virtual organization structure

This post are answers in brief to the following major questions about Virtual Organizations.

What is the best suited structure for a Virtual Organization ?
Why would one prefer a Virtual Organization ?

I will be covering them in detail at a later blog but the basic structure is shown in the below diagram
Basic Structure of Virtual Organization

Virtual Organization

The diagram clearly shows that the structure is process controlled. Resources, people and suppliers should use the process as the medium to run the Virtual Organization or it will be chaos.

Product and services should also be connected to the process and hence the clients to the Virtual Organizations can follow the same process to be part of it. Agile management principles go hand in hand with VO wherein the clients become part of project itself.

Need of a Virtual Organization

The marketplace is changing dramatically and is expected to continue changing rapidly. Regarding environmental change, Huber and Glick (1993, p. 4) wrote. The fast-changing nature of today’s organizational environments is largely a consequence of two factors: (1) the increasing effectiveness of information technology (both communications technology and computing technology) and (2) the increasing effectiveness of transportation technology.

Huber and Glick (1993, p. 4) gave three examples of environmental change.
Global markets could not be what they are if information, products, and
people could not be moved as easily as they can.
The decline of manufacturing employment in the United States is directly a
consequence of automation (read “information technology”) and across borders
manufacturing and importation (read “transportation technology”).
The social issues that today affect organizations have much of their force
because advances in communications technology (1) make social
injustices and environmental tragedies vivid and widely known and (2)
enable many separate entities to communicate, coordinate, and cooperate
in confronting organizations on such matters.

I will detail these aspects in forth coming blogs. Please continue sending me responses and comments. Kindly also subscribe to my feeds(if you use a feed reader).