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- XIV Congreso de Estudios Vascos
- Infomazioaren gizartea
- Pais Vasco
- November 26, 1997
- Presentation by Vince Giuliano
- The Electronic Publishing Group
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- Special properties of internet affecting community
- Explosion of Internet
- Development of business, commerce and work in the community and Internet
- Social, cultural and family development in communities and Internet
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- Obviously
- It is multi-media, and support writing, voice, small videos
- It can communicates instantaneously any place around the world
- It can interconnect millions of people and businesses
- It is an interactive medium, allowing all users to communicate with
each other and select what they vet
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- But it has some very remarkable properties that never before existed,
some of these are economic
- Once you pay a small monthly subscription fee ($20 in the US) there is
no charge for use
- Unlike telephone calls or regular mail, where you pay for each call or
letter sent
- You can send and get 1,000 e-mail messages a day and it costs you no
more
- You can browse the web all day, and it costs you no more
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- But it has some very remarkable properties that never before existed,
some of these are economic
- Once you pay a small monthly subscription fee ($20 in the US) there is
no charge for use
- Unlike telephone calls or regular mail, where you pay for each call or
letter sent
- You can send and get 1,000 e-mail messages a day and it costs you no
more
- You can browse the web all day, and it costs you no more
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- It is both an individual-to-individual medium and a broadcast medium
- It costs no more and is just as easy to send out 1,000 versions of the
same e-mail message as it is to send one.
- Websites can be seen by anybody on Internet anywhere
- It is really not a mass medium like radio, TV or newspapers. It is a communications medium that can
also be used for mass distribution
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- Cost of communication does not depend on distance.
- Costs the same to communicate 6 feet or 10,000 miles, to anywhere
- It is incredibly inexpensive
- The $20 a month fee allows an individual to communicate as many copies
as he wants and get information all day and night long every day over
any distance in the world for a month
- Nothing like this has every existed before in the history of humanity
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- There is unlimited space on the Internet for everybody and for an
unlimited amount of materials
- It is a democratic medium, owned and controlled by nobody, even defying
government efforts to control it
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- These properties make Internet ideal as
- a one-to-one communications vehicle
- a publishing vehicle
- a vehicle for conducting commerce, and
- a vehicle for facilitating business connections
- And these same properties create significant new opportunities for
existing and new communities
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- Intelliquest estimates that there were approximately 47 million adults
online in the United States at the end of 1996.
- A Cyber Census March/April 1977 survey stated that the number of World
Wide Web users has nearly doubled to 40 million people from a year ago.
- Forrester Research predicts that 135 million people in the US will be
using e-mail by 2001, which will be approximately 50% of the US
population.
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- 40 years ago TV was the "new media", 15 years ago cable TV
was. Today it is Internet
- From 1995 to 1996 web ad spending quintipled (5x) or 500%
- According to a report recently released by Jupiter, online ad revenues
for 1997 are expected to reach a value of $3 billion.
- It took TV 13 years to get 50 million users, radio 38 years to get 50
million. It will take the net 5 years to get 50 million users.
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- International Data Corp (IDC) estimated that the number of commercial
sites on the World Wide Web is doubling every six months and came to
more than 45,000 in 1996
- IDC says Internet/Intranet
expenditure is growing at almost five times the rate of the information
technology market as a whole
- IDC says Internet will replace
the PC as the motor behind the industry's growth in coming years.
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- According to Jupiter Communications, personal computers will remain the
premier platform for Internet access in 47 million households by the
year 2002
- Internet will also reach non-computer households. According to Jupiter, 15.3 million
households will access the net from WebTV and other non-PC devices by
2002.
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- Computer Intelligence 1997 Consumer Technology Index (CICTI) study
stated that more than 40 million U.S. households now own PCs. In addition, more than 50 percent of
households with children have PCs.
- (CICTI) PC ownership remains closely linked to education and income. PC
ownership continues to be strongest among baby boomers:
- (CICTI) More than 50 percent of U.S. households headed by someone 30 to
49 years old own a PC.
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- CommerceNet/Nielsen found that 42 percent of Internet users are women,
compared to 34 percent in the fall of 1995.
- Forrester predicts that by Year 2000 there will be 18 million women
using the Internet.
- Jupiter Communications predicted that by the year 2000, 46.5 percent of
the online population will be women.
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- A recent survey by IBM reveals:
- 23 percent of businesses owned
by women have a homepage compared to 16
percent of businesses owned by men.
