Supporting virtual enterprise design by a web-based information model

Development of IT and its applications have led to significant changes in business processes. To pursue agility, flexibility and best service to customers, enterprises focus on their core competence and dynamically build up relationships with partners to form virtual enterprises as customer driven temporary demand chains/networks. Building the networked enterprise needs responsively interactive decisions instead of a single-direction partner selection process. Benefits and risks in the combination should be systematically analysed, and aggregated information about value-adding abilities and risks of networks needs to be derived from interactions of all partners. In this research, a hierarchical information model to assess partnerships for designing virtual enterprises was developed. Internet technique has been applied to the evaluation process so that interactive decisions can be visualised and made responsively during the design process. The assessment is based on the process which allows each partner responds to requirements of the virtual enterprise by planning its operational process as a bidder. The assessment is then produced by making an aggregated value to represent prospect of the combination of partners given current bidding. Final design is a combination of partners with the greatest total value-adding capability and lowest risk.