The Significance of the Information Technologies in the Functioning of the Network Organisations
The paper presents the possibility of use of IT in network organisations and its influence on efficiency of network organisations functioning, especially in realisation its the uppermost goals. Рассмотрены возможности использования информационных технологий в организациях с сетевой структурой и влия...
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Інститут проблем моделювання в енергетиці ім. Г.Є. Пухова НАН України
2007
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| Cite this: | The Significance of the Information Technologies in the Functioning of the Network Organisations / A. Mesjasz-Lech // Электронное моделирование. — 2007. — Т. 29, № 4. — С. 39-47. — Бібліогр.: 10 назв. — англ. |
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| citation_txt | The Significance of the Information Technologies in the Functioning of the Network Organisations / A. Mesjasz-Lech // Электронное моделирование. — 2007. — Т. 29, № 4. — С. 39-47. — Бібліогр.: 10 назв. — англ. |
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| description | The paper presents the possibility of use of IT in network organisations and its influence on efficiency of network organisations functioning, especially in realisation its the uppermost goals.
Рассмотрены возможности использования информационных технологий в организациях с сетевой структурой и влияние этих технологий на эффективность их функционирования, особенно при реализации главных приоритетов.
Розглянуто можливості використання інформаційних технологій в організаціях із сітковою структурою та вплив цих технологій на ефективність їхнього функціонування, особливо при реалізації головних пріоритетів.
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A. Mesjasz-Lech, PhD
Czestochowa University of Technology
(Al. Armii Krajowej 19 B, 42-200 Czestochowa, Poland,
E-mail: agata.mesjasz@poczta.fm)
The Significance of the Information Technologies
in the Functioning of the Network Organisations
The paper presents the possibility of use of IT in network organisations and its influence on effi-
ciency of network organisations functioning, especially in realisation its the uppermost goals.
Ðàññìîòðåíû âîçìîæíîñòè èñïîëüçîâàíèÿ èíôîðìàöèîííûõ òåõíîëîãèé â îðãàíèçàöèÿõ ñ
ñåòåâîé ñòðóêòóðîé è âëèÿíèå ýòèõ òåõíîëîãèé íà ýôôåêòèâíîñòü èõ ôóíêöèîíèðîâàíèÿ,
îñîáåííî ïðè ðåàëèçàöèè ãëàâíûõ ïðèîðèòåòîâ.
K e y w o r d s: network organisation, typology of network organisations.
The development of the information technologies provided the possibility for
the network organisations to arise. Their major distinguishing features are re-
mote management and local or global dispersal. In computer networks, they con-
stitute the physical points of the information exchange between particular mem-
bers of the network and between the network and the clients. The use of informa-
tion technologies makes the data and information transfer fast, increases the effi-
ciency of networks independently of the level of dispersal of its members and
their localisations, provides unlimited access to information, gives the opportu-
nity for the management of huge data bases, enables the clients to benefit from
the shorter time of realisations of their orders, establishes strict control of the
physical flows among the members of the network.
The chief goal of a network organisation, as a group of companies linked by
a computer network, is the enhancement of the decision-making processes
whose efficiency depends on the key competences of the members of the net-
work and the direction of the flow of information between the members and the
clients.
Network organisations and the uncertainties of business activity. Dy-
namic environment compels the companies to continually improve their organi-
sational structures. The increasing number of network organisations is the rea-
son for changes in the interrelations between their particular nods which results
in the constant evolution of relevant structures within the organisations. We can
ISSN 0204–3572. Ýëåêòðîí. ìîäåëèðîâàíèå. 2007. Ò. 29. ¹ 4 39
assume that the formation of organisations is the consequence of uncertainties
which intensify the disintegration of the organisational structures. The disinte-
gration consists in the replacement of monoliths which have one decisions cen-
tre, hierarchy and clear structure, with the networks of loosely connected units
which have different degree of autonomy. They fulfil tasks together, but remain
separate at the same time [1]. Therefore, the network organisations come to exis-
tence to diminish the uncertainties of the environment. The creation of the or-
ganisations is dictated by the necessity to respond immediately to risks and
chances which are not easy to foresee. The dynamics of the target market re-
quires the companies to cooperate with one another and exchange the compe-
tence and resources they have, since a company working alone would have to ac-
cumulate them on its own. The process of the transformation from a monolith
into a network is depicted in Fig. 1.
