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

More documents

Recommendations

Info

Outsourcing, partnering and the virtual organization worked with best-in-class business partners. Starting out as an efficiency-driven cost-cutting tactic, outsourcing has grown into a vast trend of business practice that is now become concerned with redefining and redesigning the firm for increased adaptability, flexibility and competitiveness. Starting as a small trend in the 1980s, outsourcing grew rapidly in the 1990s into a global phenomenon accounting for transactions priced at hundreds of billions of dollars. The Corbett Group’s 1999 Strategic Outsourcing Study found that one-third of executive budgets are externally sourced today, and predict that that there is more external sourcing to come in the future. Dun & Bradstreet estimate that by 2001, global outsourcing will be worth over $1 trillion. As the size of the outsourcing phenomenon has grown, so has the scope. While the early trend tended to see outsourcing being undertaken for specific functions or activities (such as cleaning services, canteen services, IT services and so on) outsourcing now encompasses almost all business services. The major business services outsourced are IT, human resources, marketing and sales, and administration, with IT comprising 30% of the total, human resources 16%, marketing and sales 14%, and administration 9%. 9.4.1 Outsourcing and external sourcing Outsourcing can be viewed as one of a number of external sourcing options, which include: � Supplemental staffing – an external sourcing option in which non-company personnel are used, often at times of peaks in demand, to help carry out business operations. Such personnel could be unskilled or skilled temporary operatives or clerical workers, consultants or contractors. � Selective sourcing – the outsourcing of aspects of a function or business process. For example, an IT department may decide to outsource computer systems development and retain other IT services internally. Or more selectively still, only certain computer systems development projects may be outsourced. � Total outsourcing – the contracting out of an entire business process all function. However, often the term total outsourcing is used for a situation in which a large proportion, 80% or more, of a department or function is outsourced. � Strategic alliance – a situation in which investments are shared between one or more business partners, each business partner focusing on their areas of competence. In a 195
e-Business Strategies for Virtual Organizations strategic alliance, separate revenue streams are maintained for each organization. � Joint venture – the creation of a new business entity with its own revenue stream. Investments in the new entity are shared between business partners. Often, supplemental staffing, selective sourcing and the outsourcing of a business process or function are all collectively referred to as outsourcing. It is worth noting that when outsourcing is viewed as a long-term relationship with a provider of business services, this relationship gets very close to what we have referred to above as a strategic alliance. However, outsourcing is essentially a fee-for-service relationship based around a contract. In a strategic alliance, not only do the strategic partners share resources, they also share in profits and losses. External sourcing then is sometimes taken to be more general than outsourcing in the sense that supplemental staffing is not taken to be outsourcing. In this chapter we will treat outsourcing as including supplemental staffing as well as selective sourcing. However, we recommend that, with us, you distinguish between outsourcing and strategic alliances and joint ventures in which profits and losses are shared. 9.5 Strategic outsourcing, transformational outsourcing and tactical outsourcing 196 There are three broad approaches to outsourcing, namely strategic, transformational and tactical. Strategic outsourcing is an approach in which the firm invests internally in those business activities from which it derives a competitive advantage and outsources the other necessary business activities to best-in-class providers of those activities. Essentially the firm concentrates on its core competencies and actively considers outsourcing its other business activities. In transformational outsourcing the firm utilizes outsourcing to bring about innovative change. Relationships with world-class vendors of business operations and services are utilized to help move the firm to global best practice in all non-core business processes. Thus outsourcing helps in achieving the firm’s strategic vision, and supports the management of organizational transformation. Tactical outsourcing is the use of outsourcing to bring about operational efficiencies. In tactical outsourcing, internal business
