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Managing the extended enterprise Changing value from virtual spaces
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Provocations Is it a smooth transformation from the real workplace to the virtual workspace? Is virtual participation automatically harmonious? Is there a new kind of distance emerging from virtual workspace? Reality or Illusion of Virtual connectedness?
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Virtual workspace Working anywhere and anytime Working for anyone Hallmarks of virtual organization Permeable boundaries, edgeless interfaces, “ no walls ” Short shelf life, continuous change Foundation of trust, rather than authority and structure Flexibility and variety Competence base (specialization orientation)
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Degree of virtualization Internal Individual Interpersonal Team Interdepartmental Global organization External B2b B2 individual customer B2 many customers C2C Business association
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Challenges Privacy vs. visibility Rich form with little information Virtuality vs. volatility Virtualize the contributors within a knowledge repository The Big Brother syndrome under surreptitious monitoring
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The value of virtual spaces Creating Relationships (on technology and personnel) The purpose of establishing relations Learning, complements, co-optioning Projecting Image (on technology and personnel) Leveraging complements Knowledge pool (on technology and personnel) Communities (on technology and personnel) User community — sources of innovation Weak-tie linkage =strong bridge (Mark Granovetter) Social capital
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Weak- vs. Strong-Tie Networks Weak-tie network The set of individuals: whom you know who know you but with whom there is no exchange of resources Strong-tie network The set of individuals: with whom you engage in ongoing resource exchange
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Managing the extended enterprise Design the communication environment Test the unintended consequences Include the virtual value by designing an open discourse forum Include and manage the diversity with patience and enthusiasm Manage the relationships Present a consistent interface Specify the rules of engagement — governance
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Extending readings Nohria, N. and T. Thierney (1999), “ What ’ s Your Strategy for managing Knowledge? ” Harvard Business Review, 77(2), pp. 106- 16. Venkatraman, N. and J. C. Henderson (1998), “ Real Strategies for Virtual Organizing, ” Sloan Management Review, 34(2), pp.73-87.
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