"The total U.S. Internet economy more than doubled between 1996 and 1997, from $15.5 billion to $38.8 billion. By 2001, the total U.S. Internet economy is projected to be over $350 billion. Business-to-business e-commerce is expected to account for the largest share, $186 billion. Consumer retail activity is expected to emerge more slowly, possibly totaling $18.4 billion in 2001.
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.
The advances in technology and the increase in competition have caused the business models to change and become more flexible. Since there has been and increase in competition, it is advantageous for companies to offer customized products to their customers. In order to customize the products, the company must be flexible and be able to adapt to all of the differences required by each customer.
Another part of the business model that has changed with this New Economy is the importance of exporting and importing. The New Economy has caused businesses to become more global in their operations, which in turn has lead to competition from all over the world.
