How Organizations are Changing in the World Today

533 Words Jan 27th, 2018 2 Pages
Core competencies that form much of the force of economies of scope are becoming increasingly narrowed and specialized, leading us to industry fragmentation in the information revolution contrasting against the industry consolidation that accompanied the industrial revolution. If we look behind the curtain of public policy dressed in its diverse laws and regulations, we see less rather than more gravity drawing the communications industry into operational or financial consolidation. Neither vertical nor horizontal integration of communications-related businesses appears compellingly natural. The rate of technological advancements (and apparent lack of economies of scale that such behemoths as Bell Labs once enjoyed) allows industry giants to be toppled at unprecedented rates. Instead we see a growing value in cooperatively developed integrative standards that will marry such distant cousins as content to conduit, computing to transportation, appliance functionality to communications.
Thus, consolidation of firms has greater value in its portfolio effect than in economies of scope and scale (the uncertainty of just which information and communications products will be successful carries risks that can be mitigated by having a portfolio of such products).The present rate of technological change in the information and communications industries also…
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