The rules of business as we have known them until now are being changed rapidly. The old models of a post industrialised world in numerous industries are being tipped on their head and rendered virtually useless by digitisation.
New economy businesses are leveraging digital and virtual platforms, different employment models to strip out overheads, infrastructure and the need for large capital investment. With digital platforms even a one person enterprise can competitively take on huge corporations and destroy their business model. It is no longer about how many offices and locations you have, how many people you employ or the size of your capital reserves. The internet is spawning a new breed of customers who have virtually no loyalty in "old school" terms because they can go to another competitor with one "click" and get what they need.
The new emerging generation of young entrepreneurs have a completely different mindset. They have grown up in an environment where, via the internet, they can access all types of services, groups and information for free or nearly free. Downloading apps/games, solving problems and accomplishing things for FREE in so many aspects of their life is their expectation. They also expect to get what they want NOW because more than ever before in human history they can. FREE and NOW is their default mindset and not only are they the entrepreneurs of the future they are also the customers of the future so we better be pleasing them.
They don't believe in intellectual property rights, confidentiality, corporate structures, boards of directors, business rules and regulations or even borders between countries. They don't need them. Nor do they believe in personal privacy. Their view of the world is put it all out there and grow the collective intelligence of their generation through sharing and collaboration. This is a massive contradiction to traditional business thinking.
Such a young entrepreneur on the rise is Thomas Suarez who is now about 14 years old. Check out the presentation he gave to +TEDx when he was 12.
He is a perfect example of the type of competitive force that I am talking about. If you are old school you will probably be thinking..."So what?! He writes games apps about Justin Bieber. I don't need to worry about him". Well you do!! The lessons and breakthroughs he and others like him are inexpensively gaining building fun apps helps them refine their approach to be able to attack traditional business models. If an app he writes fails then it doesn't matter as it has only cost him his time and his parents 99 bucks. A cheap education in my book!
Thomas is selling his Bustin Jieber app for 99 cents a download and it has gone completely viral. As he said he taught himself how to build the app and used a FREE software development kit to do it. Then for just $99 he is in the game competing against other huge multimedia companies putting enormous investment into finding the next killer app. Can you imagine the rate of return on that investment? Astronomical and enough to make the directors of an old school company weep.
You cannot underestimate that globally there are tens, if not hundreds, of thousands of developers and people out there right now doing exactly the same thing. There is bound to be at least a few of them thinking about your industry or business model and how they can change it, better it and ultimately defeat you.
James McQuivey and his thinking on this subject has been very influential in my own business approach. I credit him for some of the ideas in this blog and I strongly suggest you check out his work.
All for now,
+Brad Skelton
New economy businesses are leveraging digital and virtual platforms, different employment models to strip out overheads, infrastructure and the need for large capital investment. With digital platforms even a one person enterprise can competitively take on huge corporations and destroy their business model. It is no longer about how many offices and locations you have, how many people you employ or the size of your capital reserves. The internet is spawning a new breed of customers who have virtually no loyalty in "old school" terms because they can go to another competitor with one "click" and get what they need.
The new emerging generation of young entrepreneurs have a completely different mindset. They have grown up in an environment where, via the internet, they can access all types of services, groups and information for free or nearly free. Downloading apps/games, solving problems and accomplishing things for FREE in so many aspects of their life is their expectation. They also expect to get what they want NOW because more than ever before in human history they can. FREE and NOW is their default mindset and not only are they the entrepreneurs of the future they are also the customers of the future so we better be pleasing them.
They don't believe in intellectual property rights, confidentiality, corporate structures, boards of directors, business rules and regulations or even borders between countries. They don't need them. Nor do they believe in personal privacy. Their view of the world is put it all out there and grow the collective intelligence of their generation through sharing and collaboration. This is a massive contradiction to traditional business thinking.
Such a young entrepreneur on the rise is Thomas Suarez who is now about 14 years old. Check out the presentation he gave to +TEDx when he was 12.
He is a perfect example of the type of competitive force that I am talking about. If you are old school you will probably be thinking..."So what?! He writes games apps about Justin Bieber. I don't need to worry about him". Well you do!! The lessons and breakthroughs he and others like him are inexpensively gaining building fun apps helps them refine their approach to be able to attack traditional business models. If an app he writes fails then it doesn't matter as it has only cost him his time and his parents 99 bucks. A cheap education in my book!
Thomas is selling his Bustin Jieber app for 99 cents a download and it has gone completely viral. As he said he taught himself how to build the app and used a FREE software development kit to do it. Then for just $99 he is in the game competing against other huge multimedia companies putting enormous investment into finding the next killer app. Can you imagine the rate of return on that investment? Astronomical and enough to make the directors of an old school company weep.
You cannot underestimate that globally there are tens, if not hundreds, of thousands of developers and people out there right now doing exactly the same thing. There is bound to be at least a few of them thinking about your industry or business model and how they can change it, better it and ultimately defeat you.
James McQuivey and his thinking on this subject has been very influential in my own business approach. I credit him for some of the ideas in this blog and I strongly suggest you check out his work.
All for now,
+Brad Skelton
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