Lunes, Setyembre 20, 2010

What Jolito Ortizo Padilla say about "The Virtual Organization"- Find it out in JOPs book -The Strategic Management-Building Competitive Advantage.


It is widely alleged that the business organization of the future will be virtual.But precise definitions of what it means to be a virtual organization are hard to find.A virtual company resembles a normal, traditional company in its inputs and outputs, but it differs in the way it adds value during the journey in between.

The virtual organization has an almost infinite variety of structures , all of them fluid and changing. Most of them need virtually no employees. A New York insurance company was once started from scratch by someone whose overriding aim was to employ nobody but himself.

The Virgin Group briefly held 5% of the UK cola market with just five employees. This was achieved by tightly focusing on the company's core competence:its marketing. Everything else , from production of the rink to the distribution of it, was done by someone else. A virtual organization relies for the most part on a network of part-time electronically connected freelances, sometimes referred to as e-lances.

The virtual organization has very few physical assets, reflecting the fact that adding value is becoming more dependent on (mobile) knowledge and less dependent on (immobile) plant and machinery.

Hollywood is often cited as a template for the virtual organization. The way that movies have been made since the industry freed itself from studio system has been virtual. A number of freelances, from actors to directors via set builders and publicity agents, come together with a common purpose. They then go their separate ways and another (unrelated) bunch of people (with similar set of skills) comes together to make another movie. And so it goes on, very productively.

Linked to the idea of the virtual organization is the concept of the virtual office, a place where space is not allocated uniquely to individual employees. Instead people work as and when they need to, wherever space is available. This practice is commonly referred to as hot-desking. The virtual office has the advantage of providing a different vista every day, but it makes it difficult to form close relationships with colleagues.

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