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

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Evaluating strategies for e-business change It is a business decision, not a technical one: should an Internet presence be used to reduce the time taken to deliver products, services and information? Are distance impediments those most likely to succumb to virtual presence and yield advantage? Can industry relationships be altered to your advantage by using ICT to alter the intermediation chain favourably? Would an Internet presence enable you to deal in an entirely new product or service? And so on. Once questions along this dimension have been answered, you might want to consider the type of value that is to be created for the customer. Is there a need to work more efficiently? Improve the client’s effectiveness? Or create and maintain long-term relations with other parties? It is a truism that in every industry examined, it costs more to gain a customer than to keep an existing one. Once these two sets of questions have found answers, the Value Grid shown in Table 8.4 is suggested to bring about Table 8.4 The Electronic Commerce Value Grid (after Riggins 1999) 5 dimensions of e-commerce Value creation ➪ ➪ Efficiency Effectiveness Strategic Time Accelerate user tasks Eliminate information float Distance Improve scale to seem large Relationships Alter role of intermediaries Interaction Use extensive user feedback Product Use software agents to automate tasks Present single gateway access Engage in micromarketing to look small User controls detail of information accessed Provide online decision support tools Establish 24 × 7 hour customer service Achieve global presence Create user dependency for repeat business Users interact as online community Bundle information, products and services 181
e-Business Strategies for Virtual Organizations business change by transferring work into an area of new business value for you. In addition, the grid may be used to act as a template against the activities of your firm and that of competitors may be plotted for comparison. The extent to which a website incorporates several cells in the grid becomes a measure of the site’s effectiveness – and an obvious strategy for improvement is to seek to extend one’s reach by moving into neighbouring cells. In this way an examination of possible advantageous next moves within the grid will prompt an examination of the preparedness of the organization to effect those changes. The manager’s goal should therefore be to move from a simple online presence which reduces time and distance barriers, to move toward adding value through increased efficiency and effectiveness, and considering moving further by changing industry relationships and new partnerships, perhaps with new products. 8.8 Reviewing organizational readiness for change 182 Any organization wishing to maximize its effectiveness and profitability as an e-business needs to recognize how virtual it is, how virtual it should be and how it should manage the opportunities and problems that arise. The ACHIEVE Working Group (Impact Programme, 1998) identified four primary characteristics of virtual organizations as: � Dispersion (multiple locations). � Empowerment (devolution of powers). � Restlessness (acceptance, even enthusiasm for change). � Interdependence (cooperation and synergy between and within organizations). These four characteristics can be used as a measurement scale where an organization chooses a number of characteristics that are important to it and defining a number of identifiable levels of virtuality for each characteristic. For example, the degree of dispersion could be measured on the following scale: A – there are no physical locations, staff scattered throughout the world, e.g. Institute of Catalysis. B – there is one HQ building, staff are scattered throughout the world, e.g. Interpol.
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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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References IS planning strategies f
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Moving from e-business to i-busines
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Globalization and e-business strate
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Adoption and deployment of online i
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Table 6.1 Online business models On
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Figure 6.2 VIM strategy Globalizati
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Page 150 and 151: Globalization and e-business strate
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Page 220 and 221: 9.9 Summary Outsourcing, partnering
Page 222 and 223: References Outsourcing, partnering
Page 224 and 225: e-business strategies in the virtua
Page 242 and 243: 10.10 Summary e-business strategies
Page 244 and 245: 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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