[article by Rittichart S. since Aug,2003]

Why the new computing and communication technology make boundary of organization become blur?

As technology become cheaper, it enhances company efficiency and effectiveness with ability to re-structuring existing value chai n to be multiple value chai ns. It is not about managing business for success but the managing of component, wherever it is, to help company to get to the goal.


What make information so important in the new economy?

The concept of “new economy” is simply “the effects of the new technologies on the current economy”. Such technology also called “The Information Technologies” including hardware, software, telecommunication system and Internet. The idea behind this is as simple as to manage data to create wisdom. At very first stage, those technologies had an effect on the increase of the productivity. So, company can produce more efficiently by using less labor force than before. Now the technologies have come very far to help business realize opportunities. Helping company make the right decision. An example would be the Customer relationship management system (CRM), such system that learns behavior of customer and able to point out exactly how the company should handle this particular customer.


Metcalfe’s Law?

Robert Metcalfe founded 3Com Corporation and designed the Ethernet protocol for computer networks. Metcalfe’s Law states that the usefulness, or utility, of a network equals the square of the number of users. New Technologies are valuable only if many people use them. Specifically, the usefulness, or utility, of a network equals the square of the number of users. The more people who use your software, your network, your standard, your game, or your book, the more valuable it becomes, and the more new users it will attract, increasing both its utility and the speed of its adoption by still more users.


This should explain how attractive of the Internet, a network of computers and a set of standards that makes it easy for computers to share data.


What can Technology do to create competitive advantage in the New Economy?

Technology only is not sustainable. Today newest technology, tomorrow it’s a trash. Technologies become cheaper and achievable everyday. Company’s competitive advantage build around technology will not last for long because anybody can have the same technology and can do the same cost saving, productivity and so on. The real source of competitive advantage that is sustainable come from the use of technology to create knowledge, the strategically use of information created by technology