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

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e-business strategies in the virtual organization feedback that can be rolled into production plans. Matching production to real-time demand is an obvious objective but difficult to achieve. Pretty quickly, one gets the picture of the massive inventory blowout that could be reduced if the entire supply chain had transparency of process and demand. Virtual supply chains collaborating in real time represent the fastest return on the dollar At stake are billions of dollars in inventory reduction, transport costs, and process improvement. The recent explosion of industry horizontal and vertical portals and hubs (e-hubs) reflect natural points of integration and coordination to facilitate the synchronization of demand and supply chains. The standard tradition is for companies to create build-to-order environments. Today the goalposts have been shifted: we see that the goal is to build fewer generic products for inventory (that has to be stored and handled) and more custom products for a known order – preferably being shipped right out the door, still warm from whatever production process that gave them birth. To do this, companies must create a global shop floor to link production more tightly to current demand. 10.3.3 Once commerce is online, every demand is an input into production planning We know that marketing campaigns, configuration events, rebates, advertising, quotes, bids, partner campaigns, and negotiations all combine to drive production. Usually, production is the last to find out about these events because of the complexity and costs associated with sharing this information with all the relevant parties that lie along the route between a raw material producer and the consumer’s point of purchase or consumption. e-commerce can help bring more precision to a historically imprecise process. The discontinuity between multiple parties in the chain of commerce, some within the same company, is immense and a small improvement could make a big difference. We introduced the value chain alliance as early as Chapter 3, and it should be clear by now exactly how and why some organizations will wish to adopt this organizational strategy. 209
e-Business Strategies for Virtual Organizations Manufacturers need broad product lines to be competitive and meet a wide variety of buyer preferences. Yet you can’t stay in business by offering all products in unlimited quantity all the time. You have to develop complex strategies for guestimating which portions of the product line will sell over a given production horizon. All that translates into stockouts and backorders or, conversely, excess inventory for the supplier. As a result, buyers want to reduce their risk of getting a backorder or stockout. They would like to see detailed information about inventory and production capacity (available to promise, capable to promise). Instead of ordering and waiting for order status information, buyers would like real-time availability information and the ability to reserve products by serial and bin number. 10.3.4 Exchanges present and future To date, exchanges have at best served as a rough and ready communications mechanism for shipment status. Typically, exchanges send the order to the supplier and leave the fulfilment and settling process to the trading partners working offline. Most exchanges cannot verify inventory before the order because they cannot see the supplier’s back-end systems. And, of course, if suppliers post product listings on multiple exchanges without real-time inventory availability, they will end up selling products they haven’t produced, and compound the problems of backorders and stockouts. However, more advanced order management systems will accommodate the dynamic nature of web channels. All this isn’t simple and won’t happen overnight. Yes, companies have invested in supply chain software for years, but most of this has been inward looking and designed for internal planning and scheduling only. Today the Internet presents a platform for interenterprise optimization and planning with some exciting opportunities. Over the past two years hundreds of e-hubs have begun operations and their processes are evolving rapidly. 10.4 Customer orientation 210 The Internet and e-business technologies that are enabling our new organizational forms are radically changing the relationship between supplier and customer. Customer relationship handling is seen to be a strong asset as it brings the benefits of improved service, choice, and convenience to the customer and
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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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7 Developing knowledge-based strate
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Developing knowledge-based strategi
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Page 186 and 187: 8 Evaluating strategies for e-busin
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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
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Page 264 and 265: Figure 11.4 The four paths of evolu
Page 266 and 267: References Creating virtual culture
Page 272 and 273: Advanced knowledge, see Knowledge A
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[8] 2002 e-business-strategies-for-virtual-organizations

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