Internet and Economic Revolution

The Internet revolution, similar to industrial revolutions promises an economic transformation. The main objective of this paper is to analyze these expectations and to put forward more reliable and satisfactory explanations of the dotcom phenomena implications. That has been done by answering the following questions: What are the factors that influence the growth of dotcom companies? What are the factors that influence the decline of dotcom companies? Which of the dotcoms business model is likely to be the most reliable to use in future? In order to understand dotcom problems encountered by entrepreneurs, managers and investors presents a historical background of the dotcom boom and related to its other points in history that have a similar nature. The new industrial revolution initiated by the information technological development in the internet system poses both opportunities and threats to some industries, especially the agency market. Traditional agency provides a search function for the clients, which soon becomes obsolete with the instant search in the cyberspace. In a market where almost everything is starting to emerge in proper form, such as the real estate market in the reforming China, internet application provides competitive advantages for most players. Adaptation to this new development seems natural as there is no inertia and everybody is on more or less the same range of the learning curve.

INTRODUCTION: Economic Revolution concerns itself with the key forces and ideas that are dramatically re-shapping the Indian an global economy, with a special eye on how the huge torrents of information created and transmitted by the Internet and related technologies are restructuring and streamlining the we do everything. The new economy moves at a pace never seen before. The new economy is a knowledge economy based on brainpower, ideas and entrepreneurism. Technology is the driver of the new economy, and human capital is its fuel. The knowledge economy is people-centric. Our economy has evolved from manufacturing-intensive to labor-extensive. Fundamental to success in the new economy is how companies obtain, train and retain knowledge workers. The Internet revolution has profoundly changed the way the PR business is done, but not its principles.  Credibility, accuracy and honesty in translating the company to the public and vice versa are more important than ever, especially since the Internet has many unethical communicators.  The process change has imposed a burden on practitioners to learn the new medium and how to use it to support better, faster and less expensive communications. 
ECONOMIC VALUE OF THE INTERNET:
Some of the highlights of the study are as under:
1. Most of the economic benefits of the internet are in fact captured in current economic statistics, which I’ve already argued do not look so fabulous.  The point is not to blame the internet, as without it things would have been worse.  The point is that the internet gains, in absolute terms, haven’t been large enough to produce a rosy picture overall.                                
2. The direct and indirect economic effects of the internet account for 3.8% of U.S.GDP, as currently measured .  That’s less than many people think and that value is already incorporated in the current GDP measure.  There is lots of room for future growth from internet impact.  We’ve yet to really organize our economy around the internet, as we someday will, and then the gains will be enormous.  In the meantime we are waiting.
3. What about the unpriced consumer surplus gains from the internet?  In general, this surplus is generated from the exceptional value users place on Internet services such as e-mail, social networks, search facilities, and online reservation services, among many others. This value far outweighs the costs, both actual costs such as access and subscription fees and annoyances such as spam, excessive advertising, and the need to disclose personal data for some services. In the United States, for example, research conducted with the Interactive Advertising Board found that consumers placed a value of almost €61 billion on the services they got from the Internet, while they would pay about €15 billion to get rid of the annoyances, leaving a net consumer surplus of about €46 billion.
THE ECONOMIC POTENTIAL OF THE INTERNET REVOLUTION: The Internet has the potential to increase productivity growth in a variety of distinct, but mutually reinforcing ways, including:
•    Significantly reducing the cost of many transactions necessary to produce and distribute goods and services;
•    Increasing management efficiency, especially by enabling firms to manage their supply chains more effectively and communicate more easily both within the firm and with customers and partners;
•    Increasing competition, making prices more transparent, and broadening markets for buyers and sellers;
•    Increasing the effectiveness of marketing and pricing;
•    Increasing consumer choice, convenience and satisfaction in a variety of ways.
THE FIVE PILLARS: The establishment of a Third Industrial Revolution infrastructure will create thousands of new businesses and millions of jobs, and lay the basis for a sustainable global economy in the 21st century. However, there is a cautionary note. Like every other communication and energy infrastructure in history, the various pillars of a Third Industrial Revolution must be laid down simultaneously or the foundation will not hold. That’s because each pillar can only function in relationship to the others. The five pillars of the Third Industrial Revolution are:
•    Shifting to renewable energy;
•    Transforming the building stock of every continent into micro-power plants to collect renewable energies on-site;
•    Deploying hydrogen and other storage technologies in every building and throughout the infrastructure to store intermittent energies;
•    Using Internet technology to transform the power grid of every continent into an energy-sharing intergrid that acts just like the Internet (when millions of buildings are generating a small amount of energy locally, on-site, they can sell surplus back to the grid and share electricity with their continental neighbours); and
•    Transitioning the transport fleet to electric plug-in and fuel cell vehicles that can buy and sell electricity on a smart, continental, interactive power grid.

