How Has Internet Technology Changed The Business Model Case Study
How have internet technology changed the business model?
Introduction
The internet sometimes simply called “The Net” is a worldwide system of computer networks- a network in which they can share information with each others. It was conceived by advanced by the Advanced Research Projects Agency (ARPA) of the U.S. The internet can be defined as means of communicating one computer to another computer in any places via dedicated servers and routers. Once the computers are linked with the network users can send and receive all the information, photos, videos, graphics, games and so on.
Twenty years ago, there was a classic way of doing business through opening a storefront, advertising in the local newspaper, joined a local networking organization …show more content…
In traditional business model, creating value is concerned with identifying enduring customer needs and manufacturing well- engineered solutions. Competition was largely feature-versus-feature warfare. And when feature innovation eventually proved to be too incremental, price competition would ensue, and products would become obsolete. But in the connected world (internet), products are no longer one –and done. The ability to track the goods in use makes the possibility to know the customers behaviors. And the product are further connected with the other products, which allows to lead the new analytics and new services to forecast , process optimization and customer service experience.
Conclusion
In the traditional business model, Michael porter describes that they were concerned in three generic strategies cost leadership, differentiation strategy, and focus. For some industries still these strategies hold the business activity which is true. But in the world of connected, differentiation, cost, and focus are no longer the mutually exclusive for the company rather they can be mutually reinforcing in creating and capturing value. Therefore, in the present age of technology the rise of internet technology has changed the business model.
Introduction
The internet sometimes simply called “The Net” is a worldwide system of computer networks- a network in which they can share information with each others. It was conceived by advanced by the Advanced Research Projects Agency (ARPA) of the U.S. The internet can be defined as means of communicating one computer to another computer in any places via dedicated servers and routers. Once the computers are linked with the network users can send and receive all the information, photos, videos, graphics, games and so on.
Twenty years ago, there was a classic way of doing business through opening a storefront, advertising in the local newspaper, joined a local networking organization …show more content…
In traditional business model, creating value is concerned with identifying enduring customer needs and manufacturing well- engineered solutions. Competition was largely feature-versus-feature warfare. And when feature innovation eventually proved to be too incremental, price competition would ensue, and products would become obsolete. But in the connected world (internet), products are no longer one –and done. The ability to track the goods in use makes the possibility to know the customers behaviors. And the product are further connected with the other products, which allows to lead the new analytics and new services to forecast , process optimization and customer service experience.
Conclusion
In the traditional business model, Michael porter describes that they were concerned in three generic strategies cost leadership, differentiation strategy, and focus. For some industries still these strategies hold the business activity which is true. But in the world of connected, differentiation, cost, and focus are no longer the mutually exclusive for the company rather they can be mutually reinforcing in creating and capturing value. Therefore, in the present age of technology the rise of internet technology has changed the business model.