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

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e-business strategies in the virtual organization 10.5.1 Online transactions – personal or impersonal? Nobody, in their role as customer or supplier, likes being reduced to a line item in a catalogue. We value being treated as individuals and enjoy dealing with other people. But once we start to think about online opportunities, all sorts of possibilities open up. Replacing the static catalogue, sending an e-mail, or possibly speaking with an inexperienced sales representative, sellers can use online technology to present their wares precisely the way they want. Instead of describing a product, suppliers will be able to show the product in use, offer real-time education and training, and pop-up chat windows to speak with experts on the topic. Also, online-based sales methodologies are reliable. They aren’t renowned for having a bad hair day, or leaving the office to play golf. Getting the best of both worlds, content gets presented in a consistent fashion and can still be customized for groups and individuals. 10.5.2 Profiling and segmentation will boom Exchanges that help suppliers develop close linkages with their customers through the marketplace will find it a lot easier to attract suppliers. They don’t want to treat every customer the same, and customers have different needs and differ in importance to the supplier. An intermediary represents a potential barrier between transacting parties. Exchanges that make that barrier as permeable as possible and provide technology infrastructure to foster relationship-building should have a good value proposition for suppliers. Not surprisingly, a batch of specialist companies has emerged to provide the technology for profiling and segmenting customers by behaviour traits – both online (website traffic) and offline. Analytical technologies for customer profiling and segmentation from companies like E.piphany, Broadbase, and Hyperion will be converted into marketplace services over time. So while buyers can compare suppliers on price, suppliers can also compare different types of buyers. Suppliers will be able to discover the 20% of the customers that represent 60% of the profits. Buyers will see presentations created on the fly and addressing their specific needs. 215
e-Business Strategies for Virtual Organizations 216 One-to-one marketing A notion gaining currency in the context of e-business, both for B2C and B2B marketing, is that of one-to-one marketing. This activity uses customer databases and interactive communications to sell to each customer on each occasion a bundle if as many products as are needed in that sales period. To happen, this marketing strategy is based on the combination of a deep knowledge of the customer’s wants, and the company’s ability to customize the delivery of products and services: � serving the customer on the basis of lifetime worth, rather than single transaction-based profit opportunity. This requires a combination of information gathering, storage and retrieval; and � the ability to customize production and probably cooperate with other companies. 10.5.3 Marketing automation Despite all the fear that large trading hubs and the widening of electronic markets will drive prices down everywhere, forcing many companies out of existence, the potential for the digital medium to offer different customer segments different pricing, negotiated contracts, custom promotions, and related products and options, should counterbalance this. Suppliers will orchestrate marketing campaigns and promotions in the context of the marketplace. Suppliers have spent significant sums on marketing automation and aren’t about to revert to one-size-fits-all marketing because of exchanges. 10.5.4 Personalization and interactive selling Exchanges will have to offer much more sophisticated selling metaphors over time to offer context-based promotions, suggestions, and configurations. Moreover, buyers want more information and context around the transaction to make more intelligent procurement decisions. Advanced technologies such as streaming and interactive video will provide immediate information in context.
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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 194 and 195: Customer view Whatisour image? Eval
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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
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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