September 30, 2020 | technology | No Comments
Why is the future of business about creating shared value for everyone? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.
Answer by Erich Joachimsthaler, Founder & CEO of Vivaldi, Author of The Interaction Field, in his Session:
Creating shared value is the future because we live now in a much more complex world. We live in a hyperconnected world where nobody can do it alone anymore. In 1995, the first technologies like ecommerce and search connected information. This era was followed by the world of social media which connected people. The smart phone and social media technologies enabled this era. And today, we are in a world where everything connects. All sorts of technologies connect everything, things, people, companies, and these technologies are converging and maturing at relatively the same time. Machine learning, Artificial Intelligence, quantum and edge computing and so much more. These technologies all conspire to create a hyperconnected world.
In this world, value creation has shifted from the supply side to the demand side. Demand side value creation is more complex because it requires to collaborate rather than just compete. Nobody can do it alone.
Because nobody can do it alone, the system only works if everyone also creates shared value for others. Platforms and digital ecosystems have been proven to be very successful in creating value and extracting value. They have become the red-hot business models of our times. But many platforms and digital ecosystems have failed in terms of sharing out value. They have taken more than they gave.
Today, though, we live in a world where people connect, where the traditional information asymmetries have disappeared. People, consumers and companies are much more aware that we all live in a world of finite resources. Consumers have a voice, and they are willing to express their opinions. Consumers have also the option to vote with their hands and feet. There are 175 mattress companies today, starting with Casper. There more than 150 meal kit solutions like Blue Apron. Consumers can choose another company or brand by moving their finger 1 ½ inch to the left on the smart phone.
A final reason is that many of the intractable and tough global challenges that we all face can only be solved through collaboration, participation and engagement of many different stakeholders. Companies that merely seek to maximize their own value creation will largely fail because they don’t create value or competitive advantage for themselves. It does not matter whether these companies are traditional pipeline companies or platforms or digital ecosystems.
For these reasons, the future of business is shared value creation, and the interaction field company is one such business model that is designed in a way to enable such value creation.
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