Logo

Navigation
  • Home
  • Services
    • ERP Solutions
    • Implementation Solutions
    • Support and Maintenance Solutions
    • Custom Solutions
    • Upgrade Solutions
    • Training and Mentoring
    • Web Solutions
    • Production Support
    • Architecture Designing
    • Independent Validation and Testing Services
    • Infrastructure Management
  • Expertise
    • Microsoft Development Expertise
    • Mobile Development
    • SQL Server Database and BI
    • SAP BI, SAP Hana, SAP BO
    • Oracle and BI
    • Oracle RAC
  • Technical Training
    • Learn Data Management
      • Business Intelligence
      • Data Mining
      • Data Modeling
      • Data Warehousing
      • Disaster Recovery
    • Learn Concepts
      • Application Development
      • Client Server
      • Cloud Computing Tutorials
      • Cluster Computing
      • CRM Tutorial
      • EDI Tutorials
      • ERP Tutorials
      • NLP
      • OOPS
      • Concepts
      • SOA Tutorial
      • Supply Chain
      • Technology Trends
      • UML
      • Virtualization
      • Web 2.0
    • Learn Java
      • JavaScript Tutorial
      • JSP Tutorials
      • J2EE
    • Learn Microsoft
      • MSAS
      • ASP.NET
      • ASP.NET 2.0
      • C Sharp
      • MS Project Training
      • Silverlight
      • SQL Server 2005
      • VB.NET 2005
    • Learn Networking
      • Networking
      • Wireless
    • Learn Oracle
      • Oracle 10g
      • PL/SQL
      • Oracle 11g Tutorials
      • Oracle 9i
      • Oracle Apps
    • Learn Programming
      • Ajax Tutorial
      • C Language
      • C++ Tutorials
      • CSS Tutorial
      • CSS3 Tutorial
      • JavaScript Tutorial
      • jQuery Tutorial
      • MainFrame
      • PHP Tutorial
      • VBScript Tutorial
      • XML Tutorial
    • Learn Software Testing
      • Software Testing Types
      • SQA
      • Testing
  • Career Training
    • Career Improvement
      • Career Articles
      • Certification Articles
      • Conflict Management
      • Core Skills
      • Decision Making
      • Entrepreneurship
      • Goal Setting
      • Life Skills
      • Performance Development
      • Personal Excellence
      • Personality Development
      • Problem Solving
      • Relationship Management
      • Self Confidence
      • Self Supervision
      • Social Networking
      • Strategic Planning
      • Time Management
    • Education Help
      • Career Tracks
      • Essay Writing
      • Internship Tips
      • Online Education
      • Scholarships
      • Student Loans
    • Managerial Skills
      • Business Communication
      • Business Networking
      • Facilitator Skills
      • Managing Change
      • Marketing Management
      • Meeting Management
      • Process Management
      • Project Management
      • Project Management Life Cycle
      • Project Management Process
      • Project Risk Management
      • Relationship Management
      • Task Management
      • Team Building
      • Virtual Team Management
    • Essential Life Skills
      • Anger Management
      • Anxiety Management
      • Attitude Development
      • Coaching and Mentoring
      • Emotional Intelligence
      • Stress Management
      • Positive Thinking
    • Communication Skills
      • Conversation Skills
      • Cross Culture Competence
      • English Vocabulary
      • Listening Skills
      • Public Speaking Skills
      • Questioning Skills
    • Soft Skills
      • Assertive Skills
      • Influence Skills
      • Leadership Skills
      • Memory Skills
      • People Skills
      • Presentation Skills
    • Finding a Job
      • Etiquette Tips
      • Group Discussions
      • HR Interviews
      • Interview Notes
      • Job Search Tips
      • Resume Tips
      • Sample Resumes
 

Virtual Business Networks

By Exforsys | on October 28, 2007 |
Business Networking

Virtual Business Networks

Classification of Virtual Business Networks

Virtual Business Network is the most discussed topic among the Business Communities nowadays. The basic definition of a Virtual Business Network means a group of small Businesses joining together to collaborate and co-operate to accomplish common Business objectives and goal by creating networks that facilitate communication using technology based on the internet.

The main difference of a Virtual Business Network from a Social Network is that the members represent Businesses or Companies and not individuals as in Social Networks. The Virtual Business Networks have different names and are growing popular over the internet.

