Governance of Federated Business Models
Bill McBeath - May 20, 2005

Introduction

During the last twenty years, many businesses migrated from vertical integration to a virtual model, outsourcing all their non-core functions (see figure 1). This has created challenges in aligning the strategies and activities of all these functions dispersed across the supply chain, each in separate legal entities. The next phase of evolution to emerge is the "dynamic federation", or federated supply chain which is governed differently than both vertical and virtual businesses...