Career Center Business NetworkingThe structure of the Virtual Business Network depends on the same factors that effect the large organizations and their hierarchy. The first factor is the graphical hierarchy also known as the topology. The topology places the various small Businesses under a tree branch structure and three is a defined location for each member in the network.
The nodes have the associated responsibility and accountability. Generally, on the top of the structure large enterprises, flag ship companies or government agencies are placed.
They provide financial stability and management features governing the networks. The next factor is the objective of forming the Virtual Business Network. There are various known objectives with which Virtual Business Networks are formed. Some objectives are knowledge and skill development, sales, marketing, joint development and many more.
The next important factor is the level of cohesion and cooperation within the Virtual Business Network. The level of cooperation may range from sharing of outside information often through events and specialist speakers, or sharing of internal knowledge on Business best practice and joint problem solving, commitment to joint invention and risk like taking part in collective bids. The level of collaboration determines the effectiveness of the network.
The next factor is the age of the Virtual Business Network. If the Virtual Business Network has survived effectively over a long period, it signifies the stability and reliability of the network. Newly formed networks will have to prove themselves by demonstrating sustained performance in the long run over a considerable period of time before they can gain recognition and reputation.
The first common type is the Collaborative Supply Chain. This type of network works as the supply chain for a major organisation or company. Such networks are prominent in the government sector and defense sectors. The second type is the Joint Supplier Network and it represents a group of Business suppliers operating under a common name jointly. Mostly, these networks can be seen in the education department, skill development, and other auxiliary Business services.
The next type is the Joint Product Development network wherein a group of Small Businesses and Companies invest money and resources jointly to innovate, and perform research and development.
The next common network is the Subcontracting and Partnership Exchange Virtual Business Networks. In Subcontracting and Partnership Exchanges networks the main objective is to develop the regional economy.
Hence, these networks are non-profit industrial Virtual Business Networks run by competent managers. The second objective of Subcontracting and Partnership Exchanges networks is to structure the Businesses in such a way so as to effectively utilize the skill, expertise and production capacities of the member Companies and Businesses.
The last type of Virtual Business Network is the Virtual Enterprise Network. This network is a group of Small Businesses or Companies who join together in with the primary aim of bidding and winning large Business contracts.
The individual Businesses and Companies may posses the skills and expertise but may not have the financial backing to participate in such large contracts single handedly.
Hence by forming a collaborative network, the Companies or Small Businesses achieve the capability to participate in large Business deals and ventures.
First Page: Virtual Business Networks
