New Business Planning Has To Be Based On Internet Business

December 13, 2009

Market forces have always made sure that the performance and nature of the work place balances. If you accept that the principles of supply and demand will ensure that the correct, or required, products and services are provided by successful businesses, then the impact of the Internet Business explosion may well alter the accepted economic paradigm.

Traditional business models are based on a division of function which for arguments sake resulted from the mechanisation of industry during the Industrial Revolution. In order to develop efficiency the work place “scientists “ such as FW Taylor argued that separation of roles would improve production rates. Subsequently the specialisation of function (innovation, design, production and sales) would be designed to ensure that the greatest opportunity for suppliers and retailers was achieved by encouraging rivalry at both ends of the chain (in suppliers and retailers).

This model composed around silo’s is now in danger from the worldwide web, the very nature of the capacity to share knowledge instantly has had the effect of bringing together those customary silo’s. It is now perfectly possible that a faction of designers can get together, design a product or service online, in real time. If the yield is a product then via 3D printing technology that product can be produced and advertised via a website. An entire supply chain can in fact Work From Home producing goods and services via Online Jobs.

This mode of activity will affect the world of work as we see it today, Online Jobs will be the standard as opposed to the exception as design, manufacturing and fabrication, sales and marketing and distribution are all possible through a broadband connection. Old fashioned barriers to entry in markets, such as accessibility, market knowledge and skill sets will become less of a difficulty as a start up Internet Business can, without any problem source correct skills online and have no need to co-locate a team who can all in actual fact Work From Home. Any market is easily reached when sales pitches and client contact is made through effective use of today’s communication technology. Business forums and blog sites can also offer useful local and regional business intelligence through discussion with businesses already working in that market – obviously there is an issue around sharing information that could be useful to your competition.

There is no doubt that the mechanics of production as we understand them today will still be needed for some elements of manufacturing and production, it would be almost impossible for a local supplier to produce a car and for an internet business sales team who work from home to sell it. It would also be folly to suggest that some of the more technologically advanced goods we use on a regular basis could be designed over the internet by a team who had never met. However there are millions of items which are simple in design construction and production which could be produced in this way. Who knows, some of them may even benefit from design improvement as hundreds of much smaller teams take a look at those designs and insert their own individual ideas to them.

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Thanks so much!
Michelle

Posted by Guest Post | Filed Under **Business**, **Internet**, **eBusiness**, Everything Else