What Is a Virtual Enterprise?

A virtual enterprise is also called an enterprise dynamic alliance, which means that an enterprise completes the conceptual design of a product after market research and research, and then organizes other enterprises with certain design and manufacturing advantages to form a business dynamic organization to quickly complete product design processing. Seize the market. Virtual enterprises have a high degree of flexibility to adapt to market capabilities. ^[1]

Virtual enterprise

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A virtual enterprise is also called an enterprise dynamic alliance, which means that an enterprise completes the conceptual design of a product after market research and research, and then organizes other enterprises with certain design and manufacturing advantages to form a business dynamic organization to quickly complete product design processing. Seize the market. Virtual enterprises have a high degree of flexibility to adapt to market capabilities. ^[1]

Resulting background

An enterprise, as a special socio-economic organization, is a historical product and a product of commodity production and commodity exchange. Along with the transition from agricultural society to industrial society, enterprises have gradually formed and developed. In the late 19th and early 20th centuries,

A survey of virtual enterprises organized by an expert summed up three important points. First, the virtual enterprise is essentially an electronic online organization. Supporters of this view use Amazon. com and eBay. com as an argument, the space for the survival and development of these websites comes entirely from the opportunities provided by the Internet. The so-called virtual enterprise or e-business is relative to traditional entities

The process of establishing a virtual enterprise organization can be roughly divided into 4 stages:

Goal determination. It includes two steps: . Opportunity search and evaluation analysis is to evaluate the risk and profitability of an opportunity in order to determine whether to respond to the opportunity and determine the core resources required for the opportunity.

Characteristics of virtual enterprises

Virtual enterprises blur traditional corporate boundaries. Virtual enterprises are not complete economic entities in the legal sense and do not have independent legal personality. Some enterprises with different resources and advantages come together for common interests or goals to form a virtual enterprise. These enterprises may be suppliers, customers, or competitors in the same industry. This new type

Compared with traditional organizational forms, virtual enterprises have obvious advantages:

Talent advantage

The use of modern communication and information technology has greatly shortened the distances around the world, and location is no longer a factor that directly affects people's working and living places, which has greatly expanded the organization's talent source channels. Organizations can dynamically gather and utilize talent resources from all over the world, which creates the conditions for acquiring skilled talent that is often difficult to recruit, while also reducing the loss of key talent.

Information advantage

The members of the virtual enterprise come from a wide range of regions and can fully access technology, knowledge, and product information resources from all over the world, which has laid a foundation for maintaining the advanced nature of the product. At the same time, members can collect relevant information from customers in various places, reflect customer needs, and solve customer-related problems in a timely manner, so that they can fully understand customers, and help organizations design and develop products and services that meet customer needs as soon as possible Good customer relationship.

Competitive Advantage

Virtual enterprises gather outstanding talents from all over the world. They have the advantages of knowledge structure in their respective fields. The combination of many individual advantages will inevitably form a strong competitive advantage. At the same time, through knowledge sharing, information sharing, and technical means sharing, the good experience and inspiration of outstanding members can be quickly promoted in the digital management network to achieve complementary advantages and effective cooperation. Good knowledge collection, screening, sorting, and analysis tools and mechanisms within the network enable scattered knowledge from many different channels to be quickly integrated into the collective wisdom of the system and transformed into a competitive advantage.

Efficiency advantage

Information technology is one of the effective means for an efficient organization to cope with changes in the environment. The temptation of technology is even more obvious when virtual companies use the latest technologies such as the Internet, email, mobile phones, and video conferences to achieve basic communication. According to some investigations conducted by Bert Consulting in 2004, information can be exchanged among members of the virtual enterprise in a timely manner to prevent information retention, thereby shortening the time for information communication and exchange and ensuring that relatively correct decisions are made in a timely manner.

Cost advantage

Virtual enterprises break the boundaries of the organization, allowing the organization to make extensive use of external human resource conditions, and reducing the pressure on internal labor costs. On this basis, the organization can greatly streamline the organization, redesign the organizational structure, move personnel in a direction conducive to the development of the organization, and promote the flattening of the organizational structure. In addition, the company's flexible work model reduces members' office costs, travel expenses for gatherings, etc., and reduces the cost of relocating employees, which reduces management costs. ^[2]

Architecture and building methods. The structure of the virtual enterprise is completely different from the problems involved in the establishment and traditional enterprises.

False

The transformation of the management model in the information age can be used as the basis for building a virtual enterprise management model. During the transition from the industrial age to the information age, management will also undergo huge changes in terms of structure, control, power, and communication.

(A) the transition from routine to complexity

It is not the work in the process that actually causes the loss of corporate benefits, but the decision in the process. Many good ideas are often put on hold, shelved or dismissed. When these ideas are seriously considered, it is too late, and they are often confused by the market opportunity trap. It is these random decisions that consume the power, inspiration and wisdom of the enterprise. The reason is that technological changes are commonplace in the information age. Decisions often need to be made when the facts are unclear and related information is lacking.