- 47 percent of female- owned business owners subscribe to an online
service compared to 41 percent
of male owned businesses.
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- According to Excite, 14% of internet users are Third Agers (People over
50)
- 83 percent of third agers log on at least once a day and spend over
eight hours a week online
- The typical Third Ager is educated with 86 percent having been to
college.
- 65 percent earn salaries more than USD $40,000
- The fastest growing segment of US Internet users is people over 65
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- Jupiter Communications predicts that the number of children using the
Web from the classroom will increase from 1.5 million in 1996 to 20.2
million in 2002
- Jupiter Communications Digital Kids Report predicted that the growth in
the number of kids with access to the Web from the classroom is expected
to increase from 1.5 million in 1996 to 20.2 million in 2002
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- Jupiter Communications Digital Kids Report predicted that revenue from
the children online market will grow from just over $306 million at
year-end 1996 to nearly $1.8 billion by year-end 2002.
- A USA Today poll showed that 98 percent of all teenagers in the US have
used a computer and they spend an average 4.4 hours per week on a PC at
home or at school.
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- 4000 newspaper web sites in the world by the end of this year
- 700 U.S. community weeklies now publish online, compared to 152 one year
ago
- 43% of online newspapers are now based outside the U.S. - up from 29% one year ago
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- Microsoft and Netscape are making Internet sites part of the normal
desktop in homes.
- Rapid expansion of broadband cable modems and satellite Internet
services, are making Internet into an effective multi-media medium.
- Internet push services are proliferating for people who don’t want to
browse
- WebTV and similar developments are expected to bring Internet into most
homes without computers, and make Internet available in more rooms in
homes that already have it.
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- Zona Research predicts that the Internet/Intranet market will be worth
$100 billion in year 2000.
- A CommerceNet/Nielsen Media Research survey found that the number of
users who have gone to the Web looking for information about products has
doubled, from 19 percent in the fall of 1995 to 39 percent now
- ActivMedia estimated that Net sales in 1997 will exceed $13.3 billion
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- According to a report recently released by Jupiter, online ad revenues
for 1997 are expected to reach a value of $3 billion. (including the
values of ad trades)
- It's expected that by 2002, "intermercials" and sponsors of
content areas will comprise half of online ad spending
- local ad spending, mostly classifieds, will account for 54 percent of
spending
- This year banner ads will comprise 80 percent of all online ad spending.
(Jupiter)
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- according to a survey by @d:tech, over 10 million people will use the
Web regularly to make purchasing decisions by the year 2000.
- According to a Killen & Associates report, Internet-based auto loan
transactions will account for 20-30 percent of the market by 2001
- Chrysler stated that within 4 years, 25 percent of its sales will be
online, up from 1.5 percent in 1996.
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- A research study by Cowles/SimbaNet indicated that Intranet/Internet
information sales would represent 20 percent or $5.4 billion of all
business/professional online information sales by 2000
- Internet growth is
- affecting all patterns of
commerce
- changing balances among media
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- Ticket sales. Forrester Research
says USD$8 billion worth of entertainment and travel tickets will
be bought online in 2001. Jupiter
Communications expects USD4.7 billion by 2000.
- Online stock trading. Investment banking firm Piper Jaffray
predicts the industry will mushroom
eight-fold by 2001, and account for 60 percent of the discount brokerage industry
within four years.
- Computer hardware. Dell Computer Corp. reports selling USD2 million
worth of computers products a day over the Internet.
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- Books Amazon.com sold USD27.9
million in books during the second quarter of this year -- up 74 percent
from the first quarter.
- Music Jupiter Communications Net
predictssales of music will totalUSD1.6 billion -- 7.5 percent of the
overall music market -- by 2002.
- Groceries. Andersen Consulting
predicts over the next10 years the online grocery shopping market will
grow to USD60 billion, and account for roughly 12 percent of the entire
consumer package-goods business
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- Microsoft is developing advertising and transaction-based Web sites for
each of the main areas of classified ads: automobiles, housing and employment.
- Microsoft's CarPoint site is generating $10 million in car sales each
week.
- The software giant is planning a real estate listings site for the
second quarter of '98.
- "Microsoft represents an immediate threat to newspapers and their
classified ad revenue," says a VP of Arlen Communications Inc.
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- Internet allows large and even very small businesses to function in the
international marketplace.
