New Economy and Strategy Implications

• 1. The infomation economy depends on connectivity - the more interdependence the more valuable it becomes - Inverse pricing
• 2. Upfront costs can be high and revenues delayed - So standards, alliances, closed source are imprtatant decisions )nce the standard is chosen then you have to compete with in it
• 3. Sustainable CA is unlikely with technology
• 4. Competitiion between standards/ networks is difficult to call
• 5. Tipping Points are likely
• 6. Network complementarities and cooperative strategies are replacing the historical idea about competition
• 7. There is a tendency for preemptive strikes and technology races
• 8. The effects of the new economy needs to be analysed at the technolgy, supply chain, platform and network levels

Example Does Google have a strategy. At best it could be viewed as emergent. Their people invent things and then try and work out how to make money from them