Instead of being intimidated by the idea of the new economy, we must be proactive and participate in it. Acquire the necessary skills and prosper! Contrary to most expectations, the new economy is not so much about new technologies. It is about knowledge and is therefore sometimes called the knowledge economy. Someone who can learn, organize, and apply knowledge faster than others can easily thrive in the New Economy.
The late American inventor and philosopher, R. Buckminster Fuller, once said, “The only failure is lack of participation.” He may have been referring to the New Economy, because in the New Economy many things happen at the same time, so there is no one who can keep track of everything that has happened. Also, things are happening so fast that some information is already out of date by the time you receive it.
The only way to stay on top of the times is to participate in what’s going on around you. There are three areas a person needs to work on if they want to truly participate in the New Economy: technology and its applications, interpersonal and networking skills, and mindsets, beliefs, and attitudes.
Technology and its applications
The common misconception is that everyone would need to get a degree in information technology (IT) or life sciences to secure a job in the future. Fortunately for us, what we need is to find out the nature of each new technology that emerges and its applications.
For example, the nature of the Internet is that it is the most efficient way to communicate, distribute and transact, anywhere in the world. It removes most restrictions imposed by geographical distance and time zones, and can be integrated with a computer system to store all online activities in a database for further analysis and action.
Email is a great way to save on long distance phone calls. You can also use the software to classify groups of people you know, such as your classmates, pen pals, close friends, and acquaintances, and customize your email for each group. In business, you can use the built-in features of the Internet to find out who your best customers are, what they buy, how much they buy, and so on. You can then personalize email and faxes to various groups of customers at a very low cost.
The 19th-century sociologist Max Weber noted that new technology is created because there are certain things that current technology cannot accomplish. It may be a long road, but participating in the race for knowledge is necessary to survive. While this new technology may create some breakthroughs that result in newer technologies, those breakthroughs will give us value only if we can understand their nature and find uses for them.
An example of this is Du Pont’s invention of a synthetic fiber in the early 1970s called Kevlar. It wasn’t until the late 1980s that some people finally understood the nature of Kevlar—strong, light, and flexible—and used it to make helmets and body armor.
Others understood its waterproof property and used it to make canoes, snowboards, motorcycle bodies, etc. Du Pont knew all about Kevlar, but it took other people to find applications for it. So you don’t have to be a rocket scientist to figure out what can be done with rockets. It’s the same with IT and life sciences.
Networking and Interpersonal Skills
Networking with people can be the safest way to find business partners, investors, suppliers, clients, and even help you get the job you’ve always dreamed of. Networking is not a new concept. Traders and merchants from countries and regions as diverse as India, China, Arabia, and Europe have been linked in personal networks to trade and create businesses for hundreds of years. As the legal institutions of the time were not very advanced, merchants would only deal with people they know well, to avoid fraud.
Part of networking is building interpersonal relationships, and this will take some time. It should start even before you see the need to do so. As best-selling author Harvey MacKay says, “Dig your well before you’re thirsty.” But why network, when we have access to all kinds of information globally via the Internet, including checking a person’s trustworthiness? The fact is, most venture capitalists won’t even look at a business plan unless it was given to them by someone they know personally, or on the recommendation of their friends.
Having strong networks can help you gain access to information that not even the Internet has access to. You will have access to the collective wisdom, that is, the combined knowledge of each individual in the network. Now, if you want to find an application for a new technology, knowledge, or idea, your network may provide the answer you’ve been looking for. Networking can take place in clubs, associations, talks, seminars, events, schools and the workplace.
Mentalities, Beliefs and Attitudes
We used to instill in ourselves that we had to study hard to get a degree so that we could get a well-paying job. True, the salary gap between a graduate and an undergraduate in the past was huge, but today, the gap has narrowed. Having a degree doesn’t guarantee success in life, but if you go to college you’ll learn about the nature of technology (and other things), and you’ll have the opportunity to network and try out ideas.
Corporations these days are flattered, which means your chances of promotion are less, so it might not be a bad idea to consider being an entrepreneur, setting up your own store and being your own boss. You don’t need a lot of money, experience, or expertise to be an entrepreneur. While some experience in the field is necessary, the key ingredients will be your understanding of the technology, a good view of the market, and the strength of your network. You can get access to capital, customers, vendors, loans, and just about anything else you need to start your business.
I have a friend who sells plastic grocery bags to France. My friend has lived in France for several years, so she has a network there. The average annual turnover of her business in the past five years is US$2 million (S$3.61 million) to US$3 million. Your costs? The bags are outsourced for manufacturing to Malaysia, where labor is relatively cheap. And she only has two employees in the office: her husband and herself.
My point is that it really doesn’t take a lot of money, experience, expertise, or even risk to start a profitable business. This brings me to the beliefs we have about money. While it is true that money does not grow on trees, it is not as difficult to earn as it seems.
The amount of money we can earn depends on the value we provide to others.
If you can provide more value and educate your customers that you are providing much more value compared to others, you will probably make more money than others, whether you are a businessman or an employee. Isn’t this the main reason why you also get promoted and rewarded at your job?
I believe that there is no such thing as the new or the old economy. The same principles of effort, diligence, saving, supply and demand, etc. they apply to both notions of economics. What is new is that things are moving faster and knowledge is growing at an exponential rate. We have to change certain aspects of our lives because we can develop certain skill sets that will help us thrive in an ever-changing world. The important thing is to dig your well before you’re thirsty, so get involved before it’s too late. If you do that, a whole new world awaits you.
