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Though the Internet provides a new means of conducting business, the fundamentals of doing business remain unchanged. The article argues that the next phase of Internet evolution will change the focus from e-business to business. It says that by integrating the Internet strategy into the overall business strategy, organizations will be able to use the Internet as a tool to gain competitive advantage.
A
fundamental shift is occurring in the world economy.
We are moving progressively further away from a world
in which national economies were relatively isolated
from each other by barriers to cross border trade
and investment; by distance, time zones and language;
and by national difference in government regulation,
culture and business systems. And we are moving toward
a world in which national economics are merging into
an interdependent global economic system. The rapidly
emerging global economy raises multitude of issues
for businesses, both large and small. It creates opportunities
for businesses to expand their revenues, drive down
their costs and boost profits. While the emerging
global economy created opportunities such as this
for new entrepreneurs and established business around
the world, it also gave rise to challenges and threats
that yesterday's business did not have to deal with.
A
powerful force drives the world towards a converging
commonalty, and that force is technology. It has brought
about tremendous improvement in communication, transport
and travel. The result is a new commercial realitythe
emergence of global markets for standardized consumer
products on a previously commercial realitythe emergence
of global markets for standardized consumer products
on a previously unimagined scale of magnitude. The
multinational corporations operate in a number of
countries and adjust their products and practices
to each country at high relative costs. The global
corporation operates with resolute consistencyat low
relative cost as if the entire world is a single entity.
It sells the same product and services in the same
way everywhere. Communication technology i.e., Internet
has always been a major driver of economic progress.
The Internet, because of its global reach, rapid growth
and potential for transmitting substantial information
at almost zero cost, has a particularly dramatic impact
in the near future. Internet promises to develop the
information backbone of tomorrow's global economy. |
