environments. This business model had been applied to outsourcing and supply chains, as well as temporary consortia. Because the formation of virtual enterprises is an intricate process, a new form of technological support has been developed. The most ambitious of the support systems actually intends to automate part of the creation process, as well as the operation of these enterprises. A comprehensive overview of the state of the art, methods and tools can be found in Camarinha-Matos et al. (2008). As with all types of enterprises, virtual enterprises present both benefits and challenges. Benefits include more economical connections with suppliers, greater opportunities to create revenue, more efficient operations, and a reduction in administrative costs. Challenges facing virtual enterprises are: inexperienced users, security, expense control, and the level of incorporation required to create a successful virtual enterprise. Examples of virtual enterprises on the Internet included Virtual Music Enterprises (from about 2004 through 2010) and Virtual Enterprise California which is part of the Virtual Enterprises, International educational group. CNO life cycle Because a virtual enterprise is considered a collaborative networked organization (CNO), its organizational life cycle is different in terms of time spend on creation (entrepreneurial stage) and dissolution (decline). The CNO life cycle includes the stages: Creation (initiation and foundation): During the initiation a strategic plan is made for the operational stage and the foundation of the CNO is executed by the constitution and actual start up. Operation: Execution of operations within the defined scope of the strategic plan. Evolution: The context of virtual organizations is rapidly changing and therefore in continuous evolution of its operation within the current strategic plan this means minor alterations. Metamorphosis or Dissolution: Because CNOs have gained significant experience during their relatively short lives (compared to brick-and-mortar organizations) they keep the knowledge by metamorphosing into a new organization (changing its form) with a new purpose. References Further reading Chakma, J., Calcagno, J.L., Behbahan, A., Mojtahedian, S. Is it Virtuous to be Virtual? The VC Viewpoint. Nature Biotechnology 27(10), 886-888 (2009). Raffaini, Maurizio (2001). Virtual Enterprise Legal Framework, in Bidsaver Project (IST 10768), Bruxelles; Raffaini, Maurizio (2001). The Virtual Organisation, in Proceedings of the 7th International Conference on Concurrent Enterprising, Bremen; Raffaini, Maurizio (2001). Microsatellite Pilot Case Legal Issues, in Bidsaver Project (IST 10768), Bruxelles; Raffaini, Maurizio (2001). Mechanical Equipment Pilot Case Legal Issues, in Bidsaver Project (IST 10768), Bruxelles; Raffaini, Maurizio (2002). The nature and legal