Glen Boreham, Power and the Digital Age, Business Review Weekly, 5 April 2007. Large companies became multinationals to gain economies of scale greater than their native country’s market. Now technology allows individuals to run global businesses. What is the value of the infrastructure provided by an institution like the employer?

Technology made infrastructure so cheap that an employee doesn’t need the business’ help. The employee might as well hire sales staff and manufacturing staff, interpose himself in-between, and collect his salary as a cut of sales.

Technology has freed up communication to enable global networks of people (e.g. Wikipedia, eBay) to cooperate. The new business model is about drawing together suppliers and buyers to a common purpose.

“Outsourcing is about costs. Global integration is about creating greater value.” says Mr Boreham. So finally the business world is progressing past simply minimising costs (and slashing quality where possible) and starting to look at fundamental business model innovations that will actually increase the benefits to all involved. w00t!