Significant changes are occurring in economic systems. Information technology, the Internet and related business innovations enable new approaches to the marketplace. Basic business and economic principles remain in effect, but changes in information characteristics have altered some of the fundamentals (7-p. 283). To be competitive, business and government must consider the Internet as an essential tool. Denial is dangerous because the rules of the game are changing profoundly.

Old business models of a decade ago have been "blown to bits" by changing the competitive advantages of businesses (6-p. 58). Rural businesses and rural communities are operating in a new economy where competitive advantages have been redefined.

There is no roadmap, no cookie-cutter answer. To survive and grow in the current economy, business must enter new markets. The balance of power between rural and urban business can shift, because the Internet is a two-way highway, but action is required for rural businesses to realize their potential.

For about five years the Internet grew by staggering amounts. Dot.coms were formed at a rapid pace. By the year 2000, the dot.com bubble was pricked and "irrational exuberance" was rationalized (apologies to Alan Greenspan). The Internet continues to grow rapidly, but dot.com mania has subsided.

But life was changed forever. The Internet is here to stay. The new technologies bringing us information have created what some call the Information Technology Revolution, or the IT Age. However, Information Technology is but a tool. Economic change does not originate with technology without a compelling reason to adopt the technology. Technology enables change, but people (e.g., business people) must adopt, adapt and implement the technology to their situation. The Internet, computer and electronic technology, and communications technology only provide the necessary infrastructure for the applications phase. The Information Economy is about the applications of technology: data mining and utilization, knowledge management, business intelligence, and business strategy.

The Information Economy was enabled by IT. The "Q Factor" created a situation for applications that, especially in rural areas, is only being realized in very small ways. The "Q Factor" or "Q cubed," has to do with information and the resultant opportunities. The Quantity of information is awesome while the Quality of information is potentially overwhelming! And the Quickness with which that information is obtained would have been judged impossible a only decade ago. The changing access to information can occur irrespective of geography, and presents rural businesses with an opportunity to compete on a new footing with urban counterparts.

The problem(or is it rather an opportunity?) we now face is that technology has outrun applications, especially in rural areas. How do we use all of this information? How is the information converted into business intelligence for competing in the new Information Economy? The Q Factor has presented business with a new challenge: economic principles are much the same, but the change in information quantity, quality and quickness has changed the competitive landscape.

For purposes of this paper, the important relative change in the competitive situation has to do with rural businesses and rural communities. With just a little innovative thinking, we can see that some of the traditional factors causing rural declines have been altered by the components of the Information Economy. The challenge for educators concerned with rural economic survival is to assist rural communities and businesses in defining the new competitive advantage opportunities.

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