building the net: 6 trends shaping the digital economy siia: building the digital economy building...

SIIA: BUILDING THE DIGITAL ECONOMY www.siia.net

Building the Net: 6 Trends Shaping the Digital Economy www.trendsreport.net

Building The Net: Trends Report 2000

Trends Shaping the

Digital EconomyMark Bohannon

General Counsel & Vice President, Government Affairs

Software & Information Industry Association

http://www.trendsreport.nethttp://www.siia.net



The Trends Report 2000 Examine the Horizon facing Companies

working to close the Digital Divide Utilize real experience of member and non-

member companies to provide a micro perspective

What will be the key influences for the next 18 months?

Articulate a dynamic framework for assessing issues facing the digital economy



About SIIA About SIIA 1000 companies in corporate, education, home,

internet and online markets Diversity of members

Market leadersOracle, Sun, AOL, Thomson Corporation,

Reuters, Bertelsmann hundreds of SMEs

Broad geographic diversity Members in 33 different countries



SIIA Program

Policy Advocacy International, federal and state/local Wide range of issues

Market Development Market research and analysis Best practices, standards & guidelines Business resources

Anti-Piracy Education & Enforcement



Six Trends the Digital Future

The Business of Policy

Customer Empowerment

Software As a Service

Digitization of Business

Education Anytime, Anywhere

The Value of Information



THE BUSINESS OF POLICYTHE BUSINESS OF POLICY

The Net has fundamentally altered the relationship between industry and government … forever

Forces industry and government to work together more closely than ever before

Engagement of industry at every level of policymaking is crucial

A New Paradigm for Public Policy…



The Dynamic Challenge of Policy Time Dimension

Policy must adapt to a constantly-evolving, technology-driven universe

Balance … pressure to respond to policy imperatives … while not moving prematurely

Appropriate Roles Ability and willingness of policymakers to

tackle issues they are best equipped to address

Crucial: is the collective ability to recognize the difference and engage industry throughout



Industry Perspective

The law must respect both the potential growth and limitations of technology

Regulations must be minimal, transparent and promote fairness

Legal framework must be technology neutral and market-driven

Adopt with an eye towards other jurisdictions



How this Affects Government Barriers to global business should be

removed and new barriers vigorously opposed

Existing laws may need to be updated or new law may be needed

But... New laws should be approached

cautiously lest growth be harmed and benefits lost

Industry involvement is key



The Other Five TrendsThe Other Five Trends Shaped by public policy framework …

Similarly, each of the trends influences the development of policy

Interconnected world=interconnected policymaking



#1 SOFTWARE AS A #1 SOFTWARE AS A SERVICESERVICE Technological growth creates new

business models Increased bandwidth and speed are allow

companies to host and manage applications

Users can “rent” applications that are appropriate and cost-effective

Shift in the business model of many software companies from traditional products to software as a service

New opportunities to access technology for individuals and businesses



#2 THE VALUE OF #2 THE VALUE OF INFORMATIONINFORMATION ‘Net opened doors for more users to

access more information about more topics than ever before

Online content companies struggling to meet citizen needs with viable business models Current, reliable and trustworthy information

is not free or a public good greatly decentralized management of value-

added information greatly increased the access of individuals and

the potential for IP abuse



#3 EDUCATION ANY TIME, #3 EDUCATION ANY TIME, ANY WHEREANY WHERE ‘Net eliminated the confines of the

classroom, providing quality educational resources to the student

Technology is changing both the process, and the business, of learning

Four key benefits: Access to Content Distributed Learning Individualized Learning Improved Communication



# 4 CUSTOMER # 4 CUSTOMER EMPOWERMENTEMPOWERMENT Permanently changed the relationship

between buyers and sellers E-commerce provides consumers more

options, alternatives and opportunities than ever before

Businesses that fail to recognize the power of the customer will fail privacy and security customer services, including personalization transparency of practices fair pricing



# 5 DIGITIZATION OF # 5 DIGITIZATION OF BUSINESSBUSINESS Companies are automating systems both

internally and with their partners Key Benefits

lower costs to users and consumers reduced inventory levels faster time-to-market better-informed decisions

Far-reaching macroeconomic benefits


Building the Net: 6 Trends Shaping the Digital Economy www.trendsreport.netSummary: From Digital

“Divide” to Digital “Dividend”

6 key trends … shape and affect every business in the 18 months

The digital economy has fundamentally changed new and traditional business

The digital economy is global. The benefits can be, too.

How policymakers respond to these changes and the challenges presented will largely determine the success or failure of the digital economy



Next Steps

SIIA on-going analysis of the six trends through market research, webcasts and global conference, fora and other events

Close monitoring of policy developments worldwide

Resources and new data available online at http://www.trendsreport.net

Next Trends Report: May 2001



Thank you for this opportunity to present our perspectives on these important

issues

Mark BohannonGeneral Counsel & VP Government Affairs

Software & Information Industry [email protected]

http:/www.siia.nethttp:/www.trendsreport.net

+1 202 452 1600 x325

building the net: 6 trends shaping the digital economy siia: building the digital economy building...

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