Organizing for Electronic Commerce

A Presentation By

Dr. Bob TravicaIndiana University

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

New Organizational Designs

Non-Traditional Organization

Freefrom bureaucratic

Traditions; team-based

Virtual OrganizationFit

of alien parts;fit products

AdhocracyFickle

overall design

Organic OrganizationFlexible structure

Network OrganizationFluid

information flows

(Source: Travica, B., New Organizational Designs. Ablex, 1999.)

Virtual Organization

An organization created through dynamic electronic networkingof 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)

Virtual Organization

Aggregation

Alteration Customization

Cybernization

Anchoring Interoperability

(Source: The ICAAAC Meta Model of Virtual Organizations, Travica, 2000)

Aggregation

Alteration Customization

Cybernization

Anchoring Interoperability

•Networking of different organizations (nodes)

•Existing in space created bytelecom. networks and info. systems

•Synchronizing nodes technically and managerially

•Switchable nodes

•Organizational supportto cybernization

•Custom, personalizedproducts

InformationTechnology

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

Organizational Forms for E-Commerce

• E-Commerce is organized throughvirtual forms

• Virtual Corporation

• Web-Based Organization (“dot-com”)

• Strategic Network

• Virtual Team

Supplier

SalesPartner

Supplier

Supplier

Web-Based Organization

Virtual Team

Virtual Corporation

Strategic VirtualOrganization

Virtual Organization

Classical Organization

Customer

Individual

(Source: Travica, 2000)

Legend:

Kinds of Virtual Organization

 Virtual Organization Forms for E-Commerce

Virtual Corporation Manufacturer AgileWeb; McDonnell; and supply chain; Sunhawk; Dell; VerticalNet Networks using members vertical portals

VO Form Typical Example Firm B2C B2B

Web-Based Web retailer with Amazon.com; Virtual Organization sales process fully Vineyards; virtual mall;

rested on Web; Yahoo! horizontal portal

Strategic Network Partnering in pro- Rosenbluth Travel; duct development Abilene Consortium or market penetration

Virtual Team Interorganizational Team studied by Majchrzak projects et al., 2000

Information Systems in

E-Commerce Virtual Forms

SERVERSYSTEMS

SERVERSYSTEMS

MIDDLEWARE SYSTEMS

MIDDLEWARE SYSTEMS

SECURITYSYSTEMSSECURITYSYSTEMS

CLIENTSYSTEMS

CLIENTSYSTEMS

E-PAYMENTSYSTEMS

E-PAYMENTSYSTEMS

TELECOMM. SYSTEMS(NETWORK, INTERNET)TELECOMM. SYSTEMS(NETWORK, INTERNET)

FUNCTION SYSTEM TECHNOLOGY

STORE EMULATION Web storefront (site) HTML, XML, Java, VRML, SMIL, search engines

STORE SECURITY Security applications Firewalls, Trusted Operating System

CUSTOMER ACCOUNT Database Relational database products

SALES Order Processing Shopping cart, Web form

CASHIER DESK E-payment applications Internet check, e-cash

CUSTOMER SUPPORT Communication Email, chat rooms

ADVERTISING Banner applications Image & animation technology

MARKETING Personalization app.;Navigation Tracking app;Customized storefront

Learning agents;Log file analyzer;Object Oriented databases; home-grown (Yahoo!)

- WEB SERVERS- APPLICATION SERVERS- MAIL SERVERS- FTP SERVERS

SERVERSYSTEMS

B2C

SERVERSYSTEMS

B2C

Future Research

• Test the ICAAAC model of virtual organization in overallon firms engaged in e-commerce

• Focus on the technology background to the specific ICAAACdimensions:

• New technologies and successful systems supportingtransactions (Cybernization)• New technologies and systems supporting seamlessdynamic networking between companies (Interoperabilityand Alteration)

• Develop applied research that provides high value both to academia and client firms

Summary

• Study of e-commerce and new organizational designs should be combined

• E-Commerce is partly organized in virtual organizationforms (Web-based firm, virtual corporation, strategicnetwork, and virtual teams)

• Applied organizational research with the focus oninformation technology is needed in VOs engaged ine-commerce

Thank you for your attention!

Bob Travica

http://php.indiana.edu/~btravica