Names such as Virtual Enterprise Networks, Virtual Collaborative Networks, Virtual Cluster Networks, Virtual Collaborative Supply Chains and Virtual Networked Enterprises are a few examples among many such names. This article will help to classify the various types of Virtual Business Networks based on key factors.

Because of these varied names for Virtual Business Networks, the customers and government agencies face the problems of correctly deciphering the roles and functionality of each such Virtual Business Networks. The customers and potential Business alliances need to understand what the networks actually mean before buying services or for joining the network as a member.

The classification of Virtual Business Networks will also help Small Businesses to identify which type of network is best suited for them and help to attain their ambitions for growth through virtual collaboration.

Classification will also help the large enterprises to try working with smaller Business Network instead of the traditional supply chains. Also the policy makers of government will get help from the classification to decide strategies for enhancing economic competitiveness and improvements.

Therefore there is a need to device methods for comparing the key features of the various types of Virtual Business Networks. This will help small companies to join the correct network and government policy makers to develop strategies aimed at regional and economic growth.

Factors influencing Virtual Business Networks

There are mainly two important factors that influence the Virtual Business Networks. The first one is the vision and aim of the individual companies and Businesses that for part of the Virtual Business Network.

The small Businesses generally join the Virtual Business Networks with aim of increasing their sales, improving their knowledge, exposure to innovation and reducing costs of gaining such services. The Small Businesses benefit from the collective marketing, bidding and enhanced product lists in a Virtual Business Network.

The Small Businesses cannot obtain such services without investing substantially and taking the risk of staying alone. To what extent the Small Business give importance to maintaining a relationship within the Virtual Business Network depends on this factor. The next important factor is the Regional Business Policies.

The Regional Business Policies aim to develop Business networks based on the Business viability and facilities in a particular region. The policies help to support collaboration among small and medium sized Businesses and allowing them to link with the global market.

Structure of Virtual Business Networks

The 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.

Types of Virtual Business Networks

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.

« « Understanding ERP and WMS
ERP for Manufacturers » »

Author Description

Avatar

Editorial Team at Exforsys is a team of IT Consulting and Training team led by Chandra Vennapoosa.

Free Training

RSSSubscribe 0 Followers
  • Popular
  • Recent
  • Creating Virtual Business Network

    November 1, 2007 - 0 Comment
  • Information Strategy for Business Networks

    November 2, 2007 - 0 Comment
  • Agility in Virtual Business Networks

    November 6, 2007 - 0 Comment
  • Smart Business Networks

    November 3, 2007 - 0 Comment
  • Information Sharing in Business Network

    October 22, 2007 - 0 Comment
  • Exploring Business Networking

    December 8, 2007 - 0 Comment
  • Knowledge Management in Business Networks

    October 23, 2007 - 0 Comment
  • Business Networks and International Business

    December 12, 2007 - 0 Comment
  • Collaboration in Virtual Business Networks

    October 24, 2007 - 0 Comment
  • How to begin an Online Virtual Business Network?

    December 18, 2007 - 0 Comment
  • How to begin an Online Virtual Business Network?

    December 18, 2007 - 0 Comment
  • Business Networks and International Business

    December 12, 2007 - 0 Comment
  • Exploring Business Networking

    December 8, 2007 - 0 Comment
  • Agility in Virtual Business Networks

    November 6, 2007 - 0 Comment
  • Smart Business Networks

    November 3, 2007 - 0 Comment
  • Information Strategy for Business Networks

    November 2, 2007 - 0 Comment
  • Creating Virtual Business Network

    November 1, 2007 - 0 Comment
  • Assessing Business Networks

    October 31, 2007 - 0 Comment
  • Freelancer Opportunities in Business Networks

    October 31, 2007 - 0 Comment
  • Business Network Virtual Communication Tools

    October 29, 2007 - 0 Comment

Exforsys e-Newsletter

ebook
 

Related Articles

  • How to begin an Online Virtual Business Network?
  • Business Networks and International Business
  • Exploring Business Networking
  • Agility in Virtual Business Networks
  • Smart Business Networks

Latest Articles

  • Project Management Techniques
  • Product Development Best Practices
  • Importance of Quality Data Management
  • How to Maximize Quality Assurance
  • Utilizing Effective Quality Assurance Strategies
  • Sitemap
  • Privacy Policy
  • DMCA
  • Trademark Information
  • Contact Us
© 2023. All Rights Reserved.IT Training and Consulting
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.AcceptReject Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT