A s the possibilities of the information revolution challenge traditional business logic, companies are experimenting with a wide array of strategic alternatives and organizational forms. The appropriateness of the current business model rooted in the industrial economy is questionable. Drucker has outlined his views of a knowledge-based organization. Quinn has documented the shift toward a service-based economy with a focus on intellect. Hamel and Prahalad argue for a critical focus on core competencies and an organizational design that best leverages them. Womack and Jones advocate a lean organization, and Handy paints a shamrock structure [1]. We could cite many more opinions, but the message is clear: the current models of strategy and structure are woefully inadequate to meet the imminent challenges of the information age.

During the past two years, we undertook a systematic study to conceptualize the architecture of virtual organizing. Here, we present our views on the architecture of the twenty-first century business model. We choose the term architecture rather purposefully and define it as" providing a framework for the conduct of life, not a specification of what life should be. Architecture should facilitate, guide, and provide a context; it should not provide a rigid blueprint for conduct"[2]. Moreover, the" building should preferably be ahead of its time when planned so that it will be in keeping with the times as long as it stands"[3]. We reject a virtual organization as a distinct structure (like functional, divisional, or matrix). Instead, we treat virtualness as a strategic characteristic applicable to every organization; our discussion then is applicable to century-old companies that manufacture cement, chemicals, and autos as well as to new entrants in the fast-chang-