Description

Saudi Electronic University
College of Administrative and Financial Sciences
E-commerce Department
Student Names:
Student IDs:
1.
1.
2.
2.
3.
3.
4.
4.
5.
5.
Course Code: ECOM 425
Course Title: Virtual
Organization Management
Academic Year/ Semester: 2021/2022 _2nd semester 1443_2nd Semester
CRN:23021
Instructor Name: Dr. Eman Alyami
Assignment: 3 Project Presentation
Student Grade:
Grade Level: High/ Middle / Low
out of 15
1
Company: XXXX
• 3 Pictures of different activities in the company
2
Web design technical requirements to enhance
online business activity (1/2)
• 1.
• 2.
• 3.
3
Web design technical requirements to enhance
online business activity (2/2)
• 4.
• 5.
• 6.
4
Cloud computing platforms serve the fortune
companies (1/2)
• 1.
• 2.
• 3.
5
Cloud computing platforms serve the fortune
companies (2/2)
• 4.
• 5.
• 6.
6
Possibilities of data insecurity, data loss, and hacking
(1/2)
• 1.
• 2.
• 3.
7
Possibilities of data insecurity, data loss, and hacking
(2/2)
• 4.
• 5.
• 6.
8
Importance of big data maintenance (1/2)
• 1.
• 2.
• 3.
9
Importance of big data maintenance (2/2)
• 4.
• 5.
• 6.
10
Examples of big data analysis with the performance
of web computing
• 1.
• 2.
• 3.
11
References
• 1.
• 2.
• 3.
• 4.
12
13
‫كلية العلوم الادارية والمالية‬
|
College of Administrative and Financial Sciences
E-commerce Department
Assignment Part 3
Student Name:
Student ID:
Course Title: Virtual Organization
Management
Course Code: ECOM 425
Academic Year/ Semester: 2021/20112nd term
Instructor Name: Dr Eman Alyami
CRN: 23021
Student Grade:
Grade Level:
Assignment Part 3
Students need to study the companies like Google, Facebook, Amazon and
Microsoft ..etc., for their virtual business practices. Answers for the below
questions should mention the company name and their related practices.
Maximum Grades: 15
Duration: 6 Weeks
Number of Words for Each Answer: 175 to 200 Words
Questions
1. As a web analyst, suggest the web design technical requirements to enhance the utilization
of online business activity. (3 Marks)
2. Discuss how the cloud computing platforms serve the fortune companies.
3. In case of globalized cloud-based data sharing, analyze the possibilities of data insecurity,
data loss, hacking, etc., (3 Marks)
4. Narrate the importance of big data maintenance due to the increase of virtual business
activities. (3 Marks)
5. Relate Big data Analysis with the performance of web computing with examples. (3 Marks)
i
Agile Virtual
Enterprises:
Implementation and
Management Support
Maria Manuela Cunha
Polytechnic Institute of Cávado and Ave, Portugal
Goran D.Putnik
University of Minho, Portugal
IDEA GROUP PUBLISHING
Hershey • London • Melbourne • Singapore
ii
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Copyright © 2006 by Idea Group Inc. All rights reserved. No part of this book may be reproduced,
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or registered trademark.
Library of Congress Cataloging-in-Publication Data
Cunha, Maria Manuela, 1964Agile virtual enterprises : implementation and management support / Maria Manuela Cunha, Bruno
Conceicao Cortes, and Goran D. Putnik.
p. cm.
Summary: “The authors address Agile/Virtual Enterprises as a new organizational paradigm, highly
dynamic reconfigurable agile networks of independent enterprises sharing all resources, including
knowledge, market, customers, etc., and using specific organizational architectures that introduce the
enterprises’ true virtual environments”–Provided by publisher.
ISBN 1-59904-010-7 (hardcover) — ISBN 1-59904-011-5 (softcover) — ISBN 1-59904-012-3
(ebook)
1. Virtual reality in management. 2. Business networks. 3. Virtual corporations. I. Cortes, Bruno
Conceicao, 1976- II. Putnik, Goran, 1954- III. Title.
