Report

July 1999

Going Virtual

Stephen Cole 		Tactical outsourcing will not work for dynamic trade. To build a strategic position in the networked Internet economy, firms must move toward a virtual structure by focusing on their high-power business processes.
by Stephen Cole with Stan Dolberg, Liz Leyne, Jason Gatoff

MARKET OVERVIEW
  • Tactical outsourcing won't cut it in dynamic trade.
  • New leaders will be virtual companies with external focus.
ANALYSIS
  • Firms must cast themselves as information- or asset-centric.
  • Business process power will guide "in-out" decisions.
ACTION
  • Make the "E" in CEO mean "electronic."
  • Apps vendors must reorganize to play in the new market.
WHAT IT MEANS
  • New opportunity: rating business process providers.
  • Per-seat pricing ends, midmarket vendors recover first.
 
Figures & Data
  • Figure 1.  Simple Outsourcing Can't Keep Up With The Rate Of Market Change
  • Figure 2.  Companies Are Shifting From Vertically Integrated To Virtual
  • Figure 3.  Companies Face A Stark Choice
  • Figure 4.  Reconstruction Is A Continual Process
  • Figure 5.  Build A Process Power Map
  • Figure 6.  Gauging The Information-To-Asset Ratio For Each Process
  • Figure 7.  Packaging Processes For Portability
   
RELATED MATERIAL 
  • Companies Interviewed For This Report
  • Related Research
 
GRAPEVINE
  • Origin goes shopping.
  • Slowly into the New Dimension.
  • Reinventing the wheel.
  • Finally, some help with that development backlog.
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Ratings and Comments
NOT YET RATED
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