Middlemen for a modern age

Discusses how new information technology (NIT) can be used to benefit certain types of business, either by 'disintermediation' (removing middlemen such as distributors etc.), 'remediation' (improving effectiveness of middlemen), or 'network-based mediation' (building strategic alliances and partnerships).

Best In Brief

MIT Sloan Management Review: Middlemen for a modern age

Angela AndalAncion, Philip A. Cartwright and George S. Yip

Douglas WestUniversity of Westminster

There are companies and products such as books and airlines that can benefit greatly from new information technology (NIT), whereas sectors such as cars and clothing do not. A great deal depends on the kinds of business transformations enabled by NIT investments. Determining the best 'mediation' strategy is the first step in the process of optimising NIT.

Using the classic 'disintermediation' strategy, a company might cut away layers of middlemen (such as...

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