Commodities of the New Economy (Page 6 of 6)

1. Commodities of the New Economy
2. Hierarchy of Cyberneeds
3. Shift Happens
4. The New Economy
5. The New Commodities
6. Summary

Summary

It is clear that the new economy runs on new commodities. Power, CPU power, storage, and bandwidth are as important to the new economy as oil, gold, and lumber were to the previous ones. While these new commodities are not currently traded like the old ones, it is likely that the new commodities will begat new ways to buy sell themselves.

By overlying a set of accepted industry standards that facilitate the movement of information and processes, these seminal elements of the new economy can be bought and sold as commodities, and the pricing of those commodities in fact determines the health of the new economy.

By recognizing that these commodities are at the heart of the massive virtualization of businesses and organizations, insights into how to monetize assets and activities emerges. Historically, businesses have been bounded by "where" they could locate. Now business can locate places where they have access to the commodities, which often times will have little relationship to any specific physical location. As the new economy continues to emerge, fixed real estate assets may become one of the least attractive assets to possess or in which to invest.

The emergence of a new set of commodities forces a fundamental reconsideration of the assumptions at the base of many businesses and business models. A global communications infrastructure that allows work, information, and applications to be spread around the world, without chronological limitations, represents a massive inflection point in history. Businesses can never really be closed.

For any business currently operating in this environment, the challenge becomes figuring out how to apply these commodities in unique ways and to recreate the world in to its advantage, as opposed to responding to the world created by its competitors.


Part 1 - Commodities of the New Economy