Physical architecture refers to the physical make-up of information resources such as computer hardware and software, files, screens, reports, forms, and so on. The physical aspect of information relates to how logical components will be implemented. The logical aspect refers to components of data and processing. An example of physical architecture can be demonstrated via the example of the payroll. Initially, the payroll was managed in manual format, then with time clocks, and finally electronically, via mainframes, minis and PC's. As such, physical architecture changes often and with increasing speed as time passes. The logical aspect relates to the nature of the business itself and changes only with the business.
A startup refers to a business that is in its earliest development stages. It therefore is not yet showing any growth in terms of profits or turnover. Indeed, having just started, the startup owner is more than likely still in debt in terms of business...
It is also not a certainty that the business will succeed. A startup on the Internet for example is one that has just entered the launching phase of its development. As such, the owner needs to do significant research and development in order to ensure success.
Organizational convergence means the integration of functions that were previously separate, by for example forming one enterprise. The reason for such convergence can be cost advantages relating to internal production.
A variety of problems are related to such convergence, which relate to the strength of integration advantage. Very strong advantage may negatively affect the market within which an organization functions. The perception may for example be that the company is involved in unacceptable competitive behavior. In this way, any advantage of efficiency created by organizational convergence could be detrimentally affected by negative perceptions within the broader marketplace.
