As we take a look at today's business climate it is only apparent that the market is in a state of serious flux. My previous post discussed how one corner of the world (the music industry) is under reconstruction and about how business is no longer "usual".
The world of print media is also being forced to look at the way it does business because of bloggers, social media and online news. Additionally, how we receive our entertainment is being transformed by the likes of YouTube, Hulu, and Vimeo to name just a small handful of examples.
Environmental impact is now a real consideration as new products and services such as the Ford Fusion, Nuride, and the Ecomangination initiative looks to give companies serious competitive advantage in the marketplace.
So why all this change?
The industrial age bubble.
Let me explain.
In the article “The Next Industrial Imperative” published in strategy+business (issue 51, Summer 2008) written by Peter Senge, Bryan Smith & Nina Kruschwitz (reprint number 08205) they state that in financial terms a bubble is a phenomenon in which the prices of assets (i.e. shares of stock, real estate holdings, or other forms of capital) outpace the asset's fundamental value. Point in case - the current housing market collapse. People were buying houses for more money than what the houses were actually worth - the bubble popped and the housing market crashed. Same issue with the dot-com bubble of the late '90s. VC's, investors, and entrepreneurs were putting more money into internet businesses than what the businesses were actually worth. The bubble popped and many dot-com businesses went down the tubes.
This is what is happening now with the industrial age economy. The money and resources we are putting into how this system operates is outpacing the value we are actually getting in return. The housing and dot-com bubble each lasted a number of years, but the industrial age bubble has gone on for about 200 years. So as we look at the marketplace now, the old system is crashing - the industrial age bubble is now bursting. Traditional advertising strategies no longer work like they use to. Traditional business models are no longer yielding the benefits they once did. New mediums are impacting the old and changing the market rules and how products, services and people engage with each other.
The old ways simply won't cut it anymore.
The ability to have a unique understanding of emerging trends, creativity in developing leading edge strategies and innovative ways of connecting the "new" dots will determine your relevance in today's marketplace.
So remember when you were a kid and you use to looove blowing bubbles? Well its that time for some new soap and water. . .
. . . and time to see what kind of new bubbles we can make.