Exponential economy is driven by technological innovation. Technological logical innovation through rapid progress in computer science or nanotechnology is seemingly causing the condensation of time.
Today, technology is transforming products and services and disrupting industries. Technology have driving many people out of business. How? By ignoring technological adaptation into their business activities. The entrepreneur must be aware of technological power to alter the business.
Also, one way to stay on top of technological innovation is to implement strategy that promote and reward forward thinking in their company. Strategies to think rationally about the implications of future-generation technology.
Reed Hastings, founder of Netflix realized after seeing DVD technology in 1996 that data storage would make huge advances. As a result, Hastings founded Netflix in 1999, a video-streaming service offers TV shows and films, as well as original content, to 139 million members globally.
The company originally operated as a DVD subscription service, but began streaming content in 2007. Netflix has grown to become a billion dollar company.
The exponential change caused by digital innovations has shifted the way we work, the way we play, the way we buy and the way we bank, all in the span of just a couple of decades.
This economy beyond digital, in which more and more things become accessible for more and more people, and in which entrepreneurs have an unprecedented amount of opportunities to create new business. But at the same time an economy in which the ‘winner takes all’ principle, more than ever before, rules and every industry eventually will be dominated by one category king.
The New Economy has suspended the conventional laws of economics. After all, the post office, telegraph, and telephone in their day each cut the intermediaries out of certain kinds of businesses at least as effectively as the Internet has.
Exponential economy has created a momentum all of their own and form their own sub-economies; The digital economy has iterated a number of times as waves of ecommerce have opened up new markets.
With a few notable exceptions, such as Google, the novel business models rolled out in the dot-com boom failed quickly and spectacularly. And there was certainly nothing new about productivity boosts and cost cuts enabled by technological improvements: that is precisely what the Industrial Revolution was all about.
The power of social media and its ability to spread information at unprecedented speeds. There are countless of stories of people resisting technological innovations and getting it wrong. These people claim that Facebook is spooky; Twitter is a waste of time; and Pinterest… what is that? These sceptics are the progeny of Ken Olson. Sooner or later, they will be out of business. Don’t let that happen to you.