Virtual organizations

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Virtual organization

A task, project, or permanent organization that is decentralized and independent of any spatial connection

Quality

Accuracy of solution

Profitability

Revenues must exceed cost

Efficiency

Solution is produced with minimum input

Culture, Analytics, Social, Technology

Four building blocks for a successful virtual organization

Temporary virtual organization

Multiple functions responding to a market opportunity

Virtual project

Multiple organizational representatives working on specific tasks

Knowledge worker

Someone who actively seeks new solutions to problems

Virtual team

Teams on specific and ongoing tasks

Boundedness

Tightly bounded work unit

Professional groups, Product related work

Two classifications of knowledge workers

Virtual team, Virtual project, Temporary virtual organization, Permanent virtual organizational

Typology of virtual organizations

Quality of wok life

Under such conditions which help and encourage workers to do their best

Networking

Use of ICTs to improve the efficiency of, and potential for, gathering and sharing information

Networking, Restructuring, Development of a learning organizational culture

Virtualization activities

Higher value of organization, Person intensive, Meet client's needs

Features of organization

Knowledge organization

Knowledge is considered as commodity and the main input is information and the product is usually compoased of a plan or an advice

Development of a learning organizational culture

Knowledge is shared across cultural and time-space boundaries

Analytics

Monitor, measure and adapt social interactions

Knowledge workers

People who work their way through information, solve problems and make plans

Effectiveness, Efficiency, Quality, Productivity, Quality of work life, Innovations, Profitability

7 criteria for overall performance of an organization

Social

Primary communication vehicle, Used for exchange of information, transactions, and interactions

Vision for social enterprise, Develop digital village plan, Execute on the plan by partnering, Measure and adapt for optimal outcomes, Executives are aware of the they need to know

Strategies employed by virtual organizations

Culture

Stresses openness and experimentation, and emphasizes the necessity of community

Technology

Supporting infrastructure

Restlessness

The acceptance of change in organizational practices and customs

Innovations

As long as to construct new and better solutions to problems rather than mechanically apply old ones

Dispersion

At least multiple locations and, moreover, multiple local cultures and languages

E-accelerator case

Build tools for strategic performance measurement system, Used action-research method, eTampere, To venture capital funding for customer companies and to give advice about economical, managerial and technological issued

Empowerment

Division of responsibility across the network

Permanent virtual organization

Full functionality as a virtual organization

Effectiveness

Having the right solutions on the right scale to a problem

Interdependence

Individual members of a network must cooperate in order to gain synergy benefits

Permeability

Information and resource flows across boundaries are regulated

Interface

Interactions that occur at the boundaries between work units

Interface, Permeability, Boundedness

Work unit bounaries

Virtualization

The transition period when traditional organizations coexist, and sometimes conflict with virtual arrangements

Restructuring

Uses networking opportunities to enable more complex organizational forms, which offer greater operational cost flexibility

Flexibility, Innovation, Collaborations

Changes in society

Dispersion, Empowerment, Restlessness, Interdependence

Characteristics of virtual organization

Skilled worker

Not expected to develop new methods to do their work

Productivity

Number output

Digital world

Build and nurture true internal communities


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