%0 Journal Article %1 GossainKandiah:1999 %A Gossain, Sanjiv %A Kandiah, Gajen %D 1999 %J Cambridge Technology Partners %K brand commercial digital economy %T Reinventing Value: The New Business Ecosystem %V 1999 %X Over the last century, our economy-whether based on agriculture or industry-has been predicated on supply. That is, consumers could choose from only the quantities that manufacturers or growers had produced. As we transition to an information economy, we are experiencing a shift that puts the emphasis on demand. This shift is changing every dynamic in the marketplace. For example, in 1990, a person who wanted to purchase a car from Ford would typically read a magazine or journal about the type of vehicle desired; visit a number of dealerships to look at various models; visit one dealership to test drive the car; discuss purchase options such as price, color, and financing with the dealer; review consumer reports on the car; visit banks to establish a line of credit; and, eventually, make a purchase. The same person would approach the purchase of a car differently in the networked, information economy. This time he would go online to research the car and investigate the dealer invoice price and the manufacturer's suggested retail price (MSRP) for the base car and options. After selecting his options and determining the price he is willing to pay, he would go back online to advertise for the required loan and get bids. Then he would go to a dealership to inspect the engine and test drive the car. Online again, he would advertise details about his chosen vehicle and how much he would pay, asking dealers to bid for his business. Based on the responses, he would make his final decision on the vehicle, dealer, and loan source. In the future, this scenario could extend even further back into the supply chain. The customer would set the exact specifications, and the automobile would be manufactured completely on demand-an option that is available today only as an exception. This customer-driven scenario is applicable in and across many different industries, such as real estate, travel, and banking. While the total impact of such a demand economy on traditional businesses is hard to predict, it is clear that a demand-driven economy will undoubtedly lead to a new business paradigm that requires business leaders to think in terms of adapting to rather than dictating customers' needs.

@article{GossainKandiah:1999, abstract = {Over the last century, our economy-whether based on agriculture or industry-has been predicated on supply. That is, consumers could choose from only the quantities that manufacturers or growers had produced. As we transition to an information economy, we are experiencing a shift that puts the emphasis on demand. This shift is changing every dynamic in the marketplace. For example, in 1990, a person who wanted to purchase a car from Ford would typically read a magazine or journal about the type of vehicle desired; visit a number of dealerships to look at various models; visit one dealership to test drive the car; discuss purchase options such as price, color, and financing with the dealer; review consumer reports on the car; visit banks to establish a line of credit; and, eventually, make a purchase. The same person would approach the purchase of a car differently in the networked, information economy. This time he would go online to research the car and investigate the dealer invoice price and the manufacturer's suggested retail price (MSRP) for the base car and options. After selecting his options and determining the price he is willing to pay, he would go back online to advertise for the required loan and get bids. Then he would go to a dealership to inspect the engine and test drive the car. Online again, he would advertise details about his chosen vehicle and how much he would pay, asking dealers to bid for his business. Based on the responses, he would make his final decision on the vehicle, dealer, and loan source. In the future, this scenario could extend even further back into the supply chain. The customer would set the exact specifications, and the automobile would be manufactured completely on demand-an option that is available today only as an exception. This customer-driven scenario is applicable in and across many different industries, such as real estate, travel, and banking. While the total impact of such a demand economy on traditional businesses is hard to predict, it is clear that a demand-driven economy will undoubtedly lead to a new business paradigm that requires business leaders to think in terms of adapting to rather than dictating customers' needs.}, added-at = {2010-03-02T17:25:53.000+0100}, author = {Gossain, Sanjiv and Kandiah, Gajen}, biburl = {https://www.bibsonomy.org/bibtex/2077d174b43b53ce47222b5dfbe4f66a5/jrennstich}, date-modified = {2010-02-28 21:18:19 -0500}, interhash = {8d1914856f688e19dfbe37e57eb04508}, intrahash = {077d174b43b53ce47222b5dfbe4f66a5}, journal = {Cambridge Technology Partners}, keywords = {brand commercial digital economy}, timestamp = {2010-03-05T16:50:01.000+0100}, title = {Reinventing Value: The New Business Ecosystem}, volume = 1999, year = 1999 }