**3. Virtual enterprise VE and virtual organization VO**

#### **3.1. Definition of concepts**

**2.5. The integration of artificial intelligence (AI) in DSS**

field, and even on creating artificial intelligence devices or programs.

could solve an extended category of applications.

rules, performing calculations and adjusting the rules.

models have a great potential for parallelism.

processes.

100 Decision Support Systems

In order to increase the decisional performances, DSS can be endowed by means of artificial intelligence techniques. The artificial intelligence techniques are used for both information processing and data visualization, as well as for extracting the information from high data volumes, in the view of searching templates that might be helpful within decisions taking

The Artificial Intelligence (AI) is characterized by a high learning ability, in the view of con‐ tinuous improvement with or without external helping. The main applications of the AI are the following: the expert systems, the neuronal networks, the logic fuzzy, the genetic algo‐ rithms, the intelligent agents and pattern recognition. Programming languages have been especially created, such as LISP and Prolog, in the view of carrying out the research in the

One of the candidates to be incorporated in the intelligent decision making paradigm is the intelligent control (Fu, 1970) with the aim to reproduce the most important human intelli‐ gence characteristics (adaptation, learning, planning in uncertainty environments) and the capability to interpret a huge quantity of data. Based on the new approaches (artificial neu‐ ral networks - ANN, fuzzy logic - FL, genetic algorithms - GA, expert systems and hybrid systems), DSS could be reinforced via the biological inspiration (Swarm Intelligence, SI) and

FL shapes the rationing of human brain based on the approximate, non-quantitative, nonbinary reasoning. Applying the FL method is performed in the following steps: defining the input-output variables, defining subsets intervals, choosing the functions, setting the if-then

NN tries to reproduce the structure and functions of the human nervous system (consisting of a large number of interconnected neurons that determine the way in which the informa‐ tion is stored). In ANN the neurons receive inputs from other neurons through a weighted function (with increasing / decreasing signal). These signals are received and collected by the neuron, and if the amount exceeds a certain threshold, the neuron will send its own sig‐ nal to other neurons. Information is stored in the neuron input weights and the adjustments offer the ability to store different information. The storage capacity of a single neuron is lim‐ ited, but the set of neurons interconnected in several layers provide superior performance. ANN are used to solve problems of estimation, identification and predictive or problems of complex optimization. Due to independence of operations inside the components, related

Based on the Darwin's principles of genetics and natural selection, GAs are adaptive techni‐ ques for heuristic search (Holland, 1975). The biological process of evolution is based on the adaptation to the environment, the capability to survive/ evolve over generations. GA is a complex model that emulate biological evolutionary model to solve/ optimize problems. It includes a set of individual elements represented in the form of binary sequences (popula‐ tion) and a set of biological operators defined on the population. With the support of opera‐ tors, GA manipulates the most promising sequences evaluated according to an objective

The enterprise modeling is a complex process of building integrated systems of models (process models, data models, resource models) dedicated to the managerial support of a modern firm (Vernadat, 1996). In Petersen (2000), Bernus (1996) is proposed the Enterprise Engineering and Enterprise Integration concept (EEEI), useful in the actual context of a high competitive environment. In Fig 1 is presented the evolution of enterprises in the context of modern partnerships, based on the VE/ VO concepts.

visibility of requirements and capabilities in the context of flexible, adaptive and robust

Emerging Applications of the New Paradigm of Intelligent Decision Making Process: Hybrid Decision Support Systems

