James Daly Editor-in-Chief The 10 Driving Principles Of The New Economy Where Business Is Going

n THE AGE OF THE NETWORK...

n THE AGE OF THE NETWORK n HAS BEGUN

n “ The next information revolution will engulf all of modern society. But it has started and gone farthest in business enterprise. It is forcing us to redefine what business enterprise is and actually should be.” n - Peter Drucker

n “ In five years, there won’t be any Internet companies, because they will all be Internet companies or they will die.” n - Andy Grove

n Industries Most Affected n (% increase in number of online purchases ) n - Travel +302% n - Music +269% n - Clothing +250% n - Auto Sales +216 n - Consumer Electronics +205% n Source: IDG

New Buyers + New Sellers + New Marketplace = NEW RULES FOR A NEW ECONOMY

n 1. MATTER - It matters less.

n Old: Land, Labor, Capital = Value n New: Information = Infinite Value Bits are more valuable than Atoms

n 2. SPACE - Distance is dead.

n Your nearest customer n And closest competitor n Is just a mouse click away

n 3. TIME - It’s collapsing.

n 4. PEOPLE n - They’re the crown jewels.

Business Tools & Methods Financials New Ideas Accounting Practices Training Knowledge Capital Future Sales Personal Contacts Marketing

n 5. GROWTH n - It’s accelerated by the network.

n Old Rule: Scarcity = Wealth n n New Rule: Ubiquity = Wealth

n 6. VALUE n - It rises with market share.

n 7. EFFICIENCY n - The middleman lives.

n Infomediaries: n - Provide Navigation; Not A Destination n - Expedite; Don’t Own n - Represent; Don’t Supply Inventory n - Aggregate, Don’t Create n - Are Catalysts; Not Participants

ie the BUYER Infomediary SELLERSSELLERS

n Industries In Danger: n - Travel n - Auto Sales n - Insurance sales n - Supply Chain Management n - Newspaper Classified Ads

n 8. MARKETS n Buyers are gaining new power n and sellers new opportunity.

n 9. TRANSACTIONS n It’s a one-to-one game.

n In A World of Abundance… n Human Attention n Is the most valuable commodity

Personalization is Key

n 10. IMPULSE n Every product is available: n - Anytime n - Anywhere

n What’s Next?

n “Change is not merely necessary for life n It is life” n Alvin Toffler, futurist

THE FUTURE BELONGS TO THOSE WHO CREATE IT Where Business Is Going