[8] 2002 e-business-strategies-for-virtual-organizations

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Moving from e-business to i-business strategies in virtual markets Table 5.3 Types of electronic markets Seller controlled Information-only vendor Web Cisco Systems Vendor websites with online ordering Buyer controlled Website procurement Japan Airlines Planning purchasing agents Freemarkets Purchasing aggregators Online TPN Register Neutral Industry/product specific search engines Information marts Business malls Auction spaces FastParts Companies wanting to evaluate which model suits them best should answer the following four questions to help them determine an appropriate strategy. � Are there transaction savings or benefits to be realized? – cost reduction through greater process efficiency; – improved reach; – reduction in prices to buyers. � Is an electronic market for our product developing quickly? – do we have transaction inefficiencies? – how sophisticated is the buyer? – is the product e-friendly? � Would a neutral intermediary be beneficial? – advantage of scale in transaction processing; – value of the information acquired during buying and selling; – anonymity. � Do we have substantial market share or buying power? For buyers, the strategic imperative is clear. They have little to lose and much to gain, and should therefore organize a buyercontrolled marketplace as quickly as possible. The dynamics of electronic marketplaces also create clear opportunities for thirdparty intermediaries, which can create value by virtue of their neutrality. Sellers are the most vulnerable participants, because they will increasingly have to compete with other vendors in a transparent environment. The dynamics and rapid growth of 83
e-Business Strategies for Virtual Organizations 5.4 The chain gang 84 electronic marketplaces are forcing businesses to choose their strategies now. Electronic business-to-business commerce is not simply a question of automating existing channels and processes. It is a whole new way of doing business. Aligning these approaches with the i-business model and stage of maturity of the virtual market requires the i-business to explore its supply chain management and to exploit its business value chain beyond the enterprise level to include interorganizational relationships. Supply chain analysis involves working across multiple enterprises or companies (inter-enterprise) to shorten the supply chain time in the delivery of goods and services to the consumer or customer. The demand uncertainty in supply chains can be addressed by faster response times. A basic product supply chain can afford longer lead times and batch manufacturing of large lot sizes to meet the demand. A supply chain that produces fashion, electronic, or mass customization products must respond quickly and be more agile. Most supply chains are moving in the direction to support a more rapid changing of demand by the consumer or customer. Value chain analysis is used to identify a variety of potential sources of economic advantage. The analysis divides a firm into its major activities, considered as steps which each add value to the goods as they are transformed at that stage. This may take the form of complex operation upon the goods, or simply moving them from one place to another. This is done in order to understand the behaviour of costs and the existing and potential sources of differentiation from others in the market. It determines how the firm’s own value chain interacts with the value chains of suppliers, customers and competitors. Companies seek to gain competitive advantage from such analysis by finding out how to do some or all of these activities at lower cost, or with greater differentiation, than competitors. What these two terms have in common is that each business activity – upstream to exterior suppliers, internal to the company, and downstream to the end customer – is examined in the context of an overall value chain to reduce costs and improve responsiveness to the customer. Customer focus – the delivery end of the value chain – is the correct starting point for both supply chain and value chain analysis.
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e-Business Strategies for Virtual O
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e-Business Strategies for Virtual O
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Contents Computer Weekly Profession
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Contents 6 Globalization and e-busi
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Contents 11.6 The increasing power
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Computer Weekly Professional Series
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Authors’ Preface There are dozens
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Authors’ Preface model will there
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Authors’ Preface alliances, bette
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1 e-business and the virtual organi
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e-business and the virtual organiza
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Figure 1.2 e-business and the virtu
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1.5 e-business e-business and the v
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Figure 1.3 e-business and the virtu
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Figure 1.4 Virtual objects, Scholz
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Characteristics of the virtual orga
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Figure 2.1 Formation of business al
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� empowerment of staff; Character
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Page 52 and 53: e-business models for virtual organ
Page 62 and 63: 3.4 Models of efficient response e-
Page 64 and 65: Figure 3.4 Star alliance model e-bu
Page 66 and 67: Figure 3.6 Market alliance model Fi
Page 70 and 71: Figure 3.10 Virtual alliance framew
Page 72 and 73: Figure 3.11 Virtual organizational
Page 74 and 75: References e-business models for vi
Page 76 and 77: IS planning strategies for emerging
Page 80 and 81: Figure 4.1 The evolution of IS/IT p
Page 82 and 83: Figure 4.3 A framework for SISP (Wa
Page 86 and 87: Figure 4.4 Planning adopts a busine
Page 88 and 89: Figure 4.5 Interconnected ecologies
Page 90 and 91: Figure 4.6 The interrelationships b
Page 94 and 95: 4.8 Conclusion IS planning strategi
Page 96 and 97: References IS planning strategies f
Page 98 and 99: Moving from e-business to i-busines
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Page 134 and 135: Adoption and deployment of online i
Page 136 and 137: Table 6.1 Online business models On
Page 140 and 141: Figure 6.2 VIM strategy Globalizati
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Globalization and e-business strate
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7 Developing knowledge-based strate
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Developing knowledge-based strategi
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8 Evaluating strategies for e-busin
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Figure 8.2 Fitness landscapes Evalu
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Evaluating strategies for e-busines
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Table 8.1 Information economics - v
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Customer view Whatisour image? Eval
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Table 8.6 Matrix for preparing to m
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9 Outsourcing, partnering and the v
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Outsourcing, partnering and the vir
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Figure 9.2 Outsourcing, partnering
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9.9 Summary Outsourcing, partnering
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References Outsourcing, partnering
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e-business strategies in the virtua
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10.10 Summary e-business strategies
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11 Creating virtual cultures for gl
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Creating virtual cultures for globa
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Four stages of market evolution Mar
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Figure 11.4 The four paths of evolu
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References Creating virtual culture
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Advanced knowledge, see Knowledge A
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[8] 2002 e-business-strategies-for-virtual-organizations

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