Much has been written on the real impact of the Internet: its ability to break up value chains through the interaction efficiency it provides. Although Value Chain Modularity sounds inconspicuous, its implications are profound as it opens up a new playing field for strategy deployment
Conceptually, one of the real impacts of the Internet has been a massive reduction of interaction costs in the broadest sense of the word. According to the ground rules first laid down by the Economist and Noble prize winner Ronald Coase, this reduces the need for companies to have everything in-house: external resources can more easily be integrated in their value chains.

The impact of this is profound. New players can assemble their value chains in plug ‘n play fashion. Traditional players can optimize their businesses by accessing competitive resources outside their business boundaries. This potential is non-optional however – new opportunities are created to pursue business objectives, new markets can be accessed, and new competitive models can be crafted which will be pursued.

Miniprint – Rebuilding the Corporate Genome

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