“The economy weâ€™re operating in today may have been built to serve corporations, but not many corporations are doing well in the digital environment. Even the apparent winners are actually operating on borrowed time and, perhaps more to the point, borrowed money. Neither digital technology nor the corporation itself is necessarily to blame for the current predicament. What is to blame, rather, is the way the rules of corporatism, written hundreds of years ago, mesh with the rules of digital platforms weâ€™re writing today.”
While per capita labor productivity is steadily improving, the core performance of the corporations themselves has been deteriorating for decades.
Incapable of raising the top line through organic growth, corporations turn to managerial and financial tricks to please shareholders
Technology may be involved with all this, but pointing to digital things as somehow causative is a mistake. Digital processes, applied to the same old tactics, simply exacerbate the same old problems.
The digital landscape does make the bankruptcy of the corporate model all the more apparent. The speed and scale on which this is occurring helps us recognize that we are not in a cyclical downturn as corporations attempt to compensate for the disruptive impact of digital technology. Rather, we are in a structural breakdown, as corporatism â€” enhanced by digital industrial mechanisms â€” runs out of places from which to extract value for growth.
Simply stated, itâ€™s harder to make money by working or creating value when the scales tip too far in favor of investors and shareholders
Digital technology, though, might finally give corporations the autonomy they need to make decisions without us, and even without the bodies they need to execute their choices in the real world. They can be software running software.
theyâ€™re still operating as if they were twentieth-century industrial corporations, only the original corporate code is now being executed by entirely more powerful and rapidly acting digital business plans
digital corporation is optimized to convert cash into share price, money and value into pure capital. Most of the people enabling this have no reason to believe it is harmful to the business landscape, much less to human beings.
This rationale has been enough to keep most thoughtful Silicon Valley entrepreneurs from worrying too hard about the repercussions of their actions
Uber, as weâ€™ve seen, means to be the creative destroyer of the current taxi industry. It bills itself as a way of connecting drivers and passengers. According to this way of thinking, it is primarily a platform and payment system, not a taxi or limousine service.
On the surface, itâ€™s the creative destruction of centralized taxi commissions and bureaucracy. The result, however, is the elimination of independently operating businesses, replacing them with a single platform.
he new businesses of the digital era arenâ€™t stand-alone companies like stores or manufacturers, but, like they say, entire platforms â€” which makes them capable of reconfiguring their whole sectors almost overnight. They arenâ€™t just the operators; they are the environment.
To become an entire environment, however, a platform must win a complete monopoly of its sector.
. Digitizing the corporation simply affords it ever more efficient and compelling ways to extract what remaining value people and places have to offer. Itâ€™s simply running the original and unchallenged corporate program as efficiently as possible, carrying out a thirteenth-century template for converting value into capital
“Companies have long obsessed about customer experience. Rightly so too as the leading companies in their respective fields, tend to also be the ones that enjoy the highest customer satisfaction ratings.
A similar focus is now belatedly being applied to employee experience. This is in part due to increasing recognition of the impact it has on engagement and productivity, but also because of a number of other factors.”