The organization that can democratize the global economy

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“The zero marginal cost society” idealizes Jeremy Rifkin organization that can democratize the global economy.

jeremy_rifkin

The well-known sociologist, economist, writer, orator, political advisor and activist Jeremy Rifkin, looked at one of his last books published in 2014 – which he entitled “Society zero marginal cost” – research that for several years has developed on the considerable impact that