The+new+economy

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=New Economy=



It is the economy in which, companies or firms or entrepreneurs around the world are working on the basis of the Internet and in which, their organizational and innovational logic is embedded in the Internet or related information technologies. It is an economy that works through the Internet and with the things that the Internet represents. The new economy is based on three major features. The first concerns __productivity__. The second is connected to the fact that competitiveness operates in a global environment (the global economy). Thirdly, the performance in the new economy is dependent upon a new organizational form, which is networking. Networking is the equivalent for the information age.

The new economy is based fundamentally on three major features that include:

1) Productivity
Productivity is derived from the application of knowledge and from the practice of innovation. Knowledge and productivity are dependent on each other in the new economy. Thus in order to generate a greater wealth the individual should keep in mind knowledge regarding productivity. in other words find out the most efficient way to produce, the fastest and the most affordable. The idea of knowledge and innovation go together but they are not the same.

2) Global economy
Competitiveness operates in a global environment. This is what we call market share. One of the best ways to be active in a market is to be competitive. This market competition can occur between what is known as market actors. For example individuals versus firms and countries versus other countries

More about the term
The new economy is based on continuous change. The term has been mentioned many times in the last few years. The term has different meanings to different people. Some describes it as the economical activities in the era of the information age and the communication technology sector. However in the financial sector the term means bonds and funds that provide information technology interest/investment service The term was established by the help of Green Span when he stated that “The deeper question is whether there has been a profound and fundamental alteration in the way our economy works that creates discontinuity from the past and promises a significantly higher path of growth than we have experienced in recent decades.’’ (Greenspan, 1998)

The way in which the wealthy nations and companies are developing relate and recount with the proper management of technology. This is significant especially in such a global and increasingly changing world. This changing world and therefore economy can be seen in the shift from generic to self-programmable labour. The key factor here is how to effectively manage the resources and the technology. The new economy is not only the idea of paying your bills on line or selling products on e-bay. It is more of the engagement with the intangible world of business. A lot of the marketing and the financing is being done without really going out their and promoting or holding the products. Some of the intangibility assets consist of the employees’ knowledge, their creativity, organizational culture and connection with customer determines in our current days the company’s value Personally I think the increasing amount of money transaction, as well as the use of digital money (credit and debit cards) contributing to the decrease of the value of money. In other words, you no longer get to “feel “that you own X amount of money. Rather its digital numbers coming in and going out of you bank accounts month after month. Ideas in the Information and communication technology era have change the way business operates and forever.

What are the essence of the change of the new economy
The change of technology from analog to digital was one of the first attempts to capture the essence of the new business relations, which is known as the Digital economy. The notion of intangibility can be seen in the shift from the physical to the mental labor/assets in what is known as the knowledge economy. What you need as an employee in this era is strong knowledge of the task, good level of education and background. This type of economy has a hand in the growth of software companies in major cities. The growth shows how cities like Boston, London and Cambridge have a role as a center of knowledge flows and creativity. If you would like to investigate some aspects of the new economy, you should look for the development of the software industry. The software industry is one of the fastest knowledge intensive industries starting in the mid 1990’s and until the early 21st century. The software industry requires high level of R&D as well as skilled labour input. That’s why this industry is on the same page as the new economy and they often get mentioned together. You almost never hear the aspects of the new economy get mentioned (for example information technology and communication) without mentioning the software industry as a factor. Moreover, what makes this industry is even the fastest growing than any other one, is because it’s a combination of both production and service.

How is the new economy being run
The new business is not dominated by the traditional view of managers anymore, business that based on asset ownership and vertical organization structure. However, the new business is recently being known as flexibility, cooperation and collaboration between employers and employees. So these changes toward the new business model are a change not only towards the structure, but also towards the managerial behavior. This new was of doing managing business is refered to as the “new business model”. The way in which business operates now is being done in the speed of the light. Or in what the “information society reader” indicated as the “timeless” time. this idea defined by the use of the new information and communication technologies inorder to be able to shrink time more than ever before.For example, asserts that the Internet has “changed the way companies communicate, how they share information with business partners, and how they buy and sell”.Evans et al. (2001) argue that it is “facilitating dramatic change in terms of how consumers interact with each other and with companies”. it's always good to mention that these interaction between customers and companies are being related in the global market sense. A good example can be the global financial markets where people and businessmen all around the world monitor Nasdaq index regularly. However this space is nothing but an electronic entity. This type of technology allows business people to move savings, shares, bonds...etc from anywhere in the world at a very high speed and in a very efficient manner. Interestingly enough, that this same technology is the reason globalization was born in the financial and global market. Because of this technology people around the world are connected with each other more and better than ever before.

Conclusion
Finally,the dependence of the economy on a an organizational form. In our current day networking is equivalent to the information age. It’s a system that is based on large-scale standardization that requires an extreme rationalization of each process.Also,I would like to note that according to some articles and readings the authors some times try to distinguish between terms (like the new business and the new economy) for the purpose of this posting im using the two terms interchangeably in order to be able to explain what I want to call the new world. The demand on the speed in the economy growth, production and services is not limited and this demand in speed and expansion is reaching to the social and political aspects of life.

=Some Articles related to the "new economy"=

http://scholarsportal.info.myaccess.library.utoronto.ca/pdflinks/06012222435103882.pdf

http://scholarsportal.info.myaccess.library.utoronto.ca/pdflinks/06012220155802057.pdf

http://scholarsportal.info.myaccess.library.utoronto.ca/pdflinks/06012218151107077.pdf

http://www.globalexchange.org/campaigns/

=CCT205 Wikispaces Links=

Further readings - //Labour in the New Economy // Further reading - //__Ch. 14- Three Jobs of the Future__// =**Works Cited:**=

Eva Kupiec. "The Intangible World of Business." __CMA Management__ 76.8 (2002): 12-4.

Fagan, Colette, et al. "Work, Life and Time in the New Economy." __Time & Society__ 14.1 (2005): pp.51-64.

Granlund, Markus (1), and Jani (2) Taipaleenmäki. "Management Control and Controllership in New Economy firms—a Life Cycle Perspective." __Management Accounting Research__ 16.1 (2005): 21-57.

Halinen, Aino (1), and Jan-Åke (2) Törnroos. "Using Case Methods in the Study of Contemporary Business Networks." __Journal of Business Research__ 58.9 (2005): 1285-97.

Khalil, T. M. (1), and H. A. Ezzat. "Management of Technology and Responsive Policies in a New Economy." __International Journal of Technology Management__ 32.1-2 (2005): 88-111.

Tsang, Denise (1). "Growth of Indigenous Entrepreneurial Software Firms in Cities." __Technovation__ 25.11 (2005): 1331-6. __ Using Knowledge for Faster Growth__., 2005.

Food for Thought: The New Economy

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