“Age of collaboration has brought a new set of business principles”

Mass collaboration is changing the way businesses communicate, create value & compete, says Don Tapscott, Canadian business exec & author

e4m by Twishy
Updated: Feb 14, 2013 7:42 PM
“Age of collaboration has brought a new set of business principles”

The dynamic behaviour of consumers is driving change in the economy. The future is not predictable but it is becoming something that can be achieved with greater integration. The world has seen many revolutions and the society has transformed from the days of the agrarian economy to the industrial revolution and finally the digital era, also an age of networked intelligence.

The booming internet has led to the transformation of media and the changing nature of media is leading to a transformation in various aspects of marketing. This has brought us to the age of collaborative participation and co-creation with a new set of business principles. Mass collaboration is changing the way businesses communicate, create value, and compete in the new global environment. The new model of economic and social innovation is helping in getting a more involved and sustainable business. The world has come to a turning point and business models have to be rebooted to address the changing needs of the connected consumer, which can only be done through collaborative innovations.

Speaking at the launch of The CMO League, an exchange4media initiative, Don Tapscott, Canadian business executive, author, consultant and speaker, specialising in business strategy, said the driver of change is the technological revolution bringing broadband mobility, geospatility and true multimedia in the business environment.

The other driver of change is the demographic revolution, where people are growing up with digital. It is the rise of the internet generation that utilises the power of staying connected and engaged. The young generation is tweeting, liking or disliking a brand or talking about it to other groups. Right from paying bills to booking tickets of a blockbuster sitting at home and owning the latest fashion trend, the youth uses digital to fulfill every possible need.

Engagement is getting critical and digital is the new medium through which society is connecting and communicating. He shared that India is a young country as compared to other emerging economies and it can become powerful with increasing access to communication needs.

The next big change is the social revolution that has infused learning, exploring and sharing. The time spent on social media platforms by the youth is increasing day by day with access to communication facilities. The power of social media has led to some of the greatest movements like the Arab Spring. As technology is becoming more widespread, social media has become a platform to engage, decide, think and create a dialogue in the society. The internet generation norms, according to him, include freedom, customisation, scrutiny, integrity, collaboration, entertainment, speed and innovation.

Tapscott stated that in the changing paradigm, it is important to understand the economics of collaboration that will help business survive in the connected times. He also unveiled the five principles of innovation, wealth and sustainability namely collaboration, openness, sharing, interdependence and integrity.

According to him, the 4Ps of marketing that includes product, place, pricing and promotion are no longer relevant in the changing landscape. The product has transformed to consumer experience that drives engagement. Through customisation, commodities convert into goods, services and experience that leads to the transformation.

The place has changed to ‘any place’ because the new-age consumer has started making buying decisions from any place that is comfortable to his requirements. Some brands have introduced the concept of virtual stores and the customers can shop by clicking a picture and the get the product delivered with the help of QR code.

The pricing element has converted to discovery mechanism of price and the promotion has molded to engagement. There have been instances when the customers have been asked to participate and co-create designs for themselves. Engagement has become the most critical element in driving a successful business model. According to Tapscott, another element that has been added to marketing is the brand itself. The brand comes in many ways as a relationship integrating better values and experiences. He felt that the architecture of a brand is integral. Hence, the new practice of marketing is no longer the 4Ps but the ABCDEs of marketing.

Tapscott said that a paradigm shift involves dislocation, conflict, confusion and uncertainty. New paradigms are nearly always received with coolness, even mockery or hostility. Those with vested interest, fight the change. The shift demands such a different view of things that established leaders are often last to be won over, if at all.

According to him, in order to become successful, a marketing professional has to formulate business strategies that are relevant to the times and strive towards increasing values, services, experience, engagement and feedback.

The CMO League is a first-of-its-kind exclusive club for marketers. It was launched in the Capital yesterday.

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