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Autonomous Decentralized Enterprise Model-A New Wave in Web 2.0 Type E-commerce1 39X 4Autonomous Decentralized Enterprise Model-A New Wave in Web 2.0 Type E-commerce 1Feng Liu 1 and Makoto Hirano 21 Southwest Jiaotong University, China2 Kochi University of Technology, Japan1. IntroductionAt the beginning of the twenty-first century, business conducted over the Internet (referredhere as 'e-commerce'), with its dynamism, rapid growth, and high competitiveness,promises new avenues for the creation of wealth (Amit, Zott, 2001). Established firms arecreating new online businesses, while new ventures are exploiting the opportunities theInternet provides. Moreover, since the emergence of Web 2.0 in 2004, users can do morethan just retrieve information. The role of common customer in business has changed to agreat extent, the customers have become more influential on sales and on new itemdevelopment through their Internet activities (weblogs, forums, personal web pages, wikis,podcasts, social bookmarks, RSS feeds and other forms of many-to-many publishing). Tosome extent, Web 2.0 facilitates the construction of autonomous decentralized networkoutside the enterprises. This network, composed of autonomous customers and suppliers,and has become a topic, which caused extensive attention in the theoretical research andbusiness practice.Accompanying the environmental shift outside the E-enterprises, inside the businessorganization, traditional pyramid-style management models, such as the functionalstructure, multi-divisional structure or matrix organizational form, no longer suit the newexternal environment. In this chapter, a new wave of organization model inside enterprisesthe Autonomous Decentralized Enterprise Model (ADEM) will be described, and its processand formulation mechanism will be analyzed.The chapter will be organized as follows:First, the paradigm shift in the external business environment, which urges thetransformation of the enterprise organization, will be introduced as background; then, theAutonomous Decentralized System (ADS), as the theoretical origin of ADEM, and itsdevelopment will be presented as a revolutionary viewpoint in interdisciplinary fields. Thepractical application in real-time production system and theoretical innovation in businessand management field based on the ADS will also be reviewed. The main part of the chapter1Portions of this article have been previously presented in IEMC Europe 2008 andpublished in the proceeding of it.
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