10.2.1 Internet speed, innovation and change
The underlying technologies of the Internet and e-commerce are advancing: however this advancement is much slower than the rapid rate at which people are devising innovative uses of these technologies for human and business purposes. The rapid rate of Internet innovation is the reason that ‘an Internet year’ is often described as being six months or less.
The relationship between Internet and information and communications technologies (ICTs) and their application in business can be depicted as shown in the diagram below. Basically, one small technological innovation can lead to a vast array of new business and other innovations that apply that technology. Similarly, some new business innovation can require new technological developments, which can in turn fuel further business innovations (Figure 1.4).
Figure 10. 4 ICTs, innovation and business
The Internet provides a unique environment for information, service and business innovation:
- rapid distribution and worldwide availability – innovations can be applied and/or distributed to large numbers of people worldwide within hours.
- very low adoption and access costs – other than any cost charged for using the innovation, customers will probably already have all they need to access and/or use the innovation – a computer and Internet access.
- very low scaling and ‘production’ costs – information-based innovations can usually be reproduced for negligible cost. Unlike producing trucks, for example, there is no need for new factories or re-tooling, for incurring expensive per-unit production costs, or for stockpiling products in order to meet anticipated market demand. The Internet is characterised by a comparatively rapid supply chain and tends to operate in a demand-pull manner rather than a supply-push manner.
For the enabling Information and Communications Technologies (ICT) – especially Internet technologies, that underpin information, service and business innovations – their adoption characteristics also have significant implications:
- ICT-related innovations often have an immediate and financially attractive worldwide market;
- ICT-related innovations can fundamentally change the nature and economics of whole industries and infrastructures. For example, people are increasingly using Internet-based phone and communication methods instead of traditional phone and fax communication. Media, entertainment, financial and government organisations are also facing significant change.
These circumstances mean that planning large, expensive and long-duration e-commerce development projects can be unwise: the market and competitive state-of-play may have changed completely by the time you complete the project. It is also the case that, for almost any online business concept or approach, someone in the world has already done it, is doing it, or is doing something even better. Some of the best e-commerce ideas and opportunities will come from reinterpreting innovations from businesses in other industries or in other regions (Figure 1.5).
Figure 10. 5 Accelerating business and technology innovation
Reading 1
Access and review the most relevant components of the Sensis report at http://www.about.sensis.com.au/media
/pdf/Sensis_ebusreport2004.pdf
Activity 1
- Review the Sensis findings. How does your business use these technologies? Would these statistics present any great surprise to a general transport or specialist maritime business? Why?
- In what ways do you think the use of the Internet by business is likely to vary across different industry sectors?
- Would maritime industry businesses be likely to follow national trends with applications for which the Internet is used? Or can you think of different applications maritime businesses may employ?
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