Traditional brick and mortar businesses may become a thing of the past. Today’s modern workplace has embraced the virtual environment. In Managing Innovation by Tidd and Bessant (2009), the authors explained, “virtual organizations are increasingly a feature of the business landscape.” In the article Virtual Organizations, the author noted, “The ultimate goal of the virtual organization is to provide innovative, high-quality products or services instantaneously in response to customer demands.”
Amazon is an excellent example of an organization that has pioneered virtual business. Other successful organizations include: e-Bay, Zappos, and Netflix. There are some businesses that may not initially seem to be virtual organizations. Jet Blue is one of those companies. In an article by Cisco Press titled, Defining the Virtual Business and Its Benefits, the authors explain how Jet Blue reduced inventory through standardization, reduced real estate expenses, and allowed employees to work from home.
In the book The Virtual Organization by Davidow, the author explained that virtual products may exist before it is even produced. “Its concept, design, and manufacture are stored in the minds of cooperating teams, in computers, and in flexible production lines.”
To find out more about virtual organizations’ background, characteristics, challenges, and future potential, check out Virtual Organizations.