Creating value in the “new economy”

Business operates everywhere in an environment that is both dynamic and challenging: markets have globalised (supply markets and customer markets); technology has become all embracing (this includes product and process technology) and relationships with suppliers, customers and competitors are undergoing constant change (often influenced by external forces such as technology). A new business model is emerging, one in which competitive advantage is based upon managing processes that facilitate rapid and flexible responses to ‘market’ change and one in which new capabilities are based upon developing unique relationships with partners (suppliers, customers, employees, shareholders, government and, often, with competitors), an understanding of, and the ability to use and to manage the new technology and to understand the impact of knowledge creation and its distribution.