Interview with Prof Abbe Mowshowitz on 'Collaboration in organisations with a certain degree of virtualness'.

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Abbe Mowshowitz has been a professor of computer science at the City College of New York and member of the doctoral faculty at the Graduate Center of the City University of New York since 1984. In this period he has also held academic appointments at the University of Amsterdam, Erasmus University Rotterdam, and the Rotterdam School of Management.
After finishing his PhD in computer science at the University of Michigan in 1967, Abbe did research in information theory and discrete mathematics. But his interests gradually shifted to organizational and social implications of computers. Since the mid-1970?s he has written extensively on this subject. His book THE CONQUEST OF WILL: INFORMATION PROCESS-ING IN HUMAN AFFAIRS, Addison-Wesley, 1976 was one of the earliest comprehensive studies of computers and society.
The interview has been held by Patricia from the IAT (Institute for Human Factors and Technology Management) at the University of Stuttgart.

I. The interviewee

Interviewer For how many years have you been involved in the topic of virtualness?

Prof Mowshowitz My interests in social issues led me to formulate the concept of virtual organization - arguably, I coined the term in the late 1970s. This perhaps makes me a pioneer in ?virtuality?.

Interviewer In what notable projects or experiences have you been involved?

Prof Mowshowitz Most recently, while on sabbatical at the Rotterdam School of Management (2001-2002), I worked with Prof. B. Katzy on the Business Architect Project sponsored by the European Commission. My ideas on virtual organization are laid out in detail in my recent book Virtual Organization: Toward A Theory Of Societal Transformation Stimulated By Information Technology (Greenwood Publishing Group, 2002).

Interviewer What would you say is your main field of interest (or point of view) when addressing these subjects?

Prof Mowshowitz I first used the concept to call attention to the management practices of certain multinational corporations ? practices like shifting production facilities from one country to another, designed to take advantage of differences in labor and other production costs. These practices struck me as having much in common with the operations of virtual memory in computer systems. It was because of this analogy that I invented the term ?virtual organization?. I have been hooked on the study of virtuality ever since, and have continued to use the notion of virtual organization as a vehicle for understanding contemporary social change linked to information technology.

II. Definitions: Understanding virtualness

Interviewer What is your definition of virtual organisations?

Prof Mowshowitz I view virtual organization as a management paradigm, rather than any particular form of organization. The essence of the paradigm is a logical separation between the requirements of a task and the ways in which a task can be satisfied. This separation makes it possible to switch ? in an ongoing and systematic way ? from one means of realizing a requirement to another. Switching or the reallocation of resources is nothing new. However, the management paradigm of virtual organization transforms the practice of reallocation into standard operating procedure. This is quite different from the ad hoc use of resource reallocation, and it is of recent vintage, since systematic switching is heavily dependent on computer-based information technology.
This view of virtual organization may seem idiosyncratic, but I dare say the kernel of most definitions of virtual organization can be reduced to of switching.

Interviewer Where do you see the link between virtualness and Knowledge Management?

Prof Mowshowitz Virtual organization is linked to knowledge management in the way knowledge is made available to employees, managers, customers, etc. Let me clarify this claim by means of an example. Consider a help desk in a company offering a complex product or service. The aim of a help desk is to serve customers effectively at minimal cost to the company. This two constraints can be met simultaneously by a system that harnesses different suppliers of knowledge and allocates them to users according to a cost-effectiveness schedule. When a customer asks a question, the system assigns (based on an interpretation of that customer?s needs) the lowest cost supplier to respond to the request for knowledge. The key advantage of this arrangement is the ability to switch between suppliers, making it possible to realize cost savings without compromising service effectiveness. The same idea can be applied to managing access to knowledge by employees within an organization.

Interviewer What advantages or disadvantages does virtuality bring to KM?

Prof Mowshowitz Advantages stem from the ability to switch between different modes of satisfying requirements for knowledge. This ability allows for assigning resources that are commensurate with the level of knowledge required. Cost savings can be achieved in a help desk operation, for example, by using an automated system to answer frequently asked questions rather than assigning a highly paid technician to provide answers.
Another advantage derives from the fact that virtuality forces management to focus attention on knowledge. In particular, the replacement of face-to-face interaction with computer-mediated communication makes it imperative to maintain up-to-date inventories of knowledge.
On the other side of the ledger, it is difficult to ensure continuity in dealing with customers. A customer whose request for knowledge is not met in one session may have to explain the problem all over again each time he or she contacts the help desk. This as we all know can be a source of frustration and may have a negative effect on the customer?s attitude toward the company.
Inventories of knowledge usually anticipate a range of issues falling within a particular problem domain, and may not be very useful for responding to questions outside that domain.

III. Collaboration in virtual organisations

Interviewer What requirements are necessary for fostering cooperation between different units (profit centres) of a company... or worse, between different companies within a "virtual organization"?

