There’s a possibility that this technological revolution will mark the end of old business models. The structures, the processes for planning used by the organization, coordination process, reward process, hiring everything will change dramatically. Today’s truth is that the failure of most companies is not basically due to non-functioning supply chain processes of weak business models, but it employs a model which empowers a few while major part of the work force is disempowered. A model that favors efficiency more than anything else and values conformity over any other virtue; these entire factors make the bureaucratic model less adaptable, lacking inspiration and innovative ideas. Bureaucracy, by its very nature is uninspiring, incremental and inertial.
The advantage that technologies provide for businesses and organizations is the virtual possibilities they provide in disaggregating existing designs. In addition, it enables organizations to segregate activities that are crucial to their competitive advantage and to specialize in activities that are unique to them. Non-core functions including telemarketing, programming, accounting, and other back-office functions can be outsourced to other parts of the world where the costs are cheaper by one-third to one-tenth of the home market cost. This has resulted in dramatic reduction of operating costs and increased competitiveness.
The ‘network enterprise’ thesis (Castells, 2000), emphasizes on high working relationships, partnership and collaboration and neglects the vital issue of power. The bureaucratic reality of a business is the diverse range of hybridized control regimes that authorize the power elites to perform operational autonomy and still retain a centralized, effective and streamlined, strategic control over organizations that are productive. In these networks, the technology is moving fundamentally towards control, standardization and concentration. The technological advancements have led to tighter tendencies of centralization.