Virtual enterprise

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A virtual enterprise (VE) is a temporary alliance of businesses that come together to share skills or core competencies and resources in order to better respond to business opportunities, and whose cooperation is supported by computer networks. [1] [2] [3] [4] [5] [6]

Contents

It is a manifestation of distributed collaborative networks. [7] A virtual enterprise is a particular case of virtual organization. [8]

Virtual enterprises have become increasingly common in the area of research and development, with often far-flung organizations forming alliances that amount to a "Virtual Research Laboratory." [9] [10] Vassiliou (2007) [11] outlined a broad continuum of possible virtual laboratory relationships, ranging from relatively simple outsourcing by a central organization to tightly knit consortia of collaborating entities.

Definitions

Several definitions include:

Characteristics

All of these definitions indicate some common characteristics summarized as:

Projects

Several European Union projects in the Framework Programmes for Research and Technological Development focused on virtual enterprises:

Another example of virtual enterprise is found in the United States Army Research Laboratory's Federated Laboratories, or "Fedlabs." These began in 1996, and represented close partnerships between ARL and several industrial and academic organizations, as well as various non-profit entities. The first three FedLabs were in Advanced Displays, Advanced Sensors, and Telecommunications. Each FedLab was a large consortium, with both an overall industrial leader and an ARL leader. The cooperative agreements forming the FedLabs were somewhat unusual in that the ARL was not a mere funder of research, but an active consortium participant. [19] [20]

An overview of related projects (up to 2005) can be found in a book by Camarinha-Matos et al. (2005). [21]

Communities

Since 1999 the International Federation for Information Processing (IFIP) and Society of Collaborative Networks (SOCOLNET) sponsored an annual conference called the Working Conference on Virtual Enterprises (PRO-VE). [22]

Over the last couple of decades,[ when? ] we have seen a major shift from an industrial economy to that of an information economy. This led to new technology to help capitalise on the information economy. Virtual enterprises allow businesses to specialize and be flexible within their environments. This business model had been applied to outsourcing and supply chains, as well as temporary consortia. Because the formation of virtual enterprises is an intricate process, a new form of technological support has been developed. The most ambitious of the support systems actually intends to automate part of the creation process, as well as the operation of these enterprises. [23] A comprehensive overview of the state of the art, methods and tools can be found in Camarinha-Matos et al. (2008). [24]

As with all types of enterprises, virtual enterprises present both benefits and challenges. Benefits include more economical connections with suppliers, greater opportunities to create revenue, more efficient operations, and a reduction in administrative costs. Challenges facing virtual enterprises are: inexperienced users, security, expense control, and the level of incorporation required to create a successful virtual enterprise. [25]

Examples of virtual enterprises on the Internet included Virtual Music Enterprises (from about 2004 through 2010) [26] and Virtual Enterprise California which is part of the Virtual Enterprises, International educational group. [27]

CNO life cycle

Because a virtual enterprise is considered a collaborative networked organization (CNO), its organizational life cycle is different in terms of time spend on creation (entrepreneurial stage) and dissolution (decline). [28] The CNO life cycle includes the stages: [29]

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References

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  8. "Archived copy" (PDF). Archived from the original (PDF) on 2016-03-04. Retrieved 2013-08-21.{{cite web}}: CS1 maint: archived copy as title (link)
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  29. Luis M. Camarinha-Matos; Hamideh Afsarmanesh (July 2007). "A Comprehensive Modeling Framework for Collaborative Networked Organizations". Journal of Intelligent Manufacturing. 18 (5): 529–542. doi:10.1007/s10845-007-0063-3. S2CID   26558738.

Further reading