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By Mats Larsson
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Extra info for The Transparent Market: Management Challenges in the Electronic Age
Example text
Owing to the global nature of competition, it will not take long in this environment until some companies have arrived at a level of efficiency at which it will be difficult to increase efficiency further. These companies will then have used all the opportunities to decrease cost that present information technologies can offer. In this situation, it will become rather easy, since the service concepts of these companies and the prices will be known to everybody through the Internet, to copy these concepts and arrive at a similar cost position.
So for so good, but when we need input from others or gather information this time, we cannot progress. Then suddenly, Task 3 turns up and we start to deal with that. After some time, we get the input that is needed to conclude Task 1 and we decide to go back and finalise that before it is too late, which we cannot... (and so on). In the real-time society, this will not happen. We will always be able to conclude the tasks we are dealing with without delays. Therefore, we start to do tasks in a straight series and end all the three tasks in less time than it took to do the first task in the former example.
The idea is that middleman functions between producers and consumers are eliminated through information networks that can increase the transparency of the market and make middleman functions obsolete. Wholesaling and retailing are examples of typical middleman functions. The reason why the present distribution structure of many industries has developed is because it has been impossible in most markets for producers to communicate with all end customers themselves. Since each market has been local, there has been a need for national or regional wholesalers to buy large volumes of goods, store them for the national or regional market and sell them in smaller quantities to retailers in direct contact with customers.