A network organisation can be defined as:
1) a group of independent firms — suppliers, receivers and, as it often hap-
pens, former rivals — linked by information technologies in order to share skills,
costs and shares on different markets [2];
A. Mesjasz-Lech
40 ISSN 0204–3572. Electronic Modeling. 2007. V. 29. ¹ 4
Developing
geographical
diversification and
cultural activity of
companies
Demand for quick
responses to the
changing market
and technologies
Focus on the basic
skills which form
the added value
Necessity to
reduce the costs
and achieve the
operational
perfection
Necessity to gain
knowledge, skills,
information,
qualifications
Disintegration
of monolythic
structures
Alliances, common
enterprises
Outsourcing
Branches
Strategic units of
business
Fusions, takeovers,
sales of the units
Flourishing networks
with one or more
centres
Multiplicity of criteria
Uncertainties
concerning business
Fig. 1. Scheme a monolith transformation into a network [1]
2) an organism of perfect businesses which is formed according to the prin-
ciple of the partnership of the best and equal [3].
Therefore, the basis function of network organisations is the creation of
such configurations of partners which will guarantee the highest level of effi-
ciency in the realisation of tasks. A network organisation is based on the knowl-
edge and key competences of its members.
The distinguishing features of the organisations are [4]:
the opening of borders between the members;
having common goals;
high level of confidence;
low level of vertical integration and hierarchy between the members who
dispose of different sources and competences which very often complement one
another;
capacity for learning, innovation and flexibility;
transparency of information thanks to the use of advanced information tech-
nologies.
Spreading of the structures of network organisations tarnishes the bound-
aries between the organisations and their environment. The possibility of creat-
ing different configurations of partners in the network is the basic way of reduc-
ing business uncertainties. The integration of economically and legally inde-
pendent partners, who bring competences relevant for accomplishment of a task,
into one organism, gives the opportunity to take advantage of the competitive su-
premacy of each of them and the whole network accordingly.
The directions of the flow of information in the network organisations.
The most important feature of network organisations is the fact that their config-
uration depends on the flow of information between their members. Physical
flows are necessary to realise the client’s orders. But the complexity of tasks
realised by the organisations requires the flows to be of best quality and supply
the best information. The functioning of network organisations is possible
thanks to the spreading of information technologies and communication systems
which give the means for the unlimited exchange of information on any scale
[5]. The literature of the subject offers several examples of the typology of net-
work organisations. According to the manner of flow and character of informa-
tion exchanged between the members of the organisations and their clients, we
can distinguish following types of network organisations: virtual face, star alli-
ance, market alliance, co-alliance, value alliance, parallel alliance [5].
The typology of network organisations according to the manner of flow and
character of information based on [5] is following.
Virtual face:
the company (or its part) uses electronically platform for maintaining con-
tacts with clients and realising transactions;
The Significance of the Information Technologies in the Functioning
ISSN 0204–3572. Ýëåêòðîí. ìîäåëèðîâàíèå. 2007. Ò. 29. ¹ 4 41
the company is fully responsible for planning, operational activity, coordi-
nation and contacts with clients;
two-way flow of operational information with the clients;
the company cannot be replaced by any other company.
Star alliance:
the organisation consists of the key member (core organisation) and inde-
pendent partners gathered around it;
the key member is in possession of the most important resources and the
know-how characteristic for this organisation;
only the key partner maintains contacts with clients, he represents the or-
ganisation (the other members cannot contact clients);
the organisation is formed either by outsourcing of some operations or by
assigning other partners to perform the tasks;
the key partner cannot be changed, which does not apply to the other mem-
bers of the organisation;
the key partner exchanges the coordinational and operational information
with the other partners.
Market alliance:
in the organisation, there is a key partner and other independent partners
concentrated around him;
marketing is the sole task of the key partner — the other partners offer him
ready products which are distributed and sold by the key partner;
only the key partner maintains contact with the target market and clients;
the key partner cannot be replaced by another — he imposes all the changes
in the established network organisation;
the other partners can: quit the organisation, sell their products via other dis-
tribution channels or other virtual organisations.
Co-alliance:
there is no key partner — all partners comprising the organisation are inde-
pendent and have equal status (none of the partners is in dominion);
when it comes to the realisation of a particular task or project, all partners
can establish direct contacts with their clients;
the partners bring complimentary competences necessary for realisation of a
particular task or project — each partner plays different roles in the realisation of
a project or task and, accordingly, apart from performing operational activities,
he also takes part in the planning and coordination of the activities;
information concerning operations, planning and coordination are ex-
changed between the partners and the client.
