14 Devil Laws In Network Economy

The first law: Moore's law.

The speed of the microprocessor will double every 18 months.

This means that every five years it will be ten times faster, and one hundred times every ten years.

At the same price, the microprocessor will become faster and faster, and the microprocessor with the same speed will become cheaper.

It can be imagined that in the future, people around the world can not only access the Internet through their own computers, but also access the Internet through their TV, telephone, e-books and E-wallet.

The second law: Gill's law.

In the next 25 years, the bandwidth of the backbone network will double every 6 months.

Its growth rate is faster than Moore's prediction of CPU growth rate of 3 times! Today, almost all well-known telecom companies are happily laying the cable.

When bandwidth becomes sufficient, the cost of accessing the Internet will also drop.

In the United States, many ISP today offer free internet access to users.

The third law: Matt calf's law.

Bob Metcalfe, inventor of Ethernet, told us that the network value is proportional to the square of the number of network users (that is, N connections can create the benefits of N2).

If the machine is combined into a network, each person can see the contents of all other people on the network. 100 people can see 100 people's content each, so the efficiency is 10000.

The efficiency of 10000 people is 10000000!

The fourth law: unlimited ability and opportunity.

The biggest difference between network and traditional media is that every user on the network is equal.

They have the same opportunity to create and start from scratch.

More importantly, on the Internet, everyone can become a point of spreading information.

In the United States, many people have completed their dream that they have never been able to achieve on the Internet.

There was a student who disliked Internet information and made a catalogue.

Two years later, he became an entrepreneur icon worth one billion dollars.

He is Yang Zhiyuan of Yahoo!

The Fifth Law: a virtuous circle brings increasing returns.

The development of the Internet has brought about the "increasing returns" of many emerging industries, such as the Amazon of online bookstores and the eBay of online auctions.

Moreover, the development of the Internet itself is also a process of "increasing returns" and formed under a virtuous circle.

With the growth of Internet users, enough economic reasons can be created to create more online content and services. Due to the increasing content and online services, enough economic reasons are needed to invest in building infrastructure, making the bandwidth larger and faster. With more bandwidth, there is more Internet access.

The sixth Law: "things are more expensive", embrace standards.

The higher the share is, the more valuable it is.

HTML, XML or Internet Explorer, if there is only one user, then their value is zero; only with more people's recognition and use, the value of a technology can be reflected to the greatest extent.

The best way to create "many" is to conform to the "standard".

Just like trains and rails, if Europe, Asia or even every country are in their own hands, drawing up different standards of train or track standards, there will be no "Continental Bridge" running through Eurasia today.

The seventh Law: attention economy.

If they can become a specific domain in the development of the network economy, such as selling books online, issuing news online and auto parts online, the business opportunities they will face will be invaluable.

The so-called "hegemony" is in the minds of users, think of a certain field, think of you.

Therefore, in order to get the favor of users, Internet companies are willing to spend a lot of publicity fees to get users' attention.

The eighth Law: price is declining forever.

In the network economy, there are several special phenomena: marginal cost tends to be near zero, no intermediaries are drawn, the price of all goods on the Internet is pparent, and it is easy to sell goods at three stores, and the cost of opening a company is reduced.

As mentioned earlier, "more goods are more expensive", the more people use a product and service, the higher their value. Then, in order to make more people use, many good products and services start to price or even free.

At present, the familiar Web browser Internet Explorer, free e-mail service and so on are the concrete embodiment of this new thinking.

The ninth Law: self regulating economy brings consumers' paradise.

The network economy is a very strong and healthy economic system, because it mercilessly blows low efficiency and waste, and automatically attacks unfair profits and persecuted monopoly.

In the Internet society, there is almost no long-term so-called "monopolist".

Even if there are monopolist, it will not be a monopolist who is harmful to consumer interests, because it must avoid losing its existing customers by constantly reducing prices or improving service quality.

The tenth Law: No.

Then it will perish.

The Internet economy is sentimentally attached to consumers, but it is quite unsympathetic to Internet companies.

If you are lucky enough to succeed, you will find many people around you immediately.

It is especially pointed out that the definition of innovation is not limited to the technical level, it includes every market innovation and every business mode innovation.

The eleventh Law: self feeding.

In the old economic era, the immediate profit is the goal. In the era of Internet economy, we must not neglect the coming of a change because of the small profits. It will be disastrous for your company.

Therefore, you should no longer just passively adapt to change, but to anticipate and even contribute to change.

Lee Iacooca once said: "when a change comes, you can either lead or follow, or be kicked out of the stage of history."

The twelfth Law: eat slowly and eat new.

From establishing to having a market value of US $1 billion, Hewlett-Packard Co spent 47 years, Microsoft Corp spent 15 years, Yahoo! Took 2 years, and NetZero spent only 9 months. In the age of Internet economy, small companies can beat big companies; fast changing companies can defeat slow companies; new companies can beat old ones.

No company can remain invincible forever.

To be successful, we must constantly innovate with the fastest speed and the most enterprising spirit.

The thirteenth Law: we must profit eventually.

Although the Internet revolution is a very great revolution, all companies are ultimately interested in shareholders.

It's still profitable.

For a network company, shareholders can extend their patience to profit and let the company start from their attention, but ultimately, they must be able to make profits.

For this, Wall Street did not begin to understand until the Nasdaq stock market crashed in April.

The fourteenth Law: real deficiency must be combined.

Many people used to think that Internet companies were always opposed to traditional companies, because AOL had challenged traditional media, Yahoo had challenged traditional carriers, and Amazon had challenged traditional bookstores.

But the reality of traditional business and virtual network business will eventually merge.