Virtualization and Its Role in Business

Author(s):  
Jerzy A. Kisielnicki

A new management trend of the global information technology (IT) application—virtualization—has appeared in the contemporary management. Virtualization is a process of enterprise transformation (using IT) that allows breaking through various limitations of organizational constraints. Virtualization changes dramatically the image of business, especially of small and medium enterprises (SMEs); by adopting the concept of virtualization, they can become fully competitive and may effectively operate in the global market. Barriers of the scale between SMEs and large organizations disappear. This new type of organizations is often called in literature modern organization or virtual organization. Organizations of this type have an effective decision-making process, and function based on economic criteria. Consequently, their opportunities to grow and to compete in the global market are greater than for traditional SMEs. Hence the thesis that virtualization allows individual organizations to enter strategic co-operative alliances with other similar businesses. Such of virtual organizations have a competitive position in the global market. In the literature, there are many terms used to define virtual organization: “network organizations” (Drucker, 1988, p. 9), “organizations after re-engineering” (Hammer & Champy, 1993, pp. 77-79), “crazy organization,” “crazy time for crazy organization” (Peters, 1994, pp. 5-7), and “intelligent enterprise” (Quinn, 1992, p. 3).

Author(s):  
Jerzy Kisielnicki

A new management trend of the global information technology (IT) application—virtualization—has appeared in contemporary management. Virtualization is a process of enterprise transformation (using IT) that allows breaking through various limitations of organizational constrains. Virtualization changes dramatically the image of business, especially of small and medium enterprises (SMEs); by adopting the concept of virtualization, they can become fully competitive and may effectively operate in the global market. Barriers of scale between SMEs and large organizations disappear. This new type of organization is often called in the literature a modern organization or virtual organization. Organizations of this type have an effective decision-making process and function based on economic criteria. Consequently, their opportunities to grow and compete in the global market are greater than for traditional SMEs. Hence, the thesis: virtualization allows individual organizations to enter strategic cooperative alliances with other similar businesses. Such virtual organizations have a competitive position in the global market.


2011 ◽  
pp. 1517-1530
Author(s):  
Jerzy Kisielnicki

The chapter is devoted to the subject the transformation of SMEs due to the application of Information Technology (IT). These enterprises, despite their significant position in local economies, had limited possibilities while competing with large-scale enterprises (LSE) on the global market. Consequently, their role more and more often was reduced to the role of satellites. The use of IT has allowed SMEs to transform into virtual organizations and in this form succeed in the global market. The author has focused on the analysis of the following problems: virtualization as a direction of the development of SME, analysis of its strengths and weaknesses, and new opportunities and risks face medium-scale small construction enterprise that, by using information technology and creating a virtual organization, was able to defeat a large-scale enterprise (LSE) in an international tender for construction of a hotel complex.


Author(s):  
Jerzy Kisielnicki

The chapter is devoted to the subject the transformation of SMEs due to the application of Information Technology (IT). These enterprises, despite their significant position in local economies, had limited possibilities while competing with large-scale enterprises (LSE) on the global market. Consequently, their role more and more often was reduced to the role of satellites. The use of IT has allowed SMEs to transform into virtual organizations and in this form succeed in the global market. The author has focused on the analysis of the following problems: virtualization as a direction of the development of SME, analysis of its strengths and weaknesses, and new opportunities and risks face medium-scale small construction enterprise that, by using information technology and creating a virtual organization, was able to defeat a large-scale enterprise (LSE) in an international tender for construction of a hotel complex.


2012 ◽  
Vol 50 (No. 10) ◽  
pp. 465-470
Author(s):  
G. Pavlíková ◽  
P. Maříková

The rural area is a very important multifunctional space, with landscape enhancement value and function. These factors are then necessary for the directions of development process in rural communities. The countryside creates an important part of economic and social state system. The area of work and the employment of population into the productive age present ones of significant macro-economic indicators of the capacity of national economy. Changes of economy in the market space, transformation of companies of agricultural primary production to new legal form, restructuring of production and manpower in agriculture  caused leaving of part skilled of the workers, as well as other workers to another branches of national economy. In 1990’s, especially in the beginning during the transformation of Czech economy, there was a big boom of private business and new forms of business activities and subjects emerged. Traditional lifestyle, which continues in the Czech countryside, determined that small enterprise prevails here. Current economics clearly shows that small and medium enterprises have an unsubstitutable role in our economic development and greatly contribute to creating new jobs in individual regions.


2017 ◽  
Vol 13 (1) ◽  
Author(s):  
Dalibor Drljača ◽  
Zoran Dimitrijević

Horizont 2020 programme, used by European Union to fund aims from Innovation Union and EUROPE2020 strategies, enables small and medium enterprises (SME) to strengthen their innovativeness capacities and potential with main goal of putting innovation on market. SME Instrument is unique programme for funding of SMEs’ innovative actions aiming to strengthen their presence on global market and increase of competitiveness. Having in mind that in Europe more than 99% companies belong to SME category, and that BiH has paid participation in this programme, this means that domestic SMEs can apply for these funds. During 2014 were submitted over 6000 project proposals, but little over 500 were funded. This is telling us enough on interest of European SMEs for participation, but also about programme as ideal source of funds for realisation of innovative ideas.


