BLUR the speed of change in the connected economy

The book presents the argument of three major drivers of the new economy: intangibles, speed and connectivity.

Developed economies are turning from product based to service based. However, the phenomenon does not mean that products are left aside. It means that services are the crucial part, the most valued component from the consumer’s perspective. Among those services information is king. Due to changes in technology, information now travels faster and is more available than in the past. It changes the value chain completely opposite as it was before. The customer at the beginning provides information regarding needs. Then businesses identify assets and procedures to deliver those needs by means of products or services generating value.

For this same reason, consumers become more demanding. They know more because the information is available. Competition is fiercer because switching costs are decreasing and offering training and customer support is now a general practice in almost every industry.

Consumers rule, and it makes the market an ever-changing environment. But now changes occur faster, therefore companies and individuals have to be more flexible and adaptable to the new demands of the market place.

Managing human resources is becoming also a decisive factor in the new economy. In the job market, people and companies are both buyers and sellers. It’s an effect of the new economy that companies are struggling attracting and retaining skills.

Physical assets do not represent value as they use to do. Potential value is now more appealing and it is represented in intangibles: intellectual property, ideas, etc.

Our generation is currently facing a confusing era. Changes in the economy are outpacing the understanding and the perception that consumers get of those changes. It affects their behavior, values and is shaking the foundations of society.

Now it’s time to be ready for fast changing environments. Fast learners will prevail and consumers in general will benefit from those changes. But at the same time it raises some questions. One is related to logistics: We’re reaching a point where information is available almost in real time but we still need some physical products. That gap will shrink and we don’t know how is it going to change our lives.

The second question is about personal choices: Information is powerful; it can produce very good things when it is used correctly but it can cause a lot of damage also. People now have the option of letting this changes affect their lives as much as they want to. But that will create a wide range of options and generate a lot of questions about what values are more important, what is a priority (personal life vs. super efficient life).

Do we really want to get there?