With lower interaction costs we should see more industries consisting of specialists vs. vertically integrated corporations. Organizations can be broken up into a much more granular, atomized level, and customers can be served with unprecedented customization. I believe that there will be five prevailing ways businesses will be reconfigured. The first is disaggregation. This will come as businesses are broken up into separate pieces of the overall system.
Dispersion is the removal of geographic location as a constraint.
Disintermediation is the elimination of traditional intermediaries, or the development of new, more efficient forms of intermediaries. Differentiation is the ability to better identify and serve the needs of customers in a much more fine grain basis. Detachment is the word we use to describe the business opportunities given by the ability to separate information value from physical contact. I am now going to talk about examples from Silicon Valley of each of these five reconfigurations. Disaggregation says that the boundaries that separate companies will change dramatically.