An information product is a commercial product that consists soley of data. On-Star from Sabre is an example of this. Then there are the Drivers of the Internet Economy. Driver Two says that distance does not matter in many types of communications and transactions. This means that using the internet makes it incredibly easy for customers to get what they want, without thinking about distance. You can buy anything from anywhere at anytime and can get it within a reasonable amount of time. An example of this would be downloading music online. With Napster, people were able to get songs in an instant from other people anywhere around the world. Driver Three says that speed is of the essence in doing business on the internet. This means that customers expect real time access to suppliers. With iTunes, people are able to get their songs and albums instantly after purchase. With eBay, auctions only last a few days but now there is the Buy It Now feature which allows people to bypass the auction on certain items. Driver Six says that Marketers can deal with customers on a One-to-One basis. This means that even the largest companies can deal with individuals. FedEx offers tracking of packages, allowing customers access to a portion of its operational database. Driver Seven states that demand can be predicted with greater accuracy. Even in the absense of other developments, shorter channels that operate more efficiently bring producers closer to customers and improve demand forcasting.
A virtual supply chain is the term given to an integrated supply chain in which all transactions are conducted electronically. This happens in the later stages. RFID or Radio Frequency ID technology allows the ID of tagged goods from a distance with no intervention by a human operation. An example of RFID would be when you go to a grocery store and the store is able to track what items you constantly buy and give you coupons based on your purchases. A business model focuses on creating value for the customer and delivering that value to the customer. It focuses on creating business value that can be translated into value for the shareholder. It requires that managers use technical inputs to create economic results in a context of technological and market uncertainty. Value creation by the firm is a key element of an internet business model.