Defining key performance indicators to manage the value chain in virtual enterprises

Abstract

This thesis is about the principles and practices of the emerging discipline of virtual enterprising within the context of supply chain management. This type of enterprise makes it possible for Southern African companies to compete in the global marketplace against global players. Value chain analysis is firstly discussed to help the business units, within the virtual enterprise, identify their competitive advantage. This competitive advantage will secure the position of these business units within the virtual enterprise. Electronic commerce is described as the vehicle for data communication within the virtual enterprise, and the supported enterprise resource planning (ERP) software as the transaction capturing software. A performance measurement system is proposed that will assist with the management of virtual enterprises at a macro level. Some conclusions and recommendations are made as to how the management of performance can assist the business units, within the virtual enterprise, to grow financially and obtain sustainability. Recommendations are also made for the implementation of the proposed structure within the 3-D Business Simulator.