Web will spawn genuine global economy

The Internet is going to force us into real globalisation, according to Larry Ellison, CEO of Oracle. He says that the benefits of doing business on the Internet are so breathtaking that all big corporates will be forced to switch from corporate intranets in order to remain competitive. "We've been paying lip service to globalisation for so long," said Ellison. "But each country has its own take on it. There is the German version of globalisation, the French version, the US version. The Internet will change that. It insists on real globalisation." Buying things as an individual on the net is interesting, but not the point, he said. It is the way an e-business buys things is what will force the re-evaluation of the status quo. "How does an e-business buy? It doesn't go straight to on supplier and place an order, it will hold an auction and chose the best deal from every competitor around the globe." For those selling services it will be an end to the endless hours of wrangling over prices with every customer. There will be one price for everyone with the only discount being for volume. "You won't be able to charge different people different amounts in e-business because all the information will be where everyone can see it." Countries will also have to compete. In a truly global economy, companies will choose to have employees in the countries that have the most advantageous labour laws, along with the right skills. A genuinely global network with cheap and easy access to communications will create a more homogeneous world as prices and practices are brought into line around the globe. To compete on this scale, you must have a global picture, says Ellison. ®