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Secondary Activities and Platform Companies

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The traditional organisational structures are still preventing most companies from looking for talented staff outside the boundaries of their organisation. This makes it difficult for companies to tackle evermore complex challenges. Many platform companies allow people outside their payroll to offer their expertise in new ways. Network organisations concentrate on orchestrating tasks rather than on the ‘ownership’ of full-time workers. Whereas Marriott hotel employs large numbers of staff to realise its value proposition of ‘accommodation for a guest’, Airbnb uses external hosts to provide the same value proposition. Human Resource Management shifts, as a result, more and more towards community management (Choudary, 2015).

Technological development is evidently no longer a supporting activity, but is essential in the optimisation of the platform and its functions. Platform companies still have other supporting tasks but these are increasingly losing relevance.

End Of Competition, The: The Impact Of The Network Economy

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