Investigation into Virtual Organisation facilities

High school
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Business
Pages 40 (10040 words)
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In order to amplify competitiveness, enterprises need to be able to react to varying and increasing market demands. To become more elastic, companies make use of outsourcing with the intention to focus on their core competencies. This dissertation is related with the evolution of Virtual Organization…

Introduction

Growing complexity in the business environment makes "business as usual" ineffective. (Keen, 1991) Globalization calls for communication and synchronization across diverse time zones and locations. Time constraints require reduction in reaction time, driving businesses to just-in-time inventory, orders, scheduling, payments, manufacturing, distribution, etc. Change has become the norm, an unpredictable basic reality.
The fresh economic cutting edge is the knowledge economy, and right now about 97% of all employment expansion is coming from knowledge work. Wealth today is generated principally by the value people add through new ideas. (Moyer, 1994) What members of these workgroups do is called collaborative work and they must often overcome barriers of time zones and geography to document what has been accomplished. (Stuck, 1995) To stay aggressive in today's business atmosphere requires new levels of collaboration and dexterity, both within and between organizations. Communications networks and IT are the tools that make possible this "working together apart," and telecommuting (or home working) is making workgroups more productive. (Stuck, 1995)
IT plays a fundamental role in supporting critical activities, enabling organizations to make efficient and effective changes in the manner in which work is performed (Turban, 1996) and offe ...
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