The Internet and its likely Impact upon Society, Business and the EconomytwinIsles.dev - also available as a PDF eBook
13. RepresentationSome products cannot be represented in Cyberspace as effectively as others.
Books, CDs and software sell well across the 'net because the customer
has a clear idea of the nature of the product. Frequently authors publish
sample chapters of their books on the web, and MP3 song samples are a
common feature of online music stores. Goods such as clothes and audio
equipment fare less well because consumers like to experience them (by
trying them on or listening to them) before buying. 14. Information overloadThe Internet promises, potentially if not yet actually, to make available the sum total of human knowledge to every individual. As such, it could become the greatest tool of empowerment, liberation and equalisation in human history. However, the sheer volume of available information brings its own difficulties, not least that of information overload. A query of "Einstein's relativity" made to Google returned 220,000 results. Obviously there is a need for more intelligent retrieval technology, as well as for user education. Although all the answers are out there somewhere, locating them is far from straightforward. 15. Internet business modelsThe Internet offers numerous opportunities for the small entrepreneur. A number of these are:
To name but a few. In all cases a high level of visibility is essential to generate sufficient levels of traffic. The Web is vast, there are few unique sites. The most successful of a group of similar sites are those which feature higher in search engine rankings, and are most frequently linked to by other quality sites. A whole industry has grown around optimising Web sites for high search engine placement. 16. SocializationPreviously individuals were limited to meeting others by chance and physical proximity, e.g. co-workers, neighbours etc. The Internet enables people to contact others with similar interests from anywhere in the world and to engage in ongoing asynchronous and synchronous communications with them. Such communications may build friendships, romance or business partnerships. 17. GlobalizationGlobalization has been defined as "the process of denationalization of markets, politics and legal systems, i.e., the rise of the so-called global economy." [Globalization.com]. The trend towards globalization hastened during the latter part of the 20th century and may be viewed in parallel with the rise of the multinational corporation. Multinational corporations are large corporations which operate across a number of countries. The United Nations Research Institute for Social Development (UNIRSD) report "Visible Hands: Taking Responsibility for Social Development" states that "In 1998 the top five corporations had annual revenues that were more than double the total GDP of the 100 poorest countries." Multinational corporations generally organize their operations and finance
so as to maximize profit, e.g. moving operations to regions offering the
cheapest labour costs while managing finance so as to minimize taxation
liability. Recent years have seen violent mass demonstrations against
globalization in Seattle, London, Genoa, Washington etc. Critics of globalization
believe the trend exploits workers in the poorest countries, fuels job
losses locally and encourages unethical practices from the multinational
corporations. Globalization is also cited as a threat to democracy given
the economic strength of major multinationals which are accountable only
to their shareholders, are often beyond the control of any national government
and are driven by the fundamental goal of profit maximisation. The growth of the Internet must be considered an integral part of increasing globalization, both as an enabling and driving force, and as an inevitable consequence of that trend. Technology makes it easier than ever to globally outsource an increasing variety of information processing and production work to those able to provide greatest value for money. Governmental attempts to obstruct this process will result only in uncompetitiveness and loss of inward investment. 1999 saw the launch of the single European currency (euro). Since that time there has been much debate as to whether and when the UK should join. It is likely that the global impact of technological developments will soon render the question irrelevant. Bloor predicts that "ultimately, there is room only for a single world currency.... If there is any attempt to impose more than one, then the more stable currency will drive out the less stable. A national currency will come to be seen as a tax on international transactions and where tax can be avoided, it will." Where economic integration occurs, so political integration is likely to follow. The concept of nation state is one that is so ingrained within our psyche that its status as a human invention rather than the natural state of affairs is rarely questioned. Increasing globalization combined with increasing access and use of new technologies are already diminishing the role of the nation state. The Internet, like the multinational corporation, operates frictionlessly across national boundaries relatively unhindered by the currently prevailing laws of individual countries. Any attempt to regulate either requires cooperation on a worldwide scale, something which dictates a radically different and lessened concept of nationhood. Obviously, something as integral to human identity as the nation state will not disappear overnight, but it would be unsurprising if the concept remained only as a historical relic at the beginning of the 21st Century. 18. The digital divideMuch has been said of the potential of technology to bridge national, social and economic differences and its potential to act as both liberator and equalizer. Much has been said of the global nature of the Internet's audience and participants. However, whilst 10% of the world's population has Internet access it is sobering to reflect that 90% do not. And this 90% are largely the poorest and least privileged. International, non-profit organisation, Bridges.org provides the following statistics: "In the entire continent of Africa, there are a mere 14 million phone lines… fewer than in either Manhattan or Tokyo" (Nkrumah). "One in two Americans is online, compared with only one in 250 Africans. In Bangladesh a computer costs the equivalent of eight years average pay" (Economist). "There is a wide disparity in access to phones. In 1998 there were 146 telephones per thousand people in the world, but only 19 per 1000 in South Asia, and only 3 per 1000 in countries such as Uganda" (World Bank 2001a; 1998 Data). "Basic access to computers is usually measured against the total number of computers in a country, or number per capita -- both of which illustrate stark divisions. For example, for the world, there were 70.6 PCs per 1,000 people, with 311.2 per 1,000 in developed countries, 7.5 / 10000 in Sub-Saharan Africa, 2.9 / 1000 in South Asia, and only 0.7 / 1000 in countries such as Mali" (World Bank 2001a; 1998 Data). There is thus a very real danger that, far from bringing liberty and equality, the Internet will increasingly disadvantage a very large number of the world's population. It is a matter of conscience for the technologically advantaged as to whether they wish to include their less privileged brethren in the brave new information world. It is a matter for the concerned to convince them that they should. 19. ConclusionsThe emergence of the Internet represents a major new phase in human development, one in which potentially all knowledge is available to all citizens. It differs from other mass media both in its global nature and in that it supports participation from all with access, i.e. it is a truly many-to-many medium. The Internet is predicted to be as radical a development as the industrial revolution. Internet access continues to expand rapidly, bringing both challenges and opportunities to both business and society as a whole. Its potential to liberate and generate greater equality must be balanced against the reality that 90% of the world's population do not have Internet access. Smaller organizations and those with flatter structures are better able to adapt rapidly to the inevitable change of the information age. There is now a whole range of opportunities available to the small operation and lone entrepreneur. The non-commercial origins of the Internet have created an expectation amongst 'net users of valuable content, free of charge. It is thus incumbent upon Internet content providers to persuade customers that their material is valuable enough to pay for and/or to obtain revenue from alternative sources, such as advertising. As it becomes increasingly difficult to attain business success through pricing, or market share though physical convenience alone, differentiation through added value is essential to commercial success in the information age. A further challenge comes from the difficulties in enforcing intellectual property rights over digitisable media. The Internet is part of the irresistible trend towards globalization.
The ease with which information may be transmitted and trade conducted
across the 'net, transcending national borders, combined with the difficulties
of any individual governmental regulation of 'net activity implies the
inevitable diminishing importance of national borders. 20. ReferencesAmazon; http://www.amazon.com/
All information correct and links valid at
time of writing, Dec 2002. |