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Preprints & Reprints 21st Century Companies The accelerating development of technology is placing increasing strains on the old vertically integrated industries. Those unwilling to change are now experiencing difficulty in operating, competing and surviving. To be successful in the next century, companies will have to drastically alter their structure and mode of operation. The world is undergoing a major globalisation with a restructuring of the Fordist production process across national boundaries. Realising an integrated structure will require telecommunications systems to provide the 'glue' essential for global co-ordination. As a result, companies are coming under increasing pressure to rethink their operations in order to position themselves in the new competitive era. This means a faster on demand delivery of better products of increasing sophistication at lower cost. Common features of the evolving industries are:
As the competitive environment reduces reaction times, faster decision making is essential, requiring the intelligent processing of more data. This has to be underpinned by advances in IT within the legislative and policy frameworks which may allow or restrict such advantage. Telecommunications is thus critical for all sectors of the global economy. Technology
Value Networks Telecommunications will play an essential role in enabling companies to respond effectively in a dynamic, real-time economy in which the unifying managerial resource is information. The vertically integrated company, characteristic of older industries, will become less viable. One process leading to the demise of older structures is the inability to retain strategic information as the convergence of industries necessitates increasing collaboration. We already see companies collaborating in one sector whilst competing (with different partners) in another. Virtual Organisations As the virtual company becomes more common, specialised companies may dominate. Those employing a small core of workers may wield tremendous financial power in the design, planning and manufacturing capacity of the planet. This could be particularly important as the 'means of production' shifts from the owner of production tools to the owner of the knowledge to control those tools - the information worker. One of the stages towards this more integrative but distributed global operation is the transition to flatter and more fluid organisations with multi-directional information flows. Such structures may only be temporary as the market becomes more chaotic (in the mathematical sense); it is unclear what types of organisational structure will be viable under such extreme conditions. It is also unclear what regulatory and legislative frameworks will best suit the requirements of this global economy. Impact Such cohesion can be enhanced through:
This globally competitive environment, reliant on inter-working networks, will depend critically on co-operation between competitors. New ground-rules for operation in the marketplace will evolve, perhaps exhibiting many radical changes. However, there are certain attributes which successful players will have to develop:
These changes will impact on the lives of individuals who will no longer expect or be provided with jobs for life as companies make increasing use of contractors. The future working environment will demand people prepared to continue learning and developing throughout their lives. Individuals will have to develop their own strategies for coping with this demanding environment in which multi-tasking will become common-place. Many may become simultaneous employers and employees. Conclusion Word Count = 1021 |