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Organizing for Electronic Commerce

Organizing for Electronic Commerce. A Presentation By Dr. Bob Travica Indiana University. Outline. New organizational designs & virtual organization Electronic commerce (e-commerce) Virtual organizational forms for e-commerce Information systems & technology for e-commerce

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Organizing for Electronic Commerce

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  1. Organizing for Electronic Commerce A Presentation By Dr. Bob Travica Indiana University

  2. Outline • New organizational designs & virtual organization • Electronic commerce (e-commerce) • Virtual organizational forms for e-commerce • Information systems & technology for e-commerce • Future research • Summary

  3. New Organizational Designs Non-Traditional Organization Free from bureaucratic Traditions; team-based Virtual Organization Fit of alien parts; fit products Network Organization Fluid information flows Adhocracy Fickle overall design Organic Organization Flexible structure (Source: Travica, B., New Organizational Designs. Ablex, 1999.)

  4. Virtual Organization An organization created through dynamic electronic networking of different organizations/groups/individuals that aim at leveraging their resources. • Networking  spatial dispersion and fuzzy boundaries • Electronic  IT as basis, invocation of “cyberspace” • Dynamic changeable members • Resources Leveraging  joining core competences, niche products, “virtual products” (customized) • (Based on: Davidow & Malone, 1992; Byrne 1993; Goldman et al., 1995; Mowshowitz, 1994, 1999; Travica, 2000)

  5. Virtual Organization Aggregation Alteration Customization Cybernization Anchoring Interoperability (Source: The ICAAAC Meta Model of Virtual Organizations, Travica, 2000)

  6. Aggregation Information Technology • Networking of different • organizations (nodes) Alteration Customization • Custom, personalized • products • Switchable nodes Cybernization • Existing in space created by • telecom. networks and info. • systems Anchoring Interoperability • Organizational support • to cybernization • Synchronizing nodes • technically and managerially

  7. E-Commerce • E-Commerce refers to conducting business by resting core business functions and processes on computer-based systems. • Front-End: Business-to-Consumer (B2C) --via Web; new phenomenon • Back-End: Business-to-business (B2B) -- EDI and beyond

  8. Organizational Forms for E-Commerce • E-Commerce is • organized through • virtual forms • Virtual Corporation • Web-Based Organization (“dot-com”) • Strategic Network • Virtual Team

  9. Kinds of Virtual Organization Sales Partner Supplier Supplier Supplier Web-Based Organization Virtual Corporation Legend: Virtual Organization Classical Organization Strategic Virtual Organization Virtual Team Customer Individual (Source: Travica, 2000)

  10.  Virtual Organization Forms for E-Commerce VO Form Typical Example Firm B2C B2B Virtual Corporation Manufacturer AgileWeb; McDonnell; PPP and supply chain; Sunhawk; Dell; VerticalNet Networks using members vertical portals Web-Based Web retailer with Amazon.com; Virtual PP P Organization sales process fully Vineyards; virtual mall; rested on Web; Yahoo! horizontal portal Strategic Network Partnering in pro- Rosenbluth Travel; P duct development Abilene Consortium or market penetration Virtual Team Interorganizational Team studied by Majchrzak P projects et al., 2000

  11. Information Systems in E-Commerce Virtual Forms TELECOMM. SYSTEMS (NETWORK, INTERNET) CLIENT SYSTEMS SERVER SYSTEMS SECURITY SYSTEMS MIDDLEWARE SYSTEMS E-PAYMENT SYSTEMS

  12. SERVER SYSTEMS B2C - WEB SERVERS - APPLICATION SERVERS - MAIL SERVERS - FTP SERVERS

  13. Future Research • Test the ICAAAC model of virtual organization in overall • on firms engaged in e-commerce • Focus on the technology background to the specific ICAAAC • dimensions: • New technologies and successful systems supporting • transactions (Cybernization) • New technologies and systems supporting seamless • dynamic networking between companies (Interoperability • and Alteration) • Develop applied research that provides high value both to • academia and client firms

  14. Summary • Study of e-commerce and new organizational designs • should be combined • E-Commerce is partly organized in virtual organization • forms (Web-based firm, virtual corporation, strategic • network, and virtual teams) • Applied organizational research with the focus on • information technology is needed in VOs engaged in • e-commerce

  15. Thank you for your attention! Bob Travica http://php.indiana.edu/~btravica

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