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This has spurred the knowledge and experience economies in which we now find ourselves where the models of old, such as Maslow’s, do not necessarily reflect the reality in which we live. As we are increasingly and systematically bombarded with information, the need for systemic thinking has never been more apparent.
The information economy is serving to commoditise goods and services at an ever-increasing rate and, conversely, knowledge (‘know-how’) and experiences are the primary sources of value and, it follows therefore, competitive advantage. The ‘Blurred Economy’ where speed, connectivity and intangibles pervade, where the notion of the ‘offer’ supersedes product and service-orientated mindsets and where the notion of the exchange between producer and consumer has taken on far more profound implications than previously understood economics ever explained.
These changes are already upon us. We can already bear testimony to changes in our expectations as consumers as we become increasingly demanding as to the value we get for our money. As consumer expectations change so must the cost of doing business as transparency in the global economy comes to the fore. This is the real tangible effect of the internet revolution: The ramifications in terms of stock market valuations alone have been tremendous.
The notion of an ‘Atomic Corporation’, where the effects of the information economy will cause today’s big corporations to break-up under pressure and ensure the evolution of a new landscape populated by much smaller business entities is not unrealistic. None of the factors above is in itself capable of turning our business world upside down but in combination they are enough to tear apart even the biggest of our giant corporations.
At the heart of it all lies a single phenomenon – an emerging information infrastructure that alters dramatically the costs of co-ordination and dispersion of knowledge.
As Camrass and Farncombe suggest; “a new focus on agility is needed, and as you can’t be big and agile at the same time (the internal cost of movement is too high), fragmentation is looking more and more attractive. And breaking up has never been easier. The availability and breadth of communications channels between organisations is growing exponentially, which is sharply reducing the costs of doing business”.
Regardless of your view of this radical prediction, the truth is that in order to simply survive, an organisation has to be willing and able to mobilise and engage its people and supporting infrastructure when and where customers demand. Many will be dependent upon their ability to recruit and retain the best brains with the best attitudes who are able and willing to meet such extraordinary demand.
How is your organisation responding to this challenge?