© Institute for Information Systems (IWi), University of Saarland 1999 1EC Review

Project Review, Lisbon, October 12th 1999

Virtual organisation modelVirtual organisation model

Clemens OdendahlInstitute for Information Systems (IWi)

University of SaarlandSaarbrücken, Germany

© Institute for Information Systems (IWi), University of Saarland 1999 2EC Review

Definition of Virtual Enterprise

A virtual enterprise is a co-operation form of legally independent enterprises, institutions and/or individuals, that produce a service on the basis of a common business understanding. The co-operating units participate in the horizontal and/or the vertical collaboration major with their core competencies and appear to third parties as a homogeneous enterprise. Furthermore the institutionalisation of central management functions for design, management and development of the Virtual Enterprise are extensively abandoned and the necessary demand for co-ordination and harmonisation is covered by appropriate information and communication systems. The Virtual Enterprise is connected to a mission and ends with this mission.

A virtual enterprise is a co-operation form of legally independent enterprises, institutions and/or individuals, that produce a service on the basis of a common business understanding. The co-operating units participate in the horizontal and/or the vertical collaboration major with their core competencies and appear to third parties as a homogeneous enterprise. Furthermore the institutionalisation of central management functions for design, management and development of the Virtual Enterprise are extensively abandoned and the necessary demand for co-ordination and harmonisation is covered by appropriate information and communication systems. The Virtual Enterprise is connected to a mission and ends with this mission.

Source: Faisst, W.: Die Unterstützung Virtueller Unternehmen durch Informations- und Kommunikaitonssysteme - eine lebenszyklusorientierte Analyse. 1998.

A virtual enterprise is a co-operation form of legally independent enterprises, institutions and/or individuals, that produce a service on the basis of a common business understanding. The co-operating units participate in the horizontal and/or the vertical collaboration major with their core competencies and appear to third parties as a homogeneous enterprise. Furthermore the institutionalisation of central management functions for design, management and development of the Virtual Enterprise are extensively abandoned and the necessary demand for co-ordination and harmonisation is covered by appropriate information and communication systems. The Virtual Enterprise is connected to a mission and ends with this mission.

A virtual enterprise is a co-operation form of legally independent enterprises, institutions and/or individuals, that produce a service on the basis of a common business understanding. The co-operating units participate in the horizontal and/or the vertical collaboration major with their core competencies and appear to third parties as a homogeneous enterprise. Furthermore the institutionalisation of central management functions for design, management and development of the Virtual Enterprise are extensively abandoned and the necessary demand for co-ordination and harmonisation is covered by appropriate information and communication systems. The Virtual Enterprise is connected to a mission and ends with this mission.

A virtual enterprise is a co-operation form of legally independent enterprises, institutions and/or individuals, that produce a service on the basis of a common business understanding. The co-operating units participate in the horizontal and/or the vertical collaboration major with their core competencies and appear to third parties as a homogeneous enterprise. Furthermore the institutionalisation of central management functions for design, management and development of the Virtual Enterprise are extensively abandoned and the necessary demand for co-ordination and harmonisation is covered by appropriate information and communication systems. The Virtual Enterprise is connected to a mission and ends with this mission.

A virtual enterprise is a co-operation form of legally independent enterprises, institutions and/or individuals, that produce a service on the basis of a common business understanding. The co-operating units participate in the horizontal and/or the vertical collaboration major with their core competencies and appear to third parties as a homogeneous enterprise. Furthermore the institutionalisation of central management functions for design, management and development of the Virtual Enterprise are extensively abandoned and the necessary demand for co-ordination and harmonisation is covered by appropriate information and communication systems. The Virtual Enterprise is connected to a mission and ends with this mission.

A virtual enterprise is a co-operation form of legally independent enterprises, institutions and/or individuals, that produce a service on the basis of a common business understanding. The co-operating units participate in the horizontal and/or the vertical collaboration major with their core competencies and appear to third parties as a homogeneous enterprise. Furthermore the institutionalisation of central management functions for design, management and development of the Virtual Enterprise are extensively abandoned and the necessary demand for co-ordination and harmonisation is covered by appropriate information and communication systems. The Virtual Enterprise is connected to a mission and ends with this mission.

A virtual enterprise is a co-operation form of legally independent enterprises, institutions and/or individuals, that produce a service on the basis of a common business understanding. The co-operating units participate in the horizontal and/or the vertical collaboration major with their core competencies and appear to third parties as a homogeneous enterprise. Furthermore the institutionalisation of central management functions for design, management and development of the Virtual Enterprise are extensively abandoned and the necessary demand for co-ordination and harmonisation is covered by appropriate information and communication systems. The Virtual Enterprise is connected to a mission and ends with this mission.

