Forget about the rules of economics. The single biggest factor behind the current conditions of low inflation, booming China and India and productivity gains in the West, is new technology.
Moores Law is more important for explaining the current economy than any theory of Keynes of Freedman.
It may feel a little like an understatement, but the CBI has found that 56 percent of companies consider the Internet has had a ’substantial’ or ‘revolutionary’ impact on their industry.
As for the consumer; sixty percent say the Internet has given them more power and 43% believe that companies are becoming more accountable as a result of the new technology. Over 70% say they look at other consumers’ comments about products before making a purchase.
Richard Lambert, Director-General of the CBI said: ” Six years after the dot.com bubble burst, the Internet is driving really substantial change among businesses. Firms are learning more about harnessing the Internet to benefit their staff, their customers and their future prospects. Serious investment is going into new Internet technologies and this is set to increase.”
“But too many still feel their online activities don’t live up to the competition and firms are upfront about still having much to learn about how best to reach customers via the web. Businesses need to grasp the opportunities with both hands and make the Internet as central to their business as HR or finance - or they risk being left standing.”
“Businesses have already come a long way on the Internet journey. If there were such a thing as a digital base camp, they would have reached it. But their real ascent is still ahead of them, and much of the terrain is unknown.”
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