About networks, networked
and network-centric organizations
Passage from «Some Essays About Management»


                ...
No doubt, our dreams –

that’s wonderful!
We dream –
modeling, designing and creating our own future thereby…
BUT!
We have not only

our own separate futures
Suppose that we dream all together about the future
of our profession - about whom and how we’ll manage?
Dreaming together
  means to begin arranging about what

our future will bring us
What is the future of management?
What will replace industrial type of relations
  at the age of global communications?
Complexity and ramified structure
     of communication channels and interrelations
require new types of organization and ...
… Methods, based on ideology

of participants’ equality
  and on optimization of their abilities
Like in

networked organizations
Networks and networked organizations
represent particular and special view
on reality and reflect the general
understandin...
What are networks, and what they can be like?
Level 1. Global network

That’s global economy – which is the integrated
environment based on digital communication.
Every...
Level 2. Networked organization
(«corporation without borders»)

By this time, here is meant the limited entity of
autonom...
Level 3. Network-centric organization


It is a temporary or permanent organization
with network-based connections, relati...
Network-centric organizations, in their
turn, can be:

— network project group
— business organization inside
— business o...
The network project group is a temporary hierarchy
in an existing «corporation without borders».

Here is no difference be...
Method of business organization inside –
the logic of networked organizations is brought
onto its internal life, structure...
Method of business organization outside –
the key business only is gone under the organization,
the rest are brought for o...
What’s the use from the networked organization of business?
Instant access

 to all centers of competencies
and all resources, required for our concrete goals achievement
Flexible, quick and

multiversional structure,
  with rights and duties dynamic assignment,
ready for any change of extern...
Rational structure of expenses –
only what we need for the moment works
What is common for networked
and network-centric organizations,
 what enables that they appear?
The principal backbone factor for network initiation

               is ideology
              – «engineered» reality
Between backbone factors for networked organizations
initiation are also:
— macro-process (e.g. energy development of a co...
What concerns network-centric organizations,
         very often such factor is a

    concrete objective
What elements does the network consist of?


                It includes

agents, knots and actors
Agent (network minimal element)
– an individual, who fulfills some actions,
including ones which direct
and influence othe...
Network knot (activity center, center of competencies)
is the multitude of potential agents who are involved
in common pro...
Actor
is a leader facing all the knot, being, as a matter
of fact, a bearer of the actual resource needed
in the networked...
In natural borders, the borders of a company,
     a certain department, for example,
         or if there is a strong lea...
Temporary artificial knots we create on our own
for the purpose of a certain function accomplishment –
                 ar...
To provide and coordinate the functional knots performance
       there is need in one more artificial element –

        ...
It’s important to remember
       that in collective work all independent
               and functional knots are

of equa...
How are elements of networked organization connected?
They are connected by equal-in-rights connections
which are constant or temporary mutual restrictions
             on beha...
What may be such freewill connections and
             relations like?
They may be real – due to experience of collective work in past,
  or arrangements which give the ground to gather anytime...
They may be potential – time and efforts spent for arranging
       them are so slight that it can be easily discounted
  ...
Framework of a networked organization is the

   rules of interaction
     and cooperation («Rules of game»)
    shared an...
Framework of a network-centric organization is the

  concrete arrangements
          concluded about joint activity
As a coordinating body of networked organizations
the collective structure is taken, which coordinates
in general all its ...
Such coordination structure:
—aims targeting conformity of joint efforts
— observes for «Rules of game» compliance
— arbit...
It’s important, all connections, being ordered (interactions),
          and direct control mechanism (hierarchy)
        ...
What is the principal difference between
networked and network-centric organizations?
The thing is, that in the networked organization –
            control mechanism is coordination,

in the network-centric ...
What unites and connects all members of networked
       and network-centric organizations?


