Two hundred years ago, the industrial revolution transformed Britain. Today the Internet is an equivalent force: It offers Britain the opportunity to go from a national economy to a global economy (or perhaps, more accurately, return to being a global economy!), and from an urban society to a global society.

 

Does it threaten the established order? Undoubtedly, yes. There is almost no industry or business that can claim to be established, secure and permanent for the next five or 10 years.

 

Just look at some of the Internet success stories. EBay has turned the established auction model upside down and become one of the largest auction businesses in the world: Amazon has become the world's largest bookseller; it is probably worth more than the traditional booksellers in the world combined: The online encyclopaedia Wikipedia now rivals the long-established Encyclopaedia Britannica.

 

And these kinds of examples are just the beginning. The Internet revolution is not over. There are three principal reasons for its continuing development. The first is the reducing cost of technology. The second is the speed and ease of access. Broadband technology makes the Internet the first port of call - for information and often for goods and services. The third is democratisation. Because the tools for production cost less, more people can buy them and get involved. Consumers themselves are beginning to create content, and that provides another incentive for them to use the Internet. (Don't get distracted by the idea that everyone wants to create Internet content, most people just want simple and easy access to information, goods and services).

 

The advantages of the Internet for the consumer are more than matched by those for the company. What are the key opportunities? The first is unlimited shelf space. Internet companies can showcase goods on the Web for a fraction of the cost of having them in a full store. Think of the difference between the physical and the virtual big-name stores. The American supermarket Wal-Mart, for example, carries about 1,000 new CDs every year, but around 35,000 new music CDs are produced every year. Wal-Mart 'cherry picks' on behalf of its customers because it couldn't possibly stock the whole lot. If it makes the wrong decisions and picks the wrong CDs, it then sells them for a $1 in a bargain bin at the back of the store. Amazon.com or Blockbuster.com, on the other hand, sell the entire 35,000, so they never 'get it wrong'.

 

The Internet allows businesses to access niche markets easily: In a community of one billion users, someone, somewhere is going to want what you are selling (but how do you find them? or how do they find you?). In his book, The Long Tail, Chris Anderson, the editor of Wired magazine, argues that the reduced cost of distribution and production means you can now create products and markets that you were not able to create before. Sell a book on 'Peruvian orchids' in a local village bookstore and your customer base is pretty limited; sell it on the Web and you will find a buyer.

 

The Internet is lowering the costs of start-up for businesses and lowering the cost of roll-out. You can begin with, say, one or two physical stores, then find new customers over the Web - either by selling to them directly or by using search advertising (he couldn't resist a plug for Google!).

 

The landscape for those keen to exploit the opportunities of the Internet is still wide open. Consumers are still developing their preferences (This message is just as relevant for B2B goods and service providers; those seeking suppliers for their business are also turning the the Web first; and where time is the most valuable commodity, offering a comprehensive, yet simple and easy to use visitor experience is ever more vital). There is an opportunity to build a brand on the back of solid customer service. The business is out there; the Web is wide open.