Lemna Parvini Sani - Cost and Progress Engineer, Nokia, Cost and Progress Department, Iran
Sumantro Ray - Software and Systems Engineer, ASR International, New York, USA

Today we live in a truly global economy. Aided by a near free flow of intellect and capital, innovation and development of a new product can happen at any corner of the world. A totally new business paradigm has developed in the last few decades of internet and advanced telecommunications, which has all but completely replaced the old business model. In this article, we discuss the two models (old: which matured during the 1950s (Whyte 1956), and the new: the model of venture capital and internet startups) and compare their performance. In addition, we outline some problems and benefits that define each of the two business models, and the direction the world economy in general is heading toward.

Business Model, New Economy, Old Economy, ICT Industries