Virtual enterprise

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]

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, 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]

References

  1. JANUŠKA, M. Communication as a key factor in Virtual Enterprise paradigm support. In Innovation and Knowledge Management: A Global Competitive Advantage. Kuala Lumpur: International Business Information Management Association (IBIMA), 2011. s. 1-9. ISBN 978-0-9821489-5-2
  2. JANUŠKA, M., KURKIN, O., MILLER, A. Communication Environment for Small and Medium Enterprises. Ibima Business Review, 2011, s. 1-8. ISSN 1947-3788
  3. JANUŠKA, M., CHODŮR, M. Virtual Enterprise Network. ISSE 2009: 32nd International Spring Seminar on Electronics Technology: Hetero System Integration, the path to New Solutions in the Modern Electronics, Brno, 2009., ISBN 978-80-214-3874-3
  4. JANUŠKA, M., PÁLKA, P., ŠŮLOVÁ, D., CHODŮR, M. Value chain of virtual enterprise - Possible modern management concepts and value drivers identification. In Annals of DAAAM for 2009 and 20th International DAAAM Symposium "Intelligent Manufacturing and Automation: Focus on Theory, Practice and Education". Vienna: Danube Adria Association for Automation and Manufacturing, DAAAM, 2009. s. 469-470. ISBN 978-3-901509-70-4 , ISSN 1726-9679
  5. Luis M. Camarinha-Matos and Hamideh Afsarmanesh (July 2007). "A Comprehensive Modeling Framework for Collaborative Networked Organizations". Journal of Intelligent Manufacturing 18: 529–542. doi:10.1007/s10845-007-0063-3.
  6. Handy, C., “A Glimpse of the Invisible Organization,” Director, October 1994, p. 101.
  7. Luis M. Camarinha-Matos and Hamideh Afsarmanesh (July 2007). "A Comprehensive Modeling Framework for Collaborative Networked Organizations". Journal of Intelligent Manufacturing 18: 529–542. doi:10.1007/s10845-007-0063-3.
  8. http://www.wseas.us/e-library/conferences/2006tenerife/papers/541-458.pdf
  9. Russell, M.G., “The ‘Virtual Laboratory’: Alliances for Technology Transfer,” Proc. Twenty-Seventh Annual Hawaii International Conference on System Sciences, 1994, pp. 478–482.
  10. Kobrin, S.J., J.T. Battenberg, P. Hewitt, P.J. Jennings, J. Joerres, S. Kumar, F. Mer, “Worldsourcing’s Next Frontier: R&D,” World Economic Forum Annual Meeting, Davos, Switzerland, 2004.
  11. Vassiliou, Marius (2007), “The Virtual Research Laboratory,” Proc. 2007 IEEE Aerospace Conference.
  12. "Business Integrator Dynamic Support Agents for Virtual Enterprise". Project description. European Community Research and Development Information Service. Retrieved October 15, 2011.
  13. "Working group on Advanced Legal Issues in Virtual Enterprise". Project description. European Community Research and Development Information Service. Retrieved October 15, 2011.
  14. "Legal issues for the advancement of information society technologies". Project description. European Community Research and Development Information Service. Retrieved October 15, 2011.
  15. "European collaborative networked organizations leadership initiative". Project description. European Community Research and Development Information Service. Retrieved October 15, 2011.
  16. "Secure process-oriented integrative service infrastructure for networked enterprises". Project description. European Community Research and Development Information Service. Retrieved October 15, 2011.
  17. "Glocal enterprise network focusing on customer-centric collaboration". Project description. GloNet consortium. Retrieved January 1, 2012.
  18. "Business Innovation and Virtual Enterprise Environment". Project description. BIVEE Consortium. Retrieved March 14, 2012.
  19. Brown, Edward (1998). Reinventing Government Research and Development: A Status Report on Management Initiatives and Reinvention Efforts at the Army Research Laboratory. Report ARL-SR-57.
  20. Vassiliou, Marius (2007), “The Virtual Research Laboratory,” Proc. 2007 IEEE Aerospace Conference.
  21. L.M. Camarinha-Matos, H. Afsarmanesh, M. Ollus, Editors (2005). Virtual Organizations: Systems and Practices. Springer
  22. "IFIP Working Conference on Virtual Enterprises". Retrieved January 1, 2012.
  23. Cardoso, H.L & Oliveira, E. (2005). Virtual Enterprise Normative Framework within Electronic Institutions. Retrieved June 7, 2006 from http://paginas.fe.up.pt/~eol/PUBLICATIONS/2005/esaw_post.PDF
  24. L.M. Camarinha-Matos, H. Afsarmanesh, M. Ollus, Editors (2008). Methods and tools for Collaborative Networked Organizations. Springer
  25. "Identity Management: Technology: Cornerstone of the Virtual Enterprise" (PDF). Sun Microsystems. October 2004. Archived from the original (PDF) on January 25, 2007.
  26. "Virtual Music Enterprises: The International gateway to Music, Media and Entertainment". Archived from the original on August 23, 2010. Retrieved October 15, 2011.
  27. "Virtual Enterprise California". Official website. US Network of Virtual Enterprises, International. Retrieved October 15, 2011.
  28. Robert E. Quinn; Kim Cameron (January 1983). "Organizational Life Cycles and Shifting Criteria of Effectiveness: Some Preliminary Evidence". Management Science 29 (1): 33–51. doi:10.1287/mnsc.29.1.33.
  29. Luis M. Camarinha-Matos and Hamideh Afsarmanesh (July 2007). "A Comprehensive Modeling Framework for Collaborative Networked Organizations". Journal of Intelligent Manufacturing 18: 529–542. doi:10.1007/s10845-007-0063-3.

Further reading

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