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Management 81
ISSN 1820-0222
ISSN 2406-0658 (Online)
The influence of cloud computing concept on organizational performance and structure

 

The paper deals with the organizational aspects of the “Cloud Computing“ concept implementation. It is focused upon management and organization, rather than on the technical, ICT aspects of this concept. The impacts of “cloud computing“ upon the organizational straucture are primarily seen in the new organizational networking platform, via new functionalities this concept offers to the organizational network broker. The implementation of the communication and coordination functions, and the control function in the “cloud“ have proven to facilitate the responsive instead of an ad-hoc network expansion. The impact upon organizational performacces is analysed within the scope of variable and fixed costs of the ICT infrastructure, as well as of transactional and opportunity costs of operations costs. An example is presented of the manner in which “cloud computing“ reduces opportunity costs, increases profitability and reducess the losses of customers. The implementation of this approach is found to allow for a higher level of capital utilisation, a lower sensitivity to business riskss, lower transaction costs as well as a better focus upon directly profitable activities of producing measurable outcomes, rather than upon the activities of support and subsidiary activities. Thus a theoretical frame was used to demonstrate a positive impact upon the development of organizational structure and organizational performances.

 

Mladen Čudanov, Jovan Krivokapić, Jovan Krunić

 

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Issue 81
Wednesday, 01 March 2017
Issue number81, of journal for theory and practice "Management", is published and it can be downloaded from 'Review of issues' section. It has been published only in English version.
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