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