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

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Creating virtual cultures for global online communities organization and its supply chain partners, customers, and sources of expertise. Clearly, one would expect to see considerable differences in the communications networks, and particularly in how those networks are used, in organizations that are at different stages of development. 11.4.2 Shifting locus of core competencies Prahalad and Ramaswamy (2000) suggest that organizations need to ‘create their future by harnessing competence in an enhanced network that includes customers’. They also present a three-stage model that is summarized in Table 11.2. Table 11.2 shows that the idea of extending the organization’s ICT network and changing the nature of its usage to improve core competencies is a central component of their model. 11.5 The customer as king In the past, most practitioners and scholars have had a company-centric focus and have been primarily concerned with ‘alliances, networks, and collaborations among companies’. The old idea of the ‘extended enterprise’ (i.e. a central organization supported by a constellation of supply chain partners) should give way to the idea of an enhanced network of traditional suppliers, manufacturers, investors and customers. Managers need to recognize that consumers are a source of competence forces. Managers and researchers must focus on developing relationships with the consumer as the agent that is most dramatically transforming the industrial system as we know it rather than just their supply chain partners. Table 11.3 summarizes the changing role of customers. Competence now is a function of the collective knowledge available across the whole of the enhanced network and the market has become a forum in which consumers play an active role in creating and competing for value. The Internet is given as one of the main reasons that consumers have been increasingly engaging themselves in active and explicit dialogue with manufacturers of products and services and dialogue is no longer being controlled by corporations. 233
e-Business Strategies for Virtual Organizations Table 11.2 Locus of core competencies Unit of analysis 11.6 The increasing power of the connected consumer 234 The company Family/network of companies The company The extended enterprise: the company, its suppliers and its partners Resources What is available within the company Basis for access to competence Value added of managers Value creation Sources of managerial tension Internal companyspecific processes Nurture and build competencies Access to other companies’ competencies and investments Privileged access to companies within the network Manage collaborative partnerships Autonomous Collaborate with partner companies Business-unit autonomy versus leveraging core competencies Partner is both collaborator and competitor for value Enhanced network The whole system: the company, its suppliers, its partners, and its customers Access to other companies’ competencies and investments, as well as customers’ competencies and investments of time and effort Infrastructure for active ongoing dialogue with diverse customers Harness customer competence, manage personalized experiences, and shape customer expectations Collaborate with partner companies and with active customers Customer is both collaborator and competitor for value Community and conversation are fundamental to human society. They maintain that in the past giant bureaucracies were able to use their special knowledge, the power of advertising and public relations and their sheer size and power to distance themselves from their customers and to suspend true market
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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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8 Evaluating strategies for e-busin
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Figure 8.2 Fitness landscapes Evalu
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Evaluating strategies for e-busines
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Table 8.1 Information economics - v
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Customer view Whatisour image? Eval
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Page 266 and 267: References Creating virtual culture
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