Monday, November 26, 2007
Chapter 2
I do agree that the virtual networks are reducing costs and completely changing the way business is performed. Reducing costs are great but it is causing the technology industry much turmoil as we all know. Coase's law is a legitamat argument and business methods/models do seem to be following this law. The problem I still struggle with is if companies continue to move toward horizontal integration with increasing numbers of outsourcing, some day traditional companies with permanent employees will no longer exist. Then what? Are all tasks performed remotely, by individuals that have no interest in the organizations long term goal. So who is the organization? What does it consist of? I guess that is what the remaining chapters will explain.
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I think you make a valid point. I don't think companies will go completely outsourced. Someone has to be physically in charge and they will need someone to physically be there to cover the administrative tasks. Companies also need employees, at least some of them, to have a vested interest in the welfare of the firm so they can't rely on anonymous, uninterested, out-of-touch, out-of-reach employees.
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