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DON TAPSCOTT is chairman of the Alliance for Converging Technologies -- a think tank focused on how
the Internet is changing business strategy and government -- and president of the New Paradigm Learning
Corporation. He is also a widely acclaimed adviser and speaker on the new economy. Mr. Tapscott is the
author of seven books, including Paradigm Shift, The Digital Economy and Growing Up Digital.
IN THE NETWORK
There is no doubt that questions still outnumber answers on the issue of how value will ultimately come to be created in the era of
the network economy. However, there is now a growing amount of evidence that any company or organization which does not
redevelop its business model around the use of the Internet will miss out on participating in the growth of large new sectors of the
In short, success in the network economy will depend on moving beyond merely having a Web presence to utilizing an integrated
Web-based business model.
Section 1 -- The Changing Nature of Value in the Network Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 2
Increasingly, the key assets of a company and its main sources of competitive advantage are changing
from physical assets to intellectual. Therefore, in the network economy, the process of creating value will
depend on what the company collectively knows rather than what it does. The key concepts relating to
the changing nature of value are: