Chapter Overview

Seven potentially attractive elements characterize many new economy technologies: the syndication of information, the increasing returns to scale of network products, the ability to efficiently personalize and customize market offerings, the ability to disintermediate distribution, global reach, 24-7 access, and the possibility of instantaneous
First-mover advantage is simply wrong. Best beats first.
Most observers now believe that the Internet is better suited for delivering measurable marketing results—as is direct marketing—than for brand building.
Web-based customer service applications offer the tantalizing combination of better service and significant cost savings. The trick, of course, is to focus on the customer service benefits first, rather than mere cost cutting, since customers are quick to discern when cost cutting takes precedence over genuine service responsiveness.
Keys to success in tomorrow’s new-economy ventures include clearly understanding one’s business model (Exactly where will revenue come from: commerce, content, community, or infrastructure?), filling real (though perhaps latent) customer needs, and putting together the right management team that can deliver the performance and value that customers want and will pay for. Only then will investors make money.

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