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

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e-Business Strategies <strong>for</strong> Virtual Organizations<br />

Figure 3.2<br />

The <strong>virtual</strong> face<br />

Figure 3.3<br />

Coalliance model<br />

44<br />

There is a tight link between the <strong>virtual</strong> face and the parent<br />

organization: a fresh communications channel has been <strong>for</strong>ged<br />

between the existing corporate structure and the customer. This<br />

model is used by the majority of companies who offer web<br />

pages to complement existing channels to market.<br />

3.4.2 Coalliance model<br />

In a coalliance each partner brings approximately equal<br />

amounts of commitment to the consortium whose composition<br />

may change to reflect market opportunities or the core competencies<br />

of each member. Focus can be on specific functions<br />

such as collaborative design or engineering or in providing<br />

<strong>virtual</strong> management. Links are either contractual <strong>for</strong> enduring<br />

alliances or by mutual convenience on a project basis. There is<br />

not normally a high degree of substitutability within the life of<br />

that <strong>virtual</strong> creation. This organizational <strong>for</strong>m is not unique to<br />

cyberspace, but its attractiveness as a <strong>virtual</strong> model is a<br />

consequence of the benefits flowing from low friction communications<br />

in real time and the ease with which such structures<br />

can be assembled and restructured. Its novelty lies in the speed<br />

and efficiency with which alliances can usefully <strong>for</strong>m, per<strong>for</strong>m<br />

their tasks, and re<strong>for</strong>m owing to efficient communications, and<br />

hence the ease with which others can treat the partners as a<br />

<strong>virtual</strong> (single) entity existing <strong>for</strong> a specified time. Examples<br />

include real estate vendors who <strong>for</strong>m an alliance to cater <strong>for</strong><br />

interstate relocations such as LAA.com – an Australian-based<br />

consortium of estate agents with independent operators (such as<br />

Acton operating in Western Australia) in each state but a<br />

coalliance to facilitate interstate transfers where two of the<br />

consortium will ally with each other under the LAA alliance.

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