Virtual Networked Organisations

Via Rob Paterson, more on the future of work and business models, with an in-depth paper by George Defermos on the Networked Organisation. From the abstract:

This paper examines the latest of paradigms – the Virtual Network(ed) Organisation – and whether geographically dispersed knowledge workers can virtually collaborate for a project under no central planning. Co-ordination, management and the role of knowledge arise as the central areas of focus. The Linux Project and its development model are selected as a case of analysis and the critical success factors of this organisational design are identified …

This is an excellent synthesis of the rise of the corporate, command and control model, looking at the models of Taylor, Ford and moving on to the work of Senge. Defermos then goes on to a case study of Linux, compared to its competior – Microsoft. Defermos shows that the virtual organisation, as he defines it, is better suited for certain tasks than a centralised structure.

The virtual organisation may be best –
1. When there is a desire for standardisation, in order to increase innovation.
2. To “dethrone a product or vendor” with monopolistic tendencies.
3. To maximise the market web and share in the profits.
4. When all vendors need the end-users’ input.
5. To discourage “corporate backstabbing”
6. When the project is extremely complex.

It doesn’t seem that the networked virtual organisation will replace the centralised corporation, but it I’m sure that we will see more and more of these project-oriented organisations in this networked world.

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