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  • New Technology, Social Innovation, and Economic Development

    We spend a lot of time here at The Watch looking for analysis of the latest innovations in digital media and how they are changing the way people do business in the world today. And much of that is focused on business in the developed world. But it is important to also recognize that digital innovation can make even more of an impact in the developing world. London Business School professor Kamalini Ramdas addresses the power of social innovation on business and life in Bangladesh in this Wall Street Journal interview:
  • Chris Anderson on the Rising Power of Small Manufacturers

    DIY--Do It Yourself--long the domain of the craft and hobby world, is now breaking through to be a meaningful part of the larger business world. Wired Magazine Editor Chris Anderson , who marked important shifts in the new economy in his books The Long Tail and Free , has an extensive cover story in the January edition of his magazine titled In the Next Industrial Revolution, Atoms Are the New Bits . In it, he profiles some interesting new businesses that are able to bring out bold new products without having to build much significant infrastructure (like factories). Instead, they utilize digital tools and even some crowd sourcing to design products and efficiently connect with places that can build parts. As a result, according to Anderson, entrepreneurs and small businesses now have access to the same manufacturing capacity as do the largest corporations in the world. Anderson uses his own company, DIY Drones, as an example of how manufacturing can be "democratized" to allow the little guys to succeed. He explains how it works in this video: A model like this may just help US manufacturing matter in the coming years. Anderson writes: Although it’s shrinking, America’s manufacturing economy is still the world’s largest. But China’s growing production sector is predicted to take the number one spot in 2015, according to IHS Global Insight, an economic-forecasting firm. Not all US manufacturing is shrinking, however — just the large part. A Pease Group survey of small manufacturers (less than $25 million in annual sales) shows that most expect to grow this year, many by double digits. Indeed, analysts expect almost all new manufacturing jobs in the US will come from small companies. Ones just like ours. How big can these small enterprises get? Most of the companies I’ve described sell thousands of units — 10,000 is considered a breakout success. But one that has graduated to the big leagues is Aliph , which makes the Jawbone noise-canceling wireless headsets. Aliph was founded in 1999 by two Stanford graduates, Alex Asseily and Hosain Rahman, and it now sells millions of headsets each year. But it has no factories. It outsources all of its production. And though more than a thousand people help to create Jawbone headsets, Aliph has just over 80 employees. Everyone else works for its production partners. It’s the ultimate virtual manufacturing company: Aliph makes bits and its partners make atoms, and together they can take on Sony. Read the full article here .
  • Visualization: the Shifting Media Landscape and Consumer Behavior

    The Economist held a Media Convergence Forum in October to explore the changing relationship between consumers and commerce in the digital age. Here's how the organizers described the purpose of the forum on their website: The surge of new technologies and social media innovations in today's environment is significantly altering the future media landscape for marketers. Consumer behaviour is changing and the way marketers reach their audience must also change. Marketers are searching for new ways to not only reach their customers, but to understand them, to peer inside their minds. As the level of consumer understanding increases, so can the knowledge of how best to reach them. However the plethora of tools at a marketers disposal is not easy to navigate and real learning comes from a real understanding of the future of media convergence. Interesting and compelling, to be sure. But they also had Karl Fisch, Scott McLeod, and Jeff Brenman put together a video/data visualization of the changing landscape, and it really captures your attention. Titled Did You Know 4.0: The Media Landscape , it presents, in less than 5 minutes, the current shifts in how consumers and businesses are interacting through digital media. And while much of the focus is on news media and advertising, the core issues connect to just about all facets of commerce in the digital age: (Hat tip to Chelsey Hoffman, University of Michigan)