Tuesday, March 17, 2009

What is the Network Enterprise

Again from my reading The Rise of the Network Society by Manuel Castells I have found two great definitions of types of organizations.

Castells first defines an organization...

"A system of means structured around the purpose of achieving specific goals."

I like it. Then he goes one step further separating bureaucracies and enterprises.

The bureaucracy is an "organization for which the reproduction of their system of means becomes their main organizational goal." In insurance I believe not only ACORD, but also Transformation Station, AMS and Applied Systems fit this. I am sure there are others in every industry.

An enterprise is an "organization in which the goals, and the change of goals, shape and endlessly reshape the structure of the means."

We need to use systems which mirror the enterprise definition to succeed. 

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