Value alliance:
the organisation resembles a chain;
A. Mesjasz-Lech
42 ISSN 0204–3572. Electronic Modeling. 2007. V. 29. ¹ 4
the place of the client can be at the end of the chain, or at the end and at the
beginning at the same time;
consecutive partners supply the chain with a new value in relation to the pre-
ceding partners;
all partners, except for the first in the chain, get a task which has been par-
tially done, they enrich it and pass it on to the next partner. (They do not work on
the task simultaneously);
there is no key partner in this kind of organisation;
it is possible to replace particular partners with other companies on condi-
tion that they supply the chain with a value which is identical or very similar to
the one brought by the replaced partner;
organisational information is exchanged right after the organisation has
been established;
information concerning planning and coordination is exchanged during the
forming of the organisation.
Parallel alliance:
functioning of this organisation is based on the close cooperation of usually
two independent partners;
partners do not work together on one task — each of them works on a sepa-
rate one. The tasks, however, are interrelated;
there is no key partner in this kind of organisation;
it is possible to replace the partner with another on condition that he brings
an identical value to the organisation;
the work is planned at the beginning, immediately after the establishment of
the organisation;
changes during work are permitted to the extent agreed in the process of
planning;
the client is in permanent contact with all partners of the organisation.
A network organisation can consist of units geographically scattered. Its
structure is determined by the character and direction of the exchanged informa-
tion. The type of organisation depends mainly on the kind of task performed and
the anticipated period of time in which it will be completed.
Information technology used in network organisations. The develop-
ment of IT, which is the physical platform on which network organisations oper-
ate, gives the opportunities to realise clients’ orders effectively. The matter of
special importance here is the use of such computer networks that are the basis of
functioning of different IT systems. There are following types of IT systems
used by network organisations [6]:
systems controlling the workflow;
systems of group work (e. g. discussion lists);
The Significance of the Information Technologies in the Functioning
ISSN 0204–3572. Ýëåêòðîí. ìîäåëèðîâàíèå. 2007. Ò. 29. ¹ 4 43
systems of managing knowledge (e. g. LMS, CMS, LCMS);
teleconferences, videoconferences;
systems of managing contacts with clients (CMS);
MRPII/ERP systems (especially the modules supporting e-business;
systems of so called «fourth generation» (e.g. «intelligent» agents, expert
systems, the exploration of data, artificial neural systems);
systems dedicated to virtual organisations;
corporation portals;
IT systems which make it possible to recognise speech and handwriting.
Strategy which is more and more often used by network organisations is
Collaborative Planning, Forecasting and Replenishment (CPFR). This strategy
is perceived as the means over which it is possible to join the knowledge con-
cerning the planning and realisation of demand for a particular good, which is in
possession of different, geographically scattered economic entities. CPFR is a
business process whose goal is to plan, prognosticate and synchronise the circu-
lation of products. The partners take advantage of technologies and basic tools
involved in this process which is based on cooperation realised over the Internet.
CPFR is defined as those collaborative business practices that enabled trading
partners to have visibility into one another’s critical demand, order forecasts and
promotional forecasts through a systematic process of shared brand and category
plans, exception identification and resolution... The objective of CPFR is to im-
prove efficiencies across the extended supply chain, reducing inventories, im-
proving service levels and increasing sales [7]. The mechanism of CPFR is de-
picted in Fig 2.
The concept of CPFR gives the possibility for organisations to realise its up-
permost goals. According to the partners of network organisations those goals
are: Reduce Out-of-Stocks; Improve Trading Partner Relationship; Improve
Service Levels; Improve Forecast Accuracy; Decrease Inventory; Increase Sa-
les; Better Deployment of Organization’s Resources; Improve Internal Commu-
nication; Better Asset Utilization.
Fig. 3. presents the hierarchy of goals which is characteristic for business
entities with implemented CPFR.
As we see above, the majority of entities treated the reduction of out-of-
s tocks as their primary goal. Apart from this, other important goals concerned
the improvement of trading partner relationship and service levels. These objec-
tives are to be achieved by the implementation of CPFR. Fig 4. will tell us which
of the goals were in fact realised.