Author(s):  
Rosmeriany Nahan-Suomela ◽  
Satu Lautamäki

A rapidly changing business environment generates a growing demand for enterprises to understand their markets. Knowledge about markets is a strategic resource and enterprises are advised to invest in understanding their markets, competitors, and customers. Market orientation is widely studied as a concept describing how enterprises generate and respond to market knowledge. Market orientation is a cultural factor which we analyze in the framework of organizational culture. We examine market orientation as a cultural factor, as adopting a new type of culture inside and outside an organization can be particularly challenging for Small- and Medium-Enterprises (SMEs). SMEs have not been considered as very active participants in global business, where market knowledge is of utmost importance. For example, Keskin (2006) finds that market orientation is an antecedent of learning orientation in SMEs and market intelligence guides their learning processes. This chapter examines both theoretically and empirically how market orientation as a cultural factor is related to the internationalization processes of SMEs. This hopefully helps us to understand how SMEs can develop their businesses to a global level. We will present a qualitative study of four Finnish SMEs representing different phases of internationalization. Finally, discussion on the results and future research directions will be presented.


Author(s):  
Neeta Baporikar

Small and Medium Enterprises (SMEs) are the engines of economic growth, promote equitable development and create more opportunities for being innovative in providing sustainable solutions. They also play a crucial role in providing employment opportunities, aid industrialization in rural backward areas, reduce regional imbalances and assure equitable distribution of national income and wealth. But survival in the new global market calls not only for improved productivity but sustainability and growth through innovation on incessant basis. Business sustainability involves self-assessment to identify improvement opportunities, strengths and ideas for future organizational development. In India, though SME is an important contributor to economy, yet many face lot of difficulties and end winding up or becoming unsustainable. Several studies have shown that factors related to poor management, less innovative approaches, short short-termism are the causes of failure or closure. Hence, the core objective of this chapter is to explore the approaches which can lead to better understanding of sustainable replicas to enhance innovation and sustainability.


2021 ◽  
Vol 6 (12) ◽  
pp. 2273-2279
Author(s):  
Hadiah Fitriyah ◽  
Nur Ravita Hanun ◽  
Rima Azara

The purpose of the community service is to increase the products competitiveness of the Belimbing Wangi SMEs, Watesari Village, Balongbendo District, Sidoarjo Regency. The impact of the Covid-19 pandemic is extraordinary, especially for the Belimbing Wangi SMEs business group, where the production process and turnover has decreased, because business management is still carried out conventionally and Watesari Village tourism must be closed according to government regulations. The service method used is field observation, trial of processed star fruit products, training and assistance in processing star fruit juice, and business management training. As a result of the assistance, partners understand the importance of conducting business management and finding the best formula for star fruit juice drinks. This training also supports the sustainability of the Belimbing Wangi SMEs business and competes at the global market level.


2016 ◽  
Vol 8 (2) ◽  
pp. 42-50
Author(s):  
Patrizia Magnoler ◽  
Mariachiara Pacquola

Abstract The need to address generational change and the challenges of a global market in terms of maintaining productivity require small and medium enterprises, mainly of an artisanal nature, to rethink training. The challenges mainly concern production capacity, which is increasingly problematic given that demand does not allow for long-term schedules and enhancement of human resources. There are many tensions and just as many needs for improvement, and training is therefore the space in which to collect and rework in order to restore a new perspective of sustainable and quality change. This study presents a process of collaboration between universities and businesses, in which the former provide the framework for the activation of mechanisms that make use of work analysis, while the latter provide the appropriate support (time and opportunities for discussion) to allow for a review of the proposed training model and trainer functions in a dynamic and complex production environment.


2019 ◽  
Vol 2 ◽  
pp. 242
Author(s):  
Tutik Sulistyowati ◽  
Nur Hayatin ◽  
Gita I. Marthasari ◽  
Hidayah B. Qur'ani

The insufficiency of understanding of ICT (Information and Communication Technology) among woman entrepreneur in Indonesia is a problem that needs to be resolved. Because Indonesia has the potential to develop business through e-commerce. At present, there are many small and medium enterprises, especially those spread in Malang Regency, dominated by women as business actors. However, they have difficulties in marketing products, especially online marketing. To overcome this problem, we proposed a training program to improve the understanding of ICT for women entrepreneur, especially who is a member of Aisyiyah Organization in Malang. This program will provide ICT training as well as mentoring. Output targets of this program are: 1) partners are able to manage online stores independently; and 2) partners can market their products online through web media, social media, and market place. The material to be provided includes: an introduction to the internet, creating e-mail, marketing through social media, marketing through the market place, and marketing through online web shops. Through the program, the knowledge and skills of women entrepreneur of Aisyiyah Malang can increase so that they can become capital to be more competitive, especially in entering the global market.


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