This paper describes an Internet-based virtual reality collaborative enviro
nment called virtual reality-based collaborative environment (VRCE) that wa
s developed using VNet, a free software, Java and Virtual Reality Modeling
Language (VRML) to demonstrate the feasibility of collaborative design for
small to medium size companies that focus on a narrow range of low cost pro
ducts. Infrastructure, user functions and operational characteristics are d
escribed, and a case illustrates the use of this system that incorporates s
ix key design elements needed for a successful virtual collaboration system
(VCS). This new VRCE system is compared to existing commercial systems. Di
scussion highlights the potential pitfalls in using such a system without c
areful consideration of the knowledge required, product complexity and requ
ired system customization time. (C) 2001 Published by Elsevier Science B.V.