Sunday, April 27, 2008

Wharton - Chapter 17

Chapter 17 is all about the six new forms of organization, instead of the old hierarchical style. Although the lines between these types of organizations are not definite and these are not mutually exclusive, they can be broken into the following forms: Virtual, Network, Spin-out, Ambidextrous, Front-Back, and Sense-and-Respond.
Virtual Organizations are those that utilize technology to bring together geographically dispersed people, suppliers, employee, etc. Network Organizations are built of modular internal or external autonomous or semi-autonomous business units that basically are free to operate as they need to to meet company goals, with little supervision. The Spin-Out organization is a business unit that is its own identity from the large parent unit, that breaks away to become its own organization, with the parent unit primarily just being a financier or offering operating guidance. The Ambidextrous Organization allows an emerging technology to break out of the "innovator's dilemma" and it to be fostered and embarked upon, without the company abandoning its core business in the process. A Front-Back Organization is focuses first on satisfying the customer, then the organization works inward from there. Also focusing on customer needs, the Sense-and-Respond Organization is flexible to adjust and adapt to ever-changing customer needs.

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