HD30.2122.C86 2006
658.4’038–dc22
2006009295
British Cataloguing in Publication Data
A Cataloguing in Publication record for this book is available from the British Library.
All work contributed to this book is new, previously-unpublished material. The views expressed in this
book are those of the authors, but not necessarily of the publisher.
iii
Agile Virtual Enterprises:
Implementation and
Management Support
Table of Contents
Preface ……………………………………………………………………………………………… vii
Section I: Business Requirements and Virtual Enterprise Model Needs
Chapter I.
Business Requirements and Background ………………………………………….. 1
Introduction ……………………………………………………………………………….. 1
The Enterprises and the Market ………………………………………………….. 2
Inter-Firm Collaboration …………………………………………………………….. 3
The Theory of the Firm ……………………………………………………………….. 4
The Actual Economical Context …………………………………………………… 8
Need for New Organizational Models and Need for Business
Alignment …………………………………………………………………………….. 12
Summary …………………………………………………………………………………… 18
References ……………………………………………………………………………….. 18
Chapter II.
A Review on Virtual Enterprise Models ………………………………………….. 25
Introduction ……………………………………………………………………………… 25
The Emergence of the Virtual Enterprise as an Organizational
Concept ……………………………………………………………………………….. 25
Supply Chain Management ……………………………………………………….. 30
The Extended Enterprise …………………………………………………………… 32
The Agile Enterprise/Manufacturing Model ………………………………. 33
The Virtual Enterprise/Organization Approach ………………………….. 36
iv
One Product Integrated Manufacturing …………………………………….. 43
BM_Virtual Enterprise Architecture Reference Model ……………….. 45
Summary …………………………………………………………………………………… 64
References ……………………………………………………………………………….. 72
Chapter III.
BM_Virtual Enterprise as an Agile/Virtual Enterprise Model …………. 81
Introduction ……………………………………………………………………………… 81
BM_VE Organization ……………………………………………………………….. 82
Structural Dynamics, or Reconfigurability …………………………………. 88
External Environment as BM_VE Implementation and
Management Enabler: The Market of Resources ………………….. 91
Consequences of Virtuality in BM_VE ……………………………………….. 92
Summary …………………………………………………………………………………… 97
References ……………………………………………………………………………….. 98
Chapter IV.
Requirements for Agile/Virtual Enterprise Integration ……………………. 99
Introduction ……………………………………………………………………………… 99
Requirements for the Agile/Virtual Enterprise Model ……………….. 100
Reconfigurability Dynamics in Agile/Virtual
Enterprise Integration …………………………………………………….. 101
Basic and Complex Resources …………………………………………………. 102
Subcontracting Space and Reconfigurability Dynamics …………… 104
Business Alignment in Agile/Virtual Enterprise Integration ……….. 111
Functionalities for Agile/Virtual Enterprise Integration ……………. 116
The Agile/Virtual Enterprise Extended Life Cycle …………………….. 124
Summary …………………………………………………………………………………. 127
References ……………………………………………………………………………… 128
Section II:
Functional or Activity-Based Model of the Market of Resources
Chapter V.
The Proposal of a Market of Resources ………………………………………… 133
Introduction ……………………………………………………………………………. 133
The Market of Resources Concept …………………………………………… 134
Technical Requirements for the Market of Resources ………………. 137
Summary …………………………………………………………………………………. 140
References ……………………………………………………………………………… 142
v
Chapter VI.
Information and Communication Technologies:
Current Developments …………………………………………………………. 143
Introduction ……………………………………………………………………………. 143
Impact of the New Information and Communication
Technologies ………………………………………………………………….. 144
Information and Communication Technologies and Techniques .. 147
Information and Communication Technology Applications ……….. 150
E-Business Integration …………………………………………………………….. 178
Summary …………………………………………………………………………………. 181
References ……………………………………………………………………………… 182
Chapter VII.
Traditional Technologies to Support Agile/Virtual Enterprise
Integration ……………………………………………………………………………. 191
Introduction ……………………………………………………………………………. 191
How Traditional Tools Support Agile/Virtual Enterprise
Integration …………………………………………………………………….. 192
Costs of Subcontracting ………………………………………………………….. 194
Cost-and-Effort Model for Traditional Internet-Based A/VE
Integration …………………………………………………………………….. 196
Summary …………………………………………………………………………………. 207
References ……………………………………………………………………………… 207
Chapter VIII.