- Example: Amazon.com
- Bookselling was basically a local business until 18 months ago
- Now Amazon.com and others have radically changed the picture
- Amazon.com is the world’s largest bookstore, a virtual bookstore with
over 2.5 million titles, selling all over the world
- 2 years ago, somebody in Urguay or Karachi or Palermo wanting a special
book had to place a special order, probably wait for it for 6 weeks and
pay at least 3 times the New York street price.
- Now the same person can order the same book from Amazon.com via
Internet and get it in 2-4 days at New York street prices, even paying
for shipping.
- Suddenly, the world has got a lot smaller as far as buying books is
concerned
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- Doing cybercommerce on the Internet
- A tiny French company that sells truffles
- Local specialty wine stores
- Candy stores
- Movie theatres
- Auto parts dealers
- Banks, big and little**
- Specialty publishers**
- Music companies and stores**
- Software companies, of course**
- ** services delivered directly over the Internet
- Their communities of customers are now International
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- Looking deeper at Internet, commerce and work
- We ask
- What does it take today to succeed in business?
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- Appeal to mass markets
- Make standard products that did not change
- Have rigid hierarchical organizations
- Focus on manufacturing
- Work on a production line basis
- Think in terms of their products instead of the needs their products
meet
- Changed very slowly - are reactive rather than proactive
- Rarely examine themselves or what they were doing
- Do not fully empower their employees
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- Focus on cost reduction
- Tend to appealed to older users
- Are loosing market share to competition
- See their competition as coming from traditional competitors, when it is
really coming from new forms of competition that meet the customer
needs. For example:
- Internet services are competing with newspapers
- Internet services are competing with retail stores
- Virtual corporations on the Internet are competing with traditional
ones
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- Have adopted techniques such as
Total Quality Management, Process Re-Engineering, Enterprise
Integration, and Knowledge Management.
- Are knowledge-focused
- Are aimed at specialized and changing markets
- Focus on providing services and information as well as physical products
- Make customer-specific products
- Make small products lots or customize each one for a customer’s desires
- Listen very carefully to their customers
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- Have flatter organizational structures that empower employees and are
flexible
- Are accustomed and welcome rapid change
- Have flexible production organizations
- Use the latest technologies
- Are constantly in a process of examining themselves, learning,
improving, evolving
- Are highly competitive and making money
- Are proactive, and often create their own markets
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- Carefully track social and societal changes
- Focused on adding value instead of cost reduction
- Appealed to younger affluent users
- Are highly successful
- Work on the basis of multiple alliances, even with competitors
- See their competition as coming from other developments, not in their
own industries
- Are highly competitive and making money
- This is all today, not just tomorrow - and they make many uses of
Internet
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- Long production runs
- Standard uniform physical products
- built to market forcasts
- Passive workers
- Highly centralized control
- Local or national scope
- Corporations
- Weak use of information technology
- Short or custom production
- Highly differentiated service/physical products
- Built to customer needs
- Motivated and empowered workers
- Widely distributed authority
- International markets
- Alliances
- Very strong use of information technology
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- Old Paradigm
- Tennis shoes, sneakers
- Low cost commodity products
- Typical price $12
- Success factor - low- cost manufacturing
- US shoe makers stopped being able to compete in the 1960s
- New Paradigm
- Sports and leisure foot comfort and power
- High price targeted products
- Typical price $50-$100
- Succcss factor - marketing, meeting people’s lifestyle hopes
- US companies highly successful - Rebock, Addidas,
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- Old Paradigm
- Tennis shoes, sneakers
- With the flight of manufacturing in the 1950s, Boston stopped being the
shoe capital of the US
- New Paradigm
- Sports and leisure foot comfort and power
- Making of shoes is outsourced to Asia
- Shoe companies are information companies
- Value added: shoes costing $2.50
are sold for $55.
- Boston is back as the leisure foot comfort capital again
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- Short or custom production
- Highly differentiated service/physical/information products
- Built to customer needs
- Electronic mail and dedicated
networks can allow constant monitoring of customer needs
- Internet research facilitates rapidly changing markets
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- Short or custom production
- Highly differentiated service/physical/information products
- Built to customer needs
- Extranets can link producers, suppliers and customers, so a common
information system can enable customized production
- Extranets can directly control production machinery
- Many new products are information products and can be delivered directly
over the Internet
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- Motivated and empowered workers
- Widely distributed authority
- E-mail offers a many-to-many communication channel facilitating team
communications
- E-mail and voice conferencing facilitate operations of small
decentralized work units
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- International markets
- Alliances
- Very strong use of information technology
- Distance-independence of Internet communication facilitates
international communications
- Internet facilitates operations of virtual corporations, based on
multi-party temporary alliances
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- Extranets are private networks on Internet that extend beyond a single
company to multiple organizations that must collaborate, communicate and
exchange information, documents, and transactions in order to achieve
joint goals.
