Virtual Existence

What is a Virtual office? Advantages of Virtual office

What is a Virtual office? Advantages of Virtual office.

As we know that every Organization has offices or branches to run an organization just like that Virtual organization run by the Virtual office. And now we are learning about What is Virtual office? Advantages of Virtual office

Meaning/Definition: A Virtual office is a temporary network between a number of companies or people that come together to accomplish a specific venture. A Virtual office is created to exploit fast-changing opportunities and share skills and even facilitate access to global markets. Information technology is the means by which a Virtual office works.

A Virtual office provides several advantages/benefits:

1. Access to Specialized Resources.

A Virtual office gives access to a wide range of specialized resources of different firms.

2. Unified Face.

It presents a unified face to large corporate buyers. the networked companies need not deal individually with the buyers.

3. Flexibility.

It offers flexibility in operations. It can reshape the contribution of members firms as per demands of the project or assignment in hand.

4. Competitive Advantage.

A virtual office impels a competitive advantage because of its capability to develop superior products or services.

5. Cost Reduction.

A Virtual office reduces the office rental cost and office maintenance costs. It also results in a reduction of equipment costs.

6. Work From Home.

Employees can perform their office jobs by sitting at home or any other place. Work can also be easily performed by physically handicapped persons or by old persons who cannot commute to attend the office daily.

 

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What are Characteristics & Different Types of Virtual Organizations?

What are Characteristics & Different Types of Virtual Organizations?

Every organization have some characteristics & Different types, just like that virtual organizations have some Characteristic and Different types

Virtual Organizations can be classified into the following four categories:

1. Permanent Virtual Organization

Permanent Virtual Organization (PVO) is designed, from its inception, as a virtual organizations to bring together market players and respond to opportunities for both improved revenue-generating activities as well as cost–savings.

2. Virtual Teams

Internal organizational use of the virtual concepts has generated virtual teams in a variety of organizations. The organizational use of the virtual concept in this instance is in virtual tasks and virtual teams.

3. Virtual Projects

In virtual projects, organizations form alliances or coalitions to bring complementary organizations together to meet market opportunities. The alliance formed calls on manufacturers, developers, and markets from a variety of organizations to respond more effectively to market opportunities. In many cases, these are organizations based around similar industries or company types.

4. Temporary Virtual Organizations.

An extension of virtual project design is to establish a temporary virtual organization to take on multiple projects and develop responses to a particular market opportunity. These organizations represent a cooperative partnership of independent economic actors that join forces on a temporary basis to execute a common goal. They are usually very temporary and are based on complete equality in decision-making and leadership. These can be seen as a “temporary project-oriented portfolio of core competencies”.

Characteristics of virtual organizations:

A virtual organization is a temporary or permanent coalition of geographically dispersed individuals, groups, organizational units or entire organizations that pool resources, capabilities and information to achieve common objectives.

Virtual organizations are spatially dispersed. They can be formed across country borders throughout the world. Virtual organizations exist for specific purposes, e.g., to implement a long-term marketing strategy, to launch a new ground-breaking product or the achieve some scientific goal. These organizations quickly deliver products/services that are innovative and customized.

All sensitive information in a virtual organization is stored centrally and backed up, rather than saved in paper format. However, there is easy, e-mail or Web-based access to centralized data for geographically dispersed members of the organization. This is secure e-mail and /or Web-based access to the members to manage, share, and collaborate on business.

The membership and structure of a virtual organization evolve over time. Members of virtual organizations can switch from one project to another. In general, members have shared responsibilities, shared control, shared leadership, shared access to computing resources and services, and shared loyalty.

Resources, services and people with virtual organizations can be single or multi-institutional, homogeneous, or heterogeneous. Such an organization exhibits a unifying property because it is constituted from different organizational entities that create an effect of a single organization.

Virtuality is a matter of degree rather than a categorical property of an organization. Organizations can choose to virtualize their different parts, like production core, front end or back end.

The presence of information technology infrastructure is a necessary but not sufficient condition for a virtual organization formation. Examples of IT that can be used are e-mail, electronic file transfer, telephone, fax, screen sharing applications, video conferencing, groupware tools, project management applications etc.

 

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Definition and Explanation of Virtual Organization.

Virtual Organization Structure

How Does Virtual Organization work?

A Virtual organization is created around a central organization the relies on other organizations to perform manufacturing, distribution, financing and other crucial business functions on a contract basis. The core of the network structure in the central organization coordinates relationships and activities with the other organizations in the network. Sharing of information between the constituents of the network organization is usually facilitated by electronic technology such as electronic mail, fax, computer etc. This avoids the expense of renting new offices for the venture and costly travel time between companies. It also uses a network of independent firms that join together, often temporarily, to produce services or products.

Virtual Organization Structure

Responsible Factors for a Successful Organization

What are the factors for a Successful Organization?

As we know, every organization has some factors for success and achieve its goals. Just like that there are some Factors responsible for the success of virtual organizations:

  1. Cooperation, trust, and empowerment.
  2. Each partner contributes identifiable strength or asset.
  3. Skills and competencies are complementary, not overlapping.
  4. Partners are adaptable.
  5. Contractual agreements are clear and specific on roles and deliverables.
  6. Training is very important to team success.
  7. Technology is compatible and reliable
  8. Technical assistance is competent and available.

Advantages and Disadvantages of Virtual Organization

What are the Benifites/Advantages of Virtual Organization?

The greatest advantage of a virtual organization lies in the fact that it eliminates the physical boundaries of the organization, and the cross-functional teams and organizations are able to operate and collaborate in space and time by communicating with each other through electronic channels. The Internet becomes a significant interface between participating organizations, teams & individuals. The e-partnerships and virtual organizations allow businesses to sell and deliver products and services across the world in the most effective way. Other perceived benefits of e-partnerships and virtual organizations may include more business opportunities, better integration of suppliers and vendors, better management information, lower operating costs, better market understanding more. expanded geographical coverage. The virtual organization also offers the opportunity of consolidating resources of all partners and organization flexibility, as others forms of inter-organization partnerships and alliances do.

What are the Disadvantages of Virtual Organization?

Some disadvantage points that we must know about Virtual Organizations:

  • Less commitment of members on account of not being involved physically.
  • Members are often not able to work as a team. Creation and management of teams in often difficult.
  • Virtual organizations often are not economical to constitute.
  • Virtual organizations are temporary arrangements, they are not permanent or perennial.
  • It may not be possible to develop mutual trust between the members & firms in a virtual organization.
  • The Employees or staff of some firms may find it difficult to adjust to the virtual arrangement.

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