The Virtual Corporation (The convergence of technology and business relationships to create a pared-down, speeded-up corporate collage that can instantly provide what a customer demands)

In their book, The Virtual Corporation, authors William Davidow and Michael Malone define the term "virtual" to mean that formerly well - defined structures lose their edges, seemingly permanent things begin to change continuously, and products and services adapt quickly to changing customer demands.

Since the book was published in 1992, the virtual corporation concept itself has changed to encompass the new ways in which companies are using technology to decentralize, downsize and deploy their work forces, to outsource jobs and departments, and to create short - or long - term strategic business alliances with suppliers, customers, even competitors.

The driving force behind all of these changes? Global competition. "You've got to be the best in the world in order to survive," says Martyn Lewis, president of Drake International Inc., a national human resources productivity organization. "Companies are really having to concentrate on their core business. That is one of the trends pushing us toward the virtual corporation."

While achieving a truly virtual corporation is still just an ideal, many Canadian corporations are experimenting with tantalizing virtual components that cut costs, improve efficiency, improve customer service or help them to focus on what they do best.

More companies are now asking themselves: "How do I link my E - mail program with my customers' and suppliers' E - mail programs?" or "How do I link my order system with my suppliers' or customers' materials - management systems?"

These are ideas where people are now going beyond their own internal walls and moving into their trading partners' communities," says Jeff Connie, western regional director of the Electronic Data Interchange Council of Canada. "It's virtually impossible to become a virtual corporation using existing processes based on paper product being pushed back and forth."

Electronic commerce and electronic data interchange (EDI) are, says Connie, the two key components to creating a virtual corporation. "Electronic commerce means you can communicate with [other corporations] seamlessly although you may be on different floors, in different buildings, in different companies," he says. "You can communicate electronically with E - mail, E - forms and [workgroup computing software such as] Lotus Notes. EDI goes one step beyond: you're not just linking humans to humans but you're alsolinking applications to applications."

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