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

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e-Business Strategies <strong>for</strong> Virtual Organizations<br />

192<br />

<strong>business</strong> webs may compete with one another <strong>for</strong> market share<br />

within an industry. In mature <strong>business</strong> webs, each <strong>business</strong><br />

focuses on a limited set of core competencies, the things that it<br />

does best.<br />

9.3.1 Key design dimensions<br />

Tapscott gives a number of key design dimensions <strong>for</strong> effective<br />

and competitive <strong>business</strong> webs. Among the characteristics are<br />

the following:<br />

� multi-enterprise capability machine<br />

� coopetition<br />

� customer-centricity<br />

� bathed in knowledge<br />

� value proposition innovation<br />

� Internet infrastructure<br />

By referring to <strong>business</strong> webs as ‘multi-enterprise capability<br />

machines’ Tapscott emphasizes that the <strong>business</strong> webs rely on a<br />

market model of partnering and alliances rather than the<br />

‘internal monopoly’ of a build-or-acquire model. Thus the<br />

traditional corporation defines its capabilities as its employees<br />

and the assets it owns, whereas the <strong>business</strong> web marshals the<br />

contributions of many participating enterprises. The advantages<br />

of this mode of organization – cost, speed, innovation, quality<br />

and selection – typically outweigh the risks of partner<br />

opportunism.<br />

9.3.2 Coopetition<br />

Coopetition (introduced and discussed in Chapter 4) refers to<br />

the fact that <strong>business</strong> web participants simultaneously cooperate<br />

and compete with each other. Collaborative advantage is mixed<br />

with pure competitive advantage, and cooperative strategy<br />

becomes a focus alongside purely competitive strategy.<br />

Tapscott, like others, argues that effective <strong>business</strong> webs<br />

function as highly responsive customer fulfilment networks.<br />

Members of traditional supply chains, such as the automobile<br />

industry, tend to focus only on the next link to which they ship<br />

their products. As competition moves from competition<br />

between firms to competition between supply chains, effective<br />

<strong>business</strong> webs encourage all participants to focus on the end<br />

customer.

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