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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

Virtual Organizations (Outsourcing)

Dr. Dave Sullivan

Oregon State University(ideas mostly from V. T. Raja)

some characteristics of a virtual organizations
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
slide3

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

some characteristics of a virtual organization
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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