Internet and business transformation

Abstract

The Internet is currently keeping managers awake at night. Surveys conducted in various industries and regions around the globe typically show that more than 90% of the executives consider that the Internet will transform or will have a major impact on the global market place. This work addresses this problem. It focuses on the issues of business transformation that result from the widespread adoption of the Internet, by manufacturers, distributors and consumers. In almost every industry, the Internet is bringing important business changes. The developments are bringing new competitors to the market place, bringing new forms of competition, and are reshaping industries. Two of the key issues to address are the identification of the major industry changes and the identification of the core capabilities required for implementing successful Internet ventures. Among established industries, financial services are already being strongly impacted. Financial services' products and financial services' value chain are predominantly built on information and its products underlay many of the other industries' activities. Bill payment and retail stock trading are leading the categories with higher share of online execution. The use of the Internet in the financial services industry is specifically analyzed in this work.