They also sprawl across industrial sectors. General software vendors or security providers do not, on the whole, need to care greatly about the business in which their customers engage. The extent to which de-integration has proceeded is very great. The figure shows the level of US outsourcing. This has a number of powerful consequences.
Competitive forces are increased, but options are also expanded.
We shall see why this is the case in a moment. The way in which organisations interact with each other changes. Indeed, firms were engaging in B2B long before the internet, and the success of stand-alone technologies such as EDI and SAP attest to the readiness of the system for a simple form of integration. Indeed, the telegraph supported strong e-commerce a century ago. Intensified competition will, of course, continue to increase as long as nations lower trade barriers, discourage monopoly and seek good value for their citizens.