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

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Globalization and e-business strategies for SMEs Appendix 1 Case: Preparing to start an online business from scratch Summary This case presents a typical situation that faces many young entrepreneurs as they plan to enter the electronic business industry. Mostly, they are motivated by the popular stories about the phenomenal performance of some of the start-up online companies like Amazon.com which have grown to become large global businesses through innovative exploitation of online infrastructures together with winning business management strategies. There are, however, very important issues to deal with in developing an online business. Particularly, strategies to develop the appropriate organizational infrastructure and manage it successfully represent a critical input. In this case you are given the chance to apply the principles outlined in this chapter to help these entrepreneurs start right towards a successful global online business. Introduction Charles Evans and Dell Peterson are two young MBA graduates aspiring to develop an online business, which will eventually offer products worldwide. The company, which is yet to be registered as a corporation would be expected to be positioned in the information services industry. Particularly, they hope to deal in specialized information and technology solutions for the small travel agencies and associated travel, tourism and hospitality companies. Dell, an immigrant from Netherlands, studied Finance for her MBA degree and is currently employed in a home finance company in Adelaide. Her employer is a national company with branches in all the states of Australia. As a financial analyst her work involves regular interaction with the various branch offices both through electronic communications systems as well as planned meetings every quarter in one of the states. Evans currently works with an international organization in the IT consulting business in Australia. His job includes researching e-commerce solutions for SMEs. Having studied computer engineering and information systems for his first and second degrees respectively, he feels he has the background expertise to 133
e-Business Strategies for Virtual Organizations 134 develop a global SME based on the Internet. Particularly, Evans plans to develop a niche business in strategic management consulting for SMEs in Australia. Product offerings of the company would include electronic market research, infrastructure management solutions and business alliance brokering. Evans is keen to learn about the appropriate strategies with respect to aspects such as the business location, number of branch offices across the country, IT equipment and online infrastructure, and the types of alliances to form in order to make his business successful. He is also interested in developing a business value chain that is effectively aligned with the chosen industry and the electronic market environment from the beginning. They plan to run the business from Melbourne, Australia, where in their estimation there exists a vibrant e-commerce industry and therefore cheaper access to Internet resources. They also planned to work with a team of about eight persons, mainly with backgrounds in information systems, technology management, and finance. They intend to recruit a couple of others for routine administrative support. In the bid to get going, Evans has already applied for a website address with the international Internet registrar, InterNic. That means that very soon the company must decide on a web hosting service provider with the possibility of providing a total e-business infrastructure solution. Questions 1 Briefly outline the opportunities in the chosen industry for the prospective enterprise. 2 What opportunities can the company take advantage of in developing some Internet presence and later exploiting some online infrastructure as part of its routine business? 3 State with appropriate examples the key issues associated with an online business in the chosen area, specifying what must be considered as core competencies of the start-up firm. 4 Using the five attributes of a typical SME, discuss the relative merits of (a) doubling the proposed number of staff, (b) having employees working from locations in three states – WA, SA and ACT – and (c) increasing the number and complexity of business relationships within industry. 5 What Internet technologies and systems would you recommend to form the core of the start-up business. What are some of the foreseeable developments in infrastructure as the business grows.
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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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References IS planning strategies f
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Moving from e-business to i-busines
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Moving from e-business to i-busines
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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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