The discovery of new lands has historically opened avenues for wealth creation. Today, similar prospects are emerging from an "invisible continent," which is more than the Internet and encompasses four key dimensions. These dimensions are interconnected and must be considered alongside traditional economic principles for enduring success in this realm. While the tangible aspects of life will persist and evolve, their growth will be outpaced by the expansion of the other three dimensions. To thrive in this intangible continent, one must not only understand but also adeptly navigate each dimension's unique rules and success strategies. Leaders in business and government risk missing out on the potential wealth of this continent if they overlook its significance.
In the last decade and a half, the global economy has undergone a significant transformation, ushering in a new era with distinct rules and dimensions. The primary challenge for businesses in the 21st century is to effectively merge the traditional economy with this emerging one, ensuring the advantages of both are preserved. Consumers may not always be aware, but they engage daily with this 'invisible continent' when they purchase local goods, services, or products assembled from components sourced globally to minimize costs. The Internet, a vast network of information, often aids in their purchasing decisions, and it's also where they invest in companies that promise future profitability. This invisible continent is defined by four key dimensions. The 'Visible Dimension' refers to traditional economic activities, which see increased demand due to activities in other dimensions. The 'Borderless Dimension' highlights consumer preference for quality goods at competitive prices, prompting companies to source materials globally. The 'Cyber Dimension' is the Internet, a fusion of computing and communication technologies that deliver services worldwide instantly. Lastly, the 'Dimension of High Multiples' represents the market's confidence in companies venturing into new territories, reflected in their borrowing capacity and equity valuations based on future earnings. Strategically, businesses must recognize that the old and new economies operate under different principles. The invisible continent allows for the free movement of information, diminishing corporate control over markets and empowering consumers. Entry barriers are virtually non-existent, inviting anyone willing to adopt a new mindset. This new economy is egalitarian, valuing individual contributions and rewarding different skill sets than those traditionally celebrated. Kenichi Ohmae suggests that this new continent, devoid of physical land, is akin to a new world discovered, altering perceptions of wealth and human endeavor. Businesspeople see this as an opportunity to secure valuable territory, akin to staking a claim in a future Hollywood or Miami. Even established companies like General Electric and IBM must venture into this new world to grow, as staying in the old world limits them to cost-cutting and downsizing. The new American economy's influencers and Wall Street's architects began their ventures about fifteen years ago. These companies, reminiscent of Godzilla in their rapid growth and unconventional strategies, had no historical precedent. Some individuals and organizations naturally adapted, not necessarily out of love for technology but due to an affinity for the new continent's lifestyle.
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