CSc 375
SOCIAL ISSUES IN COMPUTING
Department of Computer Science
City College of New York
Spring 2006
Copyright © 2006 by Abbe Mowshowitz
TOPIC 5. VIRTUAL ORGANIZATION
A. Introduction
1. Examples
a. Company shipping department
b. University department
2. Advantages
3. Management challenges
4. Technological substrate
TOPIC 5. VIRTUAL ORGANIZATION
A.1.a. Shipping Department
Services
• overnight
• three days
• one week
• two weeks
+ same day
- two weeks
Service Providers
• postal service
• inhouse courier
• UPS
• FEDEX
+ DHL
- inhouse courier
TOPIC 5. VIRTUAL ORGANIZATION
WAYS AND MEANS OF DELIVERY
overnight
postal service
three day
in house courier
one week
UPS
two weeks
FEDEX
TOPIC 5. VIRTUAL ORGANIZATION
A.1.b. UNIVERSITY DEPARTMENT
Services
• Intro (C++)
• Discrete Math
• Data Structures
• Software Design
+ Intro (JAVA)
- Intro (C++)
Service Providers
• Regular Staff
• Adjuncts
+ Adjuncts a,b,c
- Regular staff x
TOPIC 5. VIRTUAL ORGANIZATION
Courses and Staff
introduction
regular staff
discrete math
data structures
software design
adjuncts
TOPIC 5. VIRTUAL ORGANIZATION
A.2. Advantages?
• Leveraged use of resources
• Cost savings (e.g., lower overhead)
• Greater flexibility
TOPIC 5. VIRTUAL ORGANIZATION
A.3. Management challenges
• Grasping the Potentialities of
Virtualizing Commercial Relations
• Planning for Change
Key: Virtual Organization
TOPIC 5. VIRTUAL ORGANIZATION
A.4. Technological substrate
Transport
Computing
Telecommunications
GLOBAL NETWORKING
INFRASTRUCTURE
TOPIC 5. VIRTUAL ORGANIZATION
B. Faces of Virtuality
1. Examples
• Virtual Corporation or Enterprise
• Virtual Office
• Virtual Team
• Virtual Classroom
TOPIC 5. VIRTUAL ORGANIZATION
B.2. Features
• Organizations without walls
• Effective use of computer
communications
• Alliances and joint ventures
• Facilities moved at will over space
• Distributed organization of work
ABSENCE OF WALLS
TOPIC 5. VIRTUAL ORGANIZATION
C. Unifying Definition
1. Search for common thread among
features
2. Related constructs
- Virtual Memory (computers)
- Virtual Circuit (networks)
- Virtual Reality (multimedia)
TOPIC 5. VIRTUAL ORGANIZATION
C.3. Common to all
SPLIT BETWEEN NEEDS AND MODES
OF SATISFACTION
motivating the following
three-part definition
TOPIC 5. VIRTUAL ORGANIZATION
C.4. Definition (Part 1.)
A virtual organization is a goaloriented social unit operating under
metamanagement.
TOPIC 5. VIRTUAL ORGANIZATION
C.4. Definition (Part 2)
Metamanagement is the management of a
virtually organized task.
• Analyzing abstract requirements
• Determining concrete satisfiers
• Tracking allocations
• Maintaining/revising allocation
procedure
• Reviewing satisficing criteria
TOPIC 5. VIRTUAL ORGANIZATION
C.4. Definition (Part 3)
A virtually organized task consists of
(1) abstract requirements
(2) concrete satisfiers
(3) (re)allocation procedure (switch)
(4) ‘satisficing’ criteria
TOPIC 5. VIRTUAL ORGANIZATION
C.5. Switch
THE SWITCH ASSIGNS SATISFIERS TO
REQUIREMENTS
ACCORDING TO THE SATISFICING
CRITERIA
TOPIC 5. VIRTUAL ORGANIZATION
C.6. Switching complements existing
practices
a. Division of labor/specialization of
function
– task simplification
– combinational flexibility
EFFICIENCY (Adam Smith)
CHEAPER LABOR (Charles Babbage)
TOPIC 5. VIRTUAL ORGANIZATION
C.7. Critical management elements
• Abstract requirements
• Concrete satisfiers
• Assignment of satisfiers to requirements
• Tracking assignments
• Switching
• Satisficing criteria
TOPIC 5. VIRTUAL ORGANIZATION
C.8. Limitations of switching
• Excessive switching can nullify
gains
• Advantages limited by analogue of
thrashing in virtual memory
systems
TOPIC 5. VIRTUAL ORGANIZATION
D. Innovations reflected in virtual
organization
1. Systematic use of switching by
management
2. Generalized resource allocation
model
TOPIC 5. VIRTUAL ORGANIZATION
D.2.1. Classical allocation methods
- Examples: personnel assignment,
static resource allocation
- Requirements and satisfiers are
fixed: little or no switching is
involved
TOPIC 5. VIRTUAL ORGANIZATION
Classical (static) allocation problem
TASKS
WORKMEN
TOPIC 5. VIRTUAL ORGANIZATION
D.3. Dynamic resource allocation
•
•
•
•
Requirements can vary
Satisfiers can vary
Procedures can vary
Systematic switching is supported
TOPIC 5. VIRTUAL ORGANIZATION
E. General examples of virtual
organization in the real world
TOPIC 5. VIRTUAL ORGANIZATION
E.1. Automobile Assembly
SATISFICING
CRITERIA:
cost-quality
relationship
SWITCHING:
change suppliers
COMPONENTS
SUPPLIERS
TOPIC 5. VIRTUAL ORGANIZATION
E.2. Tax Management
SATISFICING
CRITERIA:
minimize overall
taxes
SWITCHING:
shift obligations
between plants
TAX OBLIGATIONS
OBLIGATION PER PLANT
TOPIC 5. VIRTUAL ORGANIZATION
E.3. Portfolio Management
SATISFICING
CRITERIA:
maximize risk
return
SWITCHING:
substitute
investment
INVESTMENT TYPES
SPECIFIC INVESTMENTS
TOPIC 5. VIRTUAL ORGANIZATION
E.4. High Tech Help Desk
SATISFICING
CRITERIA:
maximize satisfactioncost ratio
SWITCHING:
