A New Operating System for a New World

The flipside of my post on the end of a binary mindset is the emergence of a new social and economic order. Think of it as a new operating system for World 2.0. While governments were moving in one direction, business, decidedly, was moving in another. A gap in terms of human progress had to be filled. A chance for private enterprise to step in.

Even before COVID-19, businesses were shifting to a new concept of growth. Instead of setting financial goals and being socially responsible, businesses were beginning to see profit from solving social problems. This shift was taking place against a growing background of concern about sustainability, wellbeing and inclusion as our communities became more divided and more parts of society were getting left behind.

Social Impact is the New Mission

COVID-19 accelerates these concerns leading us towards more purpose-driven business models that put social impact front and center of boardroom goals and aspirations. Financial institutions increasingly see sustainability as pivotal to their evaluation of risks, sending a tsunami of transformation across the corporate world. All businesses are challenged to create safer and more protected environments for their customer, partners, and employees.

Social good and financial profit are now joined at the hip creating new opportunities for exponential growth across industries and within them.

New Business Models

Business models are already shifting from monetization up front to monetization based on usage and impact. Data is shifting from descriptive – here is your online banking – to prescriptive – this is how you should plan for retirement. Enterprises are becoming increasingly reliant on alliances and ecosystems to meet their customers’ growing needs, because they can’t meet them alone.

COVID-19 and technology accelerate these trends.

The result is a move from “or” to “and.” From having to choose between one thing or another to being able to, in some cases, have it all.

New Landscape of Work

Spaces shift from smart to safe as we are likely to see a move away from density. Family, friends, and communities become more important as we reflect on the fragility of life. Remote working may become the rule rather than the exception.

For example, perhaps I want a career in banking. The job is in London, but my family is happy living in Paris. Remote working could allow me to live and work wherever I want. The link between location and employment may no longer be what it once was. In that sense, I can have my cake and eat it.

A New Theory of Microeconomics

Remember the theory of diminishing returns? This is now replaced by a new theory of increasing returns. Ecosystems allow businesses to offer the services of other businesses without having to own them. Platforms supporting ecosystems offer growth at practically zero marginal cost. As the network grows it become more valuable with each new member. Growth without the traditional diseconomies of scale of large enterprises.

New markets, like sustainability, wellbeing and mobility are breaking down the barriers between one traditional industry and another. To serve these new markets cross industry solutions and multi-industry alliances are being formed to generate exponential growth through network effects.

In the process, businesses are embracing a new purpose seeking profit in solving social problems, eliminating waste, and becoming more human-centric.

A New World Order

Physically more distant, digitally closer is the inevitable outcome of platforms and marketplaces that thrive on inclusion with every new participant added to it. The replacement of a society that thrived on exclusion will rapidly be replaced by one that embraces diversity and inclusion. Digital flows know no boundaries of nations, race, gender, or color.

We are moving from a world of “or” to “and.” From linear to matrixed relationships and from a binary mindset to a quantum one.

A new world order is emerging.