   What marks the limits of ...
appropriate environment
Networked (network-centric) organization is artificial
system. It consists of multitude of networked elements
and environm...
All networked elements are found
             on physical layer of interaction while
            integrated network space ...
What domains does this space consist of inside?
The domain of communication –
where all members interact inside as well
as outside of their organization due to easy
commu...
The domain of information –
where information and knowledge
are initiated, transferred, processed
and distributed
The domain of perception – is the most difficult
and incomprehensible, but, at the same time,
indispensable domain of cons...
The primary goal is – to do achieve
      conscious integration of these three domains
    with physical layer, and to inc...
What can help us?
IT-platform bringing together the communication
and the information domains of networked environment
Is all of that enough for network initiation and
             its effective functioning?
Not quite
It’s enough only in case we provide all members’
development via mastering all inflowing
knowledge and competencies which ...
And this development has to be

              continuous
It’s important to get rid of difference between work
           a...
and then…
Networks, networked and network-centric
           organizations will

  become our reality
Thanks for your attention!
  P.S. You got to know the passage of our book «Some Essays About Management»
The book is avail...
Lively management of projects
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(4) Essay «About Networks, Networked And Network Centric Organizations»

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Day after day you take part and control numerous different projects. You attain your goals. But what if we deflect our attention away from the ordinary project, and reflect on and dream all together about what projects will look like in the nearest future. How will the activity of professional category of managers, including you, change?

If you are interested so far, the next real stage of management progress will be networked and network-centric organizations management…

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(4) Essay «About Networks, Networked And Network Centric Organizations»

