| Wayne, PA – June 28, 2005 - Internet Capital Group, Inc. (Nasdaq:ICGE - News) today announces
the availability of it's recently published white paper: Internet Software Platforms on its
website. The team leveraged the unmatched technology experience and intellectual property
maintained within its executives to develop an in-depth look at the current and future effect
of new Internet models on the way business is done.
"We've tapped our deep pool of experience in launching,
acquiring and building Internet companies to put together
the thesis behind this paper, which is also the kernel
of our investment strategy," says Buckley. "The
white paper examines the role of the Internet in driving
firms to reduce costs and increase efficiencies both
within the organization, as well as reduce transaction
costs between firms - and the new business models emerging
as a result."
The theme is based on the idea that although the Internet
is today a core part of the world's communication infrastructure,
related technology has yet to fully mature and in fact,
the industry is now at the point where the Internet
will have a dramatic impact on how industries are structured
and on how firms within those industries interact with
each other in complex industry ecosystems. This idea
is one of the many filters with which Internet Capital
Group is currently reviewing new acquisition opportunities.
The paper delves down even deeper to look at the models
that will deliver the greatest value as the industry
evolves. The Internet creates price transparency and
continues to drive down margins forcing firms to reduce
costs by becoming more efficient. At the same time,
it reduces transaction costs between firms. As transaction
costs decline and the communications infrastructure
enables better collaboration between individuals in
different firms, there is a natural tendency for firms
to "unbundle" and for industries to "disaggregate"
and evolve into ecosystems. This will drive suppliers
to increase industry efficiency by attacking the business
processes between firms. This is often accomplished
by providing some form of platform upon which firms
can transact with other members of the ecosystem. The
more successful platform providers will do this in a
way that provides network effects among ecosystem members
and allows other suppliers to add capability and value
to the platform, enhancing the keystone position of
the platform provider and enhancing the value of the
platform to all members.
For a copy of ICG's white paper: Internet Software Platforms,
please visit the company's website at www.internetcapital.com. If you'd like a copy
to be mailed to you, please e-mail ir@internetcapital.com
or call 610-727-6900.
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