A virtual enterprise is a co-operation form of legally independent enterprises, institutions and/or individuals, that produce a service on the basis of a common business understanding. The co-operating units participate in the horizontal and/or the vertical collaboration major with their core competencies and appear to third parties as a homogeneous enterprise. Furthermore the institutionalisation of central management functions for design, management and development of the Virtual Enterprise are extensively abandoned and the necessary demand for co-ordination and harmonisation is covered by appropriate information and communication systems. The Virtual Enterprise is connected to a mission and ends with this mission.

A virtual enterprise is a co-operation form of legally independent enterprises, institutions and/or individuals, that produce a service on the basis of a common business understanding. The co-operating units participate in the horizontal and/or the vertical collaboration major with their core competencies and appear to third parties as a homogeneous enterprise. Furthermore the institutionalisation of central management functions for design, management and development of the Virtual Enterprise are extensively abandoned and the necessary demand for co-ordination and harmonisation is covered by appropriate information and communication systems. The Virtual Enterprise is connected to a mission and ends with this mission.

A virtual enterprise is a co-operation form of legally independent enterprises, institutions and/or individuals, that produce a service on the basis of a common business understanding. The co-operating units participate in the horizontal and/or the vertical collaboration major with their core competencies and appear to third parties as a homogeneous enterprise. Furthermore the institutionalisation of central management functions for design, management and development of the Virtual Enterprise are extensively abandoned and the necessary demand for co-ordination and harmonisation is covered by appropriate information and communication systems. The Virtual Enterprise is connected to a mission and ends with this mission.

A virtual enterprise is a co-operation form of legally independent enterprises, institutions and/or individuals, that produce a service on the basis of a common business understanding. The co-operating units participate in the horizontal and/or the vertical collaboration major with their core competencies and appear to third parties as a homogeneous enterprise. Furthermore the institutionalisation of central management functions for design, management and development of the Virtual Enterprise are extensively abandoned and the necessary demand for co-ordination and harmonisation is covered by appropriate information and communication systems. The Virtual Enterprise is connected to a mission and ends with this mission.

© Institute for Information Systems (IWi), University of Saarland 1999 3EC Review

Directions of Virtualisation

Top-DownVirtualisation

Bottom-UpVirtualisation

Business Network

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Types of Business Networks

Large-scale enterprise

Small- and medium-scaleenterprise

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PUMA as Virtual Enterprise in the textile industry

strategic planning, co-ordinationdevelopment, design, marketing

Herzogenaurach, Germany

Hong Kong

Europe

sales and distribution

Australian

sales and distribution

China, Singapore

logistics (P & O)

Africa

sales and distribution

South America

sales and distribution

North America

sales and distribution

production

China, India, Indonesian, Thailand, Vietnam, Philippines, Malaysia etc.

Taiwan

production of prototypes

development, designproduct management

USA

central purchasing andprocurement organisation

Europe

central purchasing andprocurement organisation

Source: Faisst, W.: Die Unterstützung Virtueller Unternehmen durch Informations- und Kommunikaitonssysteme - eine lebenszyklusorientierte Analyse. Erlangen-Nürnberg 1998.

© Institute for Information Systems (IWi), University of Saarland 1999 6EC Review

The Manufacturer as Supplier

Whether “Made in Germany” or “Made in Finland” ...

... in the end there is the same model of the new Boxster

Source: LOGISTIK HEUTE, July 1998

© Institute for Information Systems (IWi), University of Saarland 1999 7EC Review

Logistic Networks

Producer LineA

Producer-IndependentLine

Producer LineB

Sub-SupplyLayer

SupplyLayer

ManufacturingLayer

DistributionLayer

Future competition forces the interconnection between Supply Chains

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Validity of the Planning

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Instability of Co-ordination in Business NetworksV

olu

me

time

Source: Tom McGuffog, Electronic Commerce and Value Chain Management, 1998

DemandDemand

Delivery warehouseto branch

Delivery warehouseto branchOrders of the

retail industryOrders of the retail industry

Production planProduction plan

Sales forecastof the producerSales forecastof the producer

© Institute for Information Systems (IWi), University of Saarland 1999 10EC Review

Target Conflict of the Production Activity Control

LocalMinimisation(setup time)

Adherence toDelivery Dates

ShortLead Times

Minimisationof Material

Utilisationof the System

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customer partner company

ship crew

ship owner

ER company ship yard tug company class society insurance company port authority flag state P&I club

The Virtual Enterprise of MARVIN

© Institute for Information Systems (IWi), University of Saarland 1999 12EC Review

Life-Cycle of a Virtual Enterprise

Partner SearchC

ontractingOpera

tion

Dis

solutio

n

Identi-

fication

© Institute for Information Systems (IWi), University of Saarland 1999 13EC Review

