The new information economy is transforming the character of the IT marketplace. For example, consider what is happening with e-commerce on the Net. Only two years ago, e-commerce was described as questionable for the near future and many thought it would never really catch-on with consumers. The vast majority of the retail industry cautiously watched, waited and waited some more. But the innovators didn’t see the barriers, they defied the analysts and the media and plunged in, some without life preservers. With no more infrastructure than the basic Internet provides, they built their companies. Then they appeared on the Net, with unfamiliar names like Amazon, CDNow, Travelocity and ebay. Today these companies are major success stories and they are joined by tens of thousands in a market that reached $13B in 1998, twice Forrester’s 1997 forecast. This is unprecedented. But then again, this is the new information economy. Throw out the old rules. Get ready for some more change.

Is the new information economy about taking risks? Sure. But what risks do you take by not participating, or at least planning to participate? What will your opportunity losses be if you don’t participate?

Opportunity abounds in the new information economy for industries with strong IT orientations, like the geospatial industry. The world is going digital, and the geospatial industry holds the key to the Digital Earth. The Digital Earth concept has powerful implications for the geospatial industry. The marketplace is searching for "Net coherence": getting around faster, finding what you need faster, and being able to put to immediate use any information you gather.

Better information modeling techniques (Digital Earth) will bring greater coherence to the Net. The Digital Earth will no doubt be considered a foundational information modeling paradigm for the Net. Many people in the geospatial industry understand this as an inevitable future outcome. All that remains is that the industry demonstrate the Digital Earth, not just as a concept, but as the reality of the industry’s efforts to standardize, to build the global geospatial infrastructure and to join the IT mainstream.

The following discussion explores some market implications for the geospatial industry and examines the expanded opportunity space for ubiquitous geospatial data and geoprocessing.

The Internet rests at the core of the emerging "new information economy," a world in which communications technology creates global competition across a broad spectrum of industries. Rapid change and innovation are constants in this environment. Information is a vital commodity. How does this impact the geospatial industry? Consider these factors and trends and their business implications for the Geospatial Industry:

1. Towards a consistent, coherent information model for the Net

The Web birthed a new segment of the IT industry: companies with products and services to better search and organize the Web. First came Web browsers, then search engines, then Web directories, and now the media-oriented Net portals. The trend is towards better Web organization and faster access to Web information. The future will give rise to improved information organization methods and tools. The geospatial industry holds a precious key to the future of the Web: a standardized means for modeling the earth. What will evolve is what many are calling the "Digital Earth".

2. "Coopetition" ( cooperation between competitors)

Ubiquitous geoprocessing in the new information economy translates to a larger market for the products and services of the geospatial industry. By cooperating on the development of new geoprocessing standards, new markets will grow faster, without prolonged periods of shaking out competing technologies.

3. Rapid product cycle times

Web developers use the term "Internet time"; where development cycle times are shortened. In this environment of continuous change and innovation, the geospatial industry must strive for parity with other aggressive industries by employing emerging technologies that are better adapted to short cycle times.

4. Convergence of TV, PC and the telephone

Lots of money is being wagered on convergence. The bet: Digital services will reign in the future and everyone will have access to this digital world, via the Net. The geospatial industry can exploit this broad accessibility through technical compliance with the emerging standards for network computing, and by building location-based services for telco, cable, and Internet service providers.

5. Emergence of virtual communities

Virtual communities are groups of people using the Internet that are drawn together by similar needs, passions and interests. They do not compete with physical communities. Like the folks at ESRI say, "Geography Matters". Physical communities will always matter. The challenge for the industry is to progressively embed geospatial data and geoprocessing in local government, consumer and business services.

6. Increased data mining

The Net provides ready access to a seemingly endless number of repositories of potentially useful information. This provides a treasure trove for marketeers, researchers, and the like. Better tools and techniques are required to mine these data and produce meaningful, actionable information for decision makers. This poses a large opportunity for the geospatial industry. The spatial context represented in many databases provides agent-based location services with the means for fusing and linking disparate data. They are important tools for data mining.

7. Commoditization; Falling prices

The Net will lead to deflation as the new information economy becomes more efficient and information and services trend towards commoditization. The technologies of the Net spawn faster change and innovation, lowering the barriers to entry and making it easier for competition to enter the game with improved products and services. The result: deflation. The implications for the geospatial industry: it must rapidly adopt new technologies to respond to market pressures. Also, the industry should pursue new business models, products and services to better meet the challenges of the rapidly changing information economy.

8. Customer loyalty and churn

Improving technology, faster innovation and lowering prices change the climate for customer loyalty. The geospatial industry must respond with new ways to build customer loyalty. Faster product releases, personalized services and improved services are among the ways that the industry can respond.

9. Emergence of intelligent devices

Miniaturization continues… boards are becoming chips. Wireless communications is rapidly expanding, connecting mobile devices to logic-rich and data-rich nerve centers. Robust distributed computing protocols and platforms mature. The outcome of these enabling technologies: geo-intelligent, net-enabled devices will appear everywhere.

10. Rise of Net Portals

Net portals attract the majority of Net-bound consumer and small business audiences. They represent vital distribution channels for any industry attempting to reach these markets. The geospatial industry must build products and services that can be easily integrated with Net portal supply chains.

11. Rise of portable, modular and extensible service architectures

Monolithic, stovepipe solutions built by one vendor are out. Best-in-class component solutions built with the very best technology available today are in. It’s that simple. For those in the geospatial industry that embrace this idea, good luck. For those that don’t, look over your shoulders, the train is approaching. Watch out! The train is on "Internet time".

12. Rise of e-commerce

E-commerce is on the rise, and faster than anyone expected. E-commerce technologies are becoming more secure, robust and extensible. Built by some of the most innovative and aggressive technology companies, these architectures follow preferred core technology trends – Java – and therefore can easily accommodate new services. The geospatial industry should look carefully at e-commerce as a vital means for moving their information products and services to market.

13. The dynamic enterprise

Changing business models, technology and customer needs. The new information economy doesn’t leave us much breathing room. Innovation and early adoption become the normal modus operandi. Best-in-class technologies are preferred for this environment. The geospatial industry should adapt quickly to these norms for the new information economy.