Critical factors in Virtual Business Networks

There are several critical factors which the small business should consider before stepping into the virtual business networks. These critical factors determine the effectiveness of a businesses performance and success in the virtual business network.

Technology Support: When small businesses join a virtual business network and start collaborating with the business, they need a web-based platform. The web based platform can be accessed from their companies or even on the move allowing them to communicate securely and handle all aspects of the business. Small companies and businesses can also avail the support and services of software firms and communication firms that provide hosting services, pay-per-use, and small business software solutions.

Responsibility and Accountability: Management in a multi business network can be very difficult aspect. Learning and understanding the responsibility and accountability is very vital before commencing work in a virtual network. This is also the deciding factor in winning big contracts from major organizations.

Collaborative Working Policy: A virtual business network can be seen as a group of businesses acting like a virtual team all connected through communication networks. Therefore, how well the team integrates collectively depends on the vision, goals and capabilities of the individual businesses. This virtual team has to decide upon certain norms to work together, take important decisions, handle problematic issues, and share vital knowledge and information through virtual collaboration technology. These collaborative working policies will grow trust among the member companies and businesses and aid in achieving the overall goal effectively.

Roles in Collaboration: There are three distinct roles in a collaborative virtual business network. Each of these roles is equally important from the point of view of achieving success together. The first kind of role is that of the Architect. The architect can be considered as the administrator of the virtual business network. He has the overall view of the network companies and their capabilities.

The architect determines the other roles of the businesses in the virtual business network. He also determines what the virtual business network can take up and the limits of business capabilities. The Architect takes up the responsibility for searching for more companies to complete the virtual supply chains which the virtual business network needs to accomplish its tasks.

The next role is that of the Broker. The broker finds opportunities and potential customer for the virtual business network and then based on the customer requirements helps Architect to make a work execution plan. The broker is also the link for the virtual business network to other networks and customers.

The third and most important role is that of the Coach. The coach is responsible for building relationship among the businesses in the virtual business network. He deals with the members of different companies in order to develop trust, define the responsibility and accountability hierarchy, solve problematic issues, and address issues which improve the cohesiveness of the team.

First Page: Collaboration in Virtual Business Networks