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Short Paper One: What is Virtual Corporate Structure?
Virtual means immaterial, supported by information and
communication technology(ICT). Virtual Reality (VR) is a good
example for this sub-concept of virtual. Itsimply means, that a
Virtual Organisation (VO) has the appearance of a real
(traditional) company for externals, but in reality this company
does not exist, it isonly a conglomerate of independent network
partners.
The fundamental idea of the virtual corporation is that it is
that is created when it isneeded. The virtual corporation is a
temporary netwoek , which is neither set up for anagreed period of
time, nor is it an open-ended co-operation, such as joint venture
or astrategic alliance. This model provides independent companies
with the option tocintinue day-to-day business in addition to the
involvement in parterships. The
partnering companies may also be involved is serveral virtual
corporations at any onetime.
Lethbridge's (2001) I-based taxonomy of virtual organisations
defines six basic,elemental structures for a virtual
corporation:
Virtual Face S tar Alliance M arket Alliance Co-Alliance Value
Alliance P arallel Alliance
Virtual face is the cyberspace incarnations of an existing
non-virtual organisation andcreate additional value such as
enabling users to carry out the same transactions over the Internet
as they could otherwise do by using phone or fax. For example,
onlinenewspaper (eg. theAustralian.com.au); the online product was
not a newspaper at all
but at the same time it constrained the same articles as the
paper. The differences werethat a newspaper carried information in
one direction but an online service operated intwo with its users
expecting involvement and response from the producers.
S tar Alliance model is co-ordinated networks of interconnected
members reflecting acore surrounded by satellie organisations. The
core comprises leaders who are thedominant players in the market
and supply competency or expertise to members.These alliances
commonly based around similar industries or company types. TheS tar
Alliances airline group is an example, that included Ansett, S
ingapore Airline,United Airline, S outh Africa Airline and Air New
Zealand. These companies co-
operate flights to share passenges and other delivery services.
In addition, it allowed passanges to collect frequence fly points
from each others. For example, when Ivisited S ingapore in 2000
from Canberra. I took Ansett from Canberra to S ydney,then S
ingapore Airline from S ydney to S ingapore. While I am holding
AnsettFequency Fly Club card, but I can collect points from both
domestic and internationalflights points.
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M arket Alliance are organisations that exist primarily in
cyberspace, depend on their member organisations for the provision
of actual products and services and operate inan electronic market.
It normally they bring together a range of products, services
andfacilities in one package, each of them may be offered
separately by individualorganisations. Dell computer is offering a
Chrismas Free Bouns deal whencustomer order selected products. This
deal is allowed customer to choice either
Lexmark Z35 printer or Logitech Click S mart 310 Digital camera
with free delivery.There are three individual organisations: Dell
well knowning to sale computers online,Lexmark is one of leading
printer manufacturer, Logitech is famous input
devicemanufacturer.
Co-Alliance is shared partnership with each partner bringing
approximately equalamounts of commitment to the virtual
organisation thus forming a association.Recently, M icrosoft and
Yahoo form an alliance to enter small business onlineservices
market. Yahoo is providing cyberspace for data transfer, email
accounts andrelated serivces to allow small business to host online
with little amount (the pricefrom U S$ 11.95 per month). M icrosoft
is providing related software applications suchas Office for S mall
Business package and other applications.
Value Alliance bring together a range of products, services and
facilities in one package and are based on the value or supply
chain model. P articipants may cometogether on a project by project
basis but generally coordination is provided by thegeneral
contractor. A computer is assembled by a number of organisations
and sold asa complete product, even the famous brand do the same
way. Dells desktop computer is using Quantas motherboard, Interls C
P U, Creatives S ound Blaster card, AopensCD-RO M drive and so
on.
P arallel Alliance where one member organisation adds value to
the work that is beingdone con-currently by another virtual
organisation member. A DVD player and laser head read may be
produced by different organisations.
Bibliography
1. Dickson, G.W. and De S anctis, G. 2000, Information
Technology and the future enterprise: New models for managers , P
rehtice-Hall Inc, New Jersey, p125-143.
2. M aguire, D.W. 2002, V irtual Organization to V irtual
Product: Structural Challenges to Online Newspapers , Edith Cowan
University, P erth.
