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

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Table 6.1 Online business models Online business model Virtual face e-Shop Globalization and e-business strategies for SMEs Features Examples � Providing an extra space for presenting organization and products to a wider market 6.5.1 Virtual face � Harris Technology � Usually involves a single enterprise � Boots Online � Limited commitment to common business goals in relationships with others Virtual alliance � Involve a number of firms sharing resources and competencies to develop some product Virtual Community e-Mall portals offering � Site may represent the common interface for the group or may place varied degrees of emphasis on a focal firm while providing visibility to the alliance � Significant use of online infrastructure and e-commerce technologies � Cross-reference to sites of participating firms � Represents an electronic marketspace involving a large number of firms and grouping of other online models � Hawaiian Greenhouse � SCB Co-op � LAA � Best of Italy � Sofcom This model is similar to that discussed in section 3.4.1. In its basic format, the enterprise usually exists as a single business entity with some online presence primarily to advertise itself and its products. The business may also be organized around the virtual face model as the primary point of access to their entire business and products. Harris Technology, Sydney, and Boots Online, Melbourne, are typical examples of online SMEs employing the virtual face business model to enhance their competitive performance. While Harris Technology targets the Australian national market in computer related products, Boots Online is a global-orientated SME selling to worldwide markets. Both businesses have witnessed substantial growth in sales and profit margins within two years of going online. In an elaborate form of the virtual face model, as in the case of Harris Technology, the SME may undertake extensive business activities online, including sourcing of resources and services, 117
e-Business Strategies for Virtual Organizations 118 communication and collaboration with other firms, and the management of its customer base. This will usually require a significant redefinition of business processes to enhance the information processing aspects and to ensure a high level of integration and interoperability with the stakeholder environment. Another requirement will be the development of enhanced online information management skills in employees. 6.5.2 Virtual alliance An SME employing this model participates in a cluster or group of autonomous businesses both online and offline, and organizes its core operations and offerings around the shared resources, competencies and markets that the group creates. An example of this type is SCB Co-op, Scotland. The strategic advantage of the online infrastructure is to provide a costeffective collaborative medium for pooling critical resources to achieve the objectives of individual participants. In the case of SCB Co-op the online infrastructure has enabled very small traditional Scottish breweries to market their products under a common label across the UK and globally. Leading Agents in Australia (LAA) is another example of a virtual face business model. Even though each member of the alliance maintains an elaborate website, their alliance is not uniformly represented online as a single site. The main gains of the online infrastructure for the group is fast access to information that they share about regional opportunities. Also extensive referrals to each other provide potential clients and visitors to their sites an assurance of dealing with a well-connected group of professionals in the Australian real estate market. This increases trust in their services and can be a source of competitive advantage. 6.5.3 Virtual community The third generic category of online business model is the virtual community, which is a large collection of firms in the online market, including other stakeholders such as customers and government agencies. In that environment the focal SME is highly integrated with those of others and its separate existence is hardly discernible to stakeholders of the community. Examples of a virtual community are portal services such as BOI (Best of Italy) Srl. and Sofcom.com.au. In both examples, the virtual community owner supplies and manages the online infrastructure on behalf of participating SMEs. This reduces the need for substantial investments in technology and infrastructure
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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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Figure 4.1 The evolution of IS/IT p
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Figure 4.3 A framework for SISP (Wa
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Page 86 and 87: Figure 4.4 Planning adopts a busine
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Page 90 and 91: Figure 4.6 The interrelationships b
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Page 94 and 95: 4.8 Conclusion IS planning strategi
Page 96 and 97: References IS planning strategies f
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Page 140 and 141: Figure 6.2 VIM strategy Globalizati
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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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