Robert S. Ellinger Ph.D. The global overall economy is on the threshold of a big change in the structure of industrialization, from mass creation to mass customization, whose root cause is the exponential growth of knowledge and the unprecedented ability to store, and communicate this knowledge. While, a number of leading business and financial thinkers have predicted this change, even though the precursors of the change are self-evident to numerous already. Today’s fluctuations and perturbations out of all the commodity, stock, and financial marketplaces may be an example.
Firms and other organizations that disregard or miss this new reality will not flourish over the next ten years and may not survive. The implications of the change in status of economies of scale and obstacles to entry from near spiritual financial axioms to fiction are major. For example, a lot more era Y and X will own small firms, rather than working for large firms. These small firms will sell innovative products and services. As the current economic strategy of major corporations is buying entrepreneurial firms to survive, this strategy will become a difficult strategy to execute because the small companies shall not be for sale.
The paper will discuss two effects of this revolutionary transformation, a fundamental change in economic theory and a shift in culture. It will then describe how these effects will cause change in the structure of industries and firms. Finally, it shall recommend strategies that will allow firms and other organizations to cope with this transformation. … Read more