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

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Moving from e-business to i-business strategies in virtual markets 5.5 Supply chain management (SCM) Supply chain management (SCM), also known as supplier– retailer collaboration (SRC) or efficient consumer response (ECR), is an idea that has gained considerable attention. In the US, supply chain management projects are often allied with efforts to create ‘virtual corporations’, i.e. a more opportunistic approach to collaboration. Ford and General Motors web portals demonstrate the changes that have been wrought in this area by the integration of web-based systems with EDISCM. SCM is a well accepted concept in logistics and operations management theory and aims to improve coordination and competitiveness beyond the enterprise level to include interorganizational relationships. Supply chains exist in virtually every industry and generally involve the procurement processes, transformation of raw materials into finished products and delivery of the product to customers through a distribution system. The supply chain of a packaged consumer goods manufacturer, for instance, comprises manufacturing, packaging, distribution, warehousing and retailing. Managing this involves the coordination of the materials inventory and production capacity availability across several organizations to produce products that can satisfy forecasted demand in an environment with a high level of uncertainty. While often regarded as a manufacturing concept (IT systems for bill of materials processing (BOMP) have been around in the manufacturing sector since the late 1960s) it can equally well apply in a university or any other service industry and may specifically relate to the management of information rather than materials. Suddenly, however, SCM has become a ‘hot’ topic for a number of different reasons. These include the trend towards multi-site operations with several independent entities involved in the production and delivery process, new and increasingly cutthroat marketing channels and the electronic marketplace. Traditional supply chains and trading partner relationships are exploding into intricate and dynamic virtual networks of trading partners and service providers. The emphasis in these relationships is to derive significant value through increased revenues and decreased costs as shown in Table 5.4. Achieving this in any organization directly depends on the performance of all the others in the network and their willingness and ability to coordinate. The question facing organizations today is not if they should join these new electronic networks, but how. 85
e-Business Strategies for Virtual Organizations 86 Table 5.4 Value from networked processes along the supply chain (adapted from Benchmarking Partners, Inc. 1999) Networked processes Design and product management Order management, planning, forecasting and replenishment Value 5.5.1 The logistics paths � Competitive advantage through faster time-to-market � Reduced R and D expenses � Lower unit costs � Competitive advantage and higher revenues from reduced stock-outs � Lower costs through reduced inventory � Lower costs through reduced return rates Distribution � Lower costs through optimized shipping and fulfilment Sourcing � Competitive advantage and increased revenue through faster product introductions � Decreased costs through and increased revenue from higher quality Customer relationship management Merchandizing/ category management � Increased revenue through improved customer segmenting and targeting � Increased revenue through improved customer service � Decreased costs from efficient salesforce automation � Competitive advantage and increased revenue through the proper product assortment, pricing and promotional strategies, and shelf placement When considering supply chain management from a logistics perspective, we will find two areas that have a considerable impact on the efficiency and effectiveness of the operations being performed – product logistics and information logistics. While product logistics is concerned with the flow of physical goods along the supply chain, information logistics reflect the need for handling the information flow and administrative tasks around the products. Within each of these dimensions, we can
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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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e-business models for virtual organ
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Page 66 and 67: Figure 3.6 Market alliance model Fi
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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
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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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