Technology

Abstract
This paper explores the realm of Virtual Organizations (VOs), outlining an overview of the concept, and describing its attributes and their need today. An analysis or literature review on critical issues companies face that implement VOs including the examples of companies involved in VOs. The importance of VOs and its characteristics can be easily understood through charts and graphs. Lastly, it highlights the future trends and advancements that will take place in the sector and practices measures to be taken.

Introduction
As we know today the business environment has become most difficult and challenging task. In the times when there is recession, people have cut their spending because of low income this has tremendously affected the organizations to survive in the market place. Competition has increased manifolds. Businesses have to constantly use innovations and cost reduction strategies to successful run in the long term. Therefore, they are shifting towards Virtual Organizations.

When sufficiency of resources, handling of personnel and managing logistical issues becomes complicated, organizations tend to turn towards virtual organizations. Virtual organization, by definition is a network that connects individual entities to serve productsservices through information technology to its customers. (Pang, 2001) Virtual organization is termed as virtual when it has two characteristics (Joia, 2002)

More than one independent unit sharing skill and knowledge

Electronically mediated
Virtual organization can be either B2B (business to business) or B2C (business to consumers) (Joia, 2002)
Virtual organization does not require people at one place to serve the customers. The organization does not have a physical existence. (Pang, 2001) It requires the following
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It is centralized with almost no departmentalization. An example is movies made in Hollywood through large vertically integrated companies. Large organizations use virtual structure for outsourcing manufacturing. These companies include Dell, Nike, and Reebok. Through VO a network of relationship is built to carry out business operations on less cost basis. The strength of VO is its flexibility. One of the drawbacks of this system is that it lacks full management control over the business main areas.

History of Virtual organizations
VOs emerged as in 1982 Vincent Guiliano concluded with his theory that a network organization should be there instead if assembling all the workers at specific time and place. Computers and computing technologies shall make a virtual office.

Abbe Mowshowitz in 1994 said regarding virtual organization

Allegory of virtual memory
The virtual organization is follows the principle of switching. Management has to switch the distribution of physical means in order to assure changing theoretical requirements

Based on Mowshowitzwork, in various publications the VO is defined as an organization network, e.g. A temporary network of independent organizations that work together based on balancing competencies and connect their information systems to those of their partners via networks aspiring at developing, making, and distributing products in cooperation.

Attributes
A discrete association of skillfulness and capabilities-The VOs structure is such that it brings a larger set of skills and capabilities from multiple locations. (Pang, 2001)

Usages of telecommunications and knowledge management technologies-These technologies support VO and their existence. It can be claimed that VO physically do exist in a form of sales workers traveling, staff working from home or are outsourced. However, it is these technologies that have made the life easier to serve the dispersed work teams. Thus eliminates geographical barriers and time limitation as well.  (Pang, 2001)

Flexibility, dynamism, restlessness-traditional difficulties of time and place have been solved by these organizations as they support dynamism (changes brought into the organizations and its workforce) through this, organizations are restless meaning more towards innovating products and services among the geographically dispersed locations and communication network. (Pang, 2001)

Collective Integration-VO brings together different organizations, independent units to interrelate with each other through a process of collaboration, confidence and trust, along with cooperation to achieve success. (Pang, 2001)

Why virtual organization
Process innovation requirement-competition and stakeholder pressures to acquire increased level of productivity and quality can be achieved through the implementation of VOs. (Pang, 2001)

Distribution of core competencies-VOs help address issues such as organization start ups, turnover and retirements. (Pang, 2001)

Globalization-Many organizations have realized the need of taking advantage the vast unused skills and knowledge existing all over the world. (Pang, 2001)

Workers mobility-VO gives the concept of getting mobile workers to work for the company like auditors, sales people, consultants and technicians.  (Pang, 2001)

Cost reduction-this will help reduce overhead expenses and improve efficiency such as cost associated with physical environment and distribution. (Pang, 2001)

Transforming of employee values and attitudes toward work-organization today realizes the fact that employees life is beyond the organization too and therefore a balance of personal and work life should be there to retain competent employees. (Pang, 2001)

Traveling costs-VOs help to deal with heavy transportation cost and problems including waste of time, traffic concerns, increased fuel costs and considering environmental friendly aspect. (Pang, 2001)

