New business models emerge from Internet revolution - Career Times

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From the Bookshelf This is a fortnightly review of bestsellers for business executives New business models emerge from Internet revolution by Nicole Wong Search engines with the power to reshape our culture Whether doing background research on a potential client, checking the latest headlines, or finding a blind date for Saturday night, everyone who surfs the Internet will have made use of Google and other search engines as the gateway to instant information. By typing a few keywords and doing a couple of clicks, we can track down what we want to know; but how many of us realise just what we are revealing to the search companies? Their archives of queries contain massive amounts of data about modern society's needs and desires and may now have the power to shape the world's business, culture and politics. John Battelle, a leading writer about the Internet phenomenon, shares insights about this in his latest book, The Search: How Google and Its Rivals Rewrote the Rules of Business and Transformed Our Culture. In giving an overview of the rapid rise of Google during the last five years, Battelle explores the larger commercial and cultural implications of a Web-connected world and speculates on some of the major issues now coming to light. Search results Using Google has become part of daily life, yet not many people understand the secrets of its speed and accuracy. Its PageRank system calculates the number of previous links to a page and the results are listed accordingly for the next similar search. Battelle aptly titles this aggregate of searches as "The Database of Intentions", since it provides a clear indication about anything from the type of insurance Latino men buy in America to the popularity of politicians in Japan or Korea. Access to such information promises enormous profit, and Google has been the first to realise that. In less than five years, their business has grown to more than US$4 billion in revenue and is predicted to quadruple in the next five years. Thanks to the company's links, a family business that sells shoes in Albany can present itself to potential clients all over the US. Even big-name organisations can benefit from Google to consolidate their fame: The Guardian won the title of best newspaper on the Web, coming out ahead of other major publications which require paid online subscriptions and have little visibility in search results. The idea of having free publicity or extra exposure is definitely appealing, but Battelle reminds readers that Google can easily take this privilege away. A tweak to its search result algorithms can stop a company's name from appearing among the top listings and oblige them to use paid search ads instead. Battelle suggests that, with its ability to change its search technology at any moment, Google may indeed be the "boss" of numerous smaller businesses (The Search p.154). Privacy issues If a search engine has the power to create or restrict the visibility of a business, individual users should also have reasons to worry about their privacy. In The Search, Battelle refers to the true story of Orey Steinmann, a 17-year-old who did a search for his own name, only to discover that his mother had abducted him after a lost custody battle. The fateful search ultimately led to his mother's imprisonment. With cyberspace acting as a storehouse of personal information, almost anyone can now find out about our phone numbers, employers, marital history and income. As governments become ever more concerned about terrorism and the need for surveillance, there is no telling how much information stored in electronic databases may be handed over to the authorities. It is something to ponder when we commend the convenience of Web-based services. In The Search, Battelle also has some interesting comments on the possible impact of search technologies on the future of marketing. The nature of advertising could be completely transformed if, for instance, an Internet Service Provider were to pass our search histories to a TV channel, which could subsequently broadcast ads relevant to our specific interests. In covering the corporate history of the most successful Internet search engine, as well as the new forces shaping our society, The Search should prove an inspiring read for entrepreneurs, marketing professionals and anyone interested in changes affecting our culture. Content highlights: Archives of user searches measure the pulse of our culture and hold important information for various organisations Search technologies can create or lessen visibility for smaller businesses, giving rise to the popularity of paid search ads and shifts in marketing strategy Privacy remains a problematic issue for search technologies and other Web-based services, as personal information may be disclosed by mistake About the authors The founder of The Industry Standard and a co-founding editor of Wired, John Battelle is a distinguished technology journalist responsible for or involved in the launch of more than 30 magazines and websites. He was named a "Global Leader for Tomorrow" by the World Economic Forum and a finalist for Ernst & Young's Entrepreneur of the Year. Currently the chair for the Web 2.0 conference and a columnist for Business 2.0, he is also the founder, chairman, and publisher of Federated Media Publishing, Inc. "A must-read for anyone endeavouring to understand one of the most important trends of this generation: organising the world's information and making it universally accessible" - Mary Meeker, managing director and Internet analyst, Morgan Stanley. Taken from Career Times 2 December 2005 Your comments are welcome at [email protected]
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