for Virtual Enterprise (DSS-VE) http://dx.doi.org/10.5772/3371 103

There are different definitions of the virtual enterprise VE/ VO concepts. The VE emphasizes a temporary alliance between enterprises, based on cooperation/ partnership and efficient common use of competencies, abilities and resources, capable to respond to business oppor‐ tunities or to improve the global performances. The VO also signifies an alliance between various organizations, but the objectives are extended beyond the simple profit achieving. According to Katzy (2002), VE is based on the ability to create temporary co-operations and to realize the value of a short business opportunity by using the synergy of the different ca‐ pabilities of the partners. In Jagdev, Browne (1998), VE is defined as a temporary network of independent companies that are linked using information technology; the focus is on the technology that links the partners rather than the roles of the independent companies. In Byrne (1993) VE is defined as a temporary network of independent companies formed to share skills/ costs and to gain the access to each other's markets. In Garita, Afsarmanesh (2001) VE is represented by an interoperable network of firms that collaborate via ITC ele‐ ments in order to realize a common objective. In Olegario (2001) VE represents a temporary alliance of independent firms with complementary competencies. In the DAI context, VE is a temporary, cooperative network based on independent, autonomous firms that cooperate in order to exploit a particular market opportunity (Clements, 1997; Fischer, 1996; Oliveira, Ro‐ cha, 2000; Ru, Vierke, 1998). Other authors incorporate properties of VEs such as "rapidly configured, multi-disciplinary network of firms" (Ambroszkiewicz, 1998), goal-oriented be‐ havior based on cooperative work (Oliveira, Rocha, 2000), decentralized control of activities, (Szirbik, 1999), and commitment among the autonomous partners (Jain, 1999). The aim of VE is to provide a quick and flexible solution for an unpredicted opportunity. This agile re‐ action it is more than an action, rather than an institution. The focus is on the agility and adaptability to grasp a new opportunity and it is based on quick innovative solutions. It re‐ sults that the concept of VE is linked to the following attributes: value created and not add‐ ed; there is only a temporary cooperation focused on objectives; there is a mechanism capable to facilitate permanent restructuring in flexibility, adaptability and robustness.

Regarding the VO concept, in Davidow, Malone (1992) the interest is to integrate the infor‐ mation throughout the organizational components and to act intelligent based on this infor‐ mation. In Venkatraman, Henderson (1998) VO is based on the "virtualness" strategy with three independent components: virtual encounter (customer interaction), virtual sourcing (asset configuration) and virtual expertise (knowledge leverage). In Fox (1998) VO is defined

The Virtual Breeding Environment (VBE) represents an extended cooperation between or‐ ganizations (cooperation agreements, common operation principles and a common infra‐ structure), in the view of identifying new opportunities in order to build temporary alliances, able to lead towards achieving better results on mean and long term. The Profes‐ sional Virtual Community (PVC) combines those virtual community concepts (individuals' networks that uses computer technologies) and professional community (pooling the experi‐

in the context of strategic alliances.

ence, knowledge and competencies).

management, based on a greater speed of information and assets.

**Figure 1.** The evolution of enterprises and modern partnerships (based on the VE/VO concept)

The concept of Extended Enterprises (EE)/ Extended Enterprise Engineering (EEE) is often used in the context of virtual enterprise (VE) as a partnership and involves constructive col‐ laboration between the manufacturer, the customer and the supplier. EE is a formation of co-operative enterprises responsible for all operations related to the product (from procure‐ ment to end customer, but it also includes maintenance/ service tasks). In Vernadat (1996), there is no distinction between EE and VE, which function based on a cooperation and the use of ICT communications and electronic data interchange, but in Globeman (1999) is pro‐ posed a clear distinction based on their lifecycle characteristics. In this case EE is a network for collaboration which offers share core competencies and becomes operational after a spe‐ cific customer demand via the building of a special purpose vehicle (SPV) named VE. Enter‐ prise Integration (EI) is a holistic approach that provides frameworks and methodologies to integrate complex systems. Totally Integrated Enterprise (TIE) is an extended architecture and taking to consideration the entire customer/ product life cycle. The modern paradigm is related to the collaboration/ partnerships in the context of competition. Collaboration be‐ tween different types of partners offer opportunities (a better market share, stock reduction, cost reduction, better quality, shorter product development cycles) and enables partners to gain knowledge (innovation, a better understanding of the transformation of future process‐ es/ markets, capability to implement efficient programs/ products). Specman (1998) pro‐ posed the transition from coordination to collaboration and Slack (2004) underlines importance of trust, commitment and information sharing among partners. SAP (2002) pro‐ posed the conceptive of Adaptive Supply Chain which represents a chain able to have better visibility of requirements and capabilities in the context of flexible, adaptive and robust management, based on a greater speed of information and assets.

modern firm (Vernadat, 1996). In Petersen (2000), Bernus (1996) is proposed the Enterprise Engineering and Enterprise Integration concept (EEEI), useful in the actual context of a high competitive environment. In Fig 1 is presented the evolution of enterprises in the context of

modern partnerships, based on the VE/ VO concepts.

