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    AISHWARYA

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    of 3
    rative exchange episodes 4ition fo renewing sequen- stin-time supply arrange visodes that broaden the vsode comes to an end, the of collaborative exchange. petween the partners, such oes not have capability in “zest, one or the other part- collaborative exchange (in an exchange episode), !” some respects, curtailed erching, organic stage that sstomer and supplier firms ‘lationship dissolution as ‘ship maintenance stage. PS, or alliances, the {he set of relationships. » relationships. Connected nt upon exchange (or ‘ec relationships of inter vith other relationships recwork, As illustrated in ‘lationships that either some third parties! lationship Ssbonships Within Coyle %, fage LQ Atype of busines network of parca interest to buts abhor managers is the alliance network, which is a clique of interrelated anc coorclinated business rela- tionships.*? Firms engage in alliance networks to create new markets, to bring together resources that are beyond any two firms, to gain consensus on a “dominant design” that will speed the adoption of an innovation, and to spread risk across a greater number of firms, We begin with a case study of building and managing an alliance network. This study of India’s Light Combat Aircraft (LCA) business net- work, which we present in Box 1.5 both motivates our discussion of analyzing busi- ress networks and serves as a source of examples. ‘BOX 1.6 nthe easly 1960s, the Indian Ais Force was in "need ofits 45h and Sth generation arr Its 2ral generation aircraft and MIG-2 fighter ai all, mainstays ofthe dian A Fore atthe | time, were aging quickly. The governments | Ministry of Defense Long-Term Equipment "Plano 981 frecaste that India would be s0% to its fighter area argets by 1995. The “light combat sircraft (LCA) program was India’s initiative to manufacture the'Sth genera tig fighter sires indigenous. “Accordingly, in 1983, the Defense Research and Development Organization (DRDO) | cbained permission to develop LCAs— tveight, multol, ales, compound lia ing, supersonic and single-engineje fighters. possibly open doors forthe future export ofthis Sophisticate ighter aircraft ‘The year 1984 Saw the establishment of | the Aeronautical Development Agency (ADA) _tomanage the LCA program. ADA, part of the DRDO, isa consortium of over 100 defense laboratories, industrial organizations, and sca demic institutions, Te project was fo be ca- - tied out in tvo phases: Phase at cost of INR "219 billion, would develop the desiga, cone struct and test two technology demonstrator aircrafts (TDI & 2), construct a structaral test "specimen, construct two prototype vehicles @ incia’s Light Combat Airoraft through the Alliance Network Chapter 1 (PV1 & 2), ancl create any necessary infrastruc- tute. Phase-II, with a total cost of INR 23 bil lion, would include the construction of three ‘more PVs: PV.3, the production variant; PV-, the naval variant, and PV-5, a trainer; along with other associated facilities. ADA was responsible for the design and development of the LCA’s avionics suite and its integration with the flight controls, environmental con- trols, aircraft utilities systems management, stores management system, ete, besides hav- ing overall project management responsibility. Hindustan Aeronautics Ltd, (HAL), established in 1964, is a government-owned, high-level aerospace research and production facility primarily focused to meet the coun- tny’s defense requirements. Ithas several suc- cessful RED programs to its credit, HAL was the lead partner and principal contractor in the LCA project, and ivas changed with man- aging several aspects including the communi= cation sulte, airto-air and alt-to-ground data links, the friend or foe interrogator, the gas turbine starter unit, andl the multi-mode radat, which was to be a joint effort of HAL and the Electronics and Radar Developiment Establishment (LRDE). In its role as the prin- cipal contractor, HAL was responsible for LCA design, systems integration, airframe ‘manufacturing, aizcraft final assembly, light testing, and service support, (continued) Business Market Management 29 eae 30 BOX 1.5 Continued ‘The project definition (PD) phase was performed from October 1987 to September 