Information technologies support the companies and increase the effective-
ness of their functioning [9]. What becomes especially important at this point is
A. Mesjasz-Lech
44 ISSN 0204–3572. Electronic Modeling. 2007. V. 29. ¹ 4
that the companies need to be capable of implementing and adjusting the IT rele-
vant for their objectives. The basic tools are computer networks and IT systems
which use those networks as their platform. Network organisations use them in
order to publicise their offers, look for partners, sources, services and gain
knowledge. Hence, they build a system of contracts and contacts useful in the
realisation of their goals [10]. Therefore, information technologies are the basis
of functioning of network organisations which, as dynamic structures linking
geographically scattered partners, are in constant need for the exchange of infor-
mation concerning planning, coordination and operating.
Conclusions. Information technologies used in network organisations are
determined by the structures of those organisations and are used to:
link organisation’s suppliers, distribution functions and marketing and trade
partners;
shorten the time needed for the realisation of orders;
strictly control the flow of goods within the organisation;
perform consultations between partners concerning the realisation of
orders;
exchange and transmit data faster.
The condition of effective functioning of a network organisation is the con-
tinuity of data exchange which has to be preserved in every field of company’s
The Significance of the Information Technologies in the Functioning
ISSN 0204–3572. Ýëåêòðîí. ìîäåëèðîâàíèå. 2007. Ò. 29. ¹ 4 45
A
n
al
y
si
s
S
trateg
y
&
p
lan
n
in
g
E
x
ecu
tio
n
D
em
an
d
&
su
p
p
ly
m
en
ag
em
en
t
Demamd
planing
Production&
supply planning
Oder
generation
Oder
planing/
forecasting
Sales
forecasting
Market
data
analysis
Logistics/
distribution
Logistics/
distributionOder
fulfillment
Execution
monitoring
Exception
menegement
Store
execution
Consumer
Category
menagement
PSD
forecasting
Replenishment
planning
Buying/
re-buying
Supplier
scorecard
Vendor
menagement
Collaboration
arrangement
Performance
assessment
Customer
scorecard
Manufacturer
Account
planning
Market
planningJoint
business
plan
Retailer
Fig. 2. Mechanism of CPFR [8]
A. Mesjasz-Lech
46 ISSN 0204–3572. Electronic Modeling. 2007. V. 29. ¹ 4
84%
79%
79%
74%
70%
65%
58%
49%
49%
0 10 20 30 40 50 60 70 80 90
Improve orecast ccuracyf a
Reduce ut-of- tockso s
Increase aless
Improve ervice evelss l
Improve rading artner elationshipt p r
Decrease nventoryi
Improve nternal ommunicationi c
Better eployment of rganization’s esourcesd o r
Better sset tilizationa u
Fig. 4. Anticipated benefits of CPFR [7]
83%
67%
67%
50%
50%
33%
33%
17%
17%
0 10 20 30 40 50 60 70 80 90
Reduce ut-of- tockso s
Improve rading artner elationshipt p r
Improve ervice evelss l
Improve orecast ccuracyf a
Decrease nventoryi
Increase aless
Better eployment of rganization’s esourcesd o r
Improve nternal ommunicationi c
Better sset tilizationa u
Fig. 3. Organizational goals [7]
activity. This is obviously connected with the access to information resources
dispersed in local and global networks. The complexity of tasks realised by an
organisation and the geographical dispersal of its partners makes the fast com-
munication of information very important. It enables the organisation to accom-
plish its objectives and realise customers’ orders. By the means of information
technologies, it is possible to handle almost all activities connected with the
carrying out of orders.
Ðîçãëÿíóòî ìîæëèâîñò³ âèêîðèñòàííÿ ³íôîðìàö³éíèõ òåõíîëîã³é â îðãàí³çàö³ÿõ ³ç ñ³òêî-
âîþ ñòðóêòóðîþ òà âïëèâ öèõ òåõíîëîã³é íà åôåêòèâí³ñòü ¿õíüîãî ôóíêö³îíóâàííÿ, îñîá-
ëèâî ïðè ðåàë³çàö³¿ ãîëîâíèõ ïð³îðèòåò³â.
1. Kozminski� � A. K. Zarz�dzanie w warunkach niepewno�ci.— Warszawa: Wydawnictwo
Naukowe PWN, 2005. — 288 p.
2. Stern L. W., El-Ansary A. I., Coughlan A. T. Marketing Channels. — N.J. : Prentice-Hall,
Englewood Cliffs, 1996. — 576 p.
