The second economy – McKinsey Quarterly – Strategy – Growth.
Here is a thought provoking article on the emergence of a digital economy to support the physical one of goods and services produced and delivered all around the globe. Unfortunately, this second economy does not supplement the existing physical one, it cannibalizes it by automating the manual tasks and activities previously taken care of by human beings. Net net, this new economy kills more jobs than it creates exacerbating the unemployment problem globally. Looking one step further, the real question becomes: when all workers of the physical economy will have lost their job because their tasks have been automated, will there still be enough consumers on the planet to sustain and support not only the physical economy but also the digital one? As a matter of fact, the digital economy is worth almost nothing if there is no need any longer to move goods and services around because their consumers have vanished at the same time they lost their income.
All economic transformations so far have resulted in a net compression of the total number of job opportunities. How much longer can we sustain such a trend before the system as a whole breaks apart? First, we moved jobs from the country side (farming) to manufacturing plants (industrial age), then we moved job overseas (labor arbitrage: off-shore, near-shore, right-shore… etc) to focus on a services economy. Now that services will no longer be delivered by human beings but by computer grids instead (services “commoditization”), how will we earn our living in the future? What will come next? We may actually see a resurgence of Proximity services or Community services because these are “High-touch” and “trust-based”, hence still very difficult (at this point in time at least) to delegate to a machine.
“Progress” in its largest sense is expected to benefit mankind. Funnily enough, we very often struggle to keep up with it and accommodate it in our daily lives. Finally can Progress be truly Progress if we are always running behind it?!?!?
Lynda Gratton: Everyone needs three posses | Management Innovation eXchange.
Here is a thought provoking video interview of London Business School Professor, Lynda Gratton, in which she argues that GM skills are too superficial to remain relevant in today’s economy. Instead, people should focus on building Mastery, yes Mastery, in something that will make them unique. They should also actively build and maintain an active network of People, they can truly rely on, not an endless contact list they have nothing to do with. Finally, they should focus on the quality of their experiences rather than the quantity of their consumptions…
Waouh, these are bold provocative statements, provocative enough anyway to make me buy her book and read more…
We see them all over the place these days: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS), Everything as a Service but GaaS, this was the first time I saw it in a paper and while reading it, it really started to make sense. GaaS or Government as a Service is the public sector implementation of “big data” on one side and “Everything as a Service” on the other side or IT innovation at the service of Citizens of all nations. This is a very ambitious and impressive public sector project where emerging countries like Kenya and Georgia are showing the way.
Interested? Read on…
Innovation in government: Kenya and Georgia – McKinsey Quarterly – Public Sector – Management.
Posted in Change, Innovation, IT trends to watch, Leadership, Management
Tagged change, economy, innovation, leadership, management, vision, web 2.0
It has been a while since the last time I read a courageous article about what the private sector shall do to support economic growth again. I finally found one on McKinsey: What businesses can do to restart growth
Interesting 15min video during which Professor Gary Hamel navigates through the history of Management over the last 120 years. He then rightfully argues that yesterday’s management mantra’s do not work in today’s world of constant change and innovation. It is time to reinvent management, management for the future, management for the human beings. For him, management innovation will not come from Fortune 500 companies, it will come from the fringes and will become mainstream steadily over time. As employees, we can only wonder: How much time will it take for us to get there? Are we talking years or decades? Do we need a new generation of fresh leaders to see some of these disruptive ideas picking up and becoming main stream? Last but not least, how can we contribute to speed up that process? How can we become Management Innovation Champions?
If these questions ring a bell for you, then you should become a member of the Management Innovation eXchange forum: the MIX
Come and join us to grow the community of Management Innovators !
Clay Shirky on managing net generation workers – McKinsey Quarterly – Organization – Talent.
Interesting 3min video during which Clay Shirky argues that the changing work landscape may be due less to the millennial generation entering the workplace than to the fact that the net has become so ubiquitous making all of us “always on” as individuals and as employees that the boundaries between our professional and personal lives have faded away…
Short and to the point, the kind of videos I would like to see more often!
Posted in Change
We are all used to all kind of activists in favor of replacing the current system, whatever it is: economical, political… whatever.
However, when a renowned organization like Harvard Business Review (HBR) invites someone to talk about reinventing Capitalism. This may be an early sign that a wave of change may be coming and it may be bigger than we currently think.
No matter what happens next, well, it is not harmful to dream of a better tomorrow 😉