Recent events in Europe have created turmoil in EU politics as populism has trumped old style party politics. The same could be said for America where Trump's emergence has ended the series of ever blander presidents being elected not on any particular inspirational message, but a war of personality based attrition. Political commentators and party traditionalists have condemned this as "dumbing down" whilst failing to admit that this is a natural expression of democracy by people who are fed up with leaders who don't stand for anything (except political power for its own sake) and don't address their real needs.
So what does this have to do with a digital blog? well it's just that social media has had a lot to do with it, Opinions, information, propaganda and "false news" have flown freely, and the people have spoken. Though, even now, the career politicians in Europe and America are refusing to understand the message.
Successful digital businesses, however, should understand. The way in which they conduct business, their ethical principles and even the way in which they treat their people affect their long term survival and thrival, as a digital business model makes it many times more easy to attract new customers but also so much more easy to lose them. Retention rates are many times lower in the digital world, once a business loses its reputation. The agility necessary to enable continuous innovation also relies on an internally collaborative culture, which can only be built in an atmosphere of trust.
This leads me to ponder on the future nature of capitalism. Its history could be divided into a number of generations:
I - Feudal - characteristic of traditional kingdoms and empires, where trade was dependent upon the rights granted by rulers and the exchange of cash (gold, silver etc.). Capitalism is fundamentally based upon the shortage of resources.
II - Banking - characteristic of the emergence of international banking with Lombardian Jewelers in England, The Knights Templar across Europe and medieval jewish money men are often portrayed as typical sterotypes of this era, although Italians also invented modern accountancy to ensure probity of books and other networks evolved in deifferent parts of the world. Paper money and bills of exchange, formation of limited liability companies and early forms of future's trading encouraged investment, credit and risk taking which stimulated commerce and drove the need for more people to be educated as an enabler for commerce.
III - Unfettered Greed - driven by agricultural and industrial revolutions as well as post enlightenment science, the Georgian and Victorian eras saw massive growth in the world economy, accompanied by exploitative labour and employment conditions, as well as the emergence of a familiar regular cycle of economic boom and bust. During this period Adam Smith invented economics and the concept of the invisible hand of the market, Karl Marx predicted the eventual evolution of an egalitarian style of communist society and the death of capitalism, and at the same time that many entrepreneurs were tainted with accusations of ruthlessness, corruption and oppression.
IV - Regulation and Globalisation - driven by successive technological revolutions and the social impacts of successive world wars and major regional conflicts, democracy and other forms of social representation over turned many traditional forms of government, whilst surviving governments had to evolve to adapt to new pressures. Money was decoupled from the gold standard to become just information or life's brownie points and regulation was introduced into most markets. At the same time, many "free trade areas" have evolved and electronic money transfer and business trading has facilitated increasingly global operation. Iain Banks, a Sci Fi author, predicted the emergence of a society like "The Culture" in which money has disappeared, AI entities have the same legal status as human beings and live alongside them, and critical resources are assigned for investment according to the governing council's prioritisation of survival and expansion needs, as all other resources are treated as almost infinite due to the capabilities of advanced technology to mine the universe and recycle them. Business Leaders started to recognise that quality and lean principles are more important than managing by just efficiency and volume to meet arbitrary financial targets, and that positive empowerment of employees and customer care improves company performance.
V - Digital - We are now at the beginning of the digital era of capitalism. Cash as coins and notes is increasingly disappearing. In many countries, banks are being sidestepped by exchange of money between electronic wallets. Digital business models unfetter innovation and encourage a focus on customer experience, whilst design thinking replaces functional thinking in product design to focus on customer needs and emotional attachment to products. The business of the future has to be ethical, nurture its employees, build an innovative and collaborative culture, anticipate future regulation and build capabilities to accommodate it into its products, and to continuously adapt. There are some questions about what happens with money. will crypto currencies replace money for some or all transactions. Will companies have to track and report "customer mentions" in social media as part of their regulatory accounting and reporting? as there will be a linkage between positive awareness and sales, and therefore value. Have companies now become at the mercy of customers and the general populace at large? Are we knocking at the limits of the current system if society cannot expand beyond the confines of a single planet with significant sustainability issues? Will there be a fork in capitalism? some companies do things which are not that subject to consumer or customer pressure; these companies could become the dumping ground for old style antediluvian management practices. To date Capitalism has been based on the assumption that money and resources are scarce. The future of Capitalism will be a hybrid of hybrid of resource restricted products and information products which are unrestricted and have very low marginal costs.
So this just leads to speculation about what happens between Generation V of capitalism and the Banksian projection of a Post Marxian view of the evolution of society and capitalism. Getting off the planet and colonising the solar system with current technology is extremely resource heavy and expensive. Either a new form of economics and treatment of money is needed to make this feasible or we face the risk of colonists being treated almost like bondsmen or slaves due to the high debts which would be incurred in sending them off planet. As this could be linked to future sustainability of Earth's population, Some imagination may be needed.