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

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Figure 9.2 Outsourcing, partnering and the virtual organization Cells 1, 2, 4, 5 indicate a need either to acquire the capability or to partner with an organization that has the capability. Partnering implies investing in the collaborating organization and positioning one’s company to acquire more ownership if the particular activity emerges over time as more key or central to the competitive positioning of the company. As one moves to the lower levels of cells 4 and 5, and the activity is seemingly less critical to competitiveness, a collaborative positioning of pooling knowledge and sharing risk with less of an emphasis on ownership possibilities is recommended. Cells 3 and 6 indicate activities which are critical to competitiveness or are emerging towards such status. They are also activities in which the organization has a strong internal capability. These activities should be being performed in-house under tight control. Where the activity is just emerging towards being important to competitiveness, and there is uncertainty about its future criticality, as in the lower part of cell 6, a suitable position might be to collaborate to share risk, thus economizing on resources expended in carrying out the activity, but remaining positioned to take the activity in-house if necessary. Cells 7, 8, 10, 11 indicate both the weak or moderate internal capability in the activities, together with a low potential for yielding a competitive advantage. These characteristics of the activities indicate suitability for outsourcing to suitable external providers. As one moves towards the upper right of this set of 199
e-Business Strategies for Virtual Organizations activities, towards the top of cell 8, there is a likelihood that one would keep more knowledge and control of these activities and perhaps engage in a selective sourcing of sub-activities, or perhaps simply seek to reduce the dependency on internal capabilities by developing alternate sources of the activity. Cells 9, 12 indicate a similar low potential for competitive advantage, but indicate a relatively strong internal capability. The planning guide recommends that a company should consider selling such a capability to the marketplace and invest the proceeds in more critical capabilities. The necessary activities and skills should then be purchased in the marketplace from competent providers. 9.8 Leadership traits needed for outsourcing 200 Once an outsourcing strategy is in place and the extent and significance of outsourcing increases, one must consider the management of the outsourcing relationships. Management in an organization with a significant number of outsourcing relationships requires a new blend of capabilities and talents. Useem and Harder (2000) claim that in the new organization, characterized by extensive and significant outsourcing, managers must concentrate on negotiating results rather than issuing orders. They must add to and to some extent substitute the skills for sending work downward, and gain skills in arranging for sending work outward. They need to exercise lateral leadership. 9.8.1 Four primary traits Useem and Harder argue that the following leadership capabilities are required of managers, as outsourcing becomes significant in firms: � Strategic thinking that links outsourcing considerations and decisions to issues of core competence and competitive advantage is a vital capability. Being informed by a strategic vision and perspective when deciding what to outsource and how to structure the outsourcing relationship is vital to future business competitiveness and survival, particularly when significant amounts of outsourcing are taking place. � Deal making skills are important in securing compatible and high-quality providers of the outsourced business processes and activities. Deal making also involves obtaining buy-in
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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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7 Developing knowledge-based strate
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Developing knowledge-based strategi
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Developing knowledge-based strategi
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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
Page 246 and 247: Creating virtual cultures for globa
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Page 264 and 265: Figure 11.4 The four paths of evolu
Page 266 and 267: 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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