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E-BUSINESS ORGANIZATION

Chapter VI Group 5

At the end of this chapter, the students should be able to:

LEARNING OBJECTIVES

Understand the organization design for e-business identify the factors in selecting an organizational model Differentiate traditional organization from e- business organization Describe the dimensions of e-organizations

OUTSOURCING ORGANIZATION DESIGN REPORTING LINES DEDICATED FUNCTIONS

who should the E-Business Head report to Clear and consistent reporting lines are important because they allow for monitoring to occur. REPORTING LINES

Defining roles and responsibilities within your business, permits you to more effectively manage your entire business. DEDICATED FUNCTIONS

The extent to which particular functions, such as online store operations, are outsourced to a third party/trusted partner ("TP"). OUTSOURCING

FACTORS TO CONSIDER IN SELECTING AN ORGANIZATIONAL MODEL

COMPLEXITY OF BUSINESS the number of categories a consumer goods company plays in, and extent to which it operates across the consumer segments will significantly influence the choice of organizational model.

Consumer goods companies where E- Commerce makes up a significant portion of total sales, and/or have strong ambitions to grow E-Commerce, may be more likely to move more towards an integrated organization model rather than separating E-Commerce into its own dedicated business function. SIZE AND AMBITION FOR E- COMMERCE BUSINESS

companies that promote a more collaborative culture and transversal ways of working will naturally come together and take a more multi-functional approach to the major E-platforms, without necessarily needing to be organized in this way and hence may prefer to retain the more "traditional" model. COMPANY CULTURE

DIMENSIONS OF E-BUSINESS ORGANIZATION Organization Structure Leadership People & Culture Coherence Knowledge Alliances Governance

Organizational

STRUCTURE

E-business companies should form more flexible, decentralized, team - and alliance-based organizations that enable employees to respond immediately to opportunities and competitive advantages around the globe.

Leader SHIP

The old model of C.E.O.

can no longer set

agendas and dictate

change.

In the e.org, everyone is a

leader, charged with

creating an environment

for collective gain and

success.

Coherence

is a shared sense of direction that allows a corporation to be greater than the sum of its parts. In aligned organizations, objectives are clear; roles and responsibilities are well defined and elegated, and the right things are accurately measured and rewarded.