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

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Outsourcing, partnering and the virtual organization 9.3.3 Knowledge management Knowledge is important for business webs. Knowledge sharing, particularly knowledge of business processes and operations, is important to establish competent, competitive and innovative supply chains that operate seamlessly across the boundaries of business web partners. The Internet is a vital low-cost tool in this knowledge sharing. (Note, however, the use of the Internet does not, of course, preclude or diminish the importance of personal relationships.) It is worth noting in passing that business web partners, of course, while sharing operational knowledge, are more cautious when it comes to strategic or competitive information or knowledge. Tapscott and his colleagues believe that business webs are inherently innovative. They believe that business webs often deliver new value propositions to customers that tend to render obsolete old ways of doing things. An example given is the MP3 business web of commercial service providers, technology providers and content providers (musicians), which enables the downloading of music and infinitely expands the music community. Internet infrastructure is another characteristic of business webs. The participants in the business web capitalize on the Internet’s ability to lower transaction costs, using it as their primary infrastructure for interpersonal communication and business transactions. Thus we have some idea of the characteristics of a mature business web. How then do such entities come about? Tapscott tells us that a process of disaggregation and reaggregation should take place. In disaggregation, one first examines the end customer value proposition, looking for those aspects of the end-customer experience that really give value. Then follows the examination of the value chain of activities that ends in the delivery of that valued experience, including the analysis of the role of the particular firm and its partners in that value chain. We want to know what are the core competencies that the firm has, and how do they best contribute to the end customer’s valued experience. We also want to know what are the core competencies of potential partners, and how they could contribute. Further we want to know what is the potential role of technology and the Internet in creating value in this value chain. 193
e-Business Strategies for Virtual Organizations 9.4 Outsourcing 194 9.3.4 Questions arising from these models Given the analysis above, including the new role of the Internet and technology, how could we reaggregate the value chain effectively? What things need to be done in what potentially new ways? What is the role of partners in this new enterprise? Thus to move away from the industrial age corporation towards the business web, new business partners and a careful outsourcing of business processes may be necessary. The business processes to be taken on by partners are likely to be different from the business processes in the original integrated firm. Tapscott gives a warning about attempting to move toward the business web organizational form by old-style outsourcing of the quick-fix cost-cutting style. That kind of outsourcing of problem functions or activities is dead, he maintains. The new partnerships or relationships are not the type of situation where both players are in a zero-sum financial game lacking openness and trust. This mindset should be replaced by well-aligned harmonious and mutually beneficial relationships. Thus we have seen two models of the future of business – namely the PriceWaterhouseCoopers model and the Alliance for Converging Technologies model – in which outsourcing and partnering play vital roles. e-business models such as these graphically show the relationship between outsourcing, partnering, the business and the virtual organization. We will now examine in greater detail the important concepts of outsourcing and partnering in turn as they are currently understood in this context. Outsourcing is the contracting out of the provision of the business process, service or function to an external vendor. Taking a long-term view of outsourcing, the Corbett Group (www.Corbettgroup.com) defines outsourcing as the long-term results-orientated relationship with an external service provider for activities traditionally performed within the company. Outsourcing usually applies to a complete business process and implies a degree of managerial control and risk on the part of the provider. Outsourcing is a practice that is transforming the face of business today, redefining the firm to be more agile and nimble, more concentrated around its core competences, while net-
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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 162 and 163: 7 Developing knowledge-based 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
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Page 244 and 245: 11 Creating virtual cultures for gl
Page 246 and 247: 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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Creating virtual cultures for globa
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Creating virtual cultures for globa
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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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