Ch...Ch...Changes

Ch...Ch...Changes

It’s most likely due to the recent passing of innovative British rocker David Bowie, but for some reason the song Changes has been rolling around in my head this week ever since I learned that Japan’s central bank was going to adopt what is known as a negative interest policy.  Although I teach economics and economic history, and do consult as a “marketing economist” specializing in pricing decisions, I typically don’t blog about economic topics.  This might be because unlike marketing, in my humble opinion, Econ offers far less reliability that if a particular path is followed, a predictable outcome can be anticipated.

Yet what I think Japan’s negative interest announcement does demonstrate clearly is that it is perhaps more difficult these days than ever before to claim with certainty statements such as “interest can never drop below zero”, as of course now this has become a reality.

I personally don’t think the advent of negative interest is necessarily a positive development for the global economy.  I do propose however that the wake up call Japan’s proclamation provides to us all is good because it reminds us that in business today, and especially in marketing, the impossible can become possible.  How else could an organization like Uber that owns no vehicles become a formidable market force in public transportation?  Thus, in the current economic environment business uncertainties may be greater as market disruption seems to be around every corner.  In spite of this, or maybe as a result of it, I would offer my own declaration that this means unbelievable market opportunities are being created coincidently, as the rules of the game are also being reinvented.  

More than ever, market sectors are ripe for innovation, and this undoubtedly means that one of these days somewhere on the planet somebody is going to come gunning for your share of the market.  It could be tomorrow or even way into the future before disruption rears its ugly head in your neck of the woods.  Or…a change that to you is really a challenge to your business model may be underway, trying to sneak up on you and your precious piece of the pie. 

Are you ready for the next potentially disruptive force that could affect you, your business or your organization?  For me, the take away from Japan’s negative interest decision is clear: Remember David Bowie and get prepared for those CHANGES!