THE FAST CHANGING WORLD OF THE INTERNET.

• Author: Boudreaux, Greg
• Position: Statistical Data Included

The Internet is changing the way that people work, communicate, and shop, and maybe the way that they will buy electricity. The Internet has opened up a new world of opportunities. It allows people to take a virtual tour of the world without leaving home. Web users can see live pictures of the Statue of Liberty, the Eiffel Tower in Paris or the Western Wall in Israel. All of this is viewable over the Internet from the comfort of the home or office. Comparably, people can make airline reservations, book hotel rooms, buy books and cars, make investments, do their banking, and talk to their friends and families.

The Internet is changing the world more quickly than any new technology in history. This article will provide an overview of the Internet, and discuss how it may soon transform the way that consumers and electric cooperatives interact and conduct business.

Consider that in years past when people had a new baby, they took pictures, got them developed, and mailed copies to their friends and relatives. If the post office didn't loose the envelope, the grandparents got to see the pictures about 10 days later. How long does it take today? You can take a picture of a new baby and post it on the Internet in about 10 minutes.

What do these companies have in common? MCI, Merril Lynch, JCPenney, L.L. Bean, FTD, and Wal-Mart? One word-- E-commerce. They all sell goods and services over the Internet. As Management Consultant Peter Drucker said, "the information revolution is no longer a revolution. It's become the establishment. The railroad showed mankind that we could master distance. E-commerce abolishes distance--a more profound psychological change than the technology itself. What it means is that every business is in the global economy. You don't have to be anywhere to do business there."

The Internet was once a speculative gamble. But it has made thousands of people into millionaires, and has become a measurable force in the world's economy. The Internet slashes costs and prices. It revolutionizes the way that companies and people do business. Consumers can buy just about anything that they want over the Internet. Amazon.com sells books, music, and toys. Stamps.com sells stamps. Peapod.com sells groceries and delivers them to peoples' homes in eight metropolitan areas. ValueAmerica.com is a general merchandise retailer that sells everything from jewelry to clothes. eToys.com sells toys and baby products.

And what about electricity? Utility.com (www.utility.com) claims to be the "First Internet Utility Company." Its web page says consumers can enter their zip code to find out if they can purchase electricity from it. It calls its customers "members," and claims to offer green power. Its web page also says it will let its "members" choose their billing date and payment method in the

states where it's licensed as an energy supplier.

The Internet is growing at a tremendous pace. Every second, seven more people log onto the Internet for the first time. In 1993, there were 3 million Americans on the Internet. In 1998 that number skyrocketed to 80 million. In 1993 there were 26,000 web pages. Today, there are over 5 million. In 1998, total sales of electricity in the United States were about $220 billion dollars. In 1998, Internet sales topped $301 billion dollars.

Why has the Internet grown so quickly? One reason is that it helps companies save money. Aerospace giant Boeing saved millions of dollars by putting its parts catalogue and maintenance manuals on the Internet. Now it doesn't have to send thousands of pages of updated technical information to airline companies. It just makes the changes electronically, and technicians around the world have immediate access.

The Internet is also changing the way that products are designed. It moves production to the most economical location. Chrysler became the first automobile manufacturer to design a car entirely over a computer network. And it was done in record time, in different locations. The product, a car, essentially becomes "an idea" that computers can replicate and transmit instantly.

A recent article in USA Today described how IBM is using the Internet to become more efficient. IBM computer programmers in Beijing, China write software. At the end of their day, they send their work over the Internet to an IBM facility in Seattle, where people are just waking up. There, programmers build on it and send it to other programmers in Russia. From there, the work is sent to a group in India, which adds more programming, and sends it back to the people in China, where the process starts all over. The work is done in a global relay. Its like they've created a 48-hour day over the Internet.

Companies also use the Internet to increase sales. Airlines that once flew with empty seats now send 2 million e-mails to people looking for cheap last minute airplane tickets. If the customer has a flexible travel schedule, the Internet will almost always help him find a cheaper way to get some where.

A service called Priceline.com allows shoppers to name their own price for airline tickets, hotels and new ears, and suppliers can bid on a price if they want to. Priceline.com has also expanded into home mortgages, home refinancing and home equity loans.

Another service called Autobytel.com enables people in the market for a new car to select the make, model and options they want, including listing how far they are willing to travel to get the car. The service then sends the information to dealers in the area, who can call the customer with a no-haggle price. And that's not all. Consumers can also use the web site to shop for the cheapest insurance and financing options. It gives free quotes for automobile repairs and will refer the consumer to a service center and make the appointment.

Books and CD's are among the most popular items that are bought on-line. A web-site called DealPilot.com helps consumers sort through the various prices at...