The brilliiance of ICT, Burden of the Internet, Looking at the Future of businesses and the internet, The CEO of a fast growing ICT Company in Nigeria which in just Six Month has driven large audience from not just Nigeria but India, Belgium, the U.S and other parts of the world in this blog post analyse Businesses, ICT and the role of the Internet.
ICT provided huge value, through industry-level productivity in the sector. It was good business overall because the banks generated value by few employees to do many things. But by expanding the distribution, Internet offers many challenges to them.
It is not just the banking sector that is going through this value-shattering redesign. We have seen the impact of Internet is restructuring how business sectors operate over the last few years. I provide the following examples:
Movie Theater: By Internet making distribution accessible and also expanding its scale, the movie theaters have lost the control to dictate, absolutely, on when to release movies. This has affected their business models reducing their overall pricing powers and values. With companies like Netflix, iROKOtv and Youtube, the channels have since widened. That is why the industry is largely struggling.
Airlines: Airlines made so much money through information asymmetry. The travel agent and customer had limited scale to compare prices across airlines. But with arrival of Kayak, Internet has made the distribution of that pricing easier at scale. Immediately, the power moves to the users who have access to compare ticket prices, putting pressure on airlines to price to remain relevant
Library: We used to have libraries that had opening hours. Today, with Google and Wikipedia, we have expanded distribution, where from our homes, we can simply access dossiers of work. Libraries are losing their impacts and influence because of Internet
Education: Most people do not even bother spending money going back to school to re-learn. They take quality materials online to educate themselves. Most for-profit universities in U.S. have been collapsing because their demand has dropped significantly.
From http://fast.org.ng/institute students are learning free online and in http://fast.org.ngstudents are learning for as low as #650.
Media: In the law of diminishing abundance of Internet where having more readers does not mean more success. Internet has made distribution of content easier thereby making every newspaper and magazine a global business. With that, power has moved to the aggregagors like Google and Facebook who control access to contents.
Some companies become poorer even when they are growing in numbers of customers reached.That applies to industrial sectors like publishing and telecoms. The lesson here is that risk in any business model must be examined from the lens of this mirage abundance which Internet has provided in some sectors.
Commerce: As Amazon.com shows the world, Internet had demonstrated that it can attack any industry it wants. We have seen many U.S. malls gone because Amazon has made it harder for the retailers to compete. Internet has shaped commerce by making distribution accessible and that reduces competition to operational efficiency and pricing. It commoditizes many elements of our retail business processes, making it harder that retailers with huge real estate burdens, cannot compete against Amazon.
The Future: Unbounded Internet
By: Francis Aremo
CEO Fast Inc.