The faster pace of technological change, for which the widespread use of ICT is a catalyst, is having a great impact on the structure and lifecycle of enterprises. Firstly, ICT reduces the economic impact of distance and the cost of access to information, thus increasing the scope for competition within markets.
Secondly, ICT often tends to lower the cost of setting up small enterprises thus, potentially, providing for additional competition. Thirdly, ICT creates the opportunity for new co-operative means of product and service delivery potentially leading to improved quality and cost efficiency. Finally, and perhaps most importantly, ICT gives rise to many new products and services.