1

Virtual Organisation: A Glimpse in the Indian Scenario

Presented By:

Aanu Surendran

Semester 3,MBA

Lourdes Matha College of Science

and Technology

2

"Global Village “ became a Reality

Internet has made real what in the 1970's that visionary of the communications Marshall McLuhan (1911-1980) called the "Global Village".

3

Introduction-Virtual Business

• A virtual business employs electronic means to transact.

• The business is unlike the traditional Brick & Mortar business.

• It do not rely on face-to-face transactions with physical documents and physical currency or credit.

• Pioneer in virtual business

4

Virtual Organisation “Business organization of the future

will be virtual.”• An experience in which electronically

created sounds and images are made to resemble reality.

• A virtual company resembles a normal traditional company in its inputs and its outputs.

• It differs in the way in which it adds value during the journey in between.

5

Virtual Organisation • The virtual organisation has an almost

infinite variety of structures(all of them fluid and changing. )

• Most of them need virtually no employees.

• The virtual office-People work as and when they need to, wherever space is available. This practice is commonly referred to as hot-desking. 

6

CURRENT PRACTICES• Outsourcing

– products and services– labor

• Inventory Management– just in time– quick response

• Electronic brokerage– customer order management– logistics management

7

RANGE OF VIRTUALITY

• Virtual Corporation or Enterprise• Virtual Office• Virtual Team• Virtual Classroom

8

ABSENCE OF WALLS

9

Some Virtual Realities• The UK’s Virgin Group briefly held

5% of the British cola market with just five employees.

• Everything else, from the production of the drink to the distribution of it, was done by someone else.(Outsourcing)

• A virtual organisation relies for the most part on a network of electronically connected freelances, sometimes referred to as e-lances and Fiber optic and satellite communications .

10

Virtual Reality

• AT&T, an American telecoms company, reckons that it saved over $500m between 1991 and 1998 by reorganising its office space along virtual lines.

• The Society of Human Resources management successfully transitioning to a virtual organization.

India: Key telecom parameters – 2010 - 2011

Category 2010 2011 (e)Fixed-line services:    Total No. of subscribers 35.1 million 34.0 million

Fixed-line penetration (population) 3.3% 2.9%

Fixed-line penetration (household) 18% 18%

Broadband:    

Total No. of subscribers 11.0 million 15.0 million

Annual growth 41% 36%Broadband subscriber penetration (population)

0.9% 1.2%

Broadband subscriber penetration (households)

4.7% 6.0%

Mobile services:    

Total No. of subscribers752 million 980.0 million

Annual growth 43% 30%Mobile penetration (population) 63% 80%

Web and Social Processes• Google

– it’s a search engine, it’s a verb, … • Blogs

– published self-expression• Instant Messenger

– social networks • Wireless messaging

– semi-synchronous • Internet commerce

– the dot.com boom/bust– EBay, Amazon

• Spam,Block …– anti-social behavior

13

INDIA’s hottest e-commerce sites

• 20north.com - launched in 2008, gets products from the US for Indian buyers 20North.com is one of India's leading online retailers.

• Buytheprice.com-Set up in December 2009 electronic appliances website.

• Caratlane.com- Launched in 2008 online retailer of diamonds.

• Dealsandyou.com-provides discounts on services and products. Set up by Harish Bahl -the site has an outreach of over 1.5 million members

14

• Fashionandyou.com-, providing great bargains on the most sought after fashion and luxury brands of the world. 11 months old, funding of $8 million from Sequoia Capital, 8 lakh members ,3 lakh visitors and 2,500 orders every day.

• Flipkart.com is among the top 3 in each of the research parameters: business model, user experience, and traction. Launched by IIT-ians Sachin and Binny Bansal, Flipkart.com sells books at low prices with free shipping, and has over 6 million titles listed across all categories.

• Indiangiftsportal.com-Headquartered in Lucknow delivers gifts across the world. The portal has a wide range of Indian handicrafts.

• Naaptol.com Established in January 2008, social shopping portal in India which sells consumer electronic goods, laptops, mobiles, cameras, LCD TVs, and home appliances. It hopes to clock Rs 140 crore (Rs 1.4 billion) revenue this year.

15

• SnapDeal-is the leader in the hottest category of ecommerce Founded by Jasper Infotech in 2010, sells everything from dining to beauty packages, health services to lifestyle products, holiday packages to movie tickets.500,000 visitors everyday has tie-ups with 50,000 merchants across 30 cities in India, and has also extended services to 5 overseas locations.

a round of institutional funding from NEA IndoUS Ventures

• e-bay.in-Formerly known as bazee.com, ebay.in today is one of the largest e-commerce websites of India. This website has a huge list of products and services on offer to all its prospective customers. Its product line can be divided into several categories like apparels, accessories, electronic gizmos, cars and bikes, fitness and sports, home appliances and many more. Another advantage of using this site is that apart from normal electronic purchase, it is also encourages you to sell your products online 

16

MARKET WATCH

17

MARKET WATCH

18

Source: IAMAI and IMRB Analysis Report

The major triggers of e-commerce in India were:

• Saves time and efforts • Convenience of shopping at home • Wide variety / range of products are available • Good discounts / lower prices • Get detailed information of the product • You can compare various models / brands

Some of the major barriers at present were:

• Not sure of product quality • Cannot bargain/Negotiate • Not sure of security of transactions / Credit card

misuse • Need to touch and feel the product • Significant discounts are not there • Have to wait for delivery

20

YEAR DEC 2007 DEC 2008 DEC 2009 DEC 2010 DEC 2011

Total market share

8146 14030 19688 31598 46520

Online travel Industry

6,250(77%) 10,500(75%) 14,953(76%) 25,258(80%) 37,890(81%)

Online non travel industry

1896(23%) 3530(25%) 4735(24%) 6340(20%) 8630(19%)

-E-tailing 978 1120 1550 2050 2700

-digital downloads or paid content subscription

238 290 435 680 1100

-Financial services 1200

15402000 2680

-other paid services 630 920 1210 1510 2150

NET COMMERCE MARKET SHARE FROM 2007 TO 2011

(Figures in crores and percentages indicate the total market value)

21

Internet Usage

44%

23%

13%

10%

6%3%

1%

Asia EuropeNorth America CarribbeaAfrica Middle EastOceania/Australia

Virtualised Web Services

internet

securechannel

temporary secure connection

23

“When I took office, only high energy physicists had ever heard of what is called the World Wide Web... Now even my DOG has its own page.”- Bill Clinton

24

CONCLUSION• Risk and self-management are the key enabling

factors for Virtual organisation.• Risk is reduced using trust and trust substitutes

(e.g. contracts, security policies and reputation measures).

• Virtual organization offers competitive economic advantage.

• A new world of business and government is in the making.

• Virtual Business brings the world under one roof.• Cost effective• Faster access

25

AANU SURENDRANTHANK YOU…..