Network Enterprise Profitability Model

Early last year, when gripped global equity markets, everyone wrote articles extolling the virtues of the New Economy. A lot has changed since then. Driven by a breathtaking dive in NASDAQ stocks, the net worth of the average American has declined for the first time in more than a half-century. Get profitable sooner. Forget B2B or B2C: The new catchphrase among dot-coms is P2P, for path to profitability. Venture-capital investors once tolerated profits forecasts three or four years in the future. Now they're looking for business plans that target profitability less than one year after an initial public offering.Early last year, articles extolling the virtues of the New Economy abounded as 'techno-mania' gripped global equity markets. Much has changed since then: Following the subsequent plummeting of the tech-heavy NASDAQ index, the average American has seen his net worth decline for the first time in more than fifty years.The Network Economy is not the end of history. Given the rate of change, this economic arrangement may not endure more than a generation or two. Once networks have saturated every space in our lives, an entirely new set of rules will take hold. Take these principles, then, as rules of thumb for the interim. The rise and fall of the New Economy is by no means accompanied by a slowing in global interconnectivity and modernization. Indeed, the New Economy is hardly an end in itself, but it is instead a stage in the overall development of the modem global economy. Given the rate of change during the past decade, the current economic arrangement may not endure beyond the next generation. Once networks have saturated every aspect of our lives that an entirely new set of rules and standards will take form is very likely. In the meantime, the following can serve as guiding principles:Is there a New Bubble Economy? But I continue to believe, as many economists do, that improvements in information technology have already increased the efficiency and productivity of the world economy, with additional benefits to come as both old and new companies adapt their operations to make the most of the new technologies. I tend to agree with the current consensus among economists that improvements in information technology have already raised the efficiency and productivity of the world economy to new heights-and that this trend will continue. Furthermore, we should expect significant additional benefits as both 'traditional' and 'new economy* companies adapt their operations to make the most of these new technologies.Many people confuse the concept of Website Economy and Network Economy, including the managers and venture investors. They tried their best to shoot for Attention. But, Network Economy and Website Economy don't have so much similitude, just like Network Enterprises and Websites don't have much similitude.Particularly fund managers and venture capitalists often confuse the concepts of 'the Web Economy and 'the Network Economy. It is costly to keep with and develop Network Economy. We would not keep ahead it if we could pay for the expensive cost. We have face the embarrassed truth: the foundation of the network should be improved, the information technology is still weak, the prindpal part of Network Economy is not enterprise, and so on. The continual development and maintenance of the Network Economy is a costly endeavor. This fact becomes all the more apparent once the profound costs of network foundation improvement, information technology enhancement, and resource reallocation are taken into consideration. The number of the user of the China Internet has beyond 20,000,000. The official data from CNNIC can prove it. We have so many users. E-commerce is developing apace. Developing Network Economy can reduce the consume of energy sources, protect the environment, and improve the quality of living.The official Internet monitoring organ in Mainland China, CNNIC, reports that Internet usage in mainland China has surpassed twenty million users. The externalities of such growth are signi...