OAG NEPAL

If you’re in business and you’ve been hearing a lot about “the New Economy” and still aren’t sure exactly what it is, you need to know. The New Economy applies to everything from basic office work to comprehensive car insurance and multiple revenue streams. This is the real future of business and society, and it’s already ripping holes in the old employment and business paradigms on a daily basis.

Basic New Economy principles

The principles are as important as the practices of the New Economy:

The New Economy workplace isn’t static. Quite the opposite, it’s a fluid as possible, because business needs vary. A New Economy business doesn’t necessarily exist as a “bricks and mortar” business. It’s more likely to be a network of people operating together in a loose or tight arrangement depending on business circumstances and needs.

New Economy businesses are basically business units, and they’re quite specifically not big organizations. They’ll outsource anything including answering the phone on contract to keep costs low. This saves a fortune in payroll and other overheads. Communications is the key to the New Economy. Everything is done electronically as far as possible, and the result is a highly efficient and infinitely cheaper range of working business models.

The workforce in the New Economy are now professional contractors. They’re not “employees” in the old sense of the word, nor do they want to be. This is both a cost and quality control, contracting highly motivated professional service suppliers that are themselves operating as New Economy businesses. These contracts are also excellent value for the contractors, who can themselves generate multiple income streams.

New Economy businesses can be extremely flexible and adaptable in their business operations specifically because of their ability to access high value services. A small business unit can pitch for major contracts, and cost them to the cent, on this basis, having its own costs locked in. Any New Economy business can in effect act like a project, assembling itself in whatever form is required by the contracts. Many New Economy businesses can operate multi-stream operations in this way.

Analysis and comparison

New Economy business models have a common denominator: High survivability. The low overheads and strict cost controls means they’re far less vulnerable to the sort of battering by costs that conventional businesses suffer. Unless a New Economy business makes a serious mistake with financial commitments, they’re un-killable. Unlike a typical conventional business, they’re low-risk operations by definition.

The New Economy businesses have the same market reach as the old corporate giants. They can develop products in the US, order the manufactured goods from China, get their IT from India, and sell direct to the world. They can also do without multi-billion dollar old-style supply chains. All a New Economy business needs is a phone and a competent person using it.

The finance and related industries are being blitzed by New Economy business models. They’re infinitely more in tune regarding the needs of the big new customer base for these markets- You guessed it, the new customers are other New Economy businesses, looking for finance and risk management options. These businesses source their car insurance from Australia and their investment managers from New York in a few clicks.

The old economy isn’t just dead- It’s already being buried.