www. World Wide Warp
| Category: PR/Publicity and Media | Date: 2001-09-06 |
The burst of the Internet bubble has resulted in a fierce debate over the appropriate business model for the New Economy. While the NASDAQ climbed to stratospheric heights on a tsunami of e-commerce hype and wishy-washy business principles, cocky Internet "gurus" sneered at the doubting Thomases of the Old resulted in a fierce debate
Now that the doubting Thomases are laughing at those Internet "gurus", what do we, the common folk, do. How do we make sense of all the opposing views and rapid reversals of economic fortunes? Who do we trust? Do we stick with the brick and mortar economy or do we bravely go where very few have gone before, most of whom crashed back to the earth?
For us it is a question of to be or not to be. What do we do?
In the absence of reliable guidance, and being common folk, we are forced to resort to the outdated method of common sense, which, cynics might say, isnt so common any more. But cynics will be cynics, and if we enter their view into the equation, confusion might reign supreme.
So, lets use common sense and see what we can learn from the spectacular rise and precipitous dive of the typical .com company.
The first obvious conclusion is that we shouldnt use technology for the sake of technology. Rather, we should use it to advance the objective of a sound business model that is facilitated by the advance in technology.
Today, there are millions of software programs that can do just about anything we desire. But, if we want to make a living on the Internet, our aspirations have to be tempered by a viable business model.
This is not what happened in the first stage of the Internet boom. The majority of .com businesses were started by technogeeks with no business experience. Their inability to conceptualize a feasible business model was obscured by their technological wizardry along with the Internet hype.
Venture capital companies, who had almost no understanding of the mechanics of the emerging economy, poured money into these ventures. It was a case of the blind leading the blind. Its no wonder they fell into a hole. This brings us to the second important lesson. Those companies and entrepreneurs that did use new technology to create innovative business models have made, and are still making, fortunes on the Internet.
We can draw the conclusion that for those who invest some time to learn the potential of technology and then apply it to a viable business model, the road to success is wide open. This is especially true now that many have lost their heart and money.
It seems that the main stumbling block for those with business experience is an unfounded fear of new technology. This fear is unfounded because it is not necessary to be able to design software in order to be able to use it.
Just learn the application.
If car drivers who didnt understand the working of their engines refused to drive their cars, traffic jams would be an unknown phenomenon.
If we look at business from an historical perspective, we will find that those who failed to adopt the new technology and business philosophy, were left by the wayside. There is no reason to believe that the situation will be any different in the future. The adoption of new technology is likely to remain a critical factor for the survival and prosperity of the individual.
A recent newspaper headline symbolizes the present economic mode:
"Internet now becomes a battleground."
The casualties, of potentially the most devastating economic war in human history, are growing daily. They have become so common that they no longer make front-page news. Articles on downsizing and the retrenchments of thousands have become buried in the inconspicuous pages of our dailies. The casualties are the people who previously considered their jobs secure but are now being replaced by technology.
They are casualties of war, which they have tried to fight with outdated weapons - the business philosophies and techniques of the past.
An historical parallel can be drawn with the Matabele warriors of Southern Africa led by Chief Lobengula. These brave warriors faced the machine guns of John Cecil Rhodess army, armed only with spears. The bullets they could not see and the technology they could not comprehend, annihilated wave after wave of fearless warriors - and forever changed a way of life.
Africas wildlife and forests that have sustained life for thousands of years, have been and are still being decimated by new technology. Today, millions watch in desperation as their children die from hunger.
Could this happen to us? Yes, if we loose the war. The companies and individuals who dont select the new technology and knowledge as their weapon of choice, will have as much chance of survival as the Matabele warriors had against the machineguns.
The present flaccidity of the Internet economy is just a stage of consolidation. The experience gained from the wide-ranging failures in the initial phase of the Internet economy is already being used to create new strategies and business models. These will underpin the second stage of a more widespread and more persistent e-commerce growth.
The present forecasts for the growth of global economy range between 2 & 3%. It is fair to assume that the proliferation of new technology and the evident trend toward entrepreneurship will result in an improved business efficiency, that will by far exceed the percentage of projected economic growth. This scenario will fuel a persistent increase in retrenchments and eventually lead to unsustainable unemployment, with dire consequences for the global economy and stability. The victims will be, as they are today, those least prepared to cope with the demands of the New Economy.
The bottom line is that those who dont want to become the victims of a global economic realignment must - without delay - make conscious and continuous education their primary goal.
It is a matter of survival.
