menu

More On ‘Recession or Reorder?’

Retail
Piers Fawkes, PSFK
  • 30 december 2008

There’s much discussion about the significant change we are witnessing accelerated by the financial crisis. In a piece called Recession or Reorder I used some data to suggest that shifts in work, play and media that have been forecasted for a long while are now taking place. The VC Fred Wilson on his popular blog continues this theme with a post titled ‘Bits of Destruction‘:

I’m typing this on my blackberry in a hotel lobby in berlin, I’ll hit send, and it will be published and read by roughly 5,000 people today. Compare that to what it takes to get the Tom Friedman column ‘Time To Reboot America’ which is sitting in front of me in the International Herald Tribune newspaper printed and delivered to me. Printing and distribution infrastructure cannot compete with bits on a wire and we are going to see that infrastructure end up in in bankruptcy a lot in the next 12 months.

…And what about retailing? I had breakfast last week with a person who has been in retailing for more than 30 years and has been operating at the highest levels of the industry. He said that he expects every category to be winnowed down to one dominant retailer with all the others going by the wayside. This too has the internet as an underlying cause… The fact is that consumers have finally come to the realization that shopping online is easier, cheaper, and often a better experience.

…Its creative destruction at work. It’s painful and many jobs will be lost permanently. But let’s also remember that its inevitable and we can’t fight it. Technology and information forces are unstoppable and they will reshape the world as we know it regardless of whether or not we want them to.

Jeff Jarvis reacts with some additional commentary and says:

The point in any case is that it would be a mistake to think that we will come out of this financial crisis soon wounded but still seeing the world the way we saw it before. In the graveyard of camels with broken backs, we will see a new world newly structured and we’re only beginning to figure it out.

In this sense, media – music, newspapers, TV, magazines, books – may be lucky to be among the first to undergo this radical restructuring. Communications was also early on because it – like media – appeared close to the internet and Google (though, as I say in the post below, it’s a mistake to see the internet strictly as media or as pipes; it’s something other). Other industries and institutions – advertising, manufacturing, health, education, government… – are next and they, like their predecessors, don’t see what’s coming, especially if they think all they’re undergoing is a crisis. The change is bigger, more fundamental, and more permanent than that.

Meanwhile Scott Anthony in the Harvard Review says that this is the era of the Great Disruption:

While the global economy began slowing down in late 2007, forces transforming the face of business trace back more than a decade. Over that time period, technological improvements have made it ever easier to start and scale a business. Convergence went from being a cliché to a reality. Companies from countries like China, India, and Brazil burst onto the world stage. The global slowdown coupled with the credit crunch in late 2008 accelerated these forces.

If sagging employment and dwindling economic prospects led historians to term the 1930s the Great Depression, perhaps it is appropriate to tab today’s hyper-competitive market where competitive advantage dissipates in a heartbeat the “Great Disruption.”

…While companies might want to return to the corporate equivalent of comfort food–cost-cutting and a focus on the core business–the Great Disruption won’t allow it.

Some companies have been developing their innovation abilities for years. They are in good position to seize the opportunities that always present themselves in tough economic climates. Companies that are in the beginning of the innovation journey need to accelerate capability-development efforts or will find themselves simply unprepared for the fight ahead. Industries that had already been grappling with disruptive threats for years–like newspaper companies–will face intense pain as they struggle to find a safe haven in today’s brutal economic climate.

Fred Wilson: Bits Of Destruction
Jeff Jarvis: t’s not just an era; it’s a new world order
Scott Anthony: Innovating In The Great Disruption

Retail
Trending

Japanese Face Wash Creates A Perfect Rose Every Time

Arts & Culture
Mobile Yesterday

Get A Better Idea Of How You Are Wasting Your Time

The TouchTime app is trying to revolutionize personal task management by providing detailed insight on how to be more efficient

Culture Yesterday

London Telephone Box Repurposed As A Tiny Mobile Repair Shop

Tools and supplies to replace broken screens or damage are neatly stowed away in these micro-workrooms

Trending

Get PSFK's Latest Report: Future of Work

See All
Design Yesterday

Conceptual Sportswear Created Out Of Futuristic Condom Material

A Dutch fashion designer is experimenting with new methods and fabrics to make high performance clothing

Fashion Yesterday

Fashionable Tassel Will Ensure You Never Lose Your Valuables Again

The device is fashion meets connected tech, that will help you keep track of your belongings at all times

PURPLELIST EXPERTS

Deena Varshavskaya

Retail, Mobile, Social

Syndicated Yesterday

Would You Wear Wool Shoes To Save The Environment?

As demand for wool shoes grows, a number of US footwear brands are heading directly to the source: the sheep pastures of New Zealand

Sustainability Yesterday

Self-Healing Material Is Fashioned Out Of Squid Teeth

Penn State researchers have devised a new textile that uses organic proteins

Arts & Culture Yesterday

Search Engine Turns Your Own Drawings Into Photos

This image-matching software accepts hand-made sketches instead of keywords

PSFK LABS REPORT

Future Of Work
Cultivating The Next Generation Of Leaders
NEW

PSFK Op-Ed august 23, 2016

Modern Workplace Culture: No More Fat Cats Or Kissing Ass

Samar Birwadker, CEO & Co-Founder of Good & Co, on designing shared organizational values to optimize employee happiness and success

PSFK Labs august 25, 2016

PSFK’s Workplace Vision: How The Nurturing Of Seeds Will Come To Define The Onboarding Process

Our Future of Work vision is a service that allows companies to assemble and deliver welcome packets that are uniquely focused on the concept of growth

Arts & Culture Yesterday

Illustrator Interprets The Experiences Of Blind Travelers

Artist Alby Letoy creates drawings of poignant travel memories for the visually impaired

Advertising Yesterday

Clickbait Titles Used For The Good Of Charity

An agency devised an unlikely campaign that uses clickbait as a positive force to drive awareness to nonprofit initiatives

Advertising Yesterday

The Best In Eye-Catching Olympics Campaigns

PSFK rounds out the Rio Games with our picks for the best advertising moments off the field

Work Yesterday

Editorial Roundtable: The Arrival Of The People-First Workplace

Managed By Q, Soma, Workbar, Primary and thinkPARALLAX enumerate the reasons why companies need an employee-embracing workforce in order to exist

Arts & Culture Yesterday

Transforming Light Waves Into A New Art Form

An artist uses glass treated with layers of metallic coatings to create a unique installation called lightpaintings

INSIGHTS COVERAGE

Rio Olympics
Innovation Coverage From The Rio Games
READ NOW

Design Yesterday

This Windbreaker Lets You Explore The Outdoors While Charging Your Phone

The apparel includes solar panels that allow the wearer to stay connected through the power of renewable energy

Asia Yesterday

The Goal Of This Game Is To Not Get Laid Off From Your Job

A hit mobile app has you working really, really hard to not get fired as you climb the corporate ladder

Advertising Yesterday

Movie Critic Bot Guides Viewers Through Festival Offerings

The Toronto International Film Festival has created a Facebook Messenger chatbot to help attendants curate their schedule

No search results found.