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Category: Entrepreneurialism

Douglas Rushkoff on the future of value creation- why the web broke everything (but it’s a good thing)

Saturday, 18 April 2009 08:15 Written by Eric Garland 0 Comments

I am glad to see Douglas Ruskoff weigh in on our current situation. He’s a fantastic thinker, humanistic and often contrarian, the author of many books including the recent Get Back in the Box: Innovation from the Inside Out, which is about the foolishness of senseless innovation. If I read Rushkoff correctly, he sees economics as a distinctly human, connected enterprise, and the absolute opposite of where our commercial leadership has taken us.

He presents some major, major ideas:

  • The recent goal of business has been to make every company a holding company, one whose purpose is the acquisition and/or management of debt as opposed to a group of competent people who do things for other people
  • People at all levels have become more interested in the perceived value of assets (homes, shares of companies, CDOs) than the actual value that they might ever produce
  • Most of these ideas are supporting people who may not even be in the system – long-gone investors, maybe even dead guys
  • The monetary system is not about encouraging trade, but often preventing trade
  • The American Revolution came about because England forbid people from providing each other with services
  • LOCAL CURRENCIES used to be very popular and could be again
  • We were probably better off economically in the Late Middle Ages (the Black Death notwithstanding)

We need to revisit our total concept of value creation. It’s great that Rushkoff is lending a hand.

Small, interconnected, local businesses could be the future

Tuesday, 03 March 2009 20:55 Written by Eric Garland 0 Comments

The United States Government is taking great pains to prop up gigantic financial companies that made catastrophic decisions. One Harvard Business School professor thinks that small, local businesses will be the economic engine of the future.

That is how innovation works: small companies competing like crazy and trying out new things. Across cities, there is a strong connection between an abundance of small firms and local growth. The last thing that the government should be doing is propping up big declining firms. Real innovations are far more likely to come from someone’s garage, which is where Chester Carlson came up with the Xerox machine during the Great Depression.

The Big Three automakers pose real policy problems. The government is already on the hook for their huge pension liabilities. Vast layoffs will make the recession worse. I am not arguing for complete laissez-faire, but an open-ended commitment to this industry, or any other, is pure folly. Growth requires change, not binding our country to declining industries.

I’m not certain that the current knowledge economy, often depending on broad partnerships, will be just about one guy in his garage, but this would be a radically different approach to economic development policy.

Will the English professor of the future be an entrepreneur?

Tuesday, 03 March 2009 10:35 Written by Eric Garland 0 Comments

That’s what Andrew Keen, author of Cult of the Amateur seems to think:

Rather than learning to quote Shakespeare or W.E.B. Du Bois, I would advise aspiring humanities scholars to learn how to build their own intellectual brands and distribute their ideas more broadly and relevantly. Just as the death of newspapers is forcing smart young journalists to become self-employed entrepreneurs, so the imminent crisis of academic humanity departments, which will eventually do away with the archaic tenure system, offers a great opportunity to rethink what it means to be a professional educator in the 21st century.

This might drive the disruption of the educational business model a little faster. Which is fine – because the model of $50,000 per year private schools might go the way of the million-dollar fixer-upper one-bedroom condo.

The real economic stimulus: entrepreneurs – a view from Tech Cocktail

Friday, 27 February 2009 16:16 Written by Eric Garland 1 Comment

techcocktailThe national pastime is now watching financial indicators reach the lows of the decade. It’s getting boring.

FAR BETTER is to see what IS going to create the next economy – entrepreneurialism. The next economy won’t be stimulated into existence, it will be built by entrepreneurs. Yes, that intrepid spirit of putting your money and time into businesses that do little but eat money and time, in the hopes that one day you will change the world – or at least turn a profit.

My colleague, the intelligence thoughtleader and Enterprise 2.0 guru August Jackson dragged me out to a mixer for group I didn’t know – Tech Cocktail. You might think that an event dedicated to technology startups would be morose in this supposedly capital-scarce, depressed economy. Surprisingly, the mood was gleeful, far more reminiscent of Monica-Lewinsky-era Washington, when cell phones were novel, Napster brought you the world’s music guilt-and-compensation free, and people were just SURE that www.e-spatulas.com was going to set the world on fire.

Wait, haven’t we learned ANYTHING since 1998? Shouldn’t we have figured out to not trust the flowing drinks, the meeting of new people, the launching of strange sounding, internet-based services, since this irrational exuberance brought us Enron and Global Crossing? Isn’t getting excited about tech companies better suited to an era of high profits, financial trickery, cheap illusions?

No, this is still where the future’s at. Sure, nobody was trying to deal with clean water, climate change or healthcare, the likely shapers of our destiny, but it’s the attitude here that is so important. Check out a few of the players:

  • The Social Collective, a group the builds online communities to improve the value of conferences
  • Localist, a one-stop shop to advertise local cultural events
  • DeGeeked, a website dedicated to answering the simplest, most inane questions for tech n00bs
  • GeniusRocket, a service to link brand builders and artists

What struck me was that this time around, all of the entrepreneurs were prepared to discuss viable business models. They knew where the money would come from, and were even realistic about their projections. Today, it’s OK to base a business off traffic and revenue from ads, even if it means you won’t be ultimately buying a Gulfstream 5 from your income. The rest generally knew who their target markets would be. These details seem to be all the difference between this round of innovation and 1999, when sites like www.goatclick.com went for $127.50 a share, and the CEO said “We’re still looking for a business model.”

I don’t care whether any of these specific businesses rescues the economy. What strikes me as important is that America is still hosting these types of events, where people come together excited to talk about building new services, manufacturing new goods, solving real problems and hopefully creating jobs. This is the only spirit that EVER builds economies.

We’re spending so much time examining the collapse, it’s time we get excited about the recovery. I know I am.

Business models: Compensation, not control

Thursday, 12 February 2009 12:46 Written by Eric Garland 0 Comments

Gerd Leonhard is one of the hardest working guys in the world right now, criss-crossing the globe and trying to figure out the future of making money off music, books, movies, and other content. (Guys like me really appreciate that!)

He has noticed that the “sue the customer” trick didn’t work (ahem) and that a new business model for content is badly needed.

Here, his mantra is “compensation, not control.” Watch the whole thing:

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This is the official trend blog of Competitive Futures, a management consultancy that provides trend research and analysis for business and government around the world. Here, we update you on interesting trends we see as part of our work for our clients.


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