Friday, March 12, 2004 | |
I've spent all afternoon trying to put into words my analysis of the American Outsourcing crisis. I started the afternoon with a really simple little nugget that I felt was at the core of the outsourcing crisis. I took that nugget and tried to beat it out into an impressive sheet of gold but the sheet kept tearing. After a lot of garbled scribbles I decided to take a break. I found this on my News page. It led me on to a Wired article that made me realise, there's no point in my trying to write anything when other people are doing a proper job of it. The Wired article left one question unanswered. Here's an excerpt of the conversation between journalist Daniel Pink and Senator Shirley Turner:
I toss a slur across her desk. I call her a protectionist. Pink seems to be lost for words. Shirley Turner wants to know what lies beyond knowledge economy. I think the real treasure has never been ownership of the farming, factory or knowledge per se; it is the ownership and exploitation of the innovation. Jobs have moved from farming to factories and from factories to knowledge industries because of innovation. Money flows towards a new center of innovation because demand for the new always exceeds supply; the shortage of supply sends the price up; suppliers cash in; knowledge diffuses away from the center of innovation reaching new suppliers; at some point, the supply starts to exceed the demand; the price starts to come down. This is a really, really simple cycle that's affects everything from individual products entire industries. From the 70's yo-yo craze of my childhood, to the global automobile industry, the innovator makes the real bucks before the competition moves in. Everything changes when the supply finally exceeds the demand. Suppliers need to adopt a whole new psychology The smart ones will have been practising continual self-improvement, always looking for early mastery of the next innovation. Those ones that switch off when they leave the office, looking forward to sitting comfortably in front of their TVs for the evening, are going to suffer.
The whole point of the game is, not to own the farms, the factories or the knowledge, but to own the innovation. If you are an innovator, you have the initiative. If you have the initiative, everyone else is playing catchup. |
I came across this blog space meme a few days ago an it's inspired me to put up a picture of my blogging ghetto.
I say ghetto because everyone else's picture looks like it was stolen out of an Ikea catalogue. Key points to note, clockwise from lamp, are:
11:44:28 AM |