New Business Planning Has To Be Based On Internet Business Because Of Progress Over The Last Ten Years
Saturday, February 6th, 2010Market forces have constantly dictated that the performance and nature of the work place balances. If you acknowledge that the principles of supply and demand will make sure that the correct, or required, products and services are offered by successful companies, then the impact of the Internet Business expansion may well change the accepted economic paradigm.
Usual business models are based on a division of function which for arguments sake resulted from the mechanisation of industry through the Industrial Revolution. In order to improve efficiency the work place “scientists “ such as FW Taylor argued that separation of responsibilities would improve production rates. Consequently the specialisation of function (innovation, design, production and sales) would be designed to make sure that the maximum opportunity for suppliers and retailers was achieved by encouraging rivalry at both ends of the chain (in manufacturers and retailers).
This model based around silo’s is now at risk from the worldwide web, the very nature of the capability to share facts instantly has had the effect of bringing together those traditional silo’s. It is now perfectly possible that a group of designers can get together, design a product or service online, in real time. If the result is a product then via 3D printing technology that product can be produced and advertised via a website. An entire supply chain can effectively Work From Home producing goods and services via Online Jobs.
This mode of activity will affect the world of work as we view it today, Online Jobs will be the standard as opposed to the exception as design, manufacturing and production, sales and marketing and distribution are all possible through a broadband connection. Conventional barriers to entry in markets, such as accessibility, market knowledge and skill sets will become less of a difficulty as a start up Internet Business can, without difficulty source correct skills online and have no need to co-locate a group who can all effectively Work From Home. Any market is accessible when sales pitches and client contact is made through effective use of today’s communication technology. Business forums and blog sites can also provide useful local and regional business intelligence through discussion with firms already working in that market – obviously there is an issue around sharing information that could be useful to your competition.
There is no doubt that the mechanics of production as we understand them today will still be required for some elements of manufacturing and production, it would be nearly impossible for a local supplier to produce a car and for an internet business sales team who work from home to sell it. It would also be silly to imply that some of the more technologically advanced products we use on a daily basis could be designed over the internet by a group who had never met. However there are millions of products which are straightforward in design construction and production which could be produced in this way. Who knows, some of them may even profit from design improvement as hundreds of much smaller groups take a look at those designs and add their own individual ideas to them.
