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

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IS planning strategies for emerging business models 4.4 Planning for new and forthcoming business environments In section 4.3, the type of business and IT environments assumed in the SISP framework presented were described. We move now to consider the changing realities of the business environments in which many organizations now operate. From this we question the appropriateness of the SISP framework to support and inform IS planning activities in emerging business forms which are the theme of this book. Specifically, we address next issues raised by the trend to globalization and virtual organizations or alliances – sometimes called strategic business networks (SBNs). 4.4.1 Globalization Globalization, the breaking down and dissolution of barriers between countries, organizations and individuals, seems an important trend. Driven by a number of important political, economic and technological trends and factors such as the demise of communism, the removal of trade tariffs and free trade agreements, the rapid advance in telecommunications technologies and the Internet, and so on, operating on a global stage offers organizations a much larger marketplace, and hence opportunities to specialize, to further develop and enhance excellence in their core competencies. However, it also creates much more competition, as traditionally local markets become the playing ground of global operators, who, in encroaching, experience fewer barriers. These factors, coupled with an increasing rate of change, and sudden, unpredictable changes or turbulence, mean that most organizations face a beguiling mix of increasing opportunities coupled with increasing challenges, increasing complexity and increasing uncertainty in their business environments. 4.4.2 Alliances and strategic networks One response to the increasing pace of change and the concomitant need to reposition organizations in an increasingly interconnected and dynamic business environment is to move from a formal and methodologically based strategic and IS/IT planning to a more flexible, lighter and less bureaucratic mode of strategic thinking. This move also includes a move from rigour and analysis in strategic planning towards a softer, more creative, intelligently opportunistic and more collaborative 65
e-Business Strategies for Virtual Organizations 66 strategic thinking mode that emphasizes values and culture along with business goals, objectives and directions. The need to make such a move has been a common theme in the strategy/ strategic planning literature since the mid-1990s. For example, Kanter (1994) writes that: Alliances between companies, whether they are from different parts of the world or different ends of the supply chain, are a fact of life in business today . . . In the global economy, a well-developed ability to create and sustain fruitful collaborations gives companies a significant competitive leg up. (p. 96) Thus, it is asserted that the formation of a variety of business alliances, partnerships and collaborations is both an important and increasing trend for many organizations, and it is also a strategic device for catering with an increasing rate of change, increasing complexity, increasing competition, while retaining flexibility and adaptability. Furthermore, an overt purpose in entering into such collaborative relationships may be to ultimately create added value for customers by each of the partners contributing a unique, but complementary set of skills, resources and competencies not available to the other partners on their own, but which are jointly valued by the end consumer. While the mutual benefit of improved customer satisfaction may be an important facet of the formation of the business relationship, additional value to the collaborators stems from the potential for a stream of opportunities to be realized together over a period of time. Interorganizational collaborations can thus provide opportunities for greater stability in business relationships and can build switching costs for all parties concerned, perhaps an attractive proposition in turbulent times. However, we need to be aware that increased stability may find itself at odds with the need and desire for flexibility and adaptability. Most managers today agree that IT plays an important role in supporting, facilitating and indeed enabling these strategic alliances. Telecommunications technologies and interorganizational systems (IOS) thus become an important component of the virtual organization or strategic business network. Such systems are argued to offer the positive impacts of reducing costs and improving the efficiency of transactions, of facilitating communication, information quality and information provision, and of improving the competitive positioning of the collaborating partners. To an extent, therefore, it must be concluded that skill, foresight and excellence in exploiting the capabilities of IT
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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
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Authors’ Preface alliances, bette
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1 e-business and the virtual organi
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e-business and the virtual organiza
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Figure 1.2 e-business and the virtu
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1.5 e-business e-business and the v
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Figure 1.3 e-business and the virtu
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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
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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
Page 96 and 97: References IS planning strategies f
Page 98 and 99: Moving from e-business to i-busines
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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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Globalization and e-business strate
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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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