Structure of VO

Examples
Aventis, commenced with a merger of Germany based Hoechst AG and Rhne-Poulenc in year 1999. Being the global leader in pharmaceuticals and agriculture, its engineering department was encountering complexities in dealing with different organizations resulting in poor quality and less cooperation among the team. To handle the situation, a virtual organization was formed consisting of five (TSGs) technical service groups and one (TG) technological group through process technologies catering customer needs. TSG engineers can be situated anywhere in North America along with one TG located in New Jersey. The organizations mobility and focus on customers, in accordance with business objectives shares information and knowledge together.    (Pang, 2001)

Company Dell is moving towards virtual organizations that put emphasis on their supply chain to be filled by business partners. Meaning Dell is outsourcing its operations to get more efficiency, reliability and cost effectiveness in the process. Dells computer material parts are prepared by other companies in the meantime Dell strive towards its strengths i.e. customer loyalty and support, marketing, and the process of integrating the components to finalize computers.

Dell as a virtual organization finds it beneficial to serve its customers who pay online. It holds lower inventory in the system to save costs. (Pang, 2001)

British Telecommunication is the largest telecommunication service provide in Europes private sector. In 2000 they decided to reorganize its operations for advance management focus. Reformation of processes was undertaken, to conducts orders in a special way to be treated in the organization. Virtual teams of British telecom and consultants worked hand in hand using virtual technologies to successfully connect system of ordering with all the current system in the organization. This facilitated reduction in processing time. Company can now deal with the same number of population but in greater volumes. According to the spokesman, their collaboration has immensely improved with other telecom companies through the interface. (Pang, 2001)

Crowley Communications firm provides public relations activities like press releases, brochures, flyers, snaps and graphics. The firm has only one employee appointed to ensure the teams are working on the projects as required. These teams are dispersed in various areas of the country including California. Moreover the team consists of specialists linked through computers and telecomm technologies. The firm makes partnership with other marketing firm to commence larger projects. (Pang, 2001)

Reuters Holdings Company of financial information services in Great Britain has formed virtual teams consisting of twelve countries working together through the interface. Through the acquiring of non-disclosure agreements by using virtual organization approach, they have save recruitment costs, overhead expenses and staff benefits. (Pang, 2001)

Literature Review
Some critical aspects of virtual organization include

Communication Issues
There arent technical communication problems but they are connected to human factors. Inefficiencies arise due to miss communication among the virtual team members or the message does not clearly state its purpose to the one receiving due to intricacy that include language problem using slang in emails or informal conversation, jargon,  puzzlement over the use of teleconferencing protocols and other technicalities.   (Pang, 2001)

A problem comes about as whom to take in the communications. Mail box may be overloaded if a team member sends every one the message. On the other side, significant constituents may be left out or not conveyed in a proper manner to the team members. (Pang, 2001)

Message is efficiently delivered as we view the other persons vocal response or body language. In the case of virtual organization the absence of such interaction reduces the chances or likelihood of effective or quality message to be delivered. Furthermore, there may be misunderstanding in the usage of words, punctuation, language or showing the sense of urgency in the message. (Pang, 2001)

Finally, there is trouble in asynchronous communication systems in that it frequently takes time to converse. Responding to the message is deferred as the message is received. This may become a problem when important information is to be transferred on time. (Pang, 2001)

Managerial Issues
There is a requirement of new managerial style for mangers dealing with virtual organization to overcome specific issues that are faced in the work environment (Pang, 2001)

Impending exploitation and wasted time-There is no in person communication may affect employees work life as they would be less focused and engage into non-work activities.

Security-- intruder and hackers may get access to organization resources.