R-7
Seven Revolutions is constantly updated to reflect the latest data analysis and available technologies. It is an effective tool for us to think outside of the areas of expertise and beyond their familiar planning parameters. In exploring the world of 2030, the seven areas of change we have identified are :

Revolution 1: Population
What effects will population growth/decline, aging, migration and urbanization have on our future world?
Revolution 2: Resource Management
What changes will we see in food, water & energy consumption/production?
Revolution 3: Technology
What changes are we going to see in computation, robotics, biotechnology & nanotechnology?
Revolution 4: Information and Knowledge
How does the vast amount of data change how we learn and govern in the future?
Revolution 5: Economics
How is our economic landscape changing?
Revolution 6: Security
How do we balance state competition/conflict with the increased pressures of transnational threats?
Revolution 7: Governance
What is the role of leaders, corporations and NGO's in this new environment?

THE INTERNET REVOLUTION:  IT CAME. IT WENT.  IT'S HERE…
Sometimes stating the obvious is necessary.  The Internet revolution that came and went in a deluge of losses, foundered companies, layoffs and broken dreams has not passed.  It’s here.  It’s just not in the form that most envisioned, and the riches so many expected did not materialize.  But, for practical purposes, we work in public relations today in ways we could not envision in 1995 when Internet growth exploded.  And interestingly, the Web, which was supposed to be the province of a young, hip generation, has proven valuable to a graying establishment. It takes an older person to understand how much things have changed, and it is even difficult for “mature” practitioners to remember how they used to practice PR.  People forget processes easily when they adapt new ones, and they don’t realize inexorable evolution occurring around them.  The Internet revolution was really one part of a larger change from the early 1980s – the digital revolution. By 1995, we were well along in the digital revolution, and worldwide connectivity using a 1969 packet switching technology was becoming the rocket behind change. The Internet had been there all along –10 years before the personal computer. Few used it outside of universities and the Department of Defense.  With development of Web principles in 1991, the obscure Internet suddenly became connectivity for the rest of us. Since then, change has been continuous and resistance futile. In 1995, e-mail was a regular tool. In 1995, Web pages were growing by hundreds a day, but they were curiosities, and most people didn’t know how to code their own anyway.    In 1995, networking was balky.  There was scarcely a day and never a week when the internal network didn’t go down for one reason or another.  In 1995, we kept paper calendars and we didn’t know how to use a personal information manager system like Microsoft Outlook or Internet based systems. Looking around our office, the difference between now and 1995 is the dominance of the PC on our desk.  Everything we do is in the terminal.  We manage e-mail, calendaring, research, meeting setups, client contacts, reporter logging, time, you name it in the machine unless it is packed into the telephone voice mail system. Our ability to find things rests on a search engine and not a secretary’s elephantine memory.  We have paper files, but they have not been updated in months and they won’t be. Eventually, we’ll store, then dump them.
This is not precisely the Internet revolution we expected.  We expected more businesses to be online.  We expected older, established companies to be on their knees while “new model” businesses rose to change customer and influential contact, distribution, communications and relationships. Little of that happened. There was change but it was in processes, not  business models Everything has become easier. We e-mail clients and reporters now. We rarely use a fax machine unless a client or reporter insists on it for some reason secretary-to-staff ratio is one to seven and climbing. 
FUTURE ASPECTS: Thanks to the growing economic and internet revolution, almost anything consumers might want is just a click away. But for businesses, the gains have been much less dramatic. That is about to change, with the arrival of the Industrial Internet                                                                           An internet revolution is upon us. As we know it today, the internet has been largely about connecting people to information, people to people, and people to business. Monetization strategies range as widely as the options available, and for all the success, there are more failures. While many of the advancements have been extraordinary – even unthinkable a short time ago – too often we’re still left asking, “To what end?”The internet can give consumers nearly anything with just a click, but global economies remain challenged.  The internet has become the biggest library in the world, but education is just now beginning to take advantage and change.  