How do new economies affect you?
We are in the middle of big changes, and one of the biggest ones is the change in the structures of economic transactions. “The New Economy’ term was coined in the 80’s to describe the digitally based economy. Then, companies started offering their customary services on websites to create a new sales channel.
Now, it is not only about the digitalization of the traditional ways of doing business, but also about letting the new technologies to empower us to do things differently. The term New Economies has gotten a broader meaning, which includes any organization that has a novel ‘business’ logic and works in networks that were previously not common. For example Bloom2bloom, a floral shop that combines digital floral logistics to non-profit giving of free bouquets.
Planned or not planned, you and your organization are part of this change and affected by it in your everyday work and life. The question is how you would like to take advantage of the multitude of digital and mobile opportunities.
How to ride the wave of disruption?
New economies represent alternative ways of creating economic transactions, for example gift economy, cloud economy, swarm-economy, collaborative economy etc. Oftentimes new economies are clusters of organizations working together in ecosystems with similar organizations, multinational companies, governments and industries to create powerful impact – in a way that single actors could not alone accomplish. New economies have created demographic shifts, reshaped global power structures, set up social transformation, and driven disruptive innovations.
Disruptive innovations improve a product or service in ways that are unexpected to the market, typically first by designing for a different set of consumers in a new market and later by lowering prices in the existing market. Lately, we have seen complete ecosystems of businesses and organizations disrupting entire fields. Some examples are:
- Virtual money. Africa is spearheading the ‘virtual wallet’ trend and also virtual currencies are making their entries.
- MOOCS (Massive Online Open Courses) and low cost online degrees have changed the education market.
- 3D printing. Personalized products without complicated logistics will change the markets.
How can you benefit from the new economies and disruptive trends?
- New markets and creation of markets
- New resources with new cost structures
- Massive cost reductions
- Business and product innovations
- Becoming part of new networks and ecosystems
- Reimagining your raison-d’etre
How can Augmented Leadership Institute help you create new strategies?
- Setting up your ecosystem strategy and implementation plan
- Transformational change program
- ‘Meet the disruptors’ and ‘disrupt your industry’ clinics
- IT strategy alignment and discovery of alternative resources
- Extreme innovation and future scenario plans
- Network creation and ecosystem planning
- Disruptive strategy implementation templets
Links to articles that we are inspired by:
Clayton Christensen explaining disruptive innovation
Ian Morrison’s view of the next decade
European based collaborative economy network Ouishare
US based sustainable economy network NEN
Gar Alperovitz (2011) article on the structures of the New Economy as a sustainability movement
Ashoka network of social entrepreneurs
Stanford social innovation review
Gift economy website
Fast company article by Bruce Kasanoff and Michael Hinshaw on how to disrupt your industry
“The most successful companies in the new economy will be mutants and hybrids that can combine different kinds of know-how” Leadbeater, Charles, Living on thin air