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Management article
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Reference no. 96410
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1996

Abstract

By now, the monolithic factory was supposed to have given way to the virtual factory: a community linked by an electronic network that would enable numerous partners to operate as one. But for most companies, that promise has been elusive. The traditional technologies--electronic data interchange, proprietary groupware, and wide-area networks--are proving inadequate. Traditional systems cannot meet the three basic requirements of a large-scale virtual factory. First, an internetwork must be able to accommodate members whose IT sophistication varies enormously. Second, it must, while maintaining tight security, cope with partners in both transient and long-term relationships. Finally, it must provide a high level of functionality, including letting partners operate programs on one another''s computers.

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Abstract

By now, the monolithic factory was supposed to have given way to the virtual factory: a community linked by an electronic network that would enable numerous partners to operate as one. But for most companies, that promise has been elusive. The traditional technologies--electronic data interchange, proprietary groupware, and wide-area networks--are proving inadequate. Traditional systems cannot meet the three basic requirements of a large-scale virtual factory. First, an internetwork must be able to accommodate members whose IT sophistication varies enormously. Second, it must, while maintaining tight security, cope with partners in both transient and long-term relationships. Finally, it must provide a high level of functionality, including letting partners operate programs on one another''s computers.

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