3. Kempny D. Logistyczna obs³uga klienta. — Warszawa : PWE, 2001. — 287 p.
4. Witkowski J. Organizacje sieciowe, sieci strategiczne i �a�cuchy dostaw — pr�ba syste-
matyzacji poj��. Strategie i logistyka organizacji sieciowych // Prace Naukowe Akademii
Ekonomicznej im. O. Lanego we Wroclawiu. — 2005. — No 1078. — P. 181—182.
5. Niestr�j K. Wybrane pr�by typologii informacyjnych organizacji sieciowych // Ibid. —
Wroclaw, 2005. — No 1078.— P. 123—128.
6. Adamczyk M. Charakterystyka organizacji wirtualnej. Gazeta IT nr 9 (39), 19 pa dziernika
2005. www.gazeta-it.pl/zw/charakterystyka_organizacji_wirtualnej.html
7. CPFR Baseline Study Manufacturer Profile, By KJR Consulting For the Collaborative Plan-
ning. Forecasting & Replenishment Task Force Logistics Committee Grocery Manufactur-
ers of America. www.gmabrands.com/industryaffairs/docs/cpfr.pdf; www.vics.org/commit-
tees/cpfr/.
8. www.vics.org/committees/cpfr/.
9. Grudzewski W., Hejduk I. Przedsi�biorstwo przysz�o�ci — wizja strategiczna—Warszawa:
Difin, 2002. — 332 p.
10. Olszak C. (red.) Systemy e-commerce. Technologie internetowe w biznesie. — Katowice:
Wydawnictwo Akademii Ekonomicznej w Katowicach, 2004. — 82 p.
Ïîñòóïèëà 29.04.07
The Significance of the Information Technologies in the Functioning
ISSN 0204–3572. Ýëåêòðîí. ìîäåëèðîâàíèå. 2007. Ò. 29. ¹ 4 47
|
| id | nasplib_isofts_kiev_ua-123456789-101783 |
| institution | Digital Library of Periodicals of National Academy of Sciences of Ukraine |
| issn | 0204-3572 |
| language | English |
| last_indexed | 2025-11-24T10:54:36Z |
| publishDate | 2007 |
| publisher | Інститут проблем моделювання в енергетиці ім. Г.Є. Пухова НАН України |
| record_format | dspace |
| spelling | Mesjasz-Lech, A. 2016-06-07T09:02:55Z 2016-06-07T09:02:55Z 2007 The Significance of the Information Technologies in the Functioning of the Network Organisations / A. Mesjasz-Lech // Электронное моделирование. — 2007. — Т. 29, № 4. — С. 39-47. — Бібліогр.: 10 назв. — англ. 0204-3572 https://nasplib.isofts.kiev.ua/handle/123456789/101783 The paper presents the possibility of use of IT in network organisations and its influence on efficiency of network organisations functioning, especially in realisation its the uppermost goals. Рассмотрены возможности использования информационных технологий в организациях с сетевой структурой и влияние этих технологий на эффективность их функционирования, особенно при реализации главных приоритетов. Розглянуто можливості використання інформаційних технологій в організаціях із сітковою структурою та вплив цих технологій на ефективність їхнього функціонування, особливо при реалізації головних пріоритетів. en Інститут проблем моделювання в енергетиці ім. Г.Є. Пухова НАН України Электронное моделирование The Significance of the Information Technologies in the Functioning of the Network Organisations Значение информационных технологий в функционировании организаций с сетевой структурой Article published earlier |
| spellingShingle | The Significance of the Information Technologies in the Functioning of the Network Organisations Mesjasz-Lech, A. |
| title | The Significance of the Information Technologies in the Functioning of the Network Organisations |
| title_alt | Значение информационных технологий в функционировании организаций с сетевой структурой |
| title_full | The Significance of the Information Technologies in the Functioning of the Network Organisations |
| title_fullStr | The Significance of the Information Technologies in the Functioning of the Network Organisations |
| title_full_unstemmed | The Significance of the Information Technologies in the Functioning of the Network Organisations |
| title_short | The Significance of the Information Technologies in the Functioning of the Network Organisations |
| title_sort | significance of the information technologies in the functioning of the network organisations |
| url | https://nasplib.isofts.kiev.ua/handle/123456789/101783 |
| work_keys_str_mv | AT mesjaszlecha thesignificanceoftheinformationtechnologiesinthefunctioningofthenetworkorganisations AT mesjaszlecha značenieinformacionnyhtehnologiivfunkcionirovaniiorganizaciissetevoistrukturoi AT mesjaszlecha significanceoftheinformationtechnologiesinthefunctioningofthenetworkorganisations |