Virtual Organizations (Outsourcing)Some Characteristics of a Virtual OrganizationsSlide 3Some Characteristics of a Virtual OrganizationVirtual Organizations (Outsourcing)Dr. Dave SullivanOregon State University(ideas mostly from V. T. Raja)Some Characteristics of a Virtual Organizations•An organization composed of several business partners sharing costs and resources for the purpose of producing a product or service•Each partner creates a portion of a product or service in an area in which they have special advantage such as expertise or low cost•Example: Flower shop and its business partnersExample - Virtual Organization (VO)CustomerVO - Flower CompanyFlower SupplierAmex/VISAMaster CardFedEx1. Places Order - WebSends monthly bill2. E - validates payment3. Passes e- order5. Accepts Order4. E-acceptance Order6. Sends pick up info electronically7. Picks up order8. Delivers flowers Makes e-payment Makes e-payment Makes e-paymentSome Characteristics of a Virtual Organization•Excellence - All star winning team•Resource Utilization - Competitive advantage•Opportunism – Making use of market opportunities•Lack of borders - Redefines traditional boundaries•Adaptability – to change•Trust - Essential between/among business partners•Technology - Basic ingredientResources of business partners remain in their original locations but are integrated via information
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