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Virtual Organizations (Outsourcing)

Virtual Organizations (Outsourcing). Dr. Dave Sullivan Oregon 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

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Virtual Organizations (Outsourcing)

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  1. Virtual Organizations (Outsourcing) Dr. Dave Sullivan Oregon State University(ideas mostly from V. T. Raja)

  2. 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 partners

  3. Example - Virtual Organization (VO) 6. Sends pick up info electronically FedEx 8. Delivers flowers 7. Picks up order Makes e-payment Sends monthly bill Flower Supplier Amex/VISA Master Card Customer Makes e-payment 2.E - validates payment 1.Places Order - Web Makes e-payment 3. Passes e- order 5. Accepts Order VO - Flower Company 4. E-acceptance Order

  4. Some 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 ingredient Resources of business partners remain in their original locations but are integrated via information systems.

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