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What is a Next Generation Enterprise (NGE)

  Different views of NGEs have been presented in the literature [Drucker 2001, kidd 2000, Pohle 2005, Umar 2004]. The main message is that NGEs provide a network of specialized services that are offered over a global connectivity platform that is the backbones of NGEs. Within this broad picture, several types of configurations can be envisioned depending on the usage scenarios, the parties involved (e.g. retailers and end customers as opposed to wholesalers) and a number of other attributes. After experimenting with several conceptual models, we feel that the following four mega-trends define a reference multidimensional space for NGE (see figure).
  • Automation of internal as well as external business activities through eBusiness, ecommerce and other “e-initiatives”.
  • Mobility support for the mobile customers and workforce.
  • Distribution of operations to widely dispersed sites due to outsourcing and rentals.
  • Agility (on-demand services) to quickly respond to changing business conditions.

The main idea is that NGEs are not one dimensional entities that are relying on agility or mobility but are instead multidimensional enterprises that are pushing the envelope in all four directions.
Different enterprises can be mapped to different regions in this diagram and are represented as circles/ellipses. For example, the inner circles shown in the figure indicate traditional enterprises with low reliance on any of these four capabilities while others show extended enterprises. For each dimension, the [low, medium, high] ordering is defined by locating the “easy case” at the center, in such a way that outer regions naturally come to represent more challenging areas. The main idea is that NGEs lie at the outer edges of this model. As the NGEs push simultaneously towards these four dimensions, they dramatically increase their reliance on a complex array of IT (information technology) services and thus create many new challenges.
Specifically, an NGE utilizes the next generation of business models (e.g., real time business management, mobile processes and virtual operations through outsourcing) by fully exploiting and integrating the next generation technologies (e.g., wireless communications, broadband networks Semantic Web, Web Services and Services Oriented Architectures) to succeed in the competitive global marketplace.

Drucker, P., "The Next Society", The Economist, Nov 1st 2001.
Kidd, P., "Next Generation Enterprise Model", Revised September 2000,
Pohle,G.,et al, " The Specialized Enterprise: A Fundamental Redesign of firms and Industries", IBM Institute for Business Value study, November 2005
Umar, A., "IT Infrastructure to enable Next Generation Enterprises", Information System Frontiers Journal, Volume 7, Numer 3, July 2005, pp: 217-256
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