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

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Figure 2.1 Formation of business alliances Characteristics of the virtual organization 2.3.1 Essential partnership practice The formation of business partnerships and alliances is thus pivotal to the concept of the virtual organization (Grenier and Metes 1995, Henning 1998). Acquiring and/or developing all the required resources and competencies in order to avail itself of windows of opportunity can be both too time consuming and too costly to be an appropriate response for organizations acting on their own. In other words, in the brief period of time available to exploit business opportunities, a single organization may not have the time or the financial resources available to obtain and/or develop the needed skills, infrastructure, resources, or to develop efficient business processes. However, access to the required knowledge, skills, resources and infrastructure may be available through entering into alliances or partnerships with all, or a part only, of other organizations. This notion is captured pictorially in Figure 2.1. Thus organization 1 on its own may not have the capability to take advantage of a particular perceived business opportunity. But by working cooperatively and synergistically with others, a virtual organization (depicted by the shaded area) may be formed to exploit that opportunity. By each contributing different knowledge, skills, and resources, the virtual organization formed by the cooperative leveraging of assets and resources in organizations 1, 2, 3 and 4 may be highly successful in availing itself for a time of the original business opportunity. Implicit in this description of the formation of business alliances is the notion that various components of the virtual organization may well be geographically dispersed, giving rise to the 19
e-Business Strategies for Virtual Organizations Figure 2.2 Characteristic dispersion of the virtual organization 20 Traditional organizational boundary Different buildings Multiple cities Multiple time zones Multiple countries Multiple cultures challenge of communication and coordination across different time zones, different locations, different cultures and different languages (IMPACT Programme 1998). This is illustrated in Figure 2.2, and typically implies a need for excellent IT to support communication and coordination throughout the virtual organization. 2.3.2 The human resources component A key component of the agility ascribed to and required of virtual organizations is its human resources (and the management practices associated with those human resources). The needs and requirements of virtual organizations demand that each employee has the skills to contribute directly to the value chain of product and service design, production, marketing and distribution, thus contributing directly to the ‘bottom line’. As each member of the virtual organization contributes its core competencies, the resultant team of human resources would be anticipated to be excellent, geared appropriately and directly towards exploiting a particular opportunity, and thus better collectively than any of the contributing organizations would be expected to accomplish on its own. Employees must also be capable of learning new skills, be positive towards the need for constant change and tolerant towards ambiguity and uncertainty in their working lives as well as sensitive to the possibly changing needs and wants of the organization’s customers. For this to be achieved, virtual organizations are characterized by the empowerment of their employees, where decision making, responsibility and accountability is devolved to appropriate component parts of the structure, and is readily accepted as such. The need for responsiveness and competitiveness in global markets implies a need for constancy and excellence in the
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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 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 34 and 35: Figure 1.4 Virtual objects, Scholz
Page 36 and 37: Characteristics of the virtual orga
Page 42 and 43: � empowerment of staff; Character
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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 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 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 86 and 87: 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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IS planning strategies for emerging
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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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Table 8.6 Matrix for preparing to m
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9 Outsourcing, partnering and the v
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Outsourcing, partnering and the vir
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Figure 9.2 Outsourcing, partnering
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9.9 Summary Outsourcing, partnering
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References Outsourcing, partnering
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e-business strategies in the virtua
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10.10 Summary e-business strategies
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11 Creating virtual cultures for gl
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Creating virtual cultures for globa
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Four stages of market evolution Mar
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Figure 11.4 The four paths of evolu
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References Creating virtual culture
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Advanced knowledge, see Knowledge A
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