There is nothing short of a revolution going on in social media – that has the potential to wipe out old red brick business models and to reshape industries being driven by people who just don’t get it:
Watch it and read the numbers – and then think again
People’s behaviour haschanged beyond all recognition. Almost all of our major decisions (not just the young) every generation, are shaped by recommendation by trusted strangers on the web, by instant feedback from asking social media questions, in essence by digital technology. The music business has already changed is business model and now ISPs, search engines and mobile phone companies are just as much music providers as the record companies used to be – if not more. Our consumption of films or TV and radio is following the same evolutionary pathway. Next will come public services – as heavily in-debted governments seek to leverage social media technology to leverage economies of scale. Then the creative industries (already happening to some extent) as ‘push communicaton’ is supplanted by ‘two-way listening.’ Press releases have their place but when news stories break faster than the capacity of journalists to follow them and publish them – investors can make or lose millions before the printing presses have a chance to record the fact. The key to this new behaviourial change is timeliness, trust, authenticity and reliability – match and manage expectations of people and then beat them. No industry is safe from the creative winds of change – and Joseph Schumpter’s Winds of Creative Destruction are now blowing faster than they ever have been as we enter the dawn of a new era that wil be seen as important as the last industrial revolution.
As classical capitalists realise that the flaws of their theory nearly destroyed the world economy – that theory is ‘everyone and every organisation will always act in their own best interests and the counterbalance of this will produce the perfect market results’ – a new one has to emerge. ‘The ‘we’re all in this together’ – ‘let’s all hang together, because if not, we will all hang seperately’ Theory. This new philosophy needs to recognise the global need for cooperation at economic, political,social, climatic, geographic levels – as trouble for one is automatically trouble for all.