ACCA SBL Syllabus H. Innovation, Performance Excellence & Change Management - Boundary-less Organisations - Notes ^{6 / 9}

These are useful for non-standard work, where rapid innovation is needed

Communication between functions is virtual (not face to face).

This removes any geographical boundaries

The structure of boundary-less organisations is free-form.

There are very few hierarchies.

This leaves employees to work in groups managing their own (company wide) projects

Examples:

1. Hollow: 

   Management identify the core competencies, and outsource the rest. 

   This has the effect of reducing fixed costs (but increasing variable costs).

   This fixed to variable costs is good for when times are tough and when there’s a price war

2. Modular: 

   For manufacturing industries. 

   Outsourcing parts of the manufactured item. 

   This needs correct interfaces (where the parts fit together)