2) Transformation of the business enterprise: The internet & the new markets are changing the cost and revenue structure of the traditional firms, and are hastening the dimes of traditional business models.
The internet & related technologies make it possible to conduct business across firm boundaries almost as efficiently and effectively as conducting business within the firm. This means that firms are no longer limited by traditional organizational boundaries or physical locations in how they design, develop and produce goods and services. It's possible to maintain close relationships with suppliers and other business partners at great distances & outsource work that firms formerly did themselves to other companies.
In addition to these changes; there has been a transformation in the management of the enterprise. The traditional business firm was — and still is – a hierarchical, centralized, structured arrangement of specialists - who relied on a fixed set of standards of operating procedures. Also the traditional management group relied – and still relies – on formal plans, a rigid division of labor and formal rules.
By contrast; the new style of business firm is flattened, decentralized and flexible arrangement of generalists – who rely on nearly instant information to execute business. Also the new manager relies on informal commitments and networks, a flexible arrangement of teams & individuals.
The internet & the new markets are changing the cost and revenue structure of the traditional firms, and are hastening the dimes of traditional business models.
The internet & related technologies make it possible to conduct business across firm boundaries almost as efficiently and effectively as conducting business within the firm. This means that firms are no longer limited by traditional organizational boundaries or physical locations in how they design, develop and produce goods and services. It's possible to maintain close relationships with suppliers and other business partners at great distances & outsource work that firms formerly did themselves to other companies.
In addition to these changes; there has been a transformation in the management of the enterprise. The traditional business firm was — and still is – a hierarchical, centralized, structured arrangement of specialists - who relied on a fixed set of standards of operating procedures. Also the traditional management group relied – and still relies – on formal plans, a rigid division of labor and formal rules.
By contrast; the new style of business firm is flattened, decentralized and flexible arrangement of generalists – who rely on nearly instant information to execute business. Also the new manager relies on informal commitments and networks, a flexible arrangement of teams & individuals.