Charles Darwin once said, "It is not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change." This quote is not only true to mankind, but also to any firm that has inspirations of succeeding in this so-called New Economy.

"The term New Economy refers to a set of qualitative and quantitative changes that, in the last 15 years, have transformed the structure, functioning, and rules of the economy." The New Economy is an economy with a great deal of emphasis placed on a person's ability to create new ideas and adapt to changes in technology. It is an economy full of uncertainty and risk that has the potential of being very rewarding to a person or company that can most successfully accomplish the objective of innovation.

The business models of most companies have to change with this new era in order for them to remain successful. The New Economy demands an increase in skilled, or educated, workers because of the technological advances. The educated workers must possess strong managerial skills and be creative in order to help the company become a leader in product innovation.

Another part of the business model that must change is the importance of customer service in a timely manner. Not necessarily answering one's questions, but also responding to changes in the global market. An increase in competition has created an extra importance for companies to "own" their customers. In order for them to own the customers, the companies must be easily accessible for communication and purchasing as well as being efficient with business transactions.

E-commerce has already had, and will continue to have, a great impact on the way business is conducted in the New Economy. "The total U.S. Internet economy more than doubled between 1996 and 1997, from $15.5 billion to $38.8 billion. By 2001, the total U.S. Internet economy is projected to be over $350 billion. Business-to-business e-commerce is expected to account for the largest share, $186 billion. Consumer retail activity is expected to emerge more slowly, possibly totaling $18.4 billion in 2001.

Another part of the business model that has changed with this New Economy is the importance of exporting and importing. The New Economy has caused businesses to become more global in their operations, which in turn has lead to competition from all

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