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Media & Entertainment
Structuring
Convergence
Paid Content
Information
Knowledge
Management
Strategy
Time
Based Competition
The "Vision" Thing
Internet
The Net Era
The Internet - Some Perspectives
Chat Society
Net
Governance
Branding
Brand
Positioning
Brand Personality
Brand Extension
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Written
- 1999
SO
much has been said about the Net that it takes a good long think
before one can come up with something different to say about the
Net in general. Specifically, of course, there are events and occurrences
by the day that are pushing the borders of impossibility further
and further back. In fact the line between the imaginable and the
technologically possible has grown rather blurred, over the past
few months.
Let
us step away from the nuts and bolts of the Internet, and look at
it from 4 distinct perspectives : the Net as a business tool; the
Net as a technology; the Net as a carrier and the Net as a culture.
But first, a few basic reminders. Number one, the Internet is still
very much US centric. 50% of the hosts come from the US. The backbone
of the Net is in the US. Second, there is as yet, no danger of all
the bandwidth being clogged with the traffic. Rest assured, there
is enough and more. Third, the good old democratic days of the Net
- small company equals big company on the Net - are over. Today
the Net is very competitive and very cluttered. Typically, more
money needs to be spent on promoting a web site than on developing
it. A whole new vista of media planning is opening up.
The
Internet as a technology
To many people, the Internet is just this. As a technology, the
Internet represents a set of open standards and protocols that include
TCP/IP, HTTP, HTML, ORB, IIOP, etc. These are commonly accepted
and can be deployed across all hardware platforms and operating
systems. The use of agents or objects, which perform specific tasks,
can reside anywhere on the Net, and can be used both within and
beyond the enterprise, is another hallmark of this technlogy. This
has led to the evolution and wide adoption of this technology in
intranets or corporate internal webs. Intranets have to potential
to change entire knowledge management and information management
systems in organisations, and in an era hailed as the age of information,
this can mean huge strategic advantages. IDC has reported returns
of 1000% and above for large corporations in manufacturing and service,
deploying intranets. Internet technology is continually evolving.
It has thrown up radically new ideas such as push technology and
streaming audio, in the last 12 months. Push technology, for example
alters the fundamental axiom of the Net - that of the user pulling
content to his desktop. Now he / she can receive a broadcast (web
cast) from CNN every morning or 3 times a day. Streaming audio allows
you to listen to live rock concerts or seminars, while continuing
to work on your desktop.
The Internet as a business tool.
This is the evolving perception of the Net, but here too, one can
question whether people have grasped even the potential of the Net
as a business tool. Most companies are still in the stage of testing
the waters, putting Websites on the Net and using it to communicate
with customer and/or investor communities. In India, though, we
are a step behind, as most Indian sites look like scanned corporate
brochures, however pretty they may be. "Who is using the Net
well ?" You may ask. GE, Bank of America, Fedex, Walt Disney
and the Wall Street Journal for a start. Whats so special about
these companies ? The common strain here is that they all use applications
beyond basic information dissemination that make their site rich
and a source of value for visitors. They came on line with a well
crafted, coherent plan, and built communities around their products
and services, or delivered tangible value through their sites. They
used the interactivity of the Net to its hilt, and built 'virtual
value chains'. Communities are now being hailed as the way to go
for most organisations, but there can be only so many communities,
clearly, the early birds will get the lions share of the worms.
The
Internet as a carrier.
In treating the Internet as a communication medium, it is easy to
lose sight of the fact that it is after all, a carrier of bits,
and that this functionality can be used to add a lot more value
to your business. Simply put, instead of building your proprietory
networks to link your branches and factories at great cost, why
not use the Net ?
A stellar example is the move towards electronic commerce. E-Commerce,
whether business-business or business-consumer, is poised to rewrite
the rule book of business. Starting with simple online ordering,
going all the way to secure online payments, this is being hailed
as the most exciting field on the Internet.
E-commerce is usually taken to mean transactions where payments
are made online. But that's not all. Many companies have taken online
parts of their selling process, without necessarily including online
payments options, but are still reaping enormous benefits. A perfect
example is that of AMP, the connecting parts and systems seller.
Amp used to issue 400 catalogues every two years, mailing them at
an annual cost of $4m to its customers, who would have difficulty
locating the part they wanted. Since they took their catalogue online
(in eight different languages!) AMP has recorded annual savings
of $ 1.5 - 2m.
Retail stores like Amazon.com and CDNow have managed to build powerhouse
businesses on the Web, using the potential of the Internet to the
hilt. Amazon for instance is able to undercut competitors by 40%
due to their savings from not incurring warehouse and inventory
costs, distribution costs or retailing costs. When an order comes
in, it is transmitted to the publisher and shipped, eliminating
inventories and all the associated costs that real-world competitors
have.
Canny organisations are also transferring other processes to the
Internet - FedEx has successfully taken its customer service module
online. The Package Tracking feature has helped to make the site
a Web legend. Other organisations are using the Internet to set
up virtual clearing houses and trading rings. The Paper Site is
a trading floor for sellers and buyers of paper to get in touch.
The JTSIN (Joint Transmission Services Information Network) is a
highly secure network that allows electrical utilities to buy and
sell excess power, making it one of the most interesting and novel
business applications on the Web.
The
Internet as a culture
The Internet is, as Mark Andreesson opines, a separate universe.
It is a world unto itself, with its own norms, mores and culture.
What is the culture of the Net ? Open systems, cooperation, transparency,
specialisation, value addition and innovation are some of the things
that spring to mind immediately. The Net must be the greatest working
example of global cooperation. It's organisation is still democratic,
since there is no one person or body deciding what the rules should
be. It takes a whole lot of effort on the part of a very large number
of organisations to manage the Net. The Internic is the accepted
organisation for domain naming, the W3C formulates HTML standards,
the IETF carries the flag for technology standards on the Net, CommerceNet
coordinates business and transaction specifications, and so the
list goes on. Transparency is another cultural signpost for the
Internet. Most people and organisations on the Net have left behind
the notion of power from witholding information. Companies talk
about their plans and growth strategies secure in the knowledge
that strategy is essentially inimitable. This is in part driven
by the very high level of specialisation that is found on the Net.
Organisations have focussed strongly on areas such as encryption
(RSA), certification (Digisign, Verisign), Electronic cash (Cybercash,
Digicash)
.etc. Freedom of speech is supported by most netizens
and given the fast forward evolution of the technology, the culture
itself is a continuously morphing, mobile culture. The Net is definitely,
still, a preserve of the intelligent. Moreover, it thrives on ability
and trust - there is no end of shareware products that ask you to
try the product and pay - if you find it worthwhile. Intellectual
honesty comes through in all this as a signature of the Internet
as a culture.
The Internet today can be used to access medical help, business
solutions, domestic requirements, friends and associates and professional
expertise of all types. Somebody once said "2 years ago, 'Internet'
was not in the Encyclopaedia. Today, the Encyclopaedia is on the
Internet." The Internet has been exploding around us, in the
process transforming itself from a charge of the technology brigade,
to a gigantic cultural juggernaut. Its time we stopped looking at
the Net as a technological diversion, and started using it to make
the impact on the world that it has potential to do.
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