A New Beginning Towards a Fairer World?
Over the last thirty years, the world economy was shaken and turned upside-down by the globalization phenomenon. Clever marketers had created a cozy word for an overwhelming wave of transfer of work and wealth to the benefit of emerging countries and to the detriment of, as we find out now, many developed countries. Getting products done in low-cost countries is per se not such a bad idea. But giving away the work at a very large scale has proven disastrous to all the economies where manufacturing was intended to be substituted by “intelligent” work and services of all kinds. The equation didn’t square out simply because nothing was done, in parallel to the transfer of manufacturing work, to bring the population in the deserted countries up to a formation level, where the intended substitution was realistic. Still, most of the population in the developed world is depending on their bodies, far more than on their brains to earn a living. This evolution is now catching up with the economies of all these countries and the never-ending crisis queuing one after the other with no realistic hope to an end of this death spiral is creating a level of frustration expressed in many ways in Europe, North America, and elsewhere. What can be done to stop the bleeding? The straight answer is a lot! To begin with, there is no way to reverse this tendency with a simple recipe, like several populist politicians all over the world claim. Threatening our current suppliers in the emerging world and forcing the return of the traditional activities back into our countries might seem a good idea at first sight, but with our cost basis linked to social protection and lifestyle, these products would end up in our consumer baskets at a price boosting inflation and rendering them unaffordable for many. So, what to do? For us the only way is digitalization!
Digitalization is, together with globalization, another word that has been peppered into every economic proposal over the same period and seems to be the holy grail against all pains. In essence, it is absolutely true. In reality and unfortunately, it looks like over 90% of all so-called innovations are failures, flop,s and never generate the intended return on the heavy investments made by companies. So, what is wreaking havoc? What is going wrong, is that digitalization is a very difficult process, and too often, blinded by initial bright ideas and ill-driven by incestuous industry behaviors, products are churned out by companies without the required adequacy between consumer expectations and offered product specifications at the right price. So, the product which hits the market doesn’t correspond to a clear need isn’t right for the need expressed, or isn’t offered at the right price.
Thinkalize Global will help to close the circle identified further up in this post! Innovative companies will be able to offer better products and services than the traditional ones, regaining step by step market share and not fighting the lost battle of price and commoditization.