The Organizational Model for a Market of Resources ………………….. 209
Introduction ……………………………………………………………………………. 209
A Methodology for the Functional Specification ……………………… 210
Global Structure of the Market of Resources …………………………… 218
Market of Resources Project …………………………………………………… 238
Operation of the Market of Resources …………………………………….. 260
Data Architecture to Support the Market of Resources …………….. 274
Cost-and-Effort Model for the Market of Resources ………………… 275
Summary …………………………………………………………………………………. 289
References ……………………………………………………………………………… 289
Chapter IX.
Development of the Market of Resources …………………………………….. 294
Introduction ……………………………………………………………………………. 294
Technological Support for the Market of Resources:
E-Marketplace Software Platform Providers …………………… 295
How Does the Available Technology Support the
Functionalities of the Market of Resources? …………………… 299
vi
Developing a Prototype for the Market of Resources ………………. 300
Summary …………………………………………………………………………………. 306
Reference ……………………………………………………………………………….. 307
Section III: Market of Resources and Agile/Virtual Enterprises
Implementation and Management Support: Validation and Potential
Chapter X.
Performance Analysis ……………………………………………………………………. 309
Introduction ……………………………………………………………………………. 309
The Cost-and-Effort Analysis …………………………………………………… 310
Market of Resources Versus Traditional Internet-Based Search
and Selection: Determination of Time Constants ……………… 323
Comparative Study on Performance ………………………………………… 330
Domain of Opportunities for the Market of Resources …………….. 343
Summary …………………………………………………………………………………. 346
Reference ……………………………………………………………………………….. 347
Chapter XI.
Market of Resources: Exploitation and Future Trends …………………. 348
Introduction ……………………………………………………………………………. 348
Opportunities for the Market of Resources ……………………………… 349
Market of Resources: A SWOT Analysis …………………………………… 356
Critical Success Factors ………………………………………………………….. 364
Targeted Users of the Market of Resources …………………………….. 364
Analysis of Opportunities and Potential Benefits ……………………… 367
Conclusions and Future Trends ………………………………………………. 369
References ……………………………………………………………………………… 370
About the Authors …………………………………………………………………………. 374
Index ……………………………………………………………………………………………… 376
vii
Preface
This book addresses meta-enterprise organizations and infrastructures as emerging and (now we are positive) indispensable organizational models, concepts or
approaches for assuring, or enabling, effective and efficient implementation
and management of agile and virtual enterprises (or Agile/Virtual Enterprises).
In particular, the concrete meta-enterprise organization and/or infrastructure
model presented in the book is called, by the authors, the Market of Resources
(MR).
An Agile/Virtual Enterprise (A/VE) is seen as a new organizational paradigm,
virtually the most advanced enterprise organizational paradigm of today’s, expected to serve as a “vehicle” towards, in the limit, a seamless “perfect” alignment of the enterprise with the market. A/VE is characterized in different ways,
ranging from simple subcontracting networks to dynamic reconfigurable agile
networks of independent enterprises sharing all resources, including knowledge, market, customers, and so forth, using specific architectures, not only of
software and data systems, but primarily the organizational architectures that
introduce the enterprise’s true virtual environments, in order to be permanently
aligned with the highly demanding and global dynamic market. Obviously, when
we, the authors, address Agile/Virtual Enterprises as a new organizational paradigm, we consider primarily and exclusively, the Agile/Virtual Enterprises as
highly dynamic reconfigurable agile networks of independent enterprises
sharing all resources, including knowledge, market, customers, etc., and
viii
using specific organizational architectures that introduce the enterprise’s
true virtual environments.
Thus, in this book, the form of agility addressed is primarily the dynamic
reconfiguration of the organization, or structure, of networks of independent
enterprises, while the virtuality is addressed as specific organizational architectures.
