In the face of economic globalization, both the international theoretical community and the corporate practice community generally recognize that the traditional enterprise management model has been difficult to adapt to the current competitive environment and the future trend of corporate organization development, and actively explores and seeks new development models. Peter Drucker, a well-known American management theorist, believes that today's work is done by different functional departments and tomorrow will be completed by some special task-centered groups. The functional departments will serve as corporate resources, technologies, and The base of personnel and suppliers of product standards exist, and the group is responsible for completing the entire process of the project from the beginning to the market. Nolan, a prestigious corporate management consultancy, believes that in order to meet the needs of competition, future companies will adopt a networked management model and shift from a traditional hierarchical structure to a networked one.
The scope of the company's space does not have to be limited to the space of the factory and office space, and the enterprise does not need to have as much resources as the traditional enterprise needs for market operations. In short, the operation and management of enterprises will shift from "occupying control" of resources to "control of relationship control." The so-called relational control is a dynamic strategic alliance between a company and a company that owns the necessary resources for the operation of the company in order to complete business operations or projects, and to control and use resources in a contractual manner. The virtual company is exactly the product of this kind of enterprise's operation and management from the "occupation-control-oriented" to "relation-control-oriented" transformation of resources.
After the idea of ​​virtual business has been created, it shows a strong vitality. Many famous international companies have created outstanding business performance and unique virtual ways under the guidance of this business idea. Today, all walks of life, large or small companies, have adopted successful examples of virtual operations in design, production, marketing, transportation, and service. Virtual operations and virtual companies are considered to be the future direction of business organization and business management.
First, what is virtual business
Virtual business is a function-integrated operation that spans the space by combining the external operating resources with the business resources of the company in order to realize the scale expansion of the business. The business expansion achieved by virtual operations is not the expansion of assets, nor the expansion of the organization scale, but the expansion of business functions and operating performance. Specifically, there are several modes of operation for virtual operations:
(a) Production Virtual
Virtual production is the initial form of virtual operation. It is characterized by outsourcing processing. It is the expansion of production functions, not the expansion of production facilities. Enterprises use other companies' production systems to carry out production and processing according to their own intentions. This is production virtualisation.
(II) Corporate symbiosis
When several companies have common needs and are unwilling to outsource in terms of technical confidentiality or cost considerations, they jointly invest in the establishment of specialized manufacturers to produce, share benefits, and bear costs.
(III) Staff Virtual
Personnel Virtual refers to the enterprise's management business and projects according to the needs of the brain to set wisdom, with the help of external intellectual resources and their own intellectual resources to make up for their lack of intellectual resources, a management model. As the role of intellectual resources is getting bigger and bigger, the key to enterprise competition is more and more concentrated in the contest of scientific and technological knowledge. Therefore, personnel virtuality is increasingly being adopted.
(d) Functional Virtual
Functional virtual refers to a management method in which an enterprise uses an external functional resource with an advantage in combination with its own resources to make up for a lack of function in one aspect of its own. Its forms include virtual marketing, virtual storage, virtual advertising design, virtual settlement, and virtual manufacturing. Major manufacturers such as Microsoft, Compaq, Panasonic, and Ericsson entered the Chinese market using virtual marketing. The world’s largest Internet equipment provider, Cisco Systems, has successfully adopted a virtual settlement and virtual manufacturing system. Strong competitive power.
(5) Strategic alliances
It refers to a loose combination of mutual complementarity and division of labor, in which companies cooperate and share risks for common interests and goals. The essence is the long-term agreement between enterprises. The two parties are long-term cooperative relations. It exceeds the normal so-called market transactions, but it does not reach the degree of consolidation. Each enterprise of the alliance is independent and still maintains its own business autonomy. . The alliance is a way for companies to expand their business scope or develop new products and technologies without expanding their scale. In the form of coalition, there are mainly joint ventures, joint development, definitive production, franchising, and mutual shareholding.
(VI) Brand virtual enterprise
It refers to a virtual enterprise that is formed by taking part of the functions of virtual production and other functions as the core of goods and services brand resources. If Tianjin Yipin Technology Company did not have a factory building or its own sales network, it used the brand's weapon to perform virtual operations. In just two years, it made "back-to-back goodness" achieve annual sales of nearly 300 million yuan. Its performance ranks first in the national market for posture correction products, and its “beaded back†brand has become a nationally renowned brand; Shenzhen Yidannu Garments Co., Ltd. is neither a manufacturer nor a wholesaler, and its job is to create a brand and maintain the brand. . It quickly integrated manufacturers and franchisees through image management, logistics systems, training centers, and information for four brand management pillars. It took 2 years to develop 2 million yuan of company assets to 200 million yuan. .
