The information revolution

Are businesses only scratching the surface of the power of the Net? Are we ignoring a revolution which will profoundly alter the structure of the company and of many business practices? The greatest benefits from the new technologies, will come only to companies that change their structure to accommodate them. Fundamental organisational changes will lead to a new type of company, whose value lies less in factories, trucks and other assets that normally appear in the balance sheet, but in intangibles-brands, patents, franchises, software, research ideas and expertise. ´Knowledge´ programmes, assets such as these will account for perhaps six out of every seven dollars of corporate market value. The company of the future will therefore concentrate more on managing people than on managing physical assets. Internet technologies are expected to help improve decision making by increasing the amount of information available to managers, accelerating access to information, by enabling messages to reach people who can offer advice and expertise, by bringing people together to discuss issues and by searching for previous decisions in similar circumstances. The Internet clearly opens up new and less costly business models, e.g. Easyjet´s budget airline. The Internet also makes it easier for companies to monitor what rivals are doing around the world, although it is far from clear how this fits with ownership of patents. Internet technologies offer scope for understanding customers better and possibly developing customer loyalty by offering more targeted products or services.