102 Decision Support Systems

**Figure 1.** The evolution of enterprises and modern partnerships (based on the VE/VO concept)

The concept of Extended Enterprises (EE)/ Extended Enterprise Engineering (EEE) is often used in the context of virtual enterprise (VE) as a partnership and involves constructive col‐ laboration between the manufacturer, the customer and the supplier. EE is a formation of co-operative enterprises responsible for all operations related to the product (from procure‐ ment to end customer, but it also includes maintenance/ service tasks). In Vernadat (1996), there is no distinction between EE and VE, which function based on a cooperation and the use of ICT communications and electronic data interchange, but in Globeman (1999) is pro‐ posed a clear distinction based on their lifecycle characteristics. In this case EE is a network for collaboration which offers share core competencies and becomes operational after a spe‐ cific customer demand via the building of a special purpose vehicle (SPV) named VE. Enter‐ prise Integration (EI) is a holistic approach that provides frameworks and methodologies to integrate complex systems. Totally Integrated Enterprise (TIE) is an extended architecture and taking to consideration the entire customer/ product life cycle. The modern paradigm is related to the collaboration/ partnerships in the context of competition. Collaboration be‐ tween different types of partners offer opportunities (a better market share, stock reduction, cost reduction, better quality, shorter product development cycles) and enables partners to gain knowledge (innovation, a better understanding of the transformation of future process‐ es/ markets, capability to implement efficient programs/ products). Specman (1998) pro‐ posed the transition from coordination to collaboration and Slack (2004) underlines importance of trust, commitment and information sharing among partners. SAP (2002) pro‐ posed the conceptive of Adaptive Supply Chain which represents a chain able to have better

There are different definitions of the virtual enterprise VE/ VO concepts. The VE emphasizes a temporary alliance between enterprises, based on cooperation/ partnership and efficient common use of competencies, abilities and resources, capable to respond to business oppor‐ tunities or to improve the global performances. The VO also signifies an alliance between various organizations, but the objectives are extended beyond the simple profit achieving. According to Katzy (2002), VE is based on the ability to create temporary co-operations and to realize the value of a short business opportunity by using the synergy of the different ca‐ pabilities of the partners. In Jagdev, Browne (1998), VE is defined as a temporary network of independent companies that are linked using information technology; the focus is on the technology that links the partners rather than the roles of the independent companies. In Byrne (1993) VE is defined as a temporary network of independent companies formed to share skills/ costs and to gain the access to each other's markets. In Garita, Afsarmanesh (2001) VE is represented by an interoperable network of firms that collaborate via ITC ele‐ ments in order to realize a common objective. In Olegario (2001) VE represents a temporary alliance of independent firms with complementary competencies. In the DAI context, VE is a temporary, cooperative network based on independent, autonomous firms that cooperate in order to exploit a particular market opportunity (Clements, 1997; Fischer, 1996; Oliveira, Ro‐ cha, 2000; Ru, Vierke, 1998). Other authors incorporate properties of VEs such as "rapidly configured, multi-disciplinary network of firms" (Ambroszkiewicz, 1998), goal-oriented be‐ havior based on cooperative work (Oliveira, Rocha, 2000), decentralized control of activities, (Szirbik, 1999), and commitment among the autonomous partners (Jain, 1999). The aim of VE is to provide a quick and flexible solution for an unpredicted opportunity. This agile re‐ action it is more than an action, rather than an institution. The focus is on the agility and adaptability to grasp a new opportunity and it is based on quick innovative solutions. It re‐ sults that the concept of VE is linked to the following attributes: value created and not add‐ ed; there is only a temporary cooperation focused on objectives; there is a mechanism capable to facilitate permanent restructuring in flexibility, adaptability and robustness.

Regarding the VO concept, in Davidow, Malone (1992) the interest is to integrate the infor‐ mation throughout the organizational components and to act intelligent based on this infor‐ mation. In Venkatraman, Henderson (1998) VO is based on the "virtualness" strategy with three independent components: virtual encounter (customer interaction), virtual sourcing (asset configuration) and virtual expertise (knowledge leverage). In Fox (1998) VO is defined in the context of strategic alliances.

The Virtual Breeding Environment (VBE) represents an extended cooperation between or‐ ganizations (cooperation agreements, common operation principles and a common infra‐ structure), in the view of identifying new opportunities in order to build temporary alliances, able to lead towards achieving better results on mean and long term. The Profes‐ sional Virtual Community (PVC) combines those virtual community concepts (individuals' networks that uses computer technologies) and professional community (pooling the experi‐ ence, knowledge and competencies).