It can be seen that the business expansion achieved by virtual management is the extension and extension of the functions of technology, production, management, and sales, rather than the pursuit of ultimate possession of the carriers for these functions. As long as the functions of these carriers are integrated with enterprises, their use is realized, the scope of enterprise management is expanded, the scale of sales is expanded, the speed of new product development is accelerated, the profits of enterprises are increased, and the purpose of business expansion is realized. Virtual operations have changed the traditional way of business expansion, which has changed the traditional enterprise scale standards. The size of enterprises is no longer mainly measured by the size of assets and organizations, but mainly by sales and profits. How much is the measure of the scale.
Second, the economics of virtual business
It is difficult to adapt to today’s increasingly competitive and unpredicted market demands, and the rapid development of technological knowledge, which will increase the efficiency of corporate organizations with more resources. This will bring a lot of resources to the enterprise. With great risks, the occurrence of redundant resources will be unavoidable. First, due to changes in demand, existing resources cannot adapt to their needs. Second, due to the rapid advancement of technology and the constant updating and development of knowledge, some people and objects of knowledge and technology carriers may not keep up with this trend of development and change. It will become an obstacle to the development of the company. The business model of the virtual enterprise completely bypasses this risk, and it is based on the dynamic combination of various resources including human resources based on the needs of the business and the project, and uses the best people and things during the implementation period of the project. The best combination of resources will not only help companies improve efficiency, shorten lead times, reduce capital and reduce costs, but also reduce barriers to development.
(a) Macroscopic significance
1. It is conducive to maximizing the existing assets of existing enterprises so as to enable them to effectively capitalize on their capital functions so as to avoid redundant construction of “bigger and comprehensive†and “small and completeâ€.
2. It is conducive to breaking the blockade of departments, separating the sectors, realizing cross-department, cross-industry, cross-regional, and cross-ownership alliances, and promoting the rational flow of capital, technology, and talents among the production factors, and realizing the effective allocation of resources.
3, is conducive to adjusting the product and industrial structure from the market, that is, through the expansion of the core company's market to drive the adjustment of related products and industrial structure. (To be continued)
The scope of the company's space does not have to be limited to the space of the factory and office space, and the enterprise does not need to have as much resources as the traditional enterprise needs for market operations. In short, the operation and management of enterprises will shift from "occupying control" of resources to "control of relationship control." The so-called relational control is a dynamic strategic alliance between a company and a company that owns the necessary resources for the operation of the company in order to complete business operations or projects, and to control and use resources in a contractual manner. The virtual company is exactly the product of this kind of enterprise's operation and management from the "occupation-control-oriented" to "relation-control-oriented" transformation of resources.
After the idea of ​​virtual business has been created, it shows a strong vitality. Many famous international companies have created outstanding business performance and unique virtual ways under the guidance of this business idea. Today, all walks of life, large or small companies, have adopted successful examples of virtual operations in design, production, marketing, transportation, and service. Virtual operations and virtual companies are considered to be the future direction of business organization and business management.
First, what is virtual business
Virtual business is a function-integrated operation that spans the space by combining the external operating resources with the business resources of the company in order to realize the scale expansion of the business. The business expansion achieved by virtual operations is not the expansion of assets, nor the expansion of the organization scale, but the expansion of business functions and operating performance. Specifically, there are several modes of operation for virtual operations:
(a) Production Virtual
Virtual production is the initial form of virtual operation. It is characterized by outsourcing processing. It is the expansion of production functions, not the expansion of production facilities. Enterprises use other companies' production systems to carry out production and processing according to their own intentions. This is production virtualisation.
(II) Corporate symbiosis
When several companies have common needs and are unwilling to outsource in terms of technical confidentiality or cost considerations, they jointly invest in the establishment of specialized manufacturers to produce, share benefits, and bear costs.