However, despite the Agile/Virtual Enterprise as seen by many authors as one
of the most promising organizational approaches, only the relatively most simple
models, as simple subcontracting networks or supply chains (if we consider
them as A/VE models), are implemented, while we could easily observe that, in
fact, we do not have implemented Agile/Virtual Enterprise models that correspond to the earlier-mentioned definition which is considered in this book (and
by many other authors).
Among several reasons for this situation, probably the most important is that
the concept of A/VE as “highly dynamic reconfigurable agile networks of
independent enterprises sharing all resources, including knowledge, market, customers, etc., and using specific organizational architectures that
introduce the enterprise’s true virtual environments” introduces several new
features that the “traditional” approach to the implementation and management
can not manage. These are, in fact, the reasons why we can talk about the new
paradigm. Some of these features are:
1.
the nature of inter-enterprise relations, in the context of sharing all resources, and
2.
the dynamic reconfiguration of the enterprise, or new networked enterprise, organizational structure.
Concerning the nature of inter-enterprise relations, the context of sharing all
resources introduces new factors to be managed not present in the “traditional”
“self-centered” enterprise, which are trust assurance and management, knowledge and intellectual rights protection, legal issues, communication phenomena,
among others.
Concerning the dynamic reconfiguration of the enterprise, or new networked
enterprise, organizational structure, the new phenomena is that the production
operation “chain” or “network” under the same (fixed) organizational structure, as it is in the “traditional” enterprise, becomes shorter and shorter as the
(organizational structure) reconfiguration dynamics become higher and higher.
In the limit, an organizational instance (fixed) structure is characterized by only
one operation. The consequence is that the focus of management is moving
from the (production) operations management to (organizational structure)
reconfiguration management. In other words, we could say that while in the
ix
“traditional” enterprise the importance of (production) operations management
is high, in A/VE the importance of (production) operations management is low.
In this sense, for example, the role of operation scheduling in A/VE is no longer
one of the most important functions for operations management but, rather,
could be seen as a network design tool. Therefore, the A/VE management and
design (reconfiguration is in fact a network, or enterprise, structure design, or,
redesign, process) are coupled.
A/VE dynamic reconfiguration brings other important phenomena. If we could
say that coupled network management and design just imply another operation
management model, the new factor is transaction cost. Actually, each (organizational structure) reconfiguration implies some costs. These costs are called
transaction costs. The problem is that if you have a high (organizational structure) reconfiguration dynamics you will have higher and higher transaction
costs. This, in fact, makes A/VE agility (i.e., dynamics) not sustainable.
There are two main enterprise dynamic networking, or A/VE, implementation
and management disabling factors that follow the theory of firm models:
1.
transaction cost, and
2.
preservation of firm’s knowledge on organizational and management processes, as it is the firm’s competitive factor when relating, or networking,
with other firms.
To control these factors, it was necessary to have a completely different approach than the “traditional” one, as, the “traditional” approach to enterprise
implementation and management cannot deal with these problems.
It is recognized that the new approach should imply special environments for
network (re)configurations and operations, the role of which is exactly to control two main factors against dynamic networking. As the role of these environments is not the management or implementation of the A/VE themselves, as it
is the task of the A/VE owners, but rather to support these processes (implementation and management), these environments represent a kind of metaenterprises, as they, in fact, are managing the dynamic reconfiguration factors
that manage the “production” of (A/VE) enterprises. In this sense, this book
presents a model of a meta-enterprise organizations and infrastructures as
emerging and indispensable organizational models, concept or approach
for assuring, enabling, or supporting effective and efficient implementation and management of Agile and Virtual Enterprises (or Agile/Virtual
Enterprises), assuring low transaction costs and the partners’ knowledge
protection (or preservation). The model presented in the book is called, by
the authors, the Market of Resources (MR).
x
This approach (i.e., the need for such environments, as external meta-enterprise organizations and/or infrastructure) is getting more and more recognition
in the last few years by the research and theoretician community. In the literature, we can find references to other Market of Resources alike concepts,
services and products, for example: the new generation of high value-added
electronic marketplaces, e-alliances, breeding environments, electronic
institutions, virtual clusters, “guilds”. 1
However, this is the first book on the market, of the authors’ best knowledge,
that presents comprehensively a model of such a meta-enterprise organization, infrastructure or environment for A/VE as dynamically reconfigurable network of enterprises, that share virtually all resources.
