TABLE OF CONTENTS The extent of contribution from the infrastructure will depend on the information intensity of the business value chain. The information intensity of the value chain derives from four related factors: nature of partnerships' internal arrangements, nature of market or industry, and the product offerings. The analysis of the information processes in each of these factors would reveal the aspects of the business that may be transformed by leveraging the online infrastructure. These factors also provide the basis of virtual infrastructure management by seeking continuously to enhance the alignment between these factors while increasing the firm's ability to work with them across multiple sites and time zones.
Employing an adaptation of Henderson and Venkatraman's (1993) strategic alignment model, Figure 6.2 shows the interaction of the SME's strategic objectives, information infrastructure and its relevant business environment. The firm seeking to leverage its information technology infrastructure must work out a close fit between these three aspects. In general, the strategic objectives of an online SME will relate to seeking increased access to wider markets and resources through extension of its environment. The firm's infrastructure (based on Internet technologies) and its industry environment (i.e. electronic business) present a virtual market environment. Thus it becomes critical to identify and exploit those features of the infrastructure that facilitate and optimize virtual values in the business chain. The strategy for alignment and exploitation of the online infrastructure to achieve increased virtuality may be described as a virtual infrastructure management (VIM) strategy.
