Internet productivity and future employment across supply chains

An article in the International Herald Tribune (Sept 24, 2011) describes a presentation by Yuri Milner, a Russian investor in Facebook and Zynga.  He describes internet based companies generating revenues of $ 100 million per employee compared to 10 to 20% of that level for offline businesses. He claims Facebook engineers supporting 1 million users each.  He also quotes statistics suggesting an accelerating move to the internet by users and businesses.  Is the increasing revenues and profits for companies and decreased employment a result of increased internet use across the supply chain ? Will his forecast of a “global brain” where innovation comes from global collaboration portend a diminished role for the firm ? How will it impact global competitiveness across countries if innovation is dispersed ?

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About aviyer2010

Professor
This entry was posted in Ecommerce, Global Contexts, Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , , . Bookmark the permalink.

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