- Companies now investing in Extranets include Caterpillar, National
Semiconductor, John Deere, Olivetti, Sun Microsystems, Mobile Oil,
McDonnell Douglas's, Marshall Industries, Lockheed Martin, as examples.
- Extranets make possible new industrial communities of companies
worldwide
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- Many extranets are operated by third parties and involve hundreds or
thousands of industrial members and users. Ex:
- Enterprise Integration Network - microelectronics & computers
- Dow Jones PowerHub, real time electricity trading systems linking power
utilities
- Powerag, linking makers and users of fertilizers, pesticides and
agricultural chemicals
- Partnernet - affecting thousands of wholesalers and retailers and
changing patterns of wholesale distribution
- Virtual Emporium - uses an extranet to maintain a very large virtual
mall on the Internet
- VHA Extranet - an alliance of 1,400 health care organizations, doing $8
billion in commerce a year
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- Internet is empowering businesses large and small to develop their own
communities of users internationally
- Thousands of new communities of industrial companies, retailers, and
small businesses are already in existence and relying heavily on the
Internet
- These are not things “the future will bring.”
- They are real now and affecting the business communities in the Basque
Nation right now
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- All kinds of detailed communications and information webs are being
developed for local communities - e.g. for Wayland Massachusetts
- A town of about 5,000 where I live near Boston
- Many local stores, restaurants, real estate agents, auto repair
garages, artists, and just plain people have webs
- The local community newspaper
- Several webs describe the history and geography of the town, with many
photos, and show paintings made by local artists
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- Wayland, Massachusetts (continued)
- The web for the town government has very great details on all aspects -
e.g.
- teachers in the schools and programs and schedules for each school and
many individual programs
- School lunch menus
- Information on all town offices and departments
- Hours, people, responsibilities, and schedules
- you can see a picture of the man who runs the town dump and read his
messages on the importance of recycling
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- The Wayland web has highly specific and local information that
reinforces local community.
- It also has important national and international extensions. Actual example:
- A house across the street from where I lived is used to house
executives and their families from Latin America by the Gillette
company, rotating every two years - from Costa Rica, Brazil, Argentina,
Venezuela, etc.
- Newly coming executives now learn all about what Wayland will be like
for their families while they are still in Caracas or Sao Paulo
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- The local community now extends internationally via Internet. Another
example:
- El Universal of Caracas, our client, has long been Venezuela’s leading
newspaper
- but they were strictly local, only sending a dozen copies out of the
country to libraries
- Now, the newspaper on Internet has 50,000 daily readers
- most are outside Venezuela, and consist of students and Venezuelans
abroad, and business people who what to keep track of what is
happening in Venezuela.
- The community of Venezuela is now much more open to the world
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- The local community now extends internationally via Internet. Thousands of examples can be found,
many of which are very tiny.
E.g., another personal one:
- Last year, my 16 year old son had to do a school homework assignment on
Sigmund Freud
- He found the best information on Intenet sites in Vienna, Berlin,
London and Washington
- This information from international sources helped him in his local
community role as a student in Wayland High School
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- The local community now extends internationally via Internet. E.g., a
final example
- Many years ago, I inherited a sculpture from my grandmother signed by a
distant uncle, an Italian artist called Augusto Rivalta. It is about 100 years old.
- I could never find out anything about Rivalta, libraries and books on
sculpture do not list him, even the great art libraries of the world.
- I could only remember vague
things my grandmother told me about Rivalta.
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- (about my sculpture, continued)
- Two weeks ago, I searched for Agusto Rivalta’s name on the Web and found
out from Italian city community webs that several small Italian towns
have his sculptures in their town squares, and so does Detroit Michigan.
- I found biographic information on him, and pictures of his other
sculptures
- The web and its international extensions have given me a better sense of
my Italian heritage and who my uncle was, and something I can pass on to
my children
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- Two years ago, I found:
- A great deal of activity in the US, England, France, Germany, etc.
- Web search on the word “Basque” revealed 260 cite references
- Basque students in the US often include Basque links
- There is much available social, cultural, educational Basque
information available
- Many Web pages are in the Basque language
- Now there is perhaps ten times as much
- Some of the 2-year old page images follow
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