(III) Staff Virtual
Personnel Virtual refers to the enterprise's management business and projects according to the needs of the brain to set wisdom, with the help of external intellectual resources and their own intellectual resources to make up for their lack of intellectual resources, a management model. As the role of intellectual resources is getting bigger and bigger, the key to enterprise competition is more and more concentrated in the contest of scientific and technological knowledge. Therefore, personnel virtuality is increasingly being adopted.
(d) Functional Virtual
Functional virtual refers to a management method in which an enterprise uses an external functional resource with an advantage in combination with its own resources to make up for a lack of function in one aspect of its own. Its forms include virtual marketing, virtual storage, virtual advertising design, virtual settlement, and virtual manufacturing. Major manufacturers such as Microsoft, Compaq, Panasonic, and Ericsson entered the Chinese market using virtual marketing. The world’s largest Internet equipment provider, Cisco Systems, has successfully adopted a virtual settlement and virtual manufacturing system. Strong competitive power.
(5) Strategic alliances
It refers to a loose combination of mutual complementarity and division of labor, in which companies cooperate and share risks for common interests and goals. The essence is the long-term agreement between enterprises. The two parties are long-term cooperative relations. It exceeds the normal so-called market transactions, but it does not reach the degree of consolidation. Each enterprise of the alliance is independent and still maintains its own business autonomy. . The alliance is a way for companies to expand their business scope or develop new products and technologies without expanding their scale. In the form of coalition, there are mainly joint ventures, joint development, definitive production, franchising, and mutual shareholding.
(VI) Brand virtual enterprise
It refers to a virtual enterprise that is formed by taking part of the functions of virtual production and other functions as the core of goods and services brand resources. If Tianjin Yipin Technology Company did not have a factory building or its own sales network, it used the brand's weapon to perform virtual operations. In just two years, it made "back-to-back goodness" achieve annual sales of nearly 300 million yuan. Its performance ranks first in the national market for posture correction products, and its “beaded back†brand has become a nationally renowned brand; Shenzhen Yidannu Garments Co., Ltd. is neither a manufacturer nor a wholesaler, and its job is to create a brand and maintain the brand. . It quickly integrated manufacturers and franchisees through image management, logistics systems, training centers, and information for four brand management pillars. It took 2 years to develop 2 million yuan of company assets to 200 million yuan. .
It can be seen that the business expansion achieved by virtual management is the extension and extension of the functions of technology, production, management, and sales, rather than the pursuit of ultimate possession of the carriers for these functions. As long as the functions of these carriers are integrated with enterprises, their use is realized, the scope of enterprise management is expanded, the scale of sales is expanded, the speed of new product development is accelerated, the profits of enterprises are increased, and the purpose of business expansion is realized. Virtual operations have changed the traditional way of business expansion, which has changed the traditional enterprise scale standards. The size of enterprises is no longer mainly measured by the size of assets and organizations, but mainly by sales and profits. How much is the measure of the scale.
Second, the economics of virtual business
It is difficult to adapt to today’s increasingly competitive and unpredicted market demands, and the rapid development of technological knowledge, which will increase the efficiency of corporate organizations with more resources. This will bring a lot of resources to the enterprise. With great risks, the occurrence of redundant resources will be unavoidable. First, due to changes in demand, existing resources cannot adapt to their needs. Second, due to the rapid advancement of technology and the constant updating and development of knowledge, some people and objects of knowledge and technology carriers may not keep up with this trend of development and change. It will become an obstacle to the development of the company. The business model of the virtual enterprise completely bypasses this risk, and it is based on the dynamic combination of various resources including human resources based on the needs of the business and the project, and uses the best people and things during the implementation period of the project. The best combination of resources will not only help companies improve efficiency, shorten lead times, reduce capital and reduce costs, but also reduce barriers to development.
(a) Macroscopic significance
1. It is conducive to maximizing the existing assets of existing enterprises so as to enable them to effectively capitalize on their capital functions so as to avoid redundant construction of “bigger and comprehensive†and “small and completeâ€.
2. It is conducive to breaking the blockade of departments, separating the sectors, realizing cross-department, cross-industry, cross-regional, and cross-ownership alliances, and promoting the rational flow of capital, technology, and talents among the production factors, and realizing the effective allocation of resources.
3, is conducive to adjusting the product and industrial structure from the market, that is, through the expansion of the core company's market to drive the adjustment of related products and industrial structure. (To be continued)
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