Page 2 and 3:
e-Business Strategies for Virtual O
Page 4 and 5:
e-Business Strategies for Virtual O
Page 6 and 7:
Contents Computer Weekly Profession
Page 8 and 9:
Contents 6 Globalization and e-busi
Page 10 and 11:
Contents 11.6 The increasing power
Page 12 and 13:
Computer Weekly Professional Series
Page 14 and 15:
Authors’ Preface There are dozens
Page 16 and 17:
Authors’ Preface model will there
Page 18 and 19:
Authors’ Preface alliances, bette
Page 20 and 21:
1 e-business and the virtual organi
Page 22 and 23:
e-business and the virtual organiza
Page 24 and 25:
Figure 1.2 e-business and the virtu
Page 26 and 27:
Page 28 and 29:
1.5 e-business e-business and the v
Page 30 and 31:
Figure 1.3 e-business and the virtu
Page 32 and 33:
Page 34 and 35:
Figure 1.4 Virtual objects, Scholz
Page 36 and 37:
Characteristics of the virtual orga
Page 38 and 39:
Figure 2.1 Formation of business al
Page 40 and 41:
Page 42 and 43:
� empowerment of staff; Character
Page 44 and 45:
Page 46 and 47:
Page 48 and 49:
Page 50 and 51:
Page 52 and 53:
e-business models for virtual organ
Page 54 and 55:
Page 56 and 57:
Page 58 and 59:
Page 60 and 61:
Page 62 and 63:
3.4 Models of efficient response e-
Page 64 and 65:
Figure 3.4 Star alliance model e-bu
Page 66 and 67:
Figure 3.6 Market alliance model Fi
Page 68 and 69:
Page 70 and 71:
Figure 3.10 Virtual alliance framew
Page 72 and 73:
Figure 3.11 Virtual organizational
Page 74 and 75:
References e-business models for vi
Page 76 and 77:
IS planning strategies for emerging
Page 78 and 79:
Page 80 and 81:
Figure 4.1 The evolution of IS/IT p
Page 82 and 83:
Figure 4.3 A framework for SISP (Wa
Page 84 and 85:
Page 86 and 87:
Figure 4.4 Planning adopts a busine
Page 88 and 89:
Figure 4.5 Interconnected ecologies
Page 90 and 91:
Figure 4.6 The interrelationships b
Page 92 and 93:
Page 94 and 95:
4.8 Conclusion IS planning strategi
Page 96 and 97:
References IS planning strategies f
Page 98 and 99:
Moving from e-business to i-busines
Page 100 and 101:
Page 102 and 103:
Page 104 and 105:
Page 106 and 107:
Page 108 and 109:
Page 110 and 111:
Page 112 and 113:
Page 114 and 115:
Page 116 and 117:
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Globalization and e-business strate
Page 132 and 133:
Page 134 and 135:
Adoption and deployment of online i
Page 136 and 137:
Table 6.1 Online business models On
Page 138 and 139:
Page 140 and 141:
Figure 6.2 VIM strategy Globalizati
Page 142 and 143:
Page 144 and 145:
Page 146 and 147:
Page 148 and 149:
Page 150 and 151:
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
Page 158 and 159:
Page 160 and 161:
Page 162 and 163:
7 Developing knowledge-based strate
Page 164 and 165: Developing knowledge-based strategi
Page 186 and 187: 8 Evaluating strategies for e-busin
Page 188 and 189: Figure 8.2 Fitness landscapes Evalu
Page 190 and 191: Evaluating strategies for e-busines
Page 192 and 193: Table 8.1 Information economics - v
Page 194 and 195: Customer view Whatisour image? Eval
Page 204 and 205: Table 8.6 Matrix for preparing to m
Page 206 and 207: 9 Outsourcing, partnering and the v
Page 208 and 209: Outsourcing, partnering and the vir
Page 218 and 219: Figure 9.2 Outsourcing, partnering
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
Page 246 and 247: Creating virtual cultures for globa
Page 262 and 263: Four stages of market evolution Mar
Page 264 and 265:
Figure 11.4 The four paths of evolu
Page 266 and 267:
References Creating virtual culture
Page 268 and 269:
Creating virtual cultures for globa
Page 270 and 271:
Creating virtual cultures for globa
Page 272 and 273:
Advanced knowledge, see Knowledge A
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?