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Virtual Organization Essay

881 words - 4 pages

What is VO: Virtual OrganizationA temporary or permanent coalition of autonomous organization that pool resources, capabilities and information to achieve common business objective through the use of networking and virtual world.Basic Characteristics of VOToday's organizations to be successful need to be highly flexible and adaptable. This insight has let to the introduction and discussion of virtual organization. A first pretty abstract definition is that it is a temporary alliance of enterprises that cooperatively work together to share skills or core competencies and resources in order to better respond to business opportunities, and whose cooperation relies on computer networks and a cooperative, yet distributed information systems structure. Up to now a commonly agreed on more precise definition is still lacking. However, the following four features are commonly accepted as mandatory characteristics:Purpose-drivenVirtual organizations are formed for specific reasons and with clear overall common goals and objectives in mind. All members have agreed on these goals and objectives.Flexible organizational structureThe organizational structure of a virtual organization can be quite dynamic; i.e. can change numerous times during the life time of the virtual organization. From the outside the shape of a virtual organization may change continuously. It may extend if additional tasks are identified which cannot be covered by existing members or if an external company seems to be a useful supplement for the virtual organization. Companies may leave because their internal goals do no longer meet the goals of the virtual organization. Finally, companies may have to leave if their value for the virtual organization does not meet the expectations. In the inside we have to deal with a permanent demand driven restructuring process with respect to functional units like groups or departments.Autonomy of membersMembers join a virtual organization intentionally. This implies that they are and will remain autonomous and independent. This, however, may result in that individual organizations may be driven by diverging or even conflicting aims. With respect to the underlying IS it means that each member keeps the responsibility for and the control of information concerning its part in the virtual organization. This can only be realized respectively ensured by a decentralized design for the information system of a virtual organization. It is not possible to integrate the individual system components of its members into one monolithic whole but they need to be kept separate and under the respective control of the underlying member organization.Temporal membershipA virtual organization is a temporary network of independent organizations. Temporal means that the lifetime of a virtual organization is normally either explicitly or implicitly restricted; the virtual organization is dissolved when its overall goal has been achievedISSUES THAT OCCUR WITH VOEven do Virtual...

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