Terrorist attacks in the U.S. will likely push the economy into a recession. In addition to the pre-existing financial conditions, corporate America must now rethink security and survivability issues. Addressing these problems will inevitably result in higher costs and reduced profits.
Business commentators have begun to recognize, however, that a sound Internet model provides effective solutions to these new challenges. An article in the latest edition of Business Week, www.businessweek.com, points out that the decentralization of inventory, personnel and business records enabled by the Internet reduces security concerns created by the concentration of assets in a few physical locations. Although Web-based business has its own cyber-security concerns, the cost of addressing these issues is trivial compared to the prospective cost of hardening large physical plants.
At the same time, the Internet creates redundancies that may allow a business to continue operations in an emergency. In the aftermath of the World Trade Center attack, the New York Times reported that financial service firms which were physically devastated by the tragedy were being held together by activities conducted on their Websites. Even companies whose servers were destroyed often were able to migrate Web-based operations to other facilities within hours, and to continue online business days or weeks before physical locations would be available.
As industry re-evaluates its position in difficult political and economic times, expect Internet business to play an increasing role in the recovery.
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