Blown to Bits

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Causes

  • Information is the glue that keeps the Supply Chain together, but its melting.
  • Informational value chain separate from the physical and release economic value
  • Blowing up the Trade Off - The line is now much further to the right with the internet - eg both Richness and Reach

Consequences

  • Deconstruction and Disintermediation - of traditional Suuply chain which is then reconstrcuted - Middlemen will disappear
  • The greater reach of navigators will shift power from sellers to buyers
  • Uncertainty as to what and who will control new standards - Increasingly selling information - Extranets will lower transaction costs
  • Traditional organisations will be replaced by Teams
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