The Internet of Things. Entire industries are facing upheaval. The balance of power between entrepreneurial challengers and the incumbents they seek to defeat is changing. Digital technologies have lowered barriers to entry, increased the bargaining power of the consumer, made new business ecosystems necessary, and thrown established industry rivalries into flux.
Less appreciated but no less important is how much new technologies are changing traditionally accepted strategic management models. Companies are internally struggling to build capabilities in order to compete. Could there be another competitive force evolving within an organization that leverages the business ecosystem to tip the scales completely for new entrants?
What of new entrants into traditional markets, companies like Uber, Tesla, and Airbnb? Repository Staff Only: item control page. University of Twente Student Theses. Within the last decades, the model has attracted some criticism because of the developing Internet economy. Moreover the last decades have shown that Information Technology became more and more important.
Instead, customized products and experiences can be for everybody, at least some of the time. How will the smartest, nimblest companies move away from less-profitable generics and into more-profitable distinct goods and services? By using the rules of the social era. What are the ingredients of a healthy, inclusive society—one that offers its citizens opportunity, happiness, and a positive quality of life?
Porter, models of human development based on economic growth alone are incomplete; nations that thrive provide personal rights, nutrition and basic medical care, ecosystem sustainability, and access to advanced education, among other goods—and it is possible to measure progress toward providing these social benefits.
Are the building blocks in place for individuals and communities to enhance and sustain well-being? Is there opportunity for all individuals to reach their full potential?
The nation ranks thirtieth in personal safety, forty-fifth in access to basic knowledge, sixty-eighth on health and wellness, and seventy-fourth in ecosystem sustainability. About 20 or 30 years ago, for reasons Porter says he cannot completely explain, the rate of progress in America began to slow down. As a society, he points out, Americans slowly became more divided, and important priorities such as healthcare, education, and politics suffered.
For example, the country achieved a 61 percent reduction in child mortality in a single decade, and today, primary-school enrollment stands at 95 percent. Rwanda also ranks high for gender equity, as women constitute a majority of the parliament—partly he says, because a lot of men were killed, but also because the country set out to be a place where women are not just equals, but leaders.
The goal now is to get the United States to use their tool at the state and city level to assess local performance, and then set priorities for improvement. In terms of progress for the average citizen, Porter warns, the United States is more threatened now, globally and economically, than it has been in generations.
This phenomenon, he argues, reflects a legacy of anti-progressive politics, as well as bad economic policy. Yet the Social Progress Index, Porter hopes, could prove to be a useful tool that will propel the business world in the right direction.
He is currently working with leaders on the national level in several countries, including Brazil, Colombia, and Paraguay, where the SPI is a core element of their national development plan. Is Porter still interesting, relevant and important today? Not because of his old thinking — the competitive strategy, the five forces — but because of the way he has reinvented himself, or better, seen a higher purpose.
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