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

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Figure 3.4 Star alliance model e-business models for virtual organizations Communications are direct between the specific state partnerships and may involve no other partner. These may choose to evolve into more complex structures with links of varying intensity forming along a value. 3.4.3 Star alliance model The star alliance is a core surrounded by satellite organizations. The core is typically a dominant player in the market on whom members rely for competency, expertise, or leads to customers. Such an alliance is commonly based around similar industries or company types. While this form is a true network, typically the star or leader is identified with the virtual face (perhaps by brand ownership) and so is difficult to replace, whereas the satellites may have a far greater level of substitutability. Welldocumented examples of this configuration are given by the Swiss watch industry and the Italian shoe industry. Where the core controls communication channels a hierarchical communication structure may emerge, as evidenced by Recreational Equipment Inc. (REI). REI is an established outdoor gear and clothing cooperative mail-order business with 49 bricksand-mortar retail outlets across the USA. REI first considered the Internet as a channel for product information, in response to customer requests, in 1995. Now the biggest outdoor store on the Internet, REI.com is the company’s virtual face which features more than 10 000 products displayed in a 100-page catalogue. REI recently moved a step further by creating an online store offering special deals that have no store counterpart. This online resource has been a benefit not just for the online 45
e-Business Strategies for Virtual Organizations Figure 3.5 Value alliance model 46 store, but for REI’s physical stores as well. It has achieved this by creating virtual alliances, first by establishing firm and fast relationships with the printing company that continues to provide the paper brochures used by the physical stores, then by forming similar alliances by extranet technology between the online store and its suppliers. This vendor extranet will result in tighter integration for better supply chain management and stock planning – moving toward a star alliance model, or perhaps a value alliance. Business pressures will determine the outcome and future extent of cooperation. 3.4.4 Value alliance model Value alliance models bring together a range of products, services and facilities based on the value or supply chain (value and supply chains are discussed in greater depth in Chapter 5). Unlike the star model with its single core, the alliance model may take any one or a combination of steps in the value chain as the face or linking node of this chain to other parties. Normally companies will identify the highly information-dependent processes and form the value alliance along these lines. Participants may come together on a project-by-project basis but generally the general contractor provides coordination. Where longer-term relationships have developed the value alliance often adopts the form of value constellations where firms supply each of the companies in the value chain, and a complex and enduring communications structure is embedded within the alliance. Substitutability has traditionally been a function of efficiency and transaction costs: creating partnerships has been a costly and slow business procedure, relying as it does on information transfer, the establishment of trust and business rules across time zones, culture, currency and legal frameworks. These have determined the relative positioning of partners on the chain and the reciprocity of the relationship. This model is
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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
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 38 and 39: Figure 2.1 Formation of business al
Page 42 and 43: � empowerment of staff; Character
Page 52 and 53: e-business models for virtual organ
Page 62 and 63: 3.4 Models of efficient response e-
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
Page 88 and 89: Figure 4.5 Interconnected ecologies
Page 90 and 91: Figure 4.6 The interrelationships b
Page 94 and 95: 4.8 Conclusion IS planning strategi
Page 96 and 97: References IS planning strategies f
Page 98 and 99: Moving from e-business to i-busines
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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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[8] 2002 e-business-strategies-for-virtual-organizations

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