Main idea of the paragraph of the passage：

The passage deals with the technological revolutions or innovations, that is, the introduction of the continental railroad and telegraph system and high-speed, continuous-process production machinery at the turn of the 20th century and the arrival of the Internet and B2B commerce in the 1990s, their impact on the way of doing business and their contribution to development of business models and to the change in the structure of industry.

Structure of the passage：

The passage can be divided into four parts, the first two paragraphs being the first part, paragraph 3 to paragraph 8 being the second part, paragraph 9 to paragraph 21 the third part, and paragraph 22 the fourth and last part.

The first part serves as the introduction – technological innovation opens the door to new business models and the effects of e-commerce on supply chain management typify this process and will overturn accepted business models.

The second part gives an account of the changes in business models and in industry, typically the appearance of mass distributors and networks of branch sales offices and the replacement of small companies operating locally by large, vertically integrated corporations operating nationally, resulting from the technological innovations like the introduction of continental railroad and telegraph systems and the arrival of high-speed, continuous-process production machinery.

The third part gives an account of the changes in business models and in industry resulting from the technological innovations like the Internet and B2B commerce which use web-based exchanges and hubs, interactive trading mechanisms and advanced optimization and matching algorithms to link customers with suppliers for individual transactions. The changes include the production of finished products as close as possible to the point of customer demand, the direct flow of goods between suppliers and end customers, and the change of the computer industry from a vertical to a horizontal structure.

The fourth and last part serves as the conclusion, and, taking the PC industry as an example, it tells the reader that technological innovation will lead to a change of business models and to a reorganization of industry, and suggests that those who adapt to the changes will survive and thrive.

• Briefing
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• Summary