yikes! EDITORIAL: Deconstructing Value
<http://www.nua.ie/surveys/analysis/weekly_editorial.html>
The changes brought about by the networked economy are mirrored in often tectonic movements in social norms and values yet these shifts are rarely discussed outside the realm of commercial interest.
In his book, "New Rules for The New Economy", Kevin Kelly talks about the engine behind the new economy: active information. "Wealth in this new regime flows directly from innovation, not optimization;" explains Kelly, "that is, wealth is not gained by perfecting the known, but by imperfectly seizing the unknown.".
Where the old economy steamed along by perfecting what was already known, the new economy is fuelled by new ideas and new ways of doing things. This is mostly made possible because of the new relationships an ever expanding network affords. There is no time for perfecting models for as soon as one comes to fruition another has superceded it.
The content market is a good example. Two years ago, content was king and the more original and syndicated the content was the better. Now, content is still king but the cost of generating new innovative original content surpasses the profits content sites can hope to generate. Therefore, good content is really old content with new light shed upon it.
One of the prime principles behind networked economies is the law of increasing returns. Put simply, the value of a network increases as it expands, as such a ten-person network creates more value than a two-person network. The number of people in the network increases arithmetically and the value of the network increases exponentially.
In no other sector has this had more reverberations than in the recruitment sector. Just as value in the commercial world has shifted from the material to the intangible, so also has the produce of the average employee in the networked economy shifted to the intangible.
In the new economy staff turnover in good companies will be very high. If it's not, the company is probably not on the ball. Without talent companies can not expect to compete online, yet in a buoyant market real talent rarely stays in one place very long. So, when talent does arrive at the doorstep of an Internet company, many employers would sell their grandmothers in order to hold on to it.
For the full story, go to: http://www.nua.ie/surveys/analysis/weekly_editorial.html