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

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Globalization and e-business strategies for SMEs Sofcom has an extensive online infrastructure to support its product lines and to manage the virtual stores of other businesses. All transactions at Sofcom pass through Sofcom’s SSL secure server. The site offers an online Store Builder facility for potential online storeowners. The facility takes potential store owners step by step through the process of setting up a storefront at Sofcom and doing business online. There is a flat charge of AU$40 per month for stores available to the public and selling. Potential storeowners may develop and test run a store for free – www.sofcom.com.au 6.9 Mapping the transformation Table 6.3 presents a mapping of some of the online processes from the perspective of both clients and focal SMEs to the key infrastructure components employed in delivering each functionality. Table 6.4 summarizes the case examples of business scope transformation resulting from the successful management of Internet-based infrastructures in a number of online SMEs. In all cases, there is a common thread linking the strategic intents of the enterprise to go online and the choice of infrastructure components. While not all made explicit commitment to extend all the attributes defined in the framework, analysis shows that these were consistently modified directly or indirectly as a result of the application of the online infrastructure. Also, the benefits from virtual transformation of business scope always led to significant improvement in competitive performance even where it was not easy to quantify. How can an SME considering entering this global market learn from these experiences? 6.10 Developing a strategic plan Cragg (1998) identified four components of Internet strategy that may be useful for SMEs to consider when engaging in online commerce (see Table 6.5). The four components are goals, content, process and functional. The goals component of an Internet strategy is sub-categorized into primary and secondary goals. An SME should incorporate both primary and secondary goals within the overall Internet strategy, in order to identify exactly what they expect from an online presence. The benefit of incorporating primary and secondary goals is a method for SMEs to recognize potential 127
e-Business Strategies for Virtual Organizations Table 6.3 Mapping of online transactions to key infrastructure components Process/ activity Information search and data transfer Selection and customization Order placement and fund transfer Product delivery After-sales activities Online advertising Work flow management and business relationship management 128 Description Client/stakeholders Focal online enterprise View/scan web pages, navigate multiple and widely distributed sources, submit request for information, exchange information Make choices, configure according to preferences, sample products, fill shopping basket Fill out order form, provide details of credit/debit card, give details of preferred delivery location and date Online tracking of package delivery Visit website to find out about product usage, upgrades and other offering, join user communities to discuss product quality and service needs Capture and process online activity of visitors, develop profiles of products and stakeholders Provide secure environment for online shopping and trading with partners, enable use of certificates and authentication procedures Provide use of tracking software, manage relationships with courier services contractors online Develop feedback mechanisms on product quality and client support, provide upgrade details, information on new offers, create or sponsor product user groups n/a Gather and present advertising information from multiple sources, monitor responses to advertisements n/a Automated coordination of activities of employees and partners across distributed locations and time regions Key infrastructure components � Browser/navigational software � Client/product profile database servers � Search engines � Data capture/transfer utilities � Multimedia communication facilities � Web authoring software � Shopping cart software � Multimedia presentation software � Software for secure online ordering and authentication procedures � Invoicing and billing applications � Negotiation and trading software for businessto-business processes � Package tracking software (e.g. DHL and FedEx tracking systems) � e-mail filtering software � Network management utilities � Process management/ monitoring systems
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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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Figure 4.4 Planning adopts a busine
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Figure 4.5 Interconnected ecologies
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Figure 4.6 The interrelationships b
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4.8 Conclusion IS planning strategi
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Evaluating strategies for e-busines
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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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