the Agile Virtual Enterprise - empty concept or future necessity?
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the Agile Virtual Enterprise - empty concept or future necessity?

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In this presentation we explore the difficult relationship between traditional organsational structures and innovation. The starting point for this quest is the concept of an agile virtual......

In this presentation we explore the difficult relationship between traditional organsational structures and innovation. The starting point for this quest is the concept of an agile virtual enterprise (AVE).

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  • 1. the Agile Virtual Enterprise empty concept or future necessity? Marc Buyens marc.buyens@xpragma.com www.xpragma.com Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with Gartner’s official approval. Such approvals may be requested via e-mail — quote.requests@gartner.com.
  • 2. contents the historical perspective is it a better organisational form? can it be done within a single organisation?
  • 3. the historical PERSPECTIVE
  • 4. the concept “business agility” “an agile organization is one that responds quickly to changes in its business environment; immediately exploiting new business opportunities whilst recognizing and repelling unwelcome threats” Business Agility (www.business-agility.com)
  • 5. the concept “business agility” high change flexibility flexibility agility agility commoditisation commoditisation innovation innovation low high low predictability
  • 6. changing without changing “The good-to-great companies paid scant attention to managing change, motivating people, or creating alignment. Under the right conditions, the problems of conditions commitment, alignment, motivation, and change largely melt away.“ Jim Collins, Good to great
  • 7. the product “business agility” On Demand — IBM, CA, and others Adaptive Enterprise — HP Organic Business — Forrester Research Agile Enterprise — EDS, Unisys Scalable Enterprise — Dell Adaptive Infrastructure — CAP/E&Y Dynamic Systems Initiative — Microsoft Other – Policy-based computing – Service-centric computing – Harmonious Computing – Open mission-critical systems
  • 8. the product “business agility” On Demand — IBM, CA, and others Adaptive Enterprise — HP Organic Business — Forrester Research Agile Enterprise — EDS, Unisys Scalable Enterprise — Dell so I can Adaptive Infrastructure — CAP/E&Y really BUY this? Dynamic Systems Initiative — Microsoft Other – Policy-based computing – Service-centric computing – Harmonious Computing – Open mission-critical systems
  • 9. the “virtual enterprise” “a virtual enterprise is a temporary aggregation of core competencies and associated resources collaborating to address a specific situation, presumed to be a business opportunity“ H. T. Goranson, The agile virtual enterprise, Cases, metrics, tools
  • 10. what good is it for? The AIM-9X Sidewinder Air-to-Air missile program will develop a short range heat seeking weapon to be employed in both offensive and defensive counter-air operations. The new missile is required to reestablish the parity of US aircraft in short range air combat, vis-à-vis improved foreign export aircraft and missiles. Source: http://www.globalsecurity.org/ AIM-9M Sidewinder R-77RVV-AE Missile (NATO designation: AA-12 Adder)
  • 11. examples
  • 12. types of Virtual Enterprises opportunity-driven capability-driven supply chain bidding consortium
  • 13. the Virtual Enterprise framework opportunity identification virtual enterprise partner reconfiguration / identification dissolution virtual enterprise virtual enterprise operation formation
  • 14. the networked market model market market lead partner B lead partner B lead partner A lead partner A coordinator B coordinator B coordinator A coordinator A contributor A contributor A contributor C contributor B contributor C contributor B
  • 15. is it a better organisational form?
  • 16. UNPREDICTABILITY is fact
  • 17. …but we keep on dreaming of PERFECT control © The Cockpit Group
  • 18. …but we keep on dreaming of PERFECT control when everything is GREEN most likely, you are DEAD © The Cockpit Group
  • 19. structure MATTERS
  • 20. the beer game brewery wholesaler retailer
  • 21. so… “... if everyone has to think outside the box, maybe it’s the box that needs fixing” Malcolm Gladwell
  • 22. the INNOVATION mantra the creation of a working environment that facilitates and stimulates innovation the development of personal skills and the promotion of practices, tools and methods to stimulate creative thinking the management of new ideas
  • 23. ...but we keep on playing the dog crate race
  • 24. can it be done within a single organisation?
  • 25. the innovation requirements list adopting an open communication between all layers of the organisation so that everyone is fully aware of the strategic direction, the opportunities and also the challenges of the organisation having a willingness to accept a reasonable amount of promising, yet risky ideas to have their fair chance for development and implementation; being tolerant for failure stimulating an entrepreneurial mindset fostering knowledge sharing and cross-fertilisation of ideas across all entities of the organisation having the conviction that anyone in the organisation can be a potential contributor for innovation introducing a fair amount of challenge freeing up the necessary time/resources for innovative thinking
  • 26. the promise of the VE peer-to-peer; relationships based on equality loosely coupled; nothing is forever trust; accepted distrust shared/partial control small footprint relationships high concept not built to last
  • 27. differentiators high concept strategy and objectives unprotected protected negotiated inherited open closed interpreted understood autonomous dependent light-weight agreements formal contracts
  • 28. characteristics of the VE agreement personalised mission statement personal agenda’s are OK peer-to-peer relationship actors are contributors or facilitators, not control layers participation and positioning in VE is competence based not seniority ‘no expectations’ based trust together we succeed, together we fail it’s your problem
  • 29. remaining questions how do we protect the lower layers? the impact of external stakeholders is not balanced pains and gains are not identical at all levels ‘breed’ and ‘greed’ are still the dominant models legal and regulatory requirements
  • 30. is CSR a way to go? “Socially responsible practices are the ultimate value creators: They create emotional value, experiential value, social value, and have course, financial value. People who interact with such companies feel safe, secure, and pleased in their dealings.” Idris Mootee
  • 31. annex
  • 32. Creative Commons gailf548 Zak A jslander photohome_uk clip works Office Now billjacobus1 closelyobserved.com Orin Optiglot MK Media Wonderlane tyger_lyllie JOE M500 Productions
  • 33. Creative Commons billjacobus1 @ http://www.flickr.com/photos/billjacobus1/ clip works @ http://www.flickr.com/photos/14947022@N06/ closelyobserved.com @ http://www.flickr.com/photos/soylentgreen23/ Gailf548 @ http://www.flickr.com/photos/galfred/ JOE M500 @ http://www.flickr.com/photos/m500/ Jslander @ http://www.flickr.com/photos/pancakejess/ MK Media Productions @ http://www.flickr.com/photos/yakobusan/ Office Now @ http://www.flickr.com/photos/officenow/ Orin Optoglot @ http://www.flickr.com/photos/orinrobertjohn/ photohome_uk @ http://www.flickr.com/photos/photohome_uk/ tyger_lyllie @ http://www.flickr.com/photos/tyger_lyllie/ Wonderlane @ http://www.flickr.com/photos/wonderlane/ Zak A @ http://www.flickr.com/photos/79605023@N00/
  • 34. resources The agile virtual The Tipping Point enterprise How Little Things Cases, metrics, tools Can Make a H.T. Goranson Big Difference Malcolm Gladwell The Black Swan The Fifth Discipline The Impact of the The Art & Practice Highly Improbable of the Learning Nassim Nicholas Organization Taleb Peter M. Senge
  • 35. resources Good to great Why some companies make the leap and others don't Jim Collins