Who, What and Why?

INTRODUCTION AND DEFINITION

Introduction to virtual businesses  What is a virtual business? Definition ○ Multiple meanings  When did virtual business begin? Evolution 1970s Discussion lists Libraries Delphi 1992 Offer internet service to subscribers to view database of info Government contract end Explosion of websites and ISP services.

THE PROS AND THE CONS OF

The Pros  Lower overhead  Flexible scheduling for employee  No commute time  Improvement in the team’s quality of life

The Cons  Difficult to express & read emotions  Tougher to post job listings  Communication problems  Time zone management  Less bonding time

An Example

How Craigslist.org Works?  Classifieds (jobs, buy, sell, or just rant)  You write it, you post it and you monitor it  No paid advertisements How Craigslist.org Makes Money?  Charges some of the cites it services a small fee to post for rentals and/or jobs  Otherwise everything else is free

What makes it Virtual  Started with no office only communication thru  They have no “Office” now, only a small house that is considered “Corporate Headquarters”

Cont…  Although their employees are welcome to come to work, most work from home “Employees aren’t really told what to do, or when to do it, or when to come to work, or what they can wear… there are no cubicles and no dress code” Jim Buckmaster CEO  More then 90% of the Administration and 100% of the service is done “virtually”

Benefits of Craigslist “Virtual” Business Model  They have kept overhead down in a number of ways Less Employees No rent  Very small operating expenses Less Employees means less office supplies Less Employees less insurance payments No rent of office space is less expense on maintenance and furnishing

The Out Come…  The Good Business Insider estimates that Craigslist makes $80 million revenue a year! Total worth of $5 billion plus  The Bad Anyone that has used craigslist and had a problem knows how difficult it is to get a resolution from Craigslist…

The Out Come Cont…  And the Ugly Because of Craigslist hands off approach to its service it has received a bit of criticism ○ Craigslist killer "What Craigslist does is basically provide services and these prostitutes have been providing services for years. And if it’s not the Yellow Pages, it's going be Craigslist. They find a means to advertise their services," according to Joe Moura, a Boston-based private investigator ○ The Wal-Mart of the internet The Guy with the red paperclip… ○ red-paperclip.html red-paperclip.html

THE USE OF DIFFERENT ASPECTS

Examples of Virtual Use  Virtual Assistants  Newspapers  Utilities and Bill Payments  Bank Services  Restaurant Delivery  Travel Plans  Insurance  Social Media

TO INFINITY AND BEYOND! THE FUTURE

Is This Our Future??

The Future  How does Virtual Business grow from today? Will growth be good? ○ Positives ○ Negatives  Will everything become a virtual business in the future? Positives Negatives

References: Monroy, C., & Vilana Art, J. (2010). Strategic positioning of global manufacturing virtual networks in the aeronautical industry. Technology Analysis & Strategic Management, 22(5), doi: / Feng, L., Papagiannidis, S., & Bourlakis, M. (2010). Living in 'multiple spaces': extending our socioeconomic environment through virtual worlds. Environment & Planning D: Society & Space, 28(3), doi: /d14708 Bill Snyder, BS. (2003). Teams That Span Time Zones Face New Work Rules. Unpublished manuscript, Graduate School of Business, Stanford, California. Retrieved from Campbell, AC. (2006, October 19). New growth trend: businesses that serve virtual businesses. Retrieved from businesses.htmlhttp://smallbiztrends.com/2006/10/new-growth-trend-businesses-that-serve-virtual- businesses.html McMasters, J. (2010, April 12). The Pros & Cons of Working Virtually: Inside Tips From The Largest Virtual Team in The World. Free Business Classifieds: Local Business Classifieds, Small Business Classifieds and Business Opportunity Classifieds. Retrieved May 19, 2011, from Rogers, K., & Lamary, N. (2010). Pros and cons of a ”virtual” business. Catalysts Limited. Retrieved May 19, 2011, from