substitute service
provider
CLIENT SERVICES
SERVICE PROVIDERS
TOPIC 5. VIRTUAL ORGANIZATION
F. What makes virtual organization work?
1. Information commodities
2. Standardization
3. Financial instruments
TOPIC 5. VIRTUAL ORGANIZATION
F.1. Information commodities
a. Goods or services furnishing
information
b. Computer-based types: software,
databases
c. Information marketplace
TOPIC 5. VIRTUAL ORGANIZATION
F.1.c. Information marketplace
(i) Computer-based alternatives to
human-borne knowledge
(ii) Lower costs
(iii) Greater flexibility
TOPIC 5. VIRTUAL ORGANIZATION
F.2. Standardization
a. Technical
– access (Wireless Application Protocol)
– information exchange (XML based EDI)
– interaction (conferencing protocols)
PROTOCOLS FOR
ELECTRONIC COMMERCE
TOPIC 5. VIRTUAL ORGANIZATION
F.2.b. High level business protocols
INTERCHANGEABILITY OF
ORGANIZATIONAL PARTS
(‘socionomics’ and ergonomics)
TOPIC 5. VIRTUAL ORGANIZATION
F.3. Financial Instruments
• Exchange
– online payments
– electronic wallets
• Financial management
– derivatives
– hedging strategies
• Tools for building new instruments
e.g., securitization
TOPIC 5. VIRTUAL ORGANIZATION
G. Current Practices
• Outsourcing (‘cut & paste’)
– products and services
– labor
• Inventory Management
– just in time
– quick response
• Electronic brokerage
– customer order management
– logistics management
TOPIC 5. VIRTUAL ORGANIZATION
Global Outsourcing
TOPIC 5. VIRTUAL ORGANIZATION
E-Brokerage
SATISFICING
CRITERIA:
meet specs at
minimal cost
SWITCHING:
substitute
subset
REQUEST TYPES
SUBSETS OF VENDORS
TOPIC 5. VIRTUAL ORGANIZATION
H. Costs of virtual organization
• Assignment of new satisfier to
requirement
– transaction (e.g., accounts and database
changes)
– legal (i.e., new contracts)
– interfaces (e.g., new systems)
• Requirements analysis and satisfier
scanning
TOPIC 5. VIRTUAL ORGANIZATION
I. Long-Term Implications
1. Claim:
Virtual Organization Will Prove
Irresistible to Managers because
People Act in What They Perceive to Be
Their Best Interests and
The Competitive Advantage of Virtual
Organization Will Become Apparent
TOPIC 5. VIRTUAL ORGANIZATION
I.2. Balance Sheet
• Advantages
– efficiency and effectiveness
– responsiveness and flexibility
• Disadvantages
– costs (intelligence, switching)
– human relations (weaker ties)
TOPIC 5. VIRTUAL ORGANIZATION
I.3. Requirements of Switching
• Ease of forming, modifying and
terminating relationships (‘coupling
and decoupling’)
– person to person
– person to organization
– organization to organization
• Mobility
TOPIC 5. VIRTUAL ORGANIZATION
I.4. Transformation of social relations
a. Trust: from static, status-based to
dynamic, job function-based
b. Loyalty: from subjective, affectbased to objective, common
interest-based
TOPIC 5. VIRTUAL ORGANIZATION
I.4.c. Conditions of interaction
(i)Homogeneity (reliability ensured
by authority and custom)
(ii) Diversity (reliability ensured by
standardization)
TOPIC 5. VIRTUAL ORGANIZATION
I.5. Virtuality Reinforces Fragmentation
a.Decline of nation state power
b. Devolution of power and authority
onto ‘private’ organizations
TOPIC 5. VIRTUAL ORGANIZATION
I.6. Emerging Political Economy
• Power and authority centered in virtual
organizations
• Political power and authority exercised
by private organizations
• Economic power based on globally
distributed resources
VIRTUAL FEUDALISM