Some companies are going to extremes to focus on core competencies by ‘virtualizing’ most or all of their business. Remember when companies made things? In the future, some companies may end up with little hard assets. Their core assets will be intellectual capital: trademarks, brands, people, inspiration, knowledge, or business model.
This is already practiced in software, consulting, and legal services. A company’s work will consist of core process workers and special project, Brand U workers who feed the core processes.
One virtual computer company hires other companies to design and build all its computers, answer repair questions, invoice bills, and ship products. The only thing it does is sell and maintain its brand.
Even airlines are becoming virtual because of competition and deregulation. British Airways to cut costs and increase operational flexibility leases its airfleet by the month, leases aircraft engines by the hour, and hires outside pilots and mechanics. The airline is looking to suppliers to provide everything from spare parts to routine maintenance to flight training.