In the literature (Camarinha-Matos, Afsarmanesh, 2001; Camarinha-Matos, 1998), there are presented different types of classification for VEs according to the following aspects: dura‐ tion (lifespan of the organization); the topology of the network; the flexibility of the struc‐ ture; the level/ type of participation (a partner could participate in just one VE or several VEs simultaneously); the type of coordination (centralized coordination, democratic alli‐ ances, federation of partners) where the partners achieve their goals by creating a joint coor‐ dination structure; the visibility scope (related to typology and coordination/ dependencies among the partners).

evolution from network organizations with creative combination of attributes from out‐

Emerging Applications of the New Paradigm of Intelligent Decision Making Process: Hybrid Decision Support Systems

for Virtual Enterprise (DSS-VE) http://dx.doi.org/10.5772/3371 105

To understand new opportunities, we first examine potential sources of value identified in the empirical literature. We then discuss virtual operations as a temporary industrial struc‐

In Figure 2 is presented an intuitive, but practical way for developing a VE solution based on the identification of needs in a context defined by environmental factors and restrictions. The interest is to enhance the capability to respond to different opportunities of the markets by stimulating organizational flexibility. In Figure 2 it is also a suggestive picture that repre‐ sents the way to model and integrate the VE operation in real business until an efficient de‐ commissioning, coupled with a reliable capacity to recuperate units/ subsystems adaptable for future VEs. This is not a standard form, because VE/VO required an architectural con‐

Agent based modeling (ABM) is a more powerful concept better adapted to the actual trends than the classic process of equation based modeling, because the complexity could be modeled by using the interactions between the elements- subsystems. Multi agent systems (MAS) are characterized by: modularity, decentralization, interchangeability, low structured character and complexity. The most interesting applications of ABM/ MAS in production management are represented by SCM (supply change management), addressed to offer bet‐ ter services to clients with lower production costs and VE/ VO which represents a unique interconnected chain of the supply in which the activities realized are oriented to the objec‐ tive of production. VE/ VO mix the advantages of integrated firms (financial power, availa‐ bility of resources, production costs) with the advantages of distributed firms (adaptability,

sourcing, strategic networks and agility.

ture designed to exploit these opportunities.

struction and it is a complex innovative process.

**Figure 2.** The practical way for developing a VE solution

**3.3. Possibilities of modeling VE/ VO architectures**

Other authors (Bernus, 1997) identify several different types of VEs: major/ huge scale projects; consortia (for production, research or service as an alliance of partners limited to a common mission); general project group (set up by business executives).

Regarding the main characteristics/ properties of VE we should mention there exists a part‐ nership of organizations that collaborate or a strategic alliance (the partners are aligned at the activities level, but also at the level of their business goals); there is a temporary network with a limited lifetime based on the exploitation of a particular market opportunity or a spe‐ cial customer demand; high level of communication based on advanced ICT technologies ca‐ pable to support the entire partnership; dynamic sharing of skills, costs and markets; goaloriented and commitment-based. Wigand (1997) identified the main characteristics (modularity, heterogeneity, time/ space distribution, open-closed and transparency) and the corresponding design principles. Goldman (1995) identified the following characteristics: opportunism, excellence, technology, no borders, and trust. In the modern literature, other authors (Tolle, 2004; Camarinha-Matos, Afsarmanesh, 2005) concluded that the more impor‐ tant characteristics of VE are: a partial mission overlap; customer-centered and mass cus‐ tomization; network of independent companies; semi-stable relations; geographical dispersion; focus on core competencies, and innovation. The recent evolutions demonstrated also the following characteristics: single identity; based on trust; shared loyalty; focus on the use of ICT; the management should understand the essential distinction between strategic and operational levels; capability to stimulate/ integrate innovation.

#### **3.2. Possibilities for evolution and developments**

At the foundation core of VE are the proactive exploitation of dynamic competition rather than the transformation of raw material into finished products. In the traditional view, value is created in the form of labor performed and resources consumed both of which can best be achieved under stable conditions (Norman, Ramirez, 1993). In contrast, the VE/ VO are a structure that supports entrepreneurial innovation to create new platforms from competen‐ cies, resources and partners that have never existed before. In this case the value is created from new opportunities and new structures should be implemented in order to exploit these opportunities.

In Fine, Whitney (1996) the evolution and the development of VE is linked to outsourcing/ subcontracting features, with focus on the core capabilities by deciding whether to make/ buy a given component/ subsystem. Another branch of literature (Jager, 1998; Wildeman, 1998; Franke, 2001; Tølle, 2004; Camarinha- Matos, Afsarmanesh, 2005) considers VE as an evolution from network organizations with creative combination of attributes from out‐ sourcing, strategic networks and agility.