Actually, it is expected that these environments will be the regular environments for A/VE integration, reconfiguration dynamics and operation. (This expectation has been already expressed within the EU FP6 project, Network of
Excellence I*PROMS — Innovative Production Machines and Systems, http:/
/www.iproms.org/, Nº NMP2-CT-2004-500273, whose partner is University of
Minho, that considered the “Meta-enterprise organizational structures”, with
the Market of Resources as an example, as one of the “Key Enabling Features” for future developments of the Production Organization and Management area.)
The authors think that it would be useful to mention that this book is in a way a
continuation of the authors’ previous book (Putnik & Cunha, 2005a) in the sense
that this book is a comprehensive presentation of the Market of Resources,
already presented in a much shorter way, as one of the main tools for enabling
A/VE as dynamically reconfigurable enterprise networks. The structure and
philosophy of the previous book (Putnik & Cunha, 2005a) presented, besides its
content, a number of valuable contributions on particular “object” topics, an
example of a new view on A/VE integration (and operation), for which the
Market of Resources is one of the fundamental tools, which is a view through
the lens, or framework, of Organizational Semiotics, more precisely, the Virtual
Enterprise Integration Semiotics [see the Preface and Chapter I of the book
(Putnik & Cunha, 2005a; Putnik et al., 2005b, 2005c)].
Also, the authors think that it would be interesting to mention that this book is a
result of the work developed within the larger project on Virtual Enterprises
that is on course at the University of Minho, Centre for Production Systems
Engineering. The project on Virtual Enterprises in the Centre for Production
Systems Engineering of the University of Minho has started as early as 1994,
and has resulted up to date in 4 PhD and 5 MSc Thesis concluded, while three
PhD projects are on course (at the moment of writing this Preface). The project
on Market of Resources has started as early as 1999 as a PhD project, which
was concluded in 2003. After that period, the concept was regularly revised.
xi
Organization of This Book
The book’s 11 chapters are organized into three parts that addresses three
global issues of the A/VE implementation and management support. These are:
1.
Section I: Business Requirements and Virtual Enterprise Model Needs,
Chapters I to IV.
2.
Section II: Functional or Activity-Based Model of the Market of Resources, Chapters V to IX.
3.
Section III: Market of Resources and Agile/Virtual Enterprise Implementation and Management Support: Validation and Potential, Chapters X
and XI.
Section I of the book addresses Business Requirements and Virtual Enterprise Model Needs. Through four chapters, Section I contains a discussion on
the actual enterprise environment (i.e., market, its characterization from the
perspective of the needs for new organizational models, some constraints and
directions to overcome these constraints).
When talking about the actual enterprise environment the book focuses on its
dynamics and unpredictability as the major challenge to competitiveness. From
the other side, the question is: which are the A/VE models for which we should
develop the management and implementation models? Actually, what are specific functional characteristics that should be satisfied?
In other words, Section I aims at presenting an answer to the question: metaenterprise organizations and infrastructures, in particular Market of Resources,
why?
This section contains four chapters. They are:
Chapter I presents a business requirements’ analysis to help understand the
actual economical and organizational context we live in, and to justify the emergence of new organizational models, in particular the A/VE models. This chapter starts with a brief introduction of the role of enterprises and the market,
followed by a characterization of the actual economic context of strong competition, and the evolution of product life cycle in this context, and concludes with
the identification of the requirements for competitiveness and a business alignment requirements analysis.
Chapter II presents a discussion on the emergence of the virtual enterprise
concept, as well as presents the most relevant and most frequently discussed
virtual enterprise models, namely, Supply Chain, Extended Enterprise, Agile
Enterprise/Manufacturing, Virtual Enterprise/Virtual Organization, the
BM_Virtual Enterprise Architecture Reference Model (BM_VEARM) Agile/
xii
Virtual Enterprise reference model and OPIM (One Product Integrated Manufacturing). At the end of the chapter, a discussion is presented.
