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    The old economy was characterized as steady, linear and predictable with slow changes, while the new economy is volatile, fast-paced, chaotic and unpredictable with explosive upsurges and sudden downturns driven by customers and innovation. The new economy has hypercompetition in global markets where differentiation, speed and knowledge are keys to success. Enterprises in the new economy have an opportunity-driven and dynamic strategy focused on people, knowledge and continuous innovation, while the old economy emphasized stability and internal processes. The new economy workforce has self-led, multi-skilled employees requiring continuous learning who work as a team, compared to the old economy's vertical and standardized workforce.

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    Differences Between Old Economy and New Economy

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    The old economy was characterized as steady, linear and predictable with slow changes, while the new economy is volatile, fast-paced, chaotic and unpredictable with explosive upsurges and sudden downturns driven by customers and innovation. The new economy has hypercompetition in global markets where differentiation, speed and knowledge are keys to success. Enterprises in the new economy have an opportunity-driven and dynamic strategy focused on people, knowledge and continuous innovation, while the old economy emphasized stability and internal processes. The new economy workforce has self-led, multi-skilled employees requiring continuous learning who work as a team, compared to the old economy's vertical and standardized workforce.

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    Download as DOC, PDF, TXT or read online from Scribd
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    7K views2 pages

    Differences between old economy and new economy markets and enterprises

    Uploaded by

    sydnax
    The old economy was characterized as steady, linear and predictable with slow changes, while the new economy is volatile, fast-paced, chaotic and unpredictable with explosive upsurges and sudden downturns driven by customers and innovation. The new economy has hypercompetition in global markets where differentiation, speed and knowledge are keys to success. Enterprises in the new economy have an opportunity-driven and dynamic strategy focused on people, knowledge and continuous innovation, while the old economy emphasized stability and internal processes. The new economy workforce has self-led, multi-skilled employees requiring continuous learning who work as a team, compared to the old economy's vertical and standardized workforce.

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    of 2

    DIFFERENCES BETWEEN OLD ECONOMY AND NEW ECONOMY BASIS

    Economic Development

    OLD ECONOMY MARKETS


    Steady and linear and quite predictable

    NEW ECONOMY
    Volatile extremely fast change, with explosive upsurges and sudden downturns, and Chaotic the direction of economys change is not perfectly clear "ast and unpredictable !ustomer driven Short 'nnovative Entrepreneurial &nowledge and Service based firms (lobal )yper*competition Speed + %he fast eats the Slow Differentiation

    Mar et !hanges Economy #ifecycle of $roduct and %echnology &ey Economy Drivers Scope of !ompetition !ompetition + ,ame of the (ame Mar eting + ,ame of the (ame

    Slow and linear Supplier driven #ong #arge 'ndustrial firms #ocal Si-e + %he .ig eats the Small Mass Mar eting

    ENTERPRISE
    $ace of .usiness Emphasis on .usiness Development /pproach Success Measure 0rgani-ation of $roduction &ey Drivers to (rowth &ey 3esources of 'nnovation Slow Stability Strategy $yramid + vision, mission, goals, action plans $rofit Mass production !apital 3esearch /pplicably faster with ever rising customer expectations !hange Management 0pportunity driven, Dynamic Strategy Mar et !apitali-ation 1the mar et price of an entire company2 "lexible and #ean production 1doing more with less2 $eople, &nowledge, !apabilities 3esearch, Systemic innovations, nowledge management, integration, new business creation, venture strategies, new business models 'nformation and communication technology, e*business, computeri-ed design and manufacturing Distinctive capabilities + 'nstitutional excellence, moving with speed, human resources, customer partnership, differentiation strategies, competitive strategies )uman capital Distributed !ontinuous, Systemic 'nnovation

    &ey %echnology Drivers Main Sources of !ompetitive /dvantage

    /utomation and Mechani-ation /ccess to raw materials, cheap labor and capital for conversion 4 cost reduction through economies of scale "inancial capital 5ertical $eriodic, #inear

    Scarce 3esource Decision ma ing 'nnovation $rocesses

    $roduction "ocus Strategic /lliances with other firms 0rgani-ational Structure .usiness Model

    'nternal $rocesses 3are , 6(o /lone7 mindset )ierarchical, functional, pyramid structure %raditional + !ommand and !ontrol

    Enterprise wide business process management and entire value chain %eaming up to add complimentary resources 'nterconnected subsystems, flexible, devolved, employee empowerment, networ ed structure ,ew .usiness Models + 3efocused on people, nowledge and coherence

    WORK FORCE
    #eadership 8or force !haracteristics S ills Education 3equirements Management* Employee 3elations Employment Employees seen as 5ertical Mainly Male4 )igh $roportion of semi*s illed or uns illed Mono*s illed, Standardi-ed / s ill or a Degree !onfrontation Stable Expense Shared + Employee Empowerment and Self*#eadership ,o gender bias4 )igh proportion of graduates Multi*s illed, "lexible !ontinuous #earning !ooperation, %eam wor /ffected by Mar et 0pportunity 93is "actors 'nvestment

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