The new economic paradigm

"whilst dinosaurs are preoccupied with getting bigger only to delay extinction… The new economic paradigm favours 'nimble' enterprises to take over"…

The new economic paradigm has been in the making since the early 1980's… the impact on the pace and nature of business development and values is relentless because of the:

• phenomenon of consumer "empowerment", shortened supply chains and mass customisation of products/services, hence shift of emphasis from physical assets to intellectual ability.
• continued globalisation of markets and the ensuing rationalisation of many industries, creating significant opportunities in, niche products/services, often ignored by large companies.
• availability of effective outsourced industrial and commercial services; the prominence of core competences and resource sharing through strategic partnerships to create "multi-hooked" customer loyalty facets.
• penetration of technology in business processes, advent of information/communication infrastructure (and outsourced facilities) resulting in lowest ever break even points in business history… allowing "minions" to challenge "dinosaurs".
• Benign macro economic conditions of steady growth, low inflation, low debt costs and a stable political horizon.

What is the effect of this on EMB's…

EMBs can challenge the "dinosaurs" dominance effectively and prosper. Many of the hitherto conventional business development patters are "redundant". EMSs need to embrace new rules…

• Much shorter business cycles require flexible/adaptable corporate strategies, rapid deployment of resources (business expertise, cash, facilities etc) but a low cost base.
• creating shareholder value requires developing maintainable competitive edges possibly through strategic alliance and "hooks" to customers/markets. Hence annual profit generation is not necessarily sufficient.
• realising and enhancing shareholder value requires keen monitoring of progress of EMBs' markets and industry. Specific plans for creating "exits" on a timely basis, and to the right "purchaser", are a must.

EMBs believe that, in this new paradigm, their plight is largely being ignored/overlooked or inadequately served by providers of funds or corporate finance advisers.