The internet can provide businesses with unprecedented data, but true insight remains contentious and change is slow. The real opportunity for change is still ahead of us, surpassing the magnitude of the development and adoption of the consumer internet. It is what we call the “Industrial Internet,” an open, global network that connects people, data and machines. The Industrial Internet is aimed at advancing the critical industries that power, move and treat the world. There are now many millions of machines across the world, ranging from simple electric motors to highly advanced MRI machines. There are tens of thousands of fleets of sophisticated machinery, ranging from power plants that produce electricity to aircraft that move people and cargo around the world. There are thousands of complex networks ranging from power grids to railroad systems, which tie machines and fleets together. This vast physical world of machines, facilities, fleets and networks can more deeply merge with the connectivity, big data and analytics of the digital world. This is what the Industrial Internet Revolution is all about.
THE TAIL SIDE OF THE COIN: Unfortunately, as for most of the inventions the Internet may also be used for bad purposes, and on the other hand we do not have direct means to verify the truthfulness of the available information. If we take the example of virtual shops, each person can make his own virtual shop - which has never existed - and sell products. It's a very easy way to collect great number of credit card numbers. This is an example of a bad use of the Internet. There are also terrorism and money laundering networks developed in it. The telephone network is not safe so the Internet is used as reliable and secure support of communication since messages can be encrypted. It cannot be controlled by government unless the correspondence confidentiality will be infringed. The Internet can also have a bad influence on youth and culture. There are a lot of web servers and newsgroups dealing with sexuality, pornography and violence. “How can we prevent our children from connecting to these kinds of sites?” is now a frequent question in the US that sustains debates and fears among the citizens.
.CONCLUSION: Although accurately predicting the future is never simple, doing so with respect to information technologies is even more daunting.  Not only are these technologies changing quickly, but their future is highly dependent on three other factors that inject additional uncertainty.  The first is the dependence of so many technologies on each other, meaning that an unforeseen advance in one area can quickly lead to unanticipated changes in many other areas as well.  The second is the decisive role of the consuming public in determining whether a particular technology will succeed, or whether it will fall by the wayside and into obscurity.  And the third is the geometric rate of change in technology performance that a new advance can unleash. All of this holds particularly true with respect to the Internet.  It is rapidly becoming apparent that the Internet is likely to change significantly in the coming years.  In many respects the Internet today is a “read-only” experience in which users can access vast amounts of data, but can do relatively little to edit, analyze, or incorporate these data into their work.
Personalization is possible, but it typically requires that one repeatedly enter the same personal data and effectively surrender control of that data to each site one visits. Individuals are being forced to adapt to the technology because the technology has not yet adapted to them. The next generation of the Internet is likely to change this.  One aspect of this change will likely put more power in the hands of users, so that it will be easier for people not only to collect information from the Internet but to do more with this information once they have it.  To achieve this, much of the technological focus behind the Internet will likely shift from individual websites or devices to constellations of computers, devices, and services that work together to deliver broader, richer solutions.
There are also likely to be changes in the way people interact with computers. The next several years will bring technologies that let people talk to their computers, communicate through hand gestures, even take notes on a tablet PC and transpose those notes instantly into typewritten text.  Other advances will make it easier for computers to read text aloud.  With these changes, computers will become more useful tools for people, making information on the Internet more accessible and usable anywhere, at any time, and on any computing device.
REFERENCES:
1.    The Economic Payoff from Internet Revolution.
2.    India Today, MAKERS- The drastic Innovation in Economy.
3.    The Hindustan Times, Business Standard.
4.    http://www.moneylife.in/article/growing-deficit-continues-to-be-a-serious-threat-to-indian-economy/29155.html
5.    http://www.bankingawareness.com/current-affairs/economic-survey-2012-2013/
6.    http://wiki.answers.com/Q/What_is_the_present_scenario_of_the_Indian_economy