Management Support for Globally Operating Virtual Organizations: The Case of KLM Distribution

  • Authors:
  • Matthijs J. J. Wolters

  • Affiliations:
  • -

  • Venue:
  • HICSS '99 Proceedings of the Thirty-second Annual Hawaii International Conference on System Sciences-Volume 7 - Volume 7
  • Year:
  • 1999

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Abstract

In search for new organizational forms that incorporate the appropriate level of flexibility to offer a high variety of products and services the virtual organization has emerged. The capabilities of Information & Communication Technology (ICT) enable the virtual organization to link and coordinate a wide variety of globally dispersed business partners. In this paper we introduce a management support tool, called Modular Network Design (MND), which supports managers of a virtual organization in four steps: (1) determination and analysis of customer requirements; (2) tracking of possibilities to satisfy customer requirements; (3) allocation of production tasks among network partners; (4) ongoing assessment and adjustment of activities and allocation procedures. The applicability of MND is illustrated with a case study at KLM Distribution, the coordinator of a globally operating virtual organization, which distributes worldwide aircraft spare-parts for its customers. The case study illustrates how MND supports the management of the virtual organization and contributes to better planning of individual, customized transport orders.