About the Author
Ante Miljak is the author of Eyes of the Owl, the philosophical novel that examines business and life principles of modern society. His website activeweblogic.com provides you with the knowledge and tools that will help you survive and prosper in the Internet economy.
:To contact see details below.
ante@activeweblogic.com
http://www.activeweblogic.com
Now that the doubting Thomases are laughing at those Internet "gurus", what do we, the common folk, do. How do we make sense of all the opposing views and rapid reversals of economic fortunes? Who do we trust? Do we stick with the brick and mortar economy or do we bravely go where very few have gone before, most of whom crashed back to the earth?
For us it is a question of to be or not to be. What do we do?
In the absence of reliable guidance, and being common folk, we are forced to resort to the outdated method of common sense, which, cynics might say, isnt so common any more. But cynics will be cynics, and if we enter their view into the equation, confusion might reign supreme.
So, lets use common sense and see what we can learn from the spectacular rise and precipitous dive of the typical .com company.
The first obvious conclusion is that we shouldnt use technology for the sake of technology. Rather, we should use it to advance the objective of a sound business model that is facilitated by the advance in technology.
Today, there are millions of software programs that can do just about anything we desire. But, if we want to make a living on the Internet, our aspirations have to be tempered by a viable business model.
This is not what happened in the first stage of the Internet boom. The majority of .com businesses were started by technogeeks with no business experience. Their inability to conceptualize a feasible business model was obscured by their technological wizardry along with the Internet hype.
Venture capital companies, who had almost no understanding of the mechanics of the emerging economy, poured money into these ventures. It was a case of the blind leading the blind. Its no wonder they fell into a hole. This brings us to the second important lesson. Those companies and entrepreneurs that did use new technology to create innovative business models have made, and are still making, fortunes on the Internet.
We can draw the conclusion that for those who invest some time to learn the potential of technology and then apply it to a viable business model, the road to success is wide open. This is especially true now that many have lost their heart and money.
It seems that the main stumbling block for those with business experience is an unfounded fear of new technology. This fear is unfounded because it is not necessary to be able to design software in order to be able to use it.
Just learn the application.
If car drivers who didnt understand the working of their engines refused to drive their cars, traffic jams would be an unknown phenomenon.
If we look at business from an historical perspective, we will find that those who failed to adopt the new technology and business philosophy, were left by the wayside. There is no reason to believe that the situation will be any different in the future. The adoption of new technology is likely to remain a critical factor for the survival and prosperity of the individual.
A recent newspaper headline symbolizes the present economic mode:
"Internet now becomes a battleground."
The casualties, of potentially the most devastating economic war in human history, are growing daily. They have become so common that they no longer make front-page news. Articles on downsizing and the retrenchments of thousands have become buried in the inconspicuous pages of our dailies. The casualties are the people who previously considered their jobs secure but are now being replaced by technology.
They are casualties of war, which they have tried to fight with outdated weapons - the business philosophies and techniques of the past.
An historical parallel can be drawn with the Matabele warriors of Southern Africa led by Chief Lobengula. These brave warriors faced the machine guns of John Cecil Rhodess army, armed only with spears. The bullets they could not see and the technology they could not comprehend, annihilated wave after wave of fearless warriors - and forever changed a way of life.
Africas wildlife and forests that have sustained life for thousands of years, have been and are still being decimated by new technology. Today, millions watch in desperation as their children die from hunger.
Could this happen to us? Yes, if we loose the war. The companies and individuals who dont select the new technology and knowledge as their weapon of choice, will have as much chance of survival as the Matabele warriors had against the machineguns.
The present flaccidity of the Internet economy is just a stage of consolidation. The experience gained from the wide-ranging failures in the initial phase of the Internet economy is already being used to create new strategies and business models. These will underpin the second stage of a more widespread and more persistent e-commerce growth.
The present forecasts for the growth of global economy range between 2 & 3%. It is fair to assume that the proliferation of new technology and the evident trend toward entrepreneurship will result in an improved business efficiency, that will by far exceed the percentage of projected economic growth. This scenario will fuel a persistent increase in retrenchments and eventually lead to unsustainable unemployment, with dire consequences for the global economy and stability. The victims will be, as they are today, those least prepared to cope with the demands of the New Economy.
The bottom line is that those who dont want to become the victims of a global economic realignment must - without delay - make conscious and continuous education their primary goal.
It is a matter of survival.
About the Author
Ante Miljak is the author of Eyes of the Owl, the philosophical novel that examines business and life principles of modern society. His website activeweblogic.com provides you with the knowledge and tools that will help you survive and prosper in the Internet economy.
:To contact see details below.
ante@activeweblogic.com
http://www.activeweblogic.com
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