  1. 1. About networks, networked and network-centric organizations Passage from «Some Essays About Management» essay 4
  2. 2. No doubt, our dreams – that’s wonderful!
  3. 3. We dream – modeling, designing and creating our own future thereby…
  4. 4. BUT!
  5. 5. We have not only our own separate futures
  6. 6. Suppose that we dream all together about the future of our profession - about whom and how we’ll manage?
  7. 7. Dreaming together means to begin arranging about what our future will bring us
  8. 8. What is the future of management? What will replace industrial type of relations at the age of global communications?
  9. 9. Complexity and ramified structure of communication channels and interrelations require new types of organization and business methods
  10. 10. … Methods, based on ideology of participants’ equality and on optimization of their abilities
  11. 11. Like in networked organizations
  12. 12. Networks and networked organizations represent particular and special view on reality and reflect the general understanding and readiness of people to work in such logic
  13. 13. What are networks, and what they can be like?
  14. 14. Level 1. Global network That’s global economy – which is the integrated environment based on digital communication. Every company or person may quickly start to work with any other company or person in such a way
  15. 15. Level 2. Networked organization («corporation without borders») By this time, here is meant the limited entity of autonomous, independent and equal-in-rights partners. Each participant is like a junction of competencies or functional partner
  16. 16. Level 3. Network-centric organization It is a temporary or permanent organization with network-based connections, relations and technologies. All elements are equal in rights, but there is a coordinating center
  17. 17. Network-centric organizations, in their turn, can be: — network project group — business organization inside — business organization outside
  18. 18. The network project group is a temporary hierarchy in an existing «corporation without borders». Here is no difference between internal and external members, others’ resources and yours’. As a managing center here are taken an owner of idea (of a project objective) or the company, regarded as effective in managing the project.
  19. 19. Method of business organization inside – the logic of networked organizations is brought onto its internal life, structure and connections. Temporary project groups operate here instead of constant departments.
  20. 20. Method of business organization outside – the key business only is gone under the organization, the rest are brought for outsourcing. Relations with all suppliers, contractors, clients, customers are held in networked logic. Coordinator is to be the business owner.
  21. 21. What’s the use from the networked organization of business?
  22. 22. Instant access to all centers of competencies and all resources, required for our concrete goals achievement
  23. 23. Flexible, quick and multiversional structure, with rights and duties dynamic assignment, ready for any change of external circumstances
  24. 24. Rational structure of expenses – only what we need for the moment works
  25. 25. What is common for networked and network-centric organizations, what enables that they appear?
  26. 26. The principal backbone factor for network initiation is ideology – «engineered» reality
  27. 27. Between backbone factors for networked organizations initiation are also: — macro-process (e.g. energy development of a country) — a global program aimed for concrete result (e.g. hydro plant construction) — common interests of participants — joint aspiration to the same objective (e.g. colony on the Moon)
  28. 28. What concerns network-centric organizations, very often such factor is a concrete objective
  29. 29. What elements does the network consist of? It includes agents, knots and actors
  30. 30. Agent (network minimal element) – an individual, who fulfills some actions, including ones which direct and influence others. He can play some kind of social or business roles, or a person making decisions, a person influencing the process of decision making and accomplishment.
  31. 31. Network knot (activity center, center of competencies) is the multitude of potential agents who are involved in common process, in common function performance, who all together own a certain unique resource or have similar interests, relations within the network
  32. 32. Actor is a leader facing all the knot, being, as a matter of fact, a bearer of the actual resource needed in the networked structure. Actor is regarded as a representative of a certain category.
  33. 33. In natural borders, the borders of a company, a certain department, for example, or if there is a strong leader, independent knots or natural knots may appear
  34. 34. Temporary artificial knots we create on our own for the purpose of a certain function accomplishment – are functional knots. Since the function is finally accomplished, there is no need usually in such a knot, and it disappears.
  35. 35. To provide and coordinate the functional knots performance there is need in one more artificial element – architect He creates all conditions for the knot effective functioning
  36. 36. It’s important to remember that in collective work all independent and functional knots are of equal value and equal in rights!
  37. 37. How are elements of networked organization connected?
  38. 38. They are connected by equal-in-rights connections which are constant or temporary mutual restrictions on behavior of both sides
  39. 39. What may be such freewill connections and relations like?
  40. 40. They may be real – due to experience of collective work in past, or arrangements which give the ground to gather anytime in any structure for collective work
  41. 41. They may be potential – time and efforts spent for arranging them are so slight that it can be easily discounted and considered that such connection exists already. They are based on easy-to-access and common for everybody information about abilities of any company, accepted standards and conditions of interaction and willingness to interact
  42. 42. Framework of a networked organization is the rules of interaction and cooperation («Rules of game») shared and arranged by all members
  43. 43. Framework of a network-centric organization is the concrete arrangements concluded about joint activity
  44. 44. As a coordinating body of networked organizations the collective structure is taken, which coordinates in general all its members. For example, advisory board of actors, or temporary coordination boards of experts.
  45. 45. Such coordination structure: —aims targeting conformity of joint efforts — observes for «Rules of game» compliance — arbitrates conflicts — adapts the networked organization to the surrounding reality
  46. 46. It’s important, all connections, being ordered (interactions), and direct control mechanism (hierarchy) in networked organizations represent temporary phenomenon, and they appear only when a certain problem resolving or a separate project performance
  47. 47. What is the principal difference between networked and network-centric organizations?
  48. 48. The thing is, that in the networked organization – control mechanism is coordination, in the network-centric one – that’s hierarchical coordination where one of all elements is responsible for managerial functions
  49. 49. What unites and connects all members of networked and network-centric organizations? What marks the limits of networked interaction and networked form of activity against the background of surrounding reality?
  50. 50. appropriate environment
  51. 51. Networked (network-centric) organization is artificial system. It consists of multitude of networked elements and environment of their activity. Both are related one to another by resource, information and knowledge exchange
  52. 52. All networked elements are found on physical layer of interaction while integrated network space represents invisible layer of networked (network-centric) organization
  53. 53. What domains does this space consist of inside?
  54. 54. The domain of communication – where all members interact inside as well as outside of their organization due to easy communication and direct connections
  55. 55. The domain of information – where information and knowledge are initiated, transferred, processed and distributed
  56. 56. The domain of perception – is the most difficult and incomprehensible, but, at the same time, indispensable domain of consciousness of each separate member of a networked (network-centric) organization. And first of all, that’s the way of reality cognition and perception and routine ways of information processing
  57. 57. The primary goal is – to do achieve conscious integration of these three domains with physical layer, and to increase effectiveness of networked (network-centric) organization functioning
  58. 58. What can help us?
  59. 59. IT-platform bringing together the communication and the information domains of networked environment
  60. 60. Is all of that enough for network initiation and its effective functioning?
  61. 61. Not quite
  62. 62. It’s enough only in case we provide all members’ development via mastering all inflowing knowledge and competencies which make it possible to interact and work effectively in a networked logic
  63. 63. And this development has to be continuous It’s important to get rid of difference between work and training, and join the flats
  64. 64. and then…
  65. 65. Networks, networked and network-centric organizations will become our reality
  66. 66. Thanks for your attention! P.S. You got to know the passage of our book «Some Essays About Management» The book is available in whole on the page «Vision» of our site www.kommandcore.com
  67. 67. Lively management of projects

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