Today the world is 13 years old. The berlin wall come down at 1989 set the date of information ages. The industrial age fade out, with world wide web went up. “www”, “http”, ethernet, 3G, 4G is the new language today. What is your bandwidth? is a prevalence question to measure how powerful your internet muscle.
By evolution of internet, businesses also evolved. “Business model”, a MBA jargon, has and had include internet as a important subject in the syllabus. Ask anyone who start a business, he or she will very likely to tell you, i am in the internet business model. But, what does it mean by that? Isn’t internet just merely a technological breakthrough in 21st century? How would it now is playing a role of “business evolution”?
The truth is, internet is just a technological breakthrough. Nothing more nothing less. It never mean to be anything to do with business. The internet merely provide us a new tools to do things differently. Therefore, everything, by means everything we use to do, including businesses changes. So, what is that? Isn’t such context had justify the idea of internet business evolution? The answer is yes and no. The key points is, people has caught themselves off guard of what is primary and secondary in businesses. And this is what my article is all about.
And for the record, businesses does not change in its nature. Supply and demand, profit and lost is the fundamental rules. That is primary. The secondary is the supportive factors, such as tools, management, people, leaderships, marketing etc. It is very subjective rules against the primary objective rules. The primary and secondary by logic should be jibe in each other. Unfortunately, it is not the case in today. The key here is simplicity (Objective) versus complexity (Subjective).
Invention of paper, to writing, to printing and now internets, is a products of our civilizations. Business had since “evolved” since of every new inventions is introduced. The word “evolved” had make something that should be simple into something that a so complex. Perhaps it is the human nature of propensity to complexity. It make us feel superior, special and feed our ego. With internet introduced, business become even more complex. Stories of success, almost include internet as the rule of thumb to success, if you want to get a piece of cake in the market. Blogger, journalist, columnist, business news anchors and even business men had doing so successfully to promote internet as a most essential blood stream in today business world. It cause a frenzy in the market. That is the feeding frenzy that bring along the internet bubble during 2000. Today, consider to be the most opportunistic ages in any history of human kind, almost anyone can be a business owner, perhaps millionaire in just a few months. All cheering thanks to internets. Internet had plug in everyone to access to all the wealth available. Personally, that is over exaggerated.
Internet did provide us a different way of doing things, more efficiently and more connected. But, in the ends it is just a tools. It by nature itself, does not make success. Today, there are many companies and business are doing extremely well, because of internet. But, those companies never a internet companies. Investors, are now speculating in “internet businesses”. ANything that is internet connected, with fair ideas and sale pitch, they are in. Take a good example, Facebook,inc. Billion of dollars is flooding the company. Making the founder so riches. But, the company itself, does not really generate any real economic value to feed its expansion and expenses. 500 millions users, big deals, but ask again, is Facebook really irreplaceable? It has a notions, with that kind of volume, doing anything will be successful. But ask again, what useful to have 500 million soldiers who cannot fight? It is just an assumption of something might and might not happen in future - gambling. Facebook to be so successful today, are mainly due to “free services” and no”advertisement” Social networking with a “simplicity” functionality. What do you think about changing those notions will make user continues to use your network? Think about myspace and yahoo!, use to be so extremely successful. Then what now? I hardly have any friends actively use any of them. And bad news, Facebook had since become less user friendly interface - complex.
Today Social networks, are many. Each is very difficult to be distinguished to each others. Each can be replaced by others in very short times. If you does not have something so special and deeply served the needs of users, it is gambling against the emotional choice of internet users. And all emotion does include boredom. When that come, it is game over. In the fundamental of business, never lost sight of supply and demand. Demand is value, needs that in very simple terms benefit to users - civilization value. Supply is how you bring out the demand is very effective, constructive and innovation ways to make money - economy value to yourself. If you can’t explain your company in very simple terms at how it make money, and how it help people, you are in trouble. For instance Google, had since so innovate in pulling all information from all location to one stops using internet. It is not a internet business. It is an informations service provider. And by attract people to use its search engine, it provide advertisement programs to make money. Google become so successful because it make money,and it serve people. It has economy value and civilization value. Apple.inc, Steve jobs bring out a civilization value by its products. A digital lifestyle notions that make people life more interesting. Never about icloud or machine that could bring you to internet. Now it is the no.1 market capitalization company in the world, surpass Exxon Mobil. It has both economic and civilization value. Fedex, logistic, provide supply chain solutions to customers. Civilization value - delivery of urgency, feedback, management package to her customers. Customer like it, and it make money. Never about the internet tracking systems. Paypal, security and connivence service provider of payment gateway. People like it and use it. It charges minor fee during withdrawal . Therefore, it make money. It never was a internet business. There are many more example you can think of. The internet just a tools they use to get out of the best to his customer need. “connected and efficient”.
As conclusion, there shouldn’t be a notion of internet business, unless you are at&t or license ISP. Never over react by the notions of include internet into your business strategy. Internet is a two edge swords if you does not use it properly as any other weapon and tools, it might hurt you. Master the primary rules of business - supply and demand (Economic value and Civilization Value). The secondary supportive factors should be very flexible depend on your circumstances and needs. Never caught your in the “internet frenzy trap”.