Chapter III presents the BM_Virtual Enterprise (BM_VE) model, as an Agile/Virtual Enterprise, in total or partial conformance with the BM_Virtual Enterprise Architecture Reference Model (BM_VEARM) (i.e., as a dynamically
reconfigurable network integrated over the global domain, satisfying the requirements for integrability, distributivity, agility and virtuality as the competitiveness factors). In other words, a virtual enterprise (VE), according to
BM_VEARM, is “… an optimized enterprise, synthesized over a universal set
of resources, with a real-time replaceable physical structure, and when the
synthesis and control are performed in an abstract or virtual environment.” The
importance of presenting the BM_VE is in fact that Virtual Enterprise (VE), or
Agile/Virtual Enterprise (A/VE), implementation and management is not possible without Market of Resources (MR), and similarly defined meta-enterprise structures and/or organizations. BM_Virtual Enterprise uses three main
mechanisms, or tools: Broker, Virtuality, and Market of Resources.
As a consequence of the BM_VE model, an “inverse” definition (i.e., the Resource centered Virtual Enterprise Definition) of VE is presented. Because
of this consequence, it follows that BM_VE is a ubiquitous enterprise, too.
Ubiquitous enterprise, and VE as a ubiquitous enterprise, could be considered
as the next generation (enterprise) organizations.
Chapter IV introduces the requirements for Agile/Virtual Enterprise (A/V E)
integration, discuss reconfigurability dynamics and business alignment and propose a Virtual Enterprise Extended Life Cycle. The Virtual Enterprise Extended
Life Cycle is the crucial result, as it introduces the fundamental process, or
phase, to make an A/VE effective and efficient, and it is the phase of
contractualization of a Market of Resources. This A/VE life cycle model actually makes a distinction between the A/VE models as relatively static organizations and A/VE models as dynamically reconfigurable organizations.
Section II addresses Functional or Activity-Based Model of the Market of
Resources. It contains five chapters through which the model of a Market of
Resources, as a meta-enterprise organizations and infrastructures, is presented
in detail. The representation technique used is IDEF0. This representation technique is chosen because it presents the main elements of a system in general,
that is, presents the system’s inputs (I), outputs (O), processes or activities (P
or A), tools or mechanisms (M) and control or management (C). IDEF0 represents a correctly defined semi-formal graphical language, with data associated,
providing an easy way to understand complex organizational models and facilitate the model implementation and control. The particular chapters are dedicated to present the supporting IC technologies.
xiii
This part is innovative in terms of the existing literature as the authors did not
find any detailed description of these kinds of A/VE environments or infrastructures. What is important to notice is that the model is not a purely ICT
solution (e.g., a kind of a set of Web services or an electronic market solution),
but a true organizational model that is human-based and ICT-supported.
In other words, Section II aims at presenting an answer to the question: metaenterprise organizations and infrastructures, in particular Market of Resources,
how?
Chapter V introduces the concept of a Market of Resources as an environment to cope with the A/V E model requirements (i.e., an environment for Agile/Virtual Enterprise integration and business alignment), identifying the relevant requisites related with A/V E design and integration, and defining its participants. Also, the technical requirements to support the Market of Resources
are presented and how existing technologies support the main processes of the
Market of Resources.
Chapter VI presents some of the main ICT and some of the most relevant
technologies that can contribute to support the A/V E models. It addresses as
well the impact of the new information and communication technologies and
the issue of information integration, considering recent developments.
Chapter VII explains how “traditional” Internet-based tools (WWW search
engines, WWW directories, electronic mail and e-marketplaces) can be used to
support some of the functionalities required by the A/VE models. It introduces
as well the costs of subcontracting analysis and a cost-and-effort model that
traduces the activities of A/VE integration that can be undertaken with the
support of these traditional tools.
Chapter VIII presents a complete specification of the Market of Resources,
to allow a complete understanding of how this environment is able to support
the implementation and management of Agile/Virtual Enterprises.
The model of the Market of Resources includes three views:
1.
The functional specification of the service provided, its processes structure and data structure using IDEF0 and IDEF1x modeling techniques;
2.
The definition of a regulation regarding the operati