The Virtual Business: Creating the Effective Business Organization

Abstract

This paper attempts to define what is meant by the term virtual business, and suggests that what are currently held to be examples of virtual business activity do not in fact constitute a new business model. Many of the practices considered components of the virtual business organization, are in fact currently performed by many business organization and will shortly be accepted as standard commercial practice for successful companies. The paper will suggest the level of transformation that a conventional business organization will need to undertake to adopt the working practices of the virtual business organization. The paper concludes by emphasizing that the success of the virtual business will not be solely through defining the correct or ganizational structures or technology platforms. The successful virtual business will only come through creating and maintaining an appropriate culture that motivates workers, customers and commercial partners to be a part of the enterprise.