A virtual business model is a way to organize a
startup company
A startup or start-up is a company or project undertaken by an Entrepreneurship, entrepreneur to seek, develop, and validate a scalable business model. While entrepreneurship includes all new businesses including self-employment and businesses tha ...
.
In the virtual company, the utilization of the financial resources can be optimized with cost-effective
product development
New product development (NPD) or product development in business and engineering covers the complete process of launching a new product to the market. Product development also includes the renewal of an existing product and introducing a product ...
as a result. This
business model
A business model describes how a Company, business organization creates, delivers, and captures value creation, value,''Business Model Generation'', Alexander Osterwalder, Yves Pigneur, Alan Smith, and 470 practitioners from 45 countries, self-pub ...
is defined using several criteria; the company has a limited number of employees; the management has competence for product and business development; the company has financial resources to perform or has the ambition to find such financial resources; the company has a defined plan for the use of the financial resources; the majority of the operations are
performed at organizations outside the virtual company; the ownership of the created value (e.g. technical results,
patent
A patent is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an sufficiency of disclosure, enabling discl ...
s) developed by the external resources providers belongs to the virtual company.
After the foundation of the virtual company and the development of the business using external service providers, the company can continue to use the virtual company format for continued product development or after some time the company can transform to a traditional
integrated company.
References
Business models
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