virtual organisations’
Leyla Arsan also explained how 2 cooperative networks in the machine manufacturing industry in Turkey established with the financial support of European Commission under the Framework Programme 6th Project called VERITAS (Virtual Enterprises for Integrated Industrial Solutions) where Machine Manufacturers Association of Turkey(MIB) participated and Leyla Arsan coordinated the project for MIB.
The pilot cooperative networks established in Turkey are;
CompressorNET:11 Compressor manufacturers cooperated to establish a Powerful Compressor Subcon in Turkey. Small compressor manufacturers started to give up producing compressor, but concentrated to produce compressor parts
: 2 Superstructure manufacturers cooperated to produce a new product with lower cost and higher quality to be able to gain a competitive advantage internationally