“ The complex of human activities concerned with the production , distribution , and consumption of goods and services.”
Definition from World English Dictionary ; photo by Dave Hoefler
Economists Ask: “How Does The System Sustain Itself?”
Family | Education | Healthcare | Politics | Science| Crime| War| Business
Image here ; Economic areas of study from Wikipedia ; Source for cycle concept here
Capitalist Businesses Are Mini-Economies Created for Profit Definition of a business here ; Willy Wonka factory image here ; Augustus Gloop image here ; money image here Owner produces/distributes product or service Owner sells to consumer with added fee Owner keeps the difference
Production In The Industrial (Machine) Age: A Thinking Worker Threatens Profitability Factors of production here ; Definition of surplus value here ; quotation here ; grass image here ; worker image here ; money image here Land (Resources) Labor Capital Factors of Production
Until the dawn of the knowledge-based service economy, return on employee investment was win-lose.
In return for subsistence wages, employees performed repetitive, un-engaging, often strenuous, sometimes dangerous physical labor.
Workers who challenged or deviated from routines created inefficiency.
Workers who thought “outside the box” were a threat.
The employer’s attitude: “When I want your opinion I’ll give it to you.”
The Industrial Age Is Now Over, Product Manufacturing Is Cheap, and Service (Knowledge) Creates Profit. Image source here
Now That Basic Needs Are Easily Available, Owners Must Create Consumer Demand Definition adapted from: Wikipedia ; Image source here Using Logic & Emotion
They Need Thinking Employees To Create Demand and Cut Costs Source: Grant Thorton International Business Report Survey 2009 (most recent); pie chart created using this free tool “ Innovation in the current climate is about making processes more efficient….trying to work smarter.” — Frank Ponsioen, partner, Grant Thornton International
Differentiation advantage derives from strong brand
Perceived functional benefit
Perceived emotional benefit
The stronger the brand the more profitable the consumer:
Buys the first time
Keeps on buying
Willingly pays a premium
Buys new brands introduced/endorsed by same owner
Michael Porter’s model here ; Image source here
Throughout The Business Cycle, Profit Is Created Through Brainpower
During the Industrial Age, employers made money by manipulating vulnerable employees into submission
In the information age, they make money by harnessing employees’ brainpower on their behalf
Business owners depend on employees to cut costs and create customer demand
The brands employees create attract customers to pay more and buy frequently
Customers willingly pay a premium based on the perception of value
Definition of profit here ; image source here
Today’s Knowledge Workers Have Skills But Not Permanent Ties Marriage rates are at their lowest in a century and about 2 out of 5 end in divorce. 1 out of 4 children lives in a single-parent household. 2 out of 5 births are to unmarried women . Approximately 3 out of 4 children are not being raised by a stay-home-mother or father. 1 in 6 Americans move each year . The average young Baby Boomer changed jobs 11 times between the ages of 18-44 and Generations X and Y have similar expectations .
So They Make Up For It With Constant Social Networking
Social networks image here ; Updating frequency graphic here
“ LinkedIn” Companies Can Harness This For An Era of Mutual Profit
A “LinkedIn” company is any organization that connects with employees as partners seeking mutual gain
These companies network internally and externally and they encourage employees to do the same
These companies understand that value is added through the process of communicating freely, and learning best practices from all sources, even competitors
The LinkedIn Economy is powered by people who think ahead of the curve and who are also socially connected in productive, long-term work relationships that persist after one has moved from one organization to the next.