Virtual organization (grid computing)

A Virtual Organization ( VO) is a form of organization where legally independent companies and / or individuals virtually join together (usually via the Internet) for a period of time to a common business partnership. To third parties or clients the Virtual company acts as a single company. By virtuality is the physical location of the individual participants is not important. Here, it is trying to optimize the value chain through cooperative collaboration of partners with specific core competencies and thereby achieve very customer oriented and competitive goods and services. The information and communication technology ( ICT) are in this respect to elementary importance, since they enable the required overcoming space and time only.

Features

The characteristics of the virtual organization are flexibility, no direct communication and customer orientation. Virtual enterprises cooperate without having to start a business, to find a location, hire staff and build an organization. There will be time-limited market potential exploited through cooperation. Unlike other collaborations such as: joint ventures is omitted, the institutionalization of central management functions. There is no specialization in a portion of the value chain, but it can be the whole chain are included. Individual sub-processes are processed distributed to the partners according to their core competence, and then decentralized. The virtual organization is particularly suitable for the production of customized solutions for mass production because traditional forms of organization are better suited.

The merger to form a virtual organization thus allows more flexible forms of temporal, spatial and functional boundaries and enable a new way of looking at the emerging organization. The development of this form of organization has its origins in the use of virtual storage of IT. The resulting enhanced virtual reality and the now ubiquitous virtual offers in the form of on-line stores or online music stores have paved the way for virtual organizations.

Legal classification

Since it is only the association of legally independent participants in virtual organizations, there is no form of society. The cooperation is usually only after power exchange contracts. In Germany the virtual company falls under the civil law partnership, except to fix a different social form, such as a GmbH or AG. Thus, taxation aspects must be observed.

Dimensioning: The forms of virtualization

While the classic virtualization research still assume a standard model, some authors are starting to see the virtual organization as the result of continuous development in the multidimensional space. This is what the following models available. The three- stage model is more technically oriented information, while the virt.cube model is geared more organizationally.

This model is a combination of specific skills and ways of thinking. In this case, this mind is not only intended for high- tech firms, but affects the overall gearing of the company with the environment. For Venkatraman and Henderson postulated three development vectors:

  • Virtual offer and may consume products and services (virtual encounter )
  • Leverage effects through the virtualization of intra - and inter-firm procurement process (virtual sourcing )
  • Wissensleverage through efficient bureaucracy and free form " production " of expertise (virtual expertise )

These three vectors are not independently selectable, but are rather successful if companies move on all three vectors simultaneously. Therefore, the expression correctly by a stage model. These virtuality steps lead

  • At level 1 to the virtualization of individual aspects or units
  • Level 2 around the coordination between the units and
  • At level 3 around the merging of units, creation of a (virtual ) community.

The virt.cube model The virt.cube based on three dimensions:

  • Virtual reality through the creation of a computerized object → Organization replica
  • Realignment of core competencies " by redesigning organizations → Organization realignment
  • Soft integration through organization bringing together

Pros and Cons

As a major advantage, especially the huge cost saving potential has to be mentioned here that arises by eliminating the space, organization or travel expenses. Through traditional forms of enterprise would not be able to adapt so well and with such flexible virtual organizations to new market demands in a dynamic environment. Since each participant brings its core competence, there is a very efficient work results. Furthermore, split the market development costs through collaboration and lowered barriers to entry.

Often only the advantages of this organization are seen, but on closer inspection the flexible and light structure of the project-oriented virtual organization is exposed to several sources of danger. The informal organization is difficult to control. Due to the strong dependence between the partners, it may occur that individual partners to exploit this for their own benefit (eg, disclosure of confidential data to third parties). Sanctions for such participants are difficult to enforce. Therefore, it is advisable to take virtual organizations only with "trusted " and long -term business partners.

Even for the employees there can be problems. You can be difficult to develop a sense of belonging and identify with the company. Furthermore, it is doubtful that all communication can be carried out completely virtual. In addition, the total dependence of a fully functional information and communication technology must be viewed as a disadvantage.

Virtual enterprise / virtual organization

  • Utilization of temporary market opportunities through cooperation
  • Waiver of institutionalization central management functions
  • Virtual organizations are independent companies that can cover a larger area through collaboration and optimize your strengths.
  • " One face to the customer" although louder separate companies and not a legal entity

Areas of application

  • Grid computing
  • Association of experts who are located in different countries of the world, to a pool of experts.
  • Cooperation on markets with high product complexity and market uncertainty
  • Development of open source software (eg Linux kernel)

Literature sources

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