The Transformation of Businesses Into Internet Businesses
The Transformation of Businesses Into Internet BusinessesIn the early to mid-nineties, a major change began taking place in America’s economy. Technology and innovation became some of the leading factors of success for companies. Companies have been forced to change as the technology introduced around the world changes, and more importantly, they have had to be swift in adapting to change. This new age has commonly been classified as the “Information Age” or the “New Economy.”
Charles Darwin once said, “It is not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change.” This quote is not only true to mankind, but also to any firm that has inspirations of succeeding in this so-called New Economy.
“The term New Economy refers to a set of qualitative and quantitative changes that, in the last 15 years, have transformed the structure, functioning, and rules of the economy.” The New Economy is an economy with a great deal of emphasis placed on a person’s ability to create new ideas and adapt to changes in technology. It is an economy full of uncertainty and risk that has the potential of being very rewarding to a person or company that can most successfully accomplish the objective of innovation.
The New Economy has had a great impact on the way companies conduct business, and it will continue to impact businesses for the time to come. In the past, companies depended on marketing their product through various ads in magazines and television, and then going out on the road or via telephone to try and sell their product. With the New Economy, one of the leading ways to market or sell a product is over the Internet. Both Internet marketing and Internet sales will see a great increase over the next couple of years. The Internet, with its enormous potential to increase efficiency and raise productivity, is one of the most critical components of the New Economy.
E-commerce has already had, and will continue to have, a great impact on the way business is conducted in the New Economy. “The total U.S. Internet economy more than doubled between 1996 and 1997, from $15.5 billion to $38.8 billion. By 2001, the total U.S. Internet economy is projected to be over $350 billion. Business-to-business e-commerce is expected to account for the largest share, $186 billion. Consumer retail activity is expected to emerge more slowly, possibly totaling $18.4 billion in 2001.”
Fifteen years ago, it would have been difficult to fathom people buying and selling something as simple as books or movies over the Internet. However, in this New Economy you can buy or sell just about anything you want over the Internet. Most of today’s largest businesses have Internet sites that either sell or market their product worldwide. In fact, in 1997, 24 percent of U.S....
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