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The "Information Age" or the "New Economy."

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Introduction

In the early to mid-nineties, a major change began taking place in America's economy. Technology and innovation became some of the leading factors of success for companies. Companies have been forced to change as the technology introduced around the world changes, and more importantly, they have had to be swift in adapting to change. This new age has commonly been classified as the "Information Age" or the "New Economy." Charles Darwin once said, "It is not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change." This quote is not only true to mankind, but also to any firm that has inspirations of succeeding in this so-called New Economy. "The term New Economy refers to a set of qualitative and quantitative changes that, in the last 15 years, have transformed the structure, functioning, and rules of the economy." The New Economy is an economy with a great deal of emphasis placed on a person's ability to create new ideas and adapt to changes in technology. ...read more.

Middle

Fifteen years ago, it would have been difficult to fathom people buying and selling something as simple as books or movies over the Internet. However, in this New Economy you can buy or sell just about anything you want over the Internet. Most of today's largest businesses have Internet sites that either sell or market their product worldwide. In fact, in 1997, 24 percent of U.S. businesses had access to the Internet. That number is projected to be 45 percent by the end of 2001. In the same period, the percentage of businesses with their own Web sites is projected to grow from 5 percent to 30 percent." The business models of most companies have to change with this new era in order for them to remain successful. The New Economy demands an increase in skilled, or educated, workers because of the technological advances. The educated workers must possess strong managerial skills and be creative in order to help the company become a leader in product innovation. ...read more.

Conclusion

The increase in foreign direct investment clearly shows the trend toward globalization. The expansion of trade means more competition, which increases the importance of innovation for the success of a company. Another part of the business model that must change is the importance of customer service in a timely manner. Not necessarily answering one's questions, but also responding to changes in the global market. An increase in competition has created an extra importance for companies to "own" their customers. In order for them to own the customers, the companies must be easily accessible for communication and purchasing as well as being efficient with business transactions. I believe that in the New Economy, e-commerce will be one of the most important facets for a company's success. They must be able to keep up with the ever-changing technology and be a leader in their industry. If a firm does not adapt to the changes required for it to remain competitive, then I feel that it will be engulfed in this current flurry of mergers and acquisitions. ...read more.

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