Virtual Companies
An Informational Website
DEFINITION:
A virtual company, defined in simplest terms, is an enterprise composed of a people, assets, and ideas linked by a technology. Additionally, the enterprise is void of traditional 'brick-and-mortar" components. No buildings or warehouses are used to house workers or products. The virtual worker is off-site and his product is an idea, concept, or process. Technology allows the virtual worker to bring the goods and services to market while he remains in his home office.
Virtual enterprises can best be described through two examples. When defining "virtual company", most people think of a group of employees all working for the same entity toward a common corporate goal. In this case it may be geographic issues that demand people to work together from different locations. Human resource issues may force companies to hire personnel that are not within geographic reach or an actual office location. In both cases, the work being performed is such that office interaction is not necessary.
The second example of the virtual enterprise is a situation where various entities (different companies) within a common marketplace form an alliance or enterprise for the purpose of delivering a product or service to market in the most efficient and profitable manner. It is not a single entity in the classical corporate sense [1]. It is the consolidation of the technical, administrative, management, and financial strengths of various individual entities. Each entity uses its individual core competency to strengthen the virtual alliance. An example of this might be the alliance that the various automakers form with suppliers and distributors in an effort to acquire the needed manufacturing resources necessary and at the most opportune time. This virtual enterprise certainly becomes an efficient means of product and resource transfer. The automaker gets what he needs which helps bring product to market. Through this example the manufacturers and suppliers become a partner with the automaker, strengthening their position. The virtual enterprise allows for flexibility and quick response. The parties involved all bring some form of specialization. There are similar benefits for all parties, which, along with a mutual trust, is what drives the virtual enterprise relationship.
A virtual work environment is generally thought to be a more focused endeavor. It requires that the individual be far more accountable for his/her actions. There is no 'group' to assimilate with, so the actions of the worker are more readily identifiable. The individual must produce or his inactivity will be quickly noticed.