(B) the shift from order to parallel

The serialized production process makes people and processes separate from each other. Each functional department has its specific task, but lacks a proper understanding of the operation of other functional departments. When working in parallel in parallel, a new impetus can be generated. This not only means that the functional departments operate simultaneously, but more importantly, collaboration. Traditional organizations have a complex set of operating procedures to determine reporting channels, levels of authority, departmental privileges, job definitions, and operations. In this structure, decisions come from the top level of the organization, while behaviors are at the bottom level. Middle-level managers guide, supervise, and control the lower-level personnel based on the opinions of the high-level. This strict hierarchy allows work to be passed to the next department in a sequential order. The development of new technologies makes it easier for companies to work in parallel, and to handle complex market issues by grouping people from different functional departments and companies into multiple tasks. The operation process of the virtual enterprise is based on the participation of multiple parties in the market. Through the sharing of expertise resources and information, the capabilities and strategic intentions of all parties are extended. Cooperative negation of internalization enhances the ability of virtual enterprise resource mediation. The participating parties have no administrative affiliation and are independent of each other. Self-discipline and negotiation become the basic rules in operation.

(3) The shift from command and control to concentration and coordination

Strict hierarchy has a command-control structure whose instructions come from the top. Only high-level personnel have the knowledge and wisdom, and lower-level personnel must engage in creative activities with the permission of the relevant high-level personnel. The importance of the person in the organization depends on his carry, which is reflected by the number of direct reports, the authority to approve the budget, and whether it is close to the center of power. We often see situations in which senior personnel are only good at giving orders and never try to make innovative suggestions. The main reason is that people who are often willing to ask questions are often considered unwise people, and they are not at the same level as their senior positions. Commensurate. Virtual enterprises are task-oriented. In a self-organized virtual work team, tasks frequently change, and the degree of specificity of knowledge is very high. It is necessary to transfer leadership decision-making power to different people according to specific projects. In the information age, the changes in the environment and the speed of knowledge renewal are constantly accelerating. No one can possess the complete and effective knowledge that a long-term leadership should possess. Fixed leadership cannot guarantee the adaptability of an organization.

(Four) the change from post authority to knowledge authority

In a strict hierarchy, positions and authority have been formulated: the higher the position, the greater the power. High-ranking leaders do not need to listen to the opinions of their subordinates, they only need to monitor and control their subordinates. When the superiors explain the work to the lower levels, they all have detailed instructions and explanations. The lower levels only need to accept the rules of the game and do not need to be creative. The information age requires companies to use cross-functional departments and knowledge resources that transcend corporate boundaries to achieve market strategy success. Strict hierarchies are bound to be replaced by task-centric teams. In a virtual enterprise, individual knowledge becomes more important and easier to obtain, and those who lack knowledge cannot hide behind positions even with high positions. Through the information network,

Virtual enterprise

People soon know who owns the knowledge and who can share it. Those who have the knowledge will surely become the core figures in the virtual enterprise. The authority of the position is based on determining the distribution plan based on the position arrangement, and even the least knowledgeable people have a reasonable chance of success. On the one hand, the education level of employees is very high, on the other hand, it is impossible to make full use of their talents; even if the superiors do not know anything in fact, they are often considered to know everything, and people between different levels cannot do Good communication and learning. Virtual enterprises are based on knowledge authority. Managers must treat others in good faith, discover what others really know, and master the abilities, needs, and experience of their subordinates. Knowledge is not only manifested at the superficial level of knowing something. Knowledge has multiple manifestations: knowing how to do (know-how), that is, the way to complete the task; knowing who to look for (know-who), where to go Find key information; know what (Know-what), that is, have the ability to identify the main mode based on knowledge; know why (that is, can understand the background of the event and the company's intention); know where ( Know-where), that is, knowing where the event may and should happen; Know-when, that is, having a sense of the Commonwealth, the ability to choose a motor, and a realistic attitude.

(5) Transition from distrust and obedience to trust and honesty

Distrust seems to be rooted in a strict hierarchy. The fragmentation of the structure has led to mutual distrust among functional departments, and complaints among departments have become commonplace. The application of enterprise reengineering theory has greatly improved productivity, fundamentally changed the operating efficiency of the enterprise, broke the independent boundaries between internal departments of the enterprise, and made great progress on the interface of departmental cooperation, but the cooperation between enterprises Not always resolved. In the information age, sincere cooperation between enterprises is required. A virtual enterprise is a random and random organization. The value of cooperation comes from the reduction of duplication and waste, the use of each other's core capabilities, and the creation of new opportunities. The value basis is trust and honesty.