1988. Based on its extensive expertise in avin- tion, France's Dassault Aviation was invited toreview the PD phase and provide advice. ‘The combat vehicle adopted the state-o- the-art ly-by-wire (FBW) technology. Because af its tecanological sophistication, developed cour- tries that had this technology were unwilling to provide FBW technology for the LCA project. Consequently, the necessary control laws for FBW controls were developed by India’s National Control Law team (CLAW), formed by the National Aeronautics Ltd, and supported by the Aeronautical Development Establishment (ADE). As the control laws were progressively incorporated to build the flight control system. software, fom 1993 to 1996, they were tested cn the British Aerospace simulators inthe UK. and at Lockheed Martin simulators in the United States. After India’s second successful nuclear testin 1988, developed counties suddenly with- drew all support fr the LCA project. CLAW was. succesfully tested on Minibitd and Ironbird test rigsat ADE and HAL, respectively. AL's Hyderabad division and LRDE, Bangalore, were selected to jointly lead the development of multi-mode radar. DRDO's Centre for Airborne Studies was responsible for testing this radar. By 2006, owing t6 time and budget problems, ADA began to look at alternative off-the-shelf solutions and subse- ‘quently agreed to a bid offered by Israel's Elta. ‘The Gas Turbine Research Establishment was charged with providing the GTX35VS Kaveri after-burning turbofan, the aircraft's main propulsion system. This was latesttech- nology engine that would give effective thrust and conserve fuel by aiding proper combus- tion. In 2006, after the embargo was lifted on the supply of sensitive technology to India, a {$105 million contract (tthe time, INR 4725 bil- lion) was awarded to General Electric for sup- Section | Introduction and Overview peas ply af 17 FOWGEAN2 turbofan engines tobe tse in iil batches ofthe LCA, This oder was further augmented in 2007 to include 24 THOL-GE-IN2D after-burning engines. Due to the problems encountered with Kaveri the French aircraft engine company Snecina was invited to provide technics asstnce. Ih May 2009, expecting further delays, ADA began evniating te purchase of 100 more power éngines fom either EuroJet or General Elect. ‘large number of other Indian organiza. sions were inveved in the design ai dovlop- mento vatious other subsystems of the aircraf Its headeup display was developed by the Indian government-owned>Centra Scenttic Instruments Organization in Chandigarh. Liquid crystal multifunction displays. were developed by. Bharat Electonics Lid, another public sector company The lnvding-ger mett- is were sourced from Mishra Dats Nigam Li, Hyderabad, with Bharat Forge involved in bruling certain sub-nesemblcs,Ini's Nulae uel Complex le the team that developed the titanium halfaloy tubes needed for the hydraulic power transmission. The Defence ‘Avionics Research Establishment developed an indigenous ull, Authority Digital Engine Control, The DRDO's Cental Vehicle Research and Develonent Establishment designed and developed the mounted accessory gearbox and power take-off hatHor the LCA, For a country with litle teck record in advanced aerospace systems, ADA’s LCA project was audactous ints vision. Only three bf the 35 major evionis component and ne replaceable units aze foreign in origin. The rest are indigenously developed by a wide range of organizations falling under the ADA umbrella, Even within imported aystems, there fs a drive to progressively inerease the Indian content. Two critical technologies—the development and manufacture of advanced carbonsfiber composites strictures and kine system for the 3D laminated co Hot areld | Business Nets ‘The LCA bus in business 7 Earofighter pet ‘business netost ‘eeorks such ast ness netwecks* 2 turbofan engines to be sof the LCA. This oxder ed in 2007 to include 24 cming = company Snecma was snical assistance, In May ver dolays, ADA began s2 of 100 more powerful weet or General Electric, other Indian organiza ‘be design and develop >aystems of the icra. mas developed by the cned Central Scientific stion tn Chandigarh wnction displays were ectronies Ltd, another wling-gear mater- ra Dhaty Nigam Sarat Forge involved in ccrblies. India’s Nuclear

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