Identification

Determination of the need to co-operateDetermination of the need to co-operate

Definition of the goal to be gained by co-operationDefinition of the goal to be gained by co-operation

Definition of the co-operation projectsDefinition of the co-operation projects

Companies who want participate in a Virtual Enterprise haveto be involved in this process

Companies who want participate in a Virtual Enterprise haveto be involved in this process

The customer has also to be regarded, because he determinesthe goods and services

The customer has also to be regarded, because he determinesthe goods and services

In MARVIN there is the reporting of the casualty, because it defines the business

In MARVIN there is the reporting of the casualty, because it defines the business

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Selection of the ship yard

Filter 5

Filter 3

Filter 4

Filter 2

Filter 1

Cost

Capacity

Ability of Dry Docks

Location

Competence

Potential Partner Companies

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Contracting

Determination of the modalities of the co-operationDetermination of the modalities of the co-operation

Content of the determination are the common target and the conditions of the co-operation

Content of the determination are the common target and the conditions of the co-operation

Establishment of a electronic contract instead of trust, becausea culture of trust can only arise over time and this is not possible in a temporary arrangement

Establishment of a electronic contract instead of trust, becausea culture of trust can only arise over time and this is not possible in a temporary arrangement

Basis for an electronic contract can be:- contract of purchase- contract of work- lease contract

Basis for an electronic contract can be:- contract of purchase- contract of work- lease contract

Task 1.4 delivers input for that phaseTask 1.4 delivers input for that phase

© Institute for Information Systems (IWi), University of Saarland 1999 16EC Review

Operation

Execution of the Virtual EnterpriseExecution of the Virtual Enterprise

Operative phase of the co-operation (before there have been carried out planning functions)

Operative phase of the co-operation (before there have been carried out planning functions)

Feedback to other phases can be necessaryFeedback to other phases can be necessary

In the first prototype version the ER company is focussedIn the first prototype version the ER company is focussed

© Institute for Information Systems (IWi), University of Saarland 1999 17EC Review

Dissolution

Control of the dissolutionControl of the dissolution

Storage of relevant information gathered during the co-operationStorage of relevant information gathered during the co-operation

This is especially of relevance if the Virtual Enterprise produces an output its period of use ends after the dissolution of the co-operation

This is especially of relevance if the Virtual Enterprise produces an output its period of use ends after the dissolution of the co-operation

It must be clear how in the case of warranty this claim is servedIt must be clear how in the case of warranty this claim is served

© Institute for Information Systems (IWi), University of Saarland 1999 18EC Review

Enlarged Virtual Enterprise in the maritime domain

© Institute for Information Systems (IWi), University of Saarland 1999 19EC Review

Bibliography

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Ashkenas, R. et al.: The Boundaryless Organization. Breaking the Chains of Organizational Structure. San Francisco 1995, pp. 195-197. Behme, W.: ZP-Stichwort: Virtuelle Unternehmen. ZP, 6 (1995) Nr. 6. Benjamin R. I.; Wigand R.: Electronic Markets and Virtual Value Chains on the Informations Superhighway. Sloan Management Review,

36(1995)2. Byrne, J. A.; Brandt, R.; Port, O.: The Virtual Corporation. Business Week, February 8th 1993, pp. 36-40. Dangelmaier, W.: Wie Partner miteinander reden. LOGISTIK HEUTE, Nr.3 (1996), pp. 60-62. Davidow, W. H.; Malone, M. S.: Das virtuelle Unternehmen, der Kunde als Co-Produzent. Frankfurt/Main-New York 1993. Eversheim, W.; et. al.: Konzentration auf das Kerngeschäft: Ein systematisches Vorgehen für den Werkzeugbau. IO Management, 65

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Organisationsstrukturen und Informationssysteme auf dem Prüfstand. 18. Saarbrücker Arbeitstagung 1997. Heidelberg 1997, pp. 101-135.

Ott, M. C.: Virtuelle Unternehmensführung: Zukunftsweisender Ansatz im Wettlauf um künftige Markterfolge. OM, 44 (1996) Nr. 7-8. Picot, A.; Reichwald, R.; Wigand, R. T.: Die grenzenlose Unternehmung. Information, Organisation und Management. 2. Aufl.,

Wiesbaden 1996, pp. 263f. Prahalad, C. K.; Hamel, G.: Nur Kernkompetenzen sichern das Überleben. HM, 13 (1991) Nr. 2, pp. 66-78. Scholz, C.: Strategische Organisation - Prinzipien zur Vitalisierung und Virtualisierung. Landsberg/Lech 1997. Schuh, G.: Virtuelle Fabrik – Beschleuniger des Strukturwandels. In: Schuh, G.; Wiendahl, H.-P. (Hrsg.): Komplexität und Agilität. Berlin

u.a. 1997.