MGT 490 Lecture 50: Modular vs. Virtual Organizations
Document Summary
Maintains full strategic control over most critical activities (core. Directs firm"s managerial & tech talent to most critical activities. Achieves best in class performance at each link in value chain. Leverages core competencies by outsourcing w/ smaller capital competencies) commitment. Encourages info sharing & accelerates org learning: cons: Inhibits common vision through reliance on outsiders. Diminishes future competitive advantages if critical techs or other competencies are outsourced. Increased difficulty of bringing back into firm activities that now add value due to market skills. Decreases operational control & potential loss of control over supplier. Creates best of everything org since each partner brings core competencies to the alliance. Encourages both individual & org knowledge sharing. Harder to determine where 1 company ends & another begins. Leads to potential loss of operational control among partners. Results in loss of strategic control over emerging tech.
