A Brave New Interconnected World

The New Economy isn’t about technology per se; it’s about the intelligent use of technology in today’s intertwined global marketplace. Imagination, intellectual property, innovation, intangibles, ideas--these are the things that will drive the future of business.

But what exactly do we mean by the New Economy? Wired magazine described it well in 1998 when they cited these factors:

Intelligent use of technology: It isn’t the cpu’s that matter; it’s the way they’re implemented. Supply chain logistics and just-in-time delivery mean more productivity throughout the supply chain. RFID chips allow for the automatic tracking of supplies and inventory. The intelligent application of these technologies can drive productivity gains throughout the economy.

Globalism: While not everyone on the planet is a wealthy consumer, there are 5 billion plus people on earth, the bulk of which are looking to improve their lifestyle. Businesses that understand how to embrace these consumers, and the resources they represent as producers, have an edge in the global economy.

Innovation and Strategic Vision: When firms consistently demonstrate innovation and vision they flourish. One company is able to increase exponentially the value of the mp3 player (or the mobile phone) by designing it to an incredibly high standard that dramatically increases the user experience and utility value. Another corporation prospers in a commodity industry with razor-thin profit margins by rethinking what they do and how they do it. True innovation is elusive and difficult but the clear winners in the New Economy will be those who strive for it.

As the world’s markets become more competitive, embracing the issues above will become less commercial innovation and more corporate mandate. For those that understand that it’s not enough to have the latest microprocessor without processing how it can transform the way they do business, the potential returns can be limitless.

Related Funds:  |  Global Innovators Fund