Performance and Development of Electronic Business Networks - Smits 2002

Question 1

What are the 3 types of electronic business networks? (Smits, 2002)

Answer 1

• Stable network: Long-term stable relationship between suppliers, producers and distributors. Serve a predictable market along a given value chain
• Internal network: Create a market inside a company. Units buy and sell goods and services among themselves at open market prices
• Dynamic network: Components along the value chain are coupled contractually for a single project or product and then decoupled to be part of a new value chain for the next project

Question 2

When is a set of firms regarded to be a network? (Smits, 2002)

Answer 2

• The network consists of at least three nodes
• Each node can decide independently regarding long term relationships with other nodes
• The relationships between the nodes exist for some time and for more than one transaction

Question 3

What are the 6 pillars of the NEFETI research model? (Smits, 2002)

Answer 3

1. Strategic drivers and incentives for networking: The motives and objectives of the stakeholders and organizations involved in the network (value propositions, commercial goals, quality, efficiency etc.)
2. Enabling conditions for networking: To stimulate the growth of the network (presence of a champion, previous experience with relevant technologies, absence or presence of network standards etc.)
3. Design of the network organization: Participants in the network, their business relationships, structure of the network (chain, star or dyad)
4. Functioning of the network organization: How the nodes cooperate in inter- and intra-organizational processes, how transactions are processed through the network etc.
5. ICT infrastructure of the network organization
6. The bottom-line performance of the network

Question 4

What are the 6 stages in the network formation? Based on the degree of IT-induced business transformation (Smits, 2002)

Answer 4

Evolutionary:

1. Localised exploitation
2. Internal integration

Revolutionary:

3. Business process redesign
4. Business network integration
5. Business network redesign
6. Business scope redefinition