Page 72 - APM Integrated Workbook STUDENT S18-J19

Chapter 4

Advantages for Disadvantages for
Organisational Information performance performance
form needs management management

Network  The organisation  Flexibility to meet  Difficult to agree
(virtual) – the will need to needs of project. on common goals
organisation establish shared  Can exploit and measures.
exists as a goals and market  Planning and
network of contractual opportunities. control difficult.
contracts, agreements.
outsourcing  Those  Can compete  Confidentiality of
many of its responsible for with larger information a risk.
functions. organisations.
regulating  Monitoring of the
performance will  Lower workforce
need information infrastructure difficult.
for decision costs.  Information
making. gathering difficult

 Each party will since IS of
need feedback different parties
on its may not be
performance. compatible.
The IS will need to  Loss of
be sophisticated competitive
with the ability to advantage if
gather and process partners work for
information from all competitors
parties. (retention of core
competencies in
house will help).

Many of the problems associated with a network structure can be addressed through
the use of a robust service level agreement (SLA). This may include:

 an agreement of common goals and measures

 areas of responsibility and activities and standards expected of each partner

 a confidentiality agreement

 standards and procedures to be adhered to by the workforce (other methods
such as payment by results and cultural controls may help to minimise
workforce issues)

 the information and reporting procedures to be followed (the core organisation
may also put a common interface system in place).

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