book.chapter Market dimensions

The Webolution is fundamentally transforming life, society, and the economy globally. This transformation is characterized by three key trends: Firstly, an increasing number of people are embracing a Web lifestyle. This lifestyle signifies the integration of the Internet into every aspect of a person's life, including learning, working, shopping, entertainment, and staying informed. The Web lifestyle is essentially a revival of the family-centric societal structure that existed prior to the industrial era, as it enables people to be productive from their homes, thereby eliminating the need for commuting or working in an office. Individuals living a Web lifestyle will inhabit digital homes equipped with digital appliances and will travel in vehicles with Internet access. They will also carry portable devices with Internet connectivity when away from home. In essence, for a Web lifestyle, the Internet becomes an omnipresent "dial tone" of life. By 2010, it is projected that half of North America's population will be living a Web lifestyle. Secondly, consumers are becoming increasingly comfortable with the idea of shopping anywhere, anytime, and in any way they prefer. While everyone needs to shop at some point, the experience of shopping at physical stores can be inconvenient, time-consuming, and inefficient. Consequently, consumers have quickly recognized the advantages of online shopping. However, until now, this shopping has been limited to the use of purchase. With the imminent launch of next-generation portable devices, online shopping is expected to experience an accelerated rate of adoption. Mobile access to the Internet could potentially reinvent the Internet experience. As WebPhones replace PCs as the preferred access device, new uses for the Internet become feasible. Mobile commerce could potentially be the next major application of the Internet. Once consumers experience the benefits of wireless Web access, they are unlikely to revert to using PCs. In addition to the people who will be using the Web in the future, digital appliances and embedded computer chips are being incorporated into an increasing range of products. This will result in a constant stream of information and communication worldwide, creating a pervasive multimedia shell. Given the vast amount of data already available on the Internet, the wealth of information that will be available in the future due to the collective interaction of all these people and devices will be truly remarkable. Thirdly, economic power is swiftly shifting to over 1 billion Internet business owners who will drive all global production and consumption activities. The economics of the Web are unique in several ways: the scarcest resource in the Web economy is time and attention, while other digital resources can be copied and downloaded infinitely at virtually no cost. Network economics implies that the more people use the Internet, the more valuable it becomes for others to use it, creating a positive feedback cycle. Power is reverting to consumers, who can specify the price they are willing to pay for products and services through online auctions, group purchase arrangements, and e-community networks. The Web economy will generate a significant amount of wealth by combining intellectual capital with customization and personalization capabilities. Successful websites will grow larger, attract more attention, and ultimately monopolize almost all business, while the rest will struggle to survive. This is the digital version of a "winner-take-all" scenario. The Web is redefining the role of intermediaries, making some traditional middlemen obsolete and creating opportunities for new format intermediaries to emerge. Online businesses will benefit from the law of increasing returns, which essentially means that businesses that successfully cater to online consumers will find a large number of people eager to do business with them. Independent Internet business operators will have the digital tools and capabilities to work from their homes, greatly enhancing their quality of life and eliminating many industrial era inefficiencies. By 2010, at least 40% of the workforce will be home-based rather than office- or factory-based, and the majority of these home workers will be self-employed. The Internet makes it feasible for desktop retailing to flourish, and it will.