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

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Figure 3.10<br />

Virtual alliance<br />

framework (VAF)<br />

Independence<br />

of<br />

organizational<br />

links<br />

! colocation<br />

! culture<br />

! synchronicity<br />

! shared risks<br />

Low<br />

e-<strong>business</strong> models <strong>for</strong> <strong>virtual</strong> <strong>organizations</strong><br />

The degree to which <strong>virtual</strong>ity can be implemented effectively<br />

relates to the strength of existing organizational links (<strong>virtual</strong><br />

and real) and advantages they bring to the <strong>virtual</strong> structure.<br />

However, as essentially networked <strong>organizations</strong> they will be<br />

constrained by the extent to which they are able to redefine or<br />

extend their linkages. Where existing linkages are strong, e.g. colocated,<br />

shared culture, synchronicity of work and shared risk<br />

(reciprocity), these will reduce the perceived benefits from<br />

substitutable linkages and inhibit the development of further<br />

<strong>virtual</strong> linkages. Figure 3.10 provides a diagrammatic representation<br />

of these trade-offs within the <strong>virtual</strong> alliance framework<br />

(VAF). An organization must identify the <strong>virtual</strong> culture it<br />

wishes to adopt to develop the <strong>virtual</strong> strategic perspective<br />

(VSP), identify the value alliance partnerships and the strengths<br />

of such linkages and align these within the electronic market.<br />

Substitutability of <strong>virtual</strong> links<br />

Low High<br />

<strong>virtual</strong>-<br />

Face<br />

*<br />

star<br />

#<br />

satellite<br />

Virtuality<br />

co- star- value market <strong>virtual</strong><br />

alliance broker space<br />

These seven models clarify the <strong>for</strong>ms an electronic <strong>business</strong><br />

model may assume. Some are an electronic reimplementation<br />

of traditional <strong>for</strong>ms of doing <strong>business</strong>; their attractiveness<br />

increases as ICT enables their cost-effective implementation.<br />

Others are add-ons <strong>for</strong> added value, or extend through value<br />

chain integration or cyber communities. Their commonality is<br />

that they add value through in<strong>for</strong>mation and change management<br />

and a rich functionality. Managing the creation of value<br />

51

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