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The Internet Economy refers to conducting business through markets whose infrastructure is based on the Internet and World-Wide Web. An Internet economy differs from a traditional economy in a number of ways, including: communication, market segmentation, distribution costs, and price.
Internet Economy
Ghosh (1998) states that businesses cannot avoid the Internet economy. They must recognize and understand that there are both global opportunities available as well as risks of not participating. They note that through the Internet, any participant in a value chain can usurp the role of any other participant. The value chain was described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance, New York, NY The Free Press. ...
In an early article, Iain Vallance (1993) sees communication between businesses and their customers as the key to success in the Internet economy. This results from integrating networks, software, and customers. Currie (2000) sees communications via the Internet as involving virtually no transmission cost. She also notes that distance has become irrelevant, and that any amount of content is instantly available. Iain David Thomas Vallance, Baron Vallance of Tummel, FRSA, (born 20 May 1943), is a British businessman and a Liberal Democrat politician, currently the parties spokesperson for Trade and Industry. ...
A wide variety of systems of interconnected components are called networks. ...
Look up content in Wiktionary, the free dictionary. ...
Esther Dyson (1998) suggests that the ready availability of global information may make it necessary to artificially segment markets. In contrast, John Seely Brown and Paul Dugid (2000) point out that although the Internet enables exploitation of niche markets, many examples of success come from large firms with well-established networks, rather than niche firms. Esther Dyson in San Francisco in 2005 Esther Dyson (born 14 July 1951 in Zürich, Switzerland) is a self-described authority on emerging digital technology, and considered a founding member of the digerati. ...
The ASCII codes for the word Wikipedia represented in binary, the numeral system most commonly used for encoding computer information. ...
John Seely Brown (also known as JSB) is a researcher who specializes in organizational studies with a particular bent towards the organizational implications of computer-supported activities. ...
From a cost perspective, Nicholas Negroponte (1996) indicates that although everything on the Internet appears to be free, even if a rational economic model were to be implemented, it would likely still cost only pennies to disseminate a million bits to a million people. However, Shapiro and Varian (1999) indicates that information is simply being provided at its marginal cost of zero. Nicholas Negroponte Nicholas Negroponte (born 1943) is an architect and computer scientist best known as the founder and Chairman Emeritus of Massachusetts Institute of Technologys Media Lab. ...
Mondahl (1999) notes that price differences based on poor information or geographic distance will not survive in the Internet Economy. He also notes that businesses are likely to adjust their prices more frequently in response to Internet competition.
See Also
A digital economy is an economy that is based on electronic goods and services produced by an electronic business and traded through electronic commerce. ...
It has been suggested that this article or section be merged with electronic commerce. ...
This article or section does not cite its references or sources. ...
Information economy is a loosely defined term to characterize an economy with increased role of informational activities and information industry. ...
An information society is a society in which the creation, distribution, diffusion, use, and manipulation of information is a significant economic, political, and cultural activity. ...
A knowledge economy is either economy of knowledge focused on the economy of the producing and management of knowledge, or a knowledge-based economy. ...
References Brown, John S. And Paul Duguid. 2000. The Social Life of Information. Harvard Business School Press. p26
Currie Wendy. 2000. The Global Information Society. P30.
Dyson, Esther. 1998. Friction Freedom, in: Forbes ASAP (Nov. 30, 1998)
Gosh, Shikhar. 1998. Making Business Sense of the Internet, in: Harvard Business Review (Mar. 1998)
Mondahl, Mary. 1999. Now or Never. In: Harper Business Review. pp82, 88
Negroponte, Nicholas. 1996. Being Digital. Random House p60.
Shapiro, Carl and Hal R. Varian. 1999. Information Rules. Harvard Business School press. P24.
Vallance, Iain. 1993. Make Way for Multimedia, in: The Economist (Oct. 16, 1993)
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