When you listen to the news they talk about the
state of the economy. But, there's a problem with that. There are
really two economies at play in today's market. There is the
traditional economy and the creative economy. That's what Steve
Denning told me last week and I agree with him.
The traditional economy is characterized by a desire for consistency
and stability. The focus is on making money.
This is done by providing a standard experience or service that can be
relied upon over and over again to be the same as it was before. You do
this by getting really efficient at marketing, production, and
delivery. Communication inside is top-down. Managers are told what to
do and they tell workers what to do. The cheaper you can make more
money, the better.
The creative economy is characterized by new, exciting offerings,
greater customization, and addressing emerging demands with
just-in-time solutions. The focus is on delighting customers
profitably. This is done by getting really good at
communicating with customers, engaging them on an ongoing basis, and
building relationships that regularly unearth new and better ways of
providing value. Communication inside creative organizations happens
via two-way conversations at all
levels. Everyone
is involved in the quest to discover how to create better offerings.
The happier your customers are, the better.
"It's a great time to be an entrepreneur," said Denning at my recent
CEOnly lunch, "but it's a scary time to be an organization.
Entrepreneurs can come up with new ideas that scale almost instantly
and have a global presence. When they succeed they can make a lot of
money very fast. Organizations have to retool. It's the money
that is driving the creative economy. There is so much money being made
by new services that are lighter, more exciting, more personalized,
easier to use... this money is driving the creative economy
inexorably forward. The massive capital it is generating is making the
creative economy an unstoppable force. If organizations that operate in
traditional ways don't figure this out, they will be crushed by the
rise of new ventures."
So, it's not about making money, but a ton of money is being made.
That's an important distinction. The money that is being made will
drive the new economy forward, leaving the traditional economy in its
wake. But, don't take your eye off the ball, which is delighting customers
profitably. That's where the action is.
There is no
delight in owning anything unshared.
- Lucius Annaeus Seneca
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