Why flat, virtualization is the future direction of enterprise organizational structure development?

Networking, virtualization and flattening are the basic features of the future enterprise organizational structure

Networking, virtualization and flattening are the features used to describe the future form of enterprise organizational structure relative to the traditional form of enterprise organizational structure in the past. Networking refers to the future form of enterprise organizational structure diluted the concept of strict hierarchy, the vertical division of labor within the enterprise continues to reduce, while the horizontal division of labor and collaboration continues to increase, the enterprise organizational structure into a relatively equal and autonomous, rich in innovation, small business units or individuals composed of network-type organizations. Virtualization refers to the future form of enterprise organizational structure is no longer a property rights relations based on assets as a link to the authority of the basic operating mechanism by a variety of positions and departments composed of real business entities, but to the computer and information networks as the basis and support for the division of labor and cooperation as a link, combined with the authority to control and the principle of market exchange of the operation of the mechanism of a dynamic corporate Union. Flatness means that the future enterprise organization will no longer be a pyramidal form of organizational structure formed by vertical specialization division of labor, but through the establishment of customer demand-oriented horizontal value stream groups and work teams, the traditional vertical relationship between the employees of the enterprise on the basis of the enterprise information network platform into vertical and horizontal equality, thus eliminating the barriers and obstacles between the vertical departments. Enterprises delegate tasks to grass-roots value stream groups and work teams, and at the same time delegate authority to customer-oriented grass-roots work teams. This reduces the middle management of the enterprise and forms a flat organizational structure. Flat enterprise organization is conducive to strengthening horizontal coordination internally, eliminating obstacles and barriers between vertical departments within the enterprise, and mobilizing and giving full play to the enthusiasm of grass-roots employees. Externally, it is conducive to the enterprise to be closer to the market, so that the enterprise's products can better meet the needs of consumers, so that the enterprise is more flexible and elastic, and improve the enterprise's ability to adapt to changes in the external market. It can be said that networking is from the perspective of the interrelationship between the members to describe the future of the enterprise organization, virtualization is from the perspective of the division of labor and cooperation mode to describe the future of the enterprise organization, and flattening is from the perspective of the operating mechanism and the form of organizational structure to describe the future of the enterprise organization.