Integration of modern business as an organizational model
The integration of a modern business is an organizational model in which individual companies focus on their specific skills (core business), which create competitive advantages over competitors, while outsourcing all additional activities. The organization of a network company is structured by processes and focused on the goals to be achieved, and not on the functions performed. Therefore, the joint business processes of the enterprise are configured as a set of local enterprises with intensive global coordination. The purpose of this relocation is to get all the typical advantages of the districts, overcoming the territorial restrictions.
Why do people need business integration. Structural and organizational flexibility. Reducing “time to market.” Availability of upscale professional skills on demand. Improving the quality of service. The need for better planning and monitoring activities. More resources available to focus on Core Business. “Lower operating costs. Transparency of costs incurred in various service areas »Improving the ability to assess organizational friction and increase customer satisfaction by organizing internal or external interface services (help desk, call center …).
“The role of digital transactions is changing radically, which has an extraordinary impact on society. In the modern era, private property and markets were synonymous; indeed, the capitalist economy itself is based on the idea of exchanging goods in free markets. In the new era, markets are giving way to networks, and ownership is gradually being replaced by access. In the new context, the supplier retains ownership of the asset that it rents or leases or is ready to cede in temporary use by paying a fee, subscription, registration fee. ”
Digital Transactions Social computing: the convergence between work and access to external information allows you to work dynamically and stimulate interaction between communities (social networks) Cloud computing: the availability of applications and resources through the network allows you to manage knowledge with greater flexibility.
In the thesis that follows this brief introduction, we analyze the changes in the organizational structure of Italian companies operating in the manufacturing sector. These changes have occurred especially in the last twenty years, since the conditions in which modern societies function differ from those that characterized Italy in the sixties, seventies and eighties. After a brief description of economic theories and characteristics regarding vertical integration and, as an analogue, turning to the market, we come to a fulcrum in the third chapter. This chapter describes the situation of Italian manufacturing companies in the second half of the last century, when the dominant elements were the specialization of small business, economic areas, cost minimization, and an exclusive orientation to the main business.
The degree of integration with respect to the period mentioned above was very low, both in relation to Italy and Europe as a whole (with slight differences in different countries). The basis of this thesis is a constant comparison of the levels of vertical integration of organizations; This comparison takes place between Italian companies examined in different historical periods, between national and international companies, between one company and the average cost of companies.
The means by which these comparisons can be made is an index calculated from the relationship between value added and turnover; This index shows the degree of integration of the company, highlighting that part of the cost that is included in the output that is actually produced in the company in question. Since turnover and value added are elements that can be obtained from the budget of any company, comparing the integration levels of different companies will be a linear process and with several restrictive hypotheses, primarily because comparisons are made between companies operating in the same sector, which production. In the fourth chapter of the thesis, we will consider the situation that characterizes the Italian organizations of the last ten years.