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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  Information
exists as a goals and market gathering difficult
network of contractual opportunities since IS of
contracts, agreements different parties
outsourcing  Those  Can compete may not be
many of its responsible for with larger compatible
functions organisations
regulating  Loss of control
performance will  Lower
need information infrastructure  Loss of
for decision costs competitive
making advantage due to
outsourcing
 Each party will
need feedback
on its
performance
The IS will need to
be sophisticated
with the ability to
gather and process
information from all
parties

Illustrations and further practice

Now read Illustration 1 from Chapter 4 of the Study Text

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