From The New Capitalist Manifesto by Umair Haque
Alfred Chandler - managerial capitalism
Hyman Minsky - financial capitalism
Joseph Schumpter - entrepreneurial capitalism
Dumb growth = locally, globally, economically unsustainable
Value Chains = means of production
Value Proposition = means of positioning
Protecting marketplaces = means of advantage
Strategy = means of competition
Fixed goods = means of consumption
Shift costs to/take benefits from people, communities, society, and natural world.
Capitalism undercounts costs, overcounts benefits
Constructive advantage = next level of advantage
Advantage = quality and quantity of profit
Old => New
Value Chain -> Value Cycle
Value proposition -> Value conversions
Strategies -> Philosophies
Protection -> Competition
Good -> betters
Cost advantage => Loss advantage
Brands => responsiveness
Dominance => Resilience
Captivity => Creativity
Differentiate => Difference
Step one: Learn to attain loss advantage. Turn linear value chain into circular value cycle.
Don’t pursue efficiency. Pursue social efficiency.
Take responsibility for full spectrum of costs incurred.
Goal of value cycle: waste nothing, replenish everything.
Add to value chain to make cycle.
Reworking - which outputs should we reuse, recycle, remove faster
Reproduction - what will we reuse, recycle, or remanufacture?
Reverse logistics - how to we reclaim disconnected outputs?
Inbound logistics => operations => outbound logistics => marketing => service
Next generation agility
Old capitalism sought operating agility. How can we switch production fast?
Strategic agility => diversifying when, where, and how we sell
Managerial agility => ability to produce better decisions fast than rivals
Old way = value extraction
Resilience is opposite = capacity to create and thicken value
Expose products and services to competition to get thicker value
Old way = survival of the quickest, make competitors quit
Protection leads to stagnation
Resilience => disrupt yourself instead of protecting yourself
Strategy is about how to get people to buy
Philosophy is about how to get people to want to buy
Companies with philosophies no longer wage war with competitors. They wage peace.
Future of advantage is fair. Resilient companies expose themselves to free and fair exchange.
Creativity is the apase of next-generation productivity
Creativity is not just aesthetic or artistic
Creativity is not a resource but a competence. Culpability woven into the fabric of an organization.
Font of economic creativity is the refusal to accept the boundaries of the possible.
No linear value chain = value cycle
Seek perfection, not protection.
Not all growth is created equal.