Neil Thackray’s Business Media Blog

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Strategy Destroys Value

In another ineresting talk at the Acitivate 09 Summit, Umair Haque of the Havas Medai Lab points out that we are now all hyper connected.  This hyper connectivity is driving a new kind of networked economics.  This network effect can be seen all around us.  Look at how Obama used the network to raise funds; look at the velocity of growth of Twitter as it leveraged viral networks.  But there are unintended consequences too.  There are viral diseconomies that can lead to panic effects.  Look at how the passing of toxic assets between banks spread rapid panic and led to an implosion of the financial markets.  

These negative viral effects are what Haque calls, “the zombie economy”.  An economy which is stuck and unable to innovate its way out of diffiiculty.  When there are negative viral effects value is destoyed and strategy ceases to create value.  He concludes thet, “Twentieth Century capitalism is not fit for twenty first Centry purpose.  We need a new constructive capitalism.”  This must be based on renewal, democracy, peace and equity rather than exploitation, tyranny, war and domination.

How very Guardian!

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July 6, 2009 - Posted by | Uncategorized |

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