The ''virtual company'' revolution

The trend of moving from large vertical companies to small and medium sized enterprises (SMEs) is briefly explored. Such new small companies often specialise in one or other business function and need to develop greater skills and understanding of other business processes and enter into collaborative relationships with organisations who can provide the missing skills and resources. Drawing on the experience of the knitwear industry in northern Italy and the subsequent creation of the 'star' network of 11,000 small companies operating in collaborative networks, technological and management issues are discussed relating to the management of this change. Reference of recent experience with the re-deployment of skills from Rolls Royce plc to the SME sector is presented.