MSc-IT Study Material
June 2010 Edition

Computer Science Department, University of Cape Town

Review: The Virtual Organisation

Let us consider the ramifications of the virtual organisation.

There are a number of sociological effects, including the reduced need to visit the office. However, there is a downside to this; personal communication cannot easily be replaced by virtual communication.

As we enter the information age, the virtual organisation becomes more and more plausible. This change is more than just move towards e-commerce: it is a movement towards taking full advantage of the Internet to make a distributed company possible. Information can be easily exchanged and people can work together over the Internet. But the real world office is a very good environment to work within, and we perhaps should not completely replace it with a virtual company.

We can envisage a mixture of teleworking and face-to-face meeting, much like the mode of studying on this course.

The way you are operating now may be a precursor of how most people will work in the early 21st century

In the meantime, the growth of the Internet and the parallel enlargement of e-commerce will place huge demands on the technologies of intra-corporate communication. This is a vast territory which is opening up before us in new directions and new careers; for businesses, for managers, for technologists; for new styles of supplier and contractor.

These technological changes have generated a whole new way of doing business that has grown rapidly. Some experts call this the New Economy. Those of us who are literate in these technologies will be well placed.

"Success in the new economy will require inventing new business processes, new businesses, new industries and new customers, not rearranging old ones." Don Tapscott, Digital Economy

Exercise 7: Music on the Web

Consider the music shop that we've discussed in earlier Units. The owner now wants to extend his presence on the Web, including having lines of communication between his different branches. What things can he add, what is the expense of those things, and what are the benefits?

You can find some thoughts on this issue at the end of the unit.

Assignment 2: The Virtual Organisation

For this assignment you need to find a company that has an Internet site and that conducts some of its business over the Web. Do not choose one of the case study companies in this course, but one that is similar. You might find it helpful to briefly review the material in this Unit paying particular attention to the case notes, before you begin.

  1. List the dimensions of a business which can benefit from 'virtual reality' or 'non materiality'.

  2. Describe the company you have chosen and give its website address.

  3. List and describe the specific elements of its business that the company has put on the Web, and identify those that are non-virtual. Discuss what choices have been made and suggest some reasons for those choices.

  4. Consider the problems, both in business and in technology, that might be entailed in putting this company on the Web.

  5. What are the significant marketing and the social dimensions of the company?

  6. If you were to set up a virtual organisation yourself, what have you learnt from studying this example company?

If possible, discuss this on the Forum.

There are well-known examples of organisations which you may like to consider in answering some of the questions, such as:

  • Amazon — book store: 5.5 million customers

  • Yahoo — search engine: 144 million page views per day

  • e-bay — on line auction house: 1.27 million registered users

But also look out for smaller, adventurous pioneers.