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

3.4 Models of efficient response
e-business models for virtual organizations
Based on work by Burn, Marshall and Wild (1999) we propose a
taxonomy of seven models of virtual organizations as efficient
responses to identifiable circumstances. These we term virtual
faces, coalliances, star alliances, value alliances, market alliances,
virtual brokers and virtual space. The value of each
model lies in its being an appropriate response to a given nexus
of market forces and opportunities.
3.4.1 Virtual face model
A virtual face is the cyberspace incarnation of an existing nonvirtual
often described as a ‘place’ as opposed to ‘space’
organization. It commends itself by creating additional value
such as empowering users to effect transactions efficiently with
ICT in place of spatio-temporal contact. Common examples
include Dell, Fleurop, and Travelocity. The interactive communications
may additionally provide an impetus for a shift in focus
of activity, extending rather than simply mirroring them, as seen
in the web-based versions of television channels and newspapers
with constant news updates and archival searches.
Jane Brook Winery, a small family-operated vineyard in Western
Australia, provides an example of such a model (a more detailed
version of this case study is provided at the end of the book to
illustrate the evolution of virtual culture, networks and markets
in the organization). The company is a family-run winery
business established in 1972 and owned by two members of the
management. The company harvests from its 12.5 acres and
contract growers. Jane Brook produces 10 000–15 000 cases of
Australian wines annually for markets in Australia and SE Asia.
It established an online site in June 1995 focusing on marketing
products and also providing corporate and industry information
to its clients. The site also provided information about its key
agents and sales outlets. A major emphasis in the site was to
attract customers to visit the winery and to encourage cellar
sales and enjoyment of dining and catering facilities. There are a
total of five permanent staff of the company including three
members of the Atkinson family. The company also employs
approximately 15–20 part-time staff to support café and cellar
door activity. With a slight investment in a website and no
additional staff, Jane Brook has boosted its cellar door sales
(with a greater profit margin than wholesale trade) by almost a
third while extending its reputation and reach among distant
buyers.
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