Guide to Disintermediation

With the advent of the internet and electronic markets many "experts" have predicted drastic changes in the way goods and services are exchanged in commerce and that in deed, many businesses will be "disintermediated". We are now living in the age of an empowered consumer who has access to more information than ever before. There is power in information. The consumer now can make intelligent choices about the right product for the right situation with all of the the relevant data. Transactions costs have been reduced to a miniscule level. Who needs a distributor or a wholesaler in this new world? What value does a salesperson add? The DRASTIC team is here to help you navigate these drastic predictions, to help you sort our fantasy and reality, and to come away with sound general findings and guidance to serve you in your inevitable dealings with intermediation.

None of these forecasted changes to the economy will come easily. Existing businesses and their distribution networks will fight for their piece of the commerce pie. When customers can order on the Web and bypass sales reps or distributors, the Web is a threat, says Michael Regan, president and CEO of the National Association of Sales Professionals in Scottsdale, Ariz. "The Internet," says Regan, "is going to become a rival."

In the attached pages the DRASTIC group will investigate three different industries and examine the potential effects of the new medium called the internet. These businesses will be evaluated for how susceptible they are to disintermediation by looking at the functions in the value chain and their probability of being accomplished electronically. In the end, we will make some conclusions from our research and help you analyze your business and how the internet will affect it.