Prof Mowshowitz I see two ways to foster cooperation. One is to reduce dependence on human beings as knowledge repositories. The other is to develop standards for interfacing different units within an organization and between organizations. Examples of the former are computer programs that control machine tools, drive robots, or make credit authorization decisions. The ISO 9000 and 14000 standards, and protocols for electronic data interchange are primitive examples of the latter.

Interviewer What are the barriers that need to be broken, if any?

Prof Mowshowitz Barriers to reducing dependence on human borne skill and knowl-edge are powerful and understandable. Jobs and livelihoods are at stake. What?s more, under conditions of increasing competition in global markets, national governments are reducing public sector expenditures to help reduce the cost of doing business in the hope of strengthening the competitive position of domestic industries. This trend will likely encourage greater grass roots opposition to introducing artifacts in place of humans.
The realization of standards is impeded by competition between organizations. This is an old story. Companies that have developed new products, for example, stand to gain a strong market position if their product design is adopted as a de facto standard. National governments and international bodies have and will continue to play their roles as referees in the market-place. One of the practical challenges today is the development of standards for electronic marketplaces.

Interviewer Is it possible to set up a virtual organisation without initial and then regularly face-to-face meetings of at least some of the members?

Prof Mowshowitz This question focuses attention on asynchronous and distributed activities in virtual organization, e.g., virtual teams. As many observers have noted, people working on a common project need to rely on each other. In this sense it is helpful to foster trust among the members of a virtual team. Some projects, perhaps those of a relatively high level of complexity or sensitivity, would probably require a face-to-face kickoff meeting and possibly regular meetings between select group members. But many virtual teams could accomplish their objectives without any face-to-face meetings at all.

Interviewer Can a community be viable on the long run without some get-together? Any concrete examples?

Prof Mowshowitz There are many different kinds of communities and different possi-ble definitions of ?the long run?. The need for get-togethers will vary with the type of community. Some hobbyist communities and user groups, for example, may function quite well indefinitely without get-togethers. Online courses also do not require get-togethers, although any given course is relatively short-lived. Some professional associations, on the other hand, do require get-togethers to cement and reinforce the common interests of the members. My experience as an academic in the US and Europe has underscored the importance of conferences and workshops in career development. Despite the peer review process used by journal editors and grant program managers, personal networks, periodically reinforced by personal contact, are indispensable to getting manuscripts accepted for publication and for obtaining research grants.

IV. Trends

Interviewer What major trends will we have to consider within the next 5 years concerning collaboration in virtual organisations?

Prof Mowshowitz The major trends can be understood in terms of the requirements for switching. One contemporary proxy for switching is outsourcing, including both operations (such as data processing) and staffing. Outsourcing has already become a major force in every advanced economy. Moreover, so-called non-standard work arrangements account for a substantial proportion of employment. Cost effective switching will continue to stimulate outsourcing and the non-standard work arrangements that go along with it. Switching in virtual organizations demands these innovations, but there are externalities to cope with. A big one is employee loyalty. Job insecurity is a byproduct of outsourcing and this is a strong negative for loyalty.

Interviewer Where do you see the need for applied research?

Prof Mowshowitz Applied research is needed to determine the most appropriate ways to use switching. Like all good things, switching has limitations and these must be understood and respected if good results are to be achieved. One important area for applied research is determining the precise conditions under which switching should take place. Consider, for example, switching between suppliers. What criteria should be applied and what quantitative methodology should be used to decide when a new supplier is to replace an existing one? Central to these questions is the cost incurred in switching. Standardization is one way of minimizing switching costs, and the development of organizational interface protocols is in its infancy. This is another area where research is needed.

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About Abbe Mowshowitz

Abbe Mowshowitz has been professor of computer science at the City College of New York and member of the doctoral faculty at the Graduate Center of the City University of New York since 1984. In this period he has also held academic appointments at the University of Amsterdam (1994-1997, 1991-1993), Erasmus University Rotterdam (1990-1991), and the Rotterdam School of Management (2001-2002).

Mowshowitz began his research career in information theory and discrete mathematics, but shifted to organizational and social implications of computers some twenty-five years ago. He was awarded the 1990 Tinbergen Professorship at Erasmus University Rotterdam in partial recognition of his work on computers and society. He has written about twenty books and reports, including The Conquest Of Will: Information Processing In Human Affairs (1976), and over fifty articles on the social implications of computing.

In recent years, his interests have shifted to virtual organization (an idea he conceived in the late 1970s). A book on this subject, Virtual Organization: Toward A Theory Of Societal Transformation Stimulated By Information Technology, was published in 2002.

In addition to teaching and research, Mowshowitz has acted as consultant on the uses and impacts of information technology (especially computer networks) to a wide range of public and private organizations in North America and Europe. He received his PhD in Computer Science from the University of Michigan in 1967.