NEW EMERGING

STRATEGIES IN ICT

VIRTUAL ORGANISATION

A virtual organization or company is

one whose members are geographically
apart, usually working by computer
emailandgroupwarewhile appearing
to others to be a single, unified
organization with a real physical
location.

VO's (virtual organizations), refers to a

new organizational form characterized by
a temporary or permanent collection of
geographically dispersed individuals,
groups or organization departments not
belonging to the same organization or
entire organizations, that are dependent
on electronic communication for carrying
out their production process.

Virtual organization is a network of

institutions, companies, teams and
persons located in different places,
organized in loose-connected nottransparent structures, which are linked
for the common goal serving the
same client .

. THE EXAMPLES OF THE VIRTUAL ACTIVITY ARE

designing of airplanes, cars, building

objects, training of pilots using
computer simulation,
teaching foreign languages, selling
tourist services etc.

FEATURES OF THE VIRTUAL ORGANIZATION ARE:

1.
2.
3.
4.

5.
6.

NO SEPARATE ENTITY
INTERDEPENDENCE
USE OF ICT
GEOGRAPHIC DISPERSION OF
PARTICIPANTS
SUPPORT FROM TOP MANAGEMENT
MUTUAL TRUST AND RESPECT

The contracting orsubcontractingof noncore

activitiestofreeupcash,personnel, time, and
facilitiesfor activities in which a companyholds
competitive advantage.Companieshavingstrengths
in other areas maycontractoutdata processing,
legal,manufacturing,marketing,payrollaccounting,
or other aspects of theirbusinessesto concentrate
on what they do best and thus reduceaverage
unit cost. Outsourcing is often an integral part of
downsizingorreengineering.

Outsourcing is any task, operation, job or process

that could be performed by employees within an
organization, but is instead contracted to a third
party for a significant period of time. In addition, the
functions that are performed by the third party can
be performed on-site or off-site. Hiring a temporary
employee while your secretary is on maternity leave
is not outsourcing.
Examples:
Outsourcingour technical support function allowed
us to provide our customers with 24 hour support.

MIS

Kotler, (2006) defined it more broadly as "people,

equipment, and procedures to gather, sort, analyze,
evaluate, and distribute needed, timely, and
accurate information to marketing decision makers.

A marketing information system is the system or way

in which marketing information is formally gathered,
stored, analysed and then it is distributed to
managers in accord with their informational needs on
a regular basis. It is also a proceeding and
interacting structure of people, procedures and
equipment to gather, analyse, sort and evaluate
information for used by the marketers.

FEATURES

Continuous process
Professional approach
Systematic process
Components
Types of data

ADVANATGES

Decision making
Identifying strength and weaknesses
Identifying opportunities and threats
Optimum use of resources
Organisational objectives
Facilitates planning and control
Achieve organisational objectives
Helps to recognise the trend.

BARRIERS

Involves high cost for employees

training
Traditional management philosophy
Resources crunch
Lack of trained manpower
Problem of data collection and analysis
Time factor

ADVANTAGES OF INFORMATION TECHNOLOGY

Automated system
Remote access
Storing and protecting information
Communication
Cost effective
24*7 business hours
Competitive advantage
Customer relationships
Retention of talented employees