Managing and controlling at geographical distance--Traditional managers do not feel protected predominantly in a crisis when their employees are working tenuously. (Pang, 2001)

Encouraging employee self-motivation -discipline-it becomes a challenging task for managers to keep employees continue working on their job when there exists inadequate managerial oversight. (Pang, 2001)
Outlining goals and confines of responsibility-This must be done to ensure there is no duplication of work or effort or any specific job requirement. (Pang, 2001)

Inadequate personal contact-Employees may loose the solidarity of a customary office setting. Organizational and market state of affairs would avert employees from participating in virtual organization. For e.g. a company wants to have face to face contact with their customers as compared to the use of communication technologies. Moreover, cultural aspect also creates a problem because people may resist when trust and sharing of information is required due to security reasons. VO requires knowledge to be shared to successfully perform. Finally, implementation of VO becomes difficult as lack of communication technologies become a barrier.  (Pang, 2001)

Technological Changes
Today there have been a numerous transformations and developments for the support of VOs in the future. (Pang, 2001)

To get a hold of broader bandwidths, there have been advancements in telecommunications today. A consortium is designing a project of interent2 where number of universities approximately 180 is working to create tomorrows internet. Its crucial goals are to create network services for the national community and internet applications for a broader research community. (Pang, 2001)

There is a scope of advances in wireless technologies as well. For e.g. (3G) third generation wireless networks will be offering mobile data networks at high speed. Telecommunications Union groups will be arranged to get more bandwidth on wireless communications. This will enable the users to get hold of collaborative applications from the new generation and other services.   (Pang, 2001)

A group called Gartner has claimed that in the new era contextual computing will take over i.e. increased devices at home, offices, workplace, cars and on the individual himself, containing different interfaces connected with the environment where the individual is living. For e.g. a person driving would make the use of that time by checking emails or news through a system built in the car with a mixture of built in speech and intelligent driving force. This is soon to come. (Pang, 2001)

Organizational Trends
Supplementary telecommuting-With increased costs of energy and environmental issues government today tend to promote the telecommuting concept and the various types of VO.

Outsourcing--Many organizations have realized the importance of outsourcing to deal with requirements of the business especially when they get out of their hand. An example of outsourcing includes application service providers, here the data, specific applications are situated of the premises and accessible through internet. VOs can be treated as the basis for outsourcing such activities. (Pang, 2001)

Storefronts flexibility of 24-hour-a-day internet serves the consumer need for convenience when accessing their choice of product or service. VOs help support their need.

Partnerships and premeditated alliances-increasing partnerships and strategic alliances have become necessary to gain competitive advantage and additional customers. VO help facilitate this structure. (Pang, 2001)

Enlargement in virtual intermediaries-Examples include education agent, market schemer and custom-made service supplier. (Pang, 2001)

People Trends
Prospects of employees tend to vary in the outlook. From the research and study the following trends may be projected in the coming years
No usage of agenda or workplace
Emphasis on ones own responsibility, self esteem, and self-discipline
Flexible rules and regulations to follow
Mobile individuals
Job insecurity for those not fully participating VO
Suggestions and future preparation-
Create a vision- Know the projected end position to categorize the itinerary in which the organization should focus. (Pang, 2001)

Deem new behavior at work and supervise people- Because of the unique qualities of VOs, executives should consider different ways to assess the performance of employees.

Comprehend the innovative technologies- For optimal value, it is vital to identify the benefits and limitations of the diverse technologies used to sustain VOs. (Pang, 2001)

Choose the right teammate- Consider not presently the correct team members but external partners who will be supporting the entire organizational requirements through VO strategies.

Enabling virtual organization requires technologies which are readily available-However, there has to be willingness and acceptance of the VO approach from the society, organizations and persons to comprehend the effective measure to management. Although the concept is burdened by many obstacles, but in the end the result should matter and the measuring of benefits should be important. (Pang, 2001)

Best Practices
Based on the issues regarding managerial and technical trends under the VO concept, the following are some of the best practices
Promote collaboration, confidence and delegation of authorities.
Check every partner makes significant contribution of asset as well as strength
Assure skills and competencies are corresponding, not overlying.
Make sure cohorts are adjustable.
Ensure contractual conformities are comprehensible and explicit on roles and responsibilities.
If feasible, do not swap in person interface entirely.
Give training that is vital to team victory.
Realize that building a team acquire time.
Ensure that technology is similar in temperament and dependable.
Present proficient and obtainable technical support.
(Pang, 2001)

Conclusion
Virtual organizations are the top focus of companies today. Companies have to be very careful when implementing VO and assess all the vulnerabilities and obstacles they may encounter. To stay competitive in the business world, business has to adopt these technologies to remain viable in the future.