What is the new economy?



What is the new economy?

The term “new economy” refers to industries adapting to changing technology and using it to meet business goals, including productivity, quality, efficiency, customer satisfaction, and profit. It symbolizes the shift from a manufacturing and commodity-based economy to a technology-enabled and service-based economy.

What does it take to manage in the new economy?

People who manage in the new economy and companies that compete in it live in the creative tension of creative destruction. What’s more, they tap into the emotional energy that comes from wrestling with their own destiny. In the end, that’s a job description that most people would welcome.

How has the modern economy changed the way companies approach their business?

The new functioning of economy has changed the way companies approach their business. Companies are looking forward to expanding across market segments to get maximum market share while keeping focus strictly on customer needs.

What will the manager’s role be in the new economy?

In the new economy, then, the manager’s job is to create an environment that allows knowledge workers to learn—from their own experience, from each other, and from customers, suppliers, and business partners. The chief management tool that makes that learning happen is conversation.