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

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Moving from e-business to i-business strategies in virtual markets Figure 5.1 Virtual market New entrants Customers Enterprise Manufacturing Distribution Sales HR Substitutes/ Competitors Suppliers Regulators � integrated organizational systems; � intelligent knowledge-based decision systems; � information-based business architecture strategy. Complementors/ partners The first three of these concepts are explored in depth and we return to the other three components later in Chapters 7, 8 and 9. 5.2 Internetworked markets 5.2.1 Virtual markets ecosystems As noted in Chapter 3, Moore (1997) suggests that businesses are not just members of certain industries but parts of an ecology that incorporates different industries. The driving force is not pure competition but coevolution. The term ‘coevolution’ originated in biology. It refers to successive changes among two or more ecologically interdependent but unique species such that their evolutionary trajectories become intertwined over time. As these species adapt to their environment, they also adapt to one another. The result is an ecosystem of partially interdependent species that adapt together. This interdependence is often symbiotic (each species helps the other), but it can also be commensalist (one species uses the other). Competitive interdependence can emerge as well: one species may drive out 79
e-Business Strategies for Virtual Organizations 80 Table 5.1 e-market ecosystem (Moore 1997) Ecosystem stage Leadership challenges Birth Maximize customer delivered value* Expansion Attract critical mass of buyers Authority Lead coevolution* Renewal or death Innovate or perish Cooperative challenges Find and create new value in an efficient way Work with* suppliers and partners Provide compelling vision for the future Work with* innovators Competitive challenges Protect your ideas Ensure market standard approach Maintain strong bargaining power Develop and maintain high barriers the other, or both species may evolve into distinct, noncompetitive niches. Interdependence can change, too, such as when external factors like the climate or geology shift. This ecosystem can be viewed as the all-embracing electronic market culture within which the i-business maintains equilibrium. In Table 5.1 a possible evolution path is shown for an i-business as*. The i-business initially focuses on gaining new customers. As the business expands they realize that they need to extend alliances with suppliers and so set up a number of different alliances throughout their value chain. This requires more rigorous management of different communication channels reflecting different degrees of dependency and reciprocity. At this stage the i-business may decide to impose more control over the alliance in order to lead a coevolution to a market alliance. Simultaneously other i-businesses have been formed as the market has matured and at stage 4 the i-business faces a choice which may result in a completely new virtual form with the same or different players in the virtual market and the recommencement of the evolutionary cycle. This view is supported by Eisenhardt and Galunic (2000) who point out that the new roles of collaboration in i-business are
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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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Figure 1.4 Virtual objects, Scholz
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Characteristics of the virtual orga
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Figure 2.1 Formation of business al
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� empowerment of staff; Character
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Page 66 and 67: Figure 3.6 Market alliance model Fi
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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 100 and 101: Moving from e-business to i-busines
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Page 134 and 135: Adoption and deployment of online i
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Globalization and e-business strate
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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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