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THE EVOLVING BUSINESS MODEL
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Up to this point, this book has described where the Internet industry has gone to date The question remains, where is the Internet business going The answer to the question is simple The Internet business model is at the beginning of its evolution and will evolve into anything the marketplace will drive it toward The marketplace will drive the Internet s technological development down a path that is guided by business/market
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FIGURE 2-22 E-conomy/E-economy
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parameters familiar to all of us The challenge for the Internet players is to find that niche or mass market idea that will generate revenue for themselves while providing a useful service A guiding principle for the Internet player is to first look at how things are done today and then look at how the Internet can add value, which is a very basic way of approaching any matter Today, the Internet space is filled with companies all claiming to provide some kind of Internet service Some of these company types are as follows:
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ISPs Gateways ASPs Content providers
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In the end, all companies claim to have some control over the access to the customer and provide some kind of service to the customer
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The marketplace will find a multitude of ways to find uses for the Internet As an information medium that is in its infancy, thousands of opportunities are available for a system that supports the manipulation and transmission of information The Internet s single greatest attribute is its ability to facilitate access By focusing on the access aspect of the medium, investors and entrepreneurs will be able to find new opportunities The reader should remember the old axiom: Information is power The Internet enables everyone, both the individual and the large corporation, to manage the flow of information or product between parties This is called access, and this is ultimately power The marketplace is always seeking new ways to improve the quality of life by making things:
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Easier to do Easier to find Faster to do Less expensive to do Quicker to travel to More fun to do More interesting to perform More interesting and higher in quality to view More interesting and higher in quality to listen to
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Figure 2-23 illustrates the aforementioned points about access and the basic goals of the marketplace The parameters that were just described impact all products that are sold or created whether they are over the Internet or not People will not deviate from these parameters To a great extent, e-commerce has done an excellent job in meeting the marketplace s basic goals However, people must see continuing value in the Internet approach, otherwise no financial value exists to the provider People like doing business with those companies that provide continuing value rather than one time
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Easier Faster Less Expensive More Fun Better Looking
Why the Internet
FIGURE 2-23 Goals of the marketplace
discount sales The markets can be broken down and combined in any number of ways; however, the following are broad categories:
Home Office Travel for business Travel for vacation Entertainment for the home Entertainment in publicly accessible areas such as amusement parks and movie theaters Education at home, in the school, museums
The Internet will evolve down two paths: technological and business The technology of the Internet will change in order to meet the needs of the marketplace The business of the Internet will evolve in order to ensure the generation of revenue Technology and business work hand in hand to achieve the same goal: creating value in our lives The future of the Internet will depend on how both technology and business work together to achieve value Focusing
Two
on access will enable all Internet industry players to find and create opportunities These new opportunities will be focused around access Figure 2-24 re-emphasizes the importance of access in the world of the Internet
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