The Internet Impact

David Siegel, Web guru, is addressing an audience of about 2,500 business people at a meeting of the Direct Marketing Associates in Toronto. Siegel had been introduced as one of the world’s leading Internet stratergists. Instead of beginning his talk from the stage of showing a bedazzling array of PowerPoint slides, he prances around the room and asks to borrow a nice watch. A volunteer named Ted offers his Rolex.

“Thank you, Ted,” says Siegel, taking the Rolex in his hand. “Now this watch represents your existing business model. It’s finely crafted and runs like a clockwork.” Siegel then takes out a Ziploc bag. “And this,” he says, “represents your current value chain and sales distribution network. It completely surrounds the business model.” Siegel places the watch in the bag and then places the bag on the stage.

Then he puts on a pair of safety glasses and takes out a sledgehammer. “And this, Ted, is the internet.” He asks Ted whether he thinks his current business model can protect his company from the impact of the Internet. Ted hesitatingly says no. “Right!” shouts Siegel, as he brings the hammer crashing down. As that point, he removes his glasses and holds up the bag, which is now filled with hundreds of watch pieces. “Now what have we learned at Ted’s experience?” Siegel asks the group.

The impact of the Internet carries a shattering message that needs to be thunderously demonstrated for many leaders to hear. The e-economy is moving with so much power and velocity that your business model, no matter how finely crafted, can be obliterated overnight.

— E-Leader by Robert Hargrove