A new value chain is needed

A new value chain is needed

After the first class I (I was not able to post it yesterday) I was pondering on the concepts of the term Sustainability Marketing, that was new to me, even though marketing and sustainability were familiar concepts. The new consumer culture or religion (as mentioned in the class) that has prevailed in the western countries now for 50 yrs, has taken over most of the world by now. I liked the critical view of the class on the matter of consumption and the dark side of marketing, having the aim just to produce more and sell more. In the end it is about who the target of the company is. Is it the shareholders or is it the customer as was brought up in the class.

According to Ahoka’s the winner of Management Innovation price 2012 the business as usual, or value chains created a century ago for whole industries, weren’t adapting fast enough to spread new solutions for new problems or new markets. As we reflected on this pattern, we asked: “At other times in history, entrepreneurs in the context of capitalism had innovated breathtaking changes that, when their value was evident for business and consumers, grew to become a new reality. Why wasn’t that happening now? What was preventing the disruptive innovations of social entrepreneurs from being embraced by mainstream businesses and growing to scale?”

Why wasn’t capitalism innovating successfully? The root cause is a fundamental breakdown of how society and businesses are structured, a change that in our generation is accelerating exponentially. For millennia, the world operated under an archetype of hierarchy, power in the hands of a few who made the rules and enforced them. Henry Ford’s assembly line production system was a then-modern restatement of this same paradigm. While game-changing in its time, it no longer serves ours. Unprecedented access to knowledge, science, technology, information and instant communication open people’s minds to new possibilities and speed the rate of change around the globe as never before.

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