To understand new opportunities, we first examine potential sources of value identified in the empirical literature. We then discuss virtual operations as a temporary industrial struc‐ ture designed to exploit these opportunities.

In Figure 2 is presented an intuitive, but practical way for developing a VE solution based on the identification of needs in a context defined by environmental factors and restrictions. The interest is to enhance the capability to respond to different opportunities of the markets by stimulating organizational flexibility. In Figure 2 it is also a suggestive picture that repre‐ sents the way to model and integrate the VE operation in real business until an efficient de‐ commissioning, coupled with a reliable capacity to recuperate units/ subsystems adaptable for future VEs. This is not a standard form, because VE/VO required an architectural con‐ struction and it is a complex innovative process.

**Figure 2.** The practical way for developing a VE solution

In the literature (Camarinha-Matos, Afsarmanesh, 2001; Camarinha-Matos, 1998), there are presented different types of classification for VEs according to the following aspects: dura‐ tion (lifespan of the organization); the topology of the network; the flexibility of the struc‐ ture; the level/ type of participation (a partner could participate in just one VE or several VEs simultaneously); the type of coordination (centralized coordination, democratic alli‐ ances, federation of partners) where the partners achieve their goals by creating a joint coor‐ dination structure; the visibility scope (related to typology and coordination/ dependencies

Other authors (Bernus, 1997) identify several different types of VEs: major/ huge scale projects; consortia (for production, research or service as an alliance of partners limited to a

Regarding the main characteristics/ properties of VE we should mention there exists a part‐ nership of organizations that collaborate or a strategic alliance (the partners are aligned at the activities level, but also at the level of their business goals); there is a temporary network with a limited lifetime based on the exploitation of a particular market opportunity or a spe‐ cial customer demand; high level of communication based on advanced ICT technologies ca‐ pable to support the entire partnership; dynamic sharing of skills, costs and markets; goaloriented and commitment-based. Wigand (1997) identified the main characteristics (modularity, heterogeneity, time/ space distribution, open-closed and transparency) and the corresponding design principles. Goldman (1995) identified the following characteristics: opportunism, excellence, technology, no borders, and trust. In the modern literature, other authors (Tolle, 2004; Camarinha-Matos, Afsarmanesh, 2005) concluded that the more impor‐ tant characteristics of VE are: a partial mission overlap; customer-centered and mass cus‐ tomization; network of independent companies; semi-stable relations; geographical dispersion; focus on core competencies, and innovation. The recent evolutions demonstrated also the following characteristics: single identity; based on trust; shared loyalty; focus on the use of ICT; the management should understand the essential distinction between strategic

At the foundation core of VE are the proactive exploitation of dynamic competition rather than the transformation of raw material into finished products. In the traditional view, value is created in the form of labor performed and resources consumed both of which can best be achieved under stable conditions (Norman, Ramirez, 1993). In contrast, the VE/ VO are a structure that supports entrepreneurial innovation to create new platforms from competen‐ cies, resources and partners that have never existed before. In this case the value is created from new opportunities and new structures should be implemented in order to exploit these

In Fine, Whitney (1996) the evolution and the development of VE is linked to outsourcing/ subcontracting features, with focus on the core capabilities by deciding whether to make/ buy a given component/ subsystem. Another branch of literature (Jager, 1998; Wildeman, 1998; Franke, 2001; Tølle, 2004; Camarinha- Matos, Afsarmanesh, 2005) considers VE as an

common mission); general project group (set up by business executives).

and operational levels; capability to stimulate/ integrate innovation.

**3.2. Possibilities for evolution and developments**

among the partners).

104 Decision Support Systems

opportunities.

#### **3.3. Possibilities of modeling VE/ VO architectures**

Agent based modeling (ABM) is a more powerful concept better adapted to the actual trends than the classic process of equation based modeling, because the complexity could be modeled by using the interactions between the elements- subsystems. Multi agent systems (MAS) are characterized by: modularity, decentralization, interchangeability, low structured character and complexity. The most interesting applications of ABM/ MAS in production management are represented by SCM (supply change management), addressed to offer bet‐ ter services to clients with lower production costs and VE/ VO which represents a unique interconnected chain of the supply in which the activities realized are oriented to the objec‐ tive of production. VE/ VO mix the advantages of integrated firms (financial power, availa‐ bility of resources, production costs) with the advantages of distributed firms (adaptability, flexibility). From the perspective of MSA, VE/ VO represents a group of agents which coop‐ erates in order to realize a unique objective.

The Distributed Business Process (DBP) is represented by a set of business processes (BP), which emphasize the VE. Since one assumes that BP is carried out by various enterprises, the entity that has started the VE occurrence will coordinate the accurate and efficient func‐ tioning of the new business (Rabelo, 1996). In this case, VE signifies an optimal supply chain management (SCM) equipped with extended possibilities of analyses: a better response in the situation of a reduced level of coordination that covers activities carried out on the pro‐ duction flow systems, capable to react; in the situation of a mean coordination level, which emphasizes advanced coordination functions or high level of coordination (based on intelli‐

Emerging Applications of the New Paradigm of Intelligent Decision Making Process: Hybrid Decision Support Systems

for Virtual Enterprise (DSS-VE) http://dx.doi.org/10.5772/3371 107

The VE coordinator should understand the aims and capabilities of each enterprise in‐ volved, but also the interconections. The new logistics imposed by this new architecture has determined the transformation/ evolution of the logistics toward an integrated flow of mate‐ rials/ information that should be managed as a single entity, starting from the raw material up to the final consumer. Using the Integrated Logistics (IL), as a basic concept needed to meet the distributed relationships requirements, permits a better understanding of the in‐ volvements into the real integration of VE because it focuses on the global level of perform‐ ance, and not on individual performance (Christopher, 1994; Moeller, 1994; Slats, 1995;

The VE functioning can be affected by the occurrence of some unforeseen, but critical events, such as: delaying or modification within the BP chain, changing the BP priorities, communi‐ cation deficiencies and/or network overloading or falling. In the case of such a critical event, the VE coordinator should take all the measures in order to solve quickly the issue locally, and if such aspect is not reached, the coordinator will not comply with the provisions fore‐ seen in the DBP contract; in this way, a conflict will occur, with impact on the information on DBP, thus affecting the entire production chain. The DBP assumes the existence of inter‐

Depending upon the issue's seriousness, the solution might need more throughout and complex analysis. It is essential to take into consideration more evaluations and more fac‐ tors, especially if we think that usually, an enterprise can carry out more DBP contracts, which can be indirectly affected by the BP under discussion. The complexity of a VE will make almost impossible the individual solving of each issue by a user, meaning that a single user will not have the necessary knowledge and capabilities (regarding from the necessary time and technical experience point of view), or solving each issue by the system, meaning this will not benefit from the experience and "flexibility in business" of the human factor, in

In other words, DSS should offer the capability to: identify the issue situation; collect and analyze data; establish the causes of an issue; redefine the objectives; generate alter‐ native solutions; compare and to evaluate alternative solutions; chose the optimal solu‐ tion. DSS should also offer to decision matters the information stored together with a description of both the external competition environment, as well as the way enterprise

dependencies between subsystems in order to take into account the entire network.

order to perform an accurate analysis or to take the optimal decisions.

gent coordination functions).

Bowersox, Closs, 1996).

caries out activities.

Regarding the state of the art in the field of formation/ operation of VEs (Kazi, Hannus, 2002; Zweger, 2002) we should mention different types of architectures which support the formation and operation of VEs and capable to optimize the cooperative functioning of the key components of VEs such as elements that support modeling, set up management, ICT support, reference models, and infrastructures, like GERAM (Generic Enterprise Reference Architecture and Model) and Virtual Enterprise Reference Architecture and Methodology (VERAM).

The modeling of these types of architectures are based on the following features: the lifecy‐ cle view (the phases in the lifecycles); genericity (generic, particular and partial levels); mod‐ eling strategies (a view which comprise function, information, organization and resources).

The basic steps in the life cycle of a VE are: preliminary configuration of the VE and design phases of the lifecycle; the build of a detailed design and implementation of the phases in the lifecycle; service/ maintenance; decommission VEs during the decommission phase of the lifecycle.

The phases of the development of VEs (Parunak, 1997) are: creation (establishes the goal/ ob‐ jectives of the future VE according to the market conditions); management/ operation (fo‐ cused on how to achieve the goals/ objectives); dissolution (ending the relationship among partners and evaluation of the results of this partnership). The design of VE could be divid‐ ed in four stages: identification of the market opportunity; identification of the core compe‐ tencies required for taking advantage of the market opportunity; the selection of the partner companies capable of delivering the required core capabilities, and the formation of the VE by operating an intelligent integration of the core capabilities of the partners. In Tolle (2004) the design is subdivided into five phases: identification, concept, requirements, preliminary design and detailed design.
