Facts & Fantasies
The newest innovations, which we label information technologies,
have begun to alter the manner in which we do business and create value,
often in ways not readily foreseeable even five years ago
Alan Greenspan, Chairman US Federal Reserve, 6 May
1999
Dreams of vast fortunes imbued the Internet with a mystique and
excitement that fuelled the dot com bubble between 1995–2001.
Following the collapse of that bubble more realistic views have prevailed. What now remains
is a legitimate excitement driven partly by the expectation that these
enabling technologies will make radical changes in the commercial
landscape and partly by the recognition that the sheer pace at which this
change is taking place will leave many organisations behind. The
possibilities opened up by the technology are allowing new competitors
to displace existing businesses, new businesses to emerge and the balance
of power to alter along value chains. As the technology has become
familiar to the general population new expectations and behaviours
are emerging among customers, citizens in their interactions with government
and among businesses.
These changes that arise out of the adoption of new technologies are
not new in themselves and their effects are well known. The distinguishing
features for the Internet has been:
pace and scale of the take up,
widespread encouragement by governments intent of establishing a lead
in this new order, and
general conditions that favour, more than ever before, the globalisation
of business. (This is not to say that international trade is not
fraught with difficulties, not least among which are the maze of trade
barriers that businesses face).
No organisation can afford to ignore this constellation of factors.
Although the full range of shifts in the business landscape that will
emerge are not all understood today it is certain that a significant part
of the world's $25 trillion economy will be deeply impacted. Tourism,
financial services and the public sector are among those that are most
likely to see sweeping change.
Down to Business
It is no longer enough for an organisation to commission the development
of a web site that merely sets out its stall. The landscape is changing
and whether your organisation supplies a niche service to a select local
market or competes on a global scale, now is the time to explore the ways
in which these technologies may expand your business (or threaten its
future). Questions to ask include:
What are my traditional competitors doing?
What new players are emerging that pose a threat?
How far will the loss of geographic boundaries open up new competition?
What new market segments are now potentially within reach of my business?
What new products or services can I create using this technology?
How can I change the nature of existing services, increase their value
to customers?
Can I lock out competitors by creating links with my customers that
enhance the service convenience?
How will these technologies alter the channels by which I reach customers?
What will customer expectations be next year and can I exceed them?
How will the relationships with my suppliers change?
Can I add more value by working more closely with suppliers enabled
by technology?
Can I create new businesses and if so, where should these be located
Can I create a virtual organisation freed from geographic barriers
that have hitherto existed?
What are the direct tax implications of choice of location?
What are the indirect tax implications of choice of location?
What legal uncertainties will the business face?
Do I have the capabilities to take advantage of these opportunities
or respond to the threats I identify?
Your answers to these questions may take you down a path that leads to
significant changes in some of you core business processes or organisation.
These changes may include the way way in which you relate to customers
or suppliers and how knowledge is managed within the business. It
may be that a new business is required to achieve these changes.
Changes of this nature need to be introduced in a well-managed and effective
way whilst maintaining a pace that ceases the opportunities or at least
remains with the pack. A further, easily overlooked question to
consider is how you will achieve the organisational changes you
may be contemplating.
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