VITAL COMPONENTS OF THE NEW ECONOMIC PARADIGM
preface:::
I wrote this up with the help of my friend John from Digital days
It crystallizes our thoughts on the enormous changes taking place in our economy and society
I would say that 80-90% of these points are foreign concepts to certain publications
The world has changed in the last couple years.
Learn from it, react to it, profit from it. Or be left behind.
"Economist" has become a second-rate economic publication in the last couple years. They almost totally dismiss the New Paradigm, the Global Economy, the New Economy. They epitomize the old economic principles that do not fully consider the effects of technology in transforming the world, coupled with the freedom of a few new billion workers since communism collapsed. Old economic principles are often "soft" in nature, relying heavily upon old truisms and little upon statistical evidence or analysis.
/ Jim Willie
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Technology is transforming the entire economy
The benefits and efficiencies occur and build exponentially
Tech driven productivity enhancements are permanently becoming part of the internal dynamics
Productivity benefits are not fleeting, as ?Economist? has been claiming for over two years
Bandwidth revolution, device integration, semiconductor proliferation, information access explosion, teleconferencing, remote processing, computer networking - all these are signs of longlasting benefits
Outsourcing and specialization and automation among corporation America
Efficient use of resources - equipment, networks, people, money, time
Horizontal segregation of corporate structure and tasking makes for efficient returns on assets
Nearly complete dismantling of the former vertical integration structure, since specialists outperform
Integration of entire supply value chain with complex information systems, public and private
Software & Equipment are critically important at every phase of business, entertainment, home
Production, people, enterprise resources, decision support, sales, inventory, replenishment, distribution, service
Technical support, customer service, ATM cash, gas station (e.g. Mobil Speedpass), register scanner, security access
Remote checking, online stock brokerage, order tracking, delivery tracking, product information
Online operations integrated within entire business systems, or else severe competitive disadvantage
Lower cost from online operations and information systems is at the core of the efficiency gains
e.g. Dell, Cisco, Walmart
Key phenomenon is instantly shared network of information, universal connectivity
Critical mass requirements have been realized (thresholds attained now) for economies of scale
Fax, internet PC web, handheld devices, pagers, PCS wireless - now widespread in use
In Finland, usage of wireless phone to buy from vending machines!!!
Reversal of old economic rules
Old rule: diminishing returns per incremental worker, discrete business unit
New rule: exponential returns per incremental automated device, information database joining the network
Devices are computer, peripherals, smart equipment that replace the unskilled worker
Databases are sources of information that support in full spectrum of transactions and decision making
The Might USA has an Information Processing and Service based economy
Passive information analysis also produces added value
Data mining, targeted marketing, information for individuals and corporations
Education, investment, research, access everywhere
Benefits of vastly improved quality control
Automation in mfg process has built in higher tolerances for defects, resulting in higher quality
Averted wasted costs from warranty, product recall, customer returns, lost business abroad
Global free economy with labor, resources efficiently distributed and exploited
A few fresh new billion people enter the supply side of available labor pool following fall of communism
Fewer trade tariffs & barriers, honored patents & copyrights facilitate commerce among nations
Common currencies, dollarization produces financial stability and a secure environment
Encourages foreign investment, freedom to outsource, reduction of production costs
Acceptance of standards yields efficiency in computer hardware/software, telephony, networking
e.g. India now is a growing software development power (low cost, high quality, delivered at speed of light)
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any serious contributions or critiques welcomed
/ JW |
