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

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Globalization and e-business strategies for SMEs � They provide an ever converging and rich environment for effective business networking and interorganizational process management. � They provide SMEs with access to a huge mass of consumers through e-business. This means that e-business is an extremely attractive option for most SMEs, especially given the huge publicity and support provided by governments to push growth in the sector. Also, the unique features of small firms, namely flexibility of operations, relatively simple organizational structures, entrepreneurial culture and high propensity to engage in business networks, can be advantageous in the electronic marketplace. However, along with these opportunities come threats. Most SMEs have little experience of operating in a global marketplace and rarely have formal procedures for strategic planning and management. This coupled with limited exposure to online markets and a slow take-up of IT makes e-business a daunting option for the majority of SMEs. e-business implies that SMEs can extend their environments without acquiring the traditional measures of large size, namely large employee base, vast capital resources, and extensive investment in proprietary networking technology. They do need, however, to understand how to exploit the virtual values associated with online information infrastructures in the most effective and appropriate manner for their business. While there appears to be a lot of enthusiasm about the Internet and electronic business, current studies show that it is the minority of SMEs (OECD 2000) who are reaping significant benefits from the Internet. The majority of SMEs employ the Internet as a basic communications facility using it as a costeffective alternative to the more traditional means (e.g. fax and telephone) of communication with partners or customers. The reasons for the relative low level of use include: uncertainty about benefits, low level of technological expertise, low commitment of owner/manager, poor understanding of the dynamics of the electronic marketplace and their inability to devise strategies to leverage online infrastructure for profit. These challenges are not helped by the general lack of clearly defined frameworks for analysis of the entire process of strategy building, implementation and management with respect to this emerging global information economy. This chapter attempts to address the problem by providing a holistic framework for the study and design of global information infrastructure within the 111
e-Business Strategies for Virtual Organizations organizational context of SMEs. With such analytical tools and specific e-business strategies SMEs could and should capitalize on the opportunities offered in the electronic marketplace. The framework is supported by a number of international case studies centred on successful online SMEs. 6.2. Developing infrastructures for global e-business 112 6.2.1. Internet-based infrastructures An Internet-based information infrastructure may be described as a three-tier model of technologies, systems and business applications (Tapscott et al. 1998), namely: � Level 1: Base technologies – these include the underlying opensystems network platforms and devices supporting multienvironment integration and interoperability of systems across groups, organizations, industries, and regions. Examples are Internet-based network equipment and connections, network printers and scanners, and domain server computers. � Level 2: Network systems, server technologies, and applications development utilities – these are the building blocks for electronic business applications and facilities. Generally, components at this level deal with network and process management, digital imaging and security management aspects of the infrastructure. Process management tools at this level form the basis of developing collaborative features into supply chain manage applications for e-business. � Level 3: e-business applications and solutions – These include routine enterprise system management and web authoring programs (e.g. Microsoft FrontPage); client interactive communication and information management applications (e.g. Netscape Communicator and Microsoft Explorer Browsers); applications for online shopping and ordering (e.g. CART 32); secured payment facilities (e.g. Digicash) product delivery tracking programs. There is a growing market for complete e-business solutions, which provide a flexible and scalable environment for developing an Internet-based infrastructure to support e-business. Examples of these are Inte-Pay and IBM Net.commerce. Competitive advantage is associated with the third level of infrastructure deployment. This is because as the underlying technologies and systems mature, relatively cheap and effective resources in the first two levels become affordable to most
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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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e-business models for virtual organ
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3.4 Models of efficient response e-
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Figure 3.4 Star alliance model e-bu
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Figure 3.6 Market alliance model Fi
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Figure 3.10 Virtual alliance framew
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Figure 3.11 Virtual organizational
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References e-business models for vi
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IS planning strategies for emerging
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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
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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 92 and 93: IS planning strategies for emerging
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
Page 132 and 133: Globalization and e-business strate
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
Page 162 and 163: 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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