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

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e-business models for virtual organizations process of setting up a storefront at Sofcom and doing business online. There is a flat charge of AU$40 per month for stores available to the public and selling. Potential storeowners may develop and test run a store for free. Sofcom act as virtual brokers (see below) and businesses using the facilities of the mall are embedded in a market alliance model. The market may be described as an example of a virtual community given this company’s extensive linkages and the diversity of online firms involved with its business. 3.4.7 Virtual space The seventh category proposed is that of the virtual space. In interactive home shopping systems (IAHS) this is instantiated by companies such as Webvan, Streamline and to some extent Peapod: three companies with the avowed aim of becoming large networks of IAHS for groceries in North America. The virtual space is characterized by being wholly dependent upon virtual contact with the client. There is no other channel to market, nor need they be dependent upon any particular existing intermediaries between themselves and the makers/ suppliers of goods and services. Unlike companies such as Peapod who form alliances and act as the virtual face for small chains of retail shops with walk-in retail outlets and existing brand image, these companies hide their warehousing and distribution chain from the customer. They may elect to choose goods and services from companies with a retail face, but they may equally elect to operate (or subcontract) warehousing and delivery service specifically designed for this channel to market. Different forms are currently emerging using this basic form, although there is evidence that the temptation to focus on ‘core competencies’ and form market alliances with others still operates, as shown by Streamline below. Webvan has been operating from June 1999 in the San Francisco bay area of the USA with plans to extend across the United States in 26 cities within two years. Webvan offers major branded grocery and drugstore items with more than 300 fresh vegetables, 300 cheeses and 700 wines. In addition it operates its own kitchens for prepared meals, all from a 330 000 square foot dedicated warehouse with no public walk-in facilities. The company does not rely solely on a single supply chain and sources from major fish, vegetable and meat markets in addition to manufacturers and wholesalers, opening new channels to market for local growers and suppliers. 49
e-Business Strategies for Virtual Organizations Figure 3.9 Virtual space model While Webvan expects to deliver to a person in place, at office or home within a 30-minute window, Streamline offers to install shelving and refrigeration units at the customer’s premises, secured by combination locked access control. This removes the need to accept physical delivery. While the grocery supply chain comes through the company’s own warehouse and distribution service, the company also has alliances with other Internetenabled suppliers for goods and services (www.webvan.com). Within the Streamline order branded services from, among others, Starbucks (coffee), Kodak (film and processing) and UPS (package collection). In addition their website offers links to alliance partners Barnes and Noble for books, CDNow for music, eToys for games and Outpost.com for small office and home office equipment supplies. Peapod, once a coordinator and market alliance leader, is now creating and operating purpose-built centralized distribution centres to replace picking from existing stores owned by others. It predicts that the new warehouses will improve service, improve gross margins and allow for the charging of lower fees. Success of the initial ventures may impel the company to move to this model entirely. 3.5 Virtual alliance framework 50 As discussed, each of the seven models embodies a set of tensions related to autonomy and interdependence. Virtual culture is the strategic hub around which virtual relationships are formed and virtual links implemented. In order to be flexible, links must be substitutable to allow the creation of new competencies, but links must be established and maintained if the organization is going to fully leverage community expertise. This presents a dichotomy.
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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
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
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Page 30 and 31: Figure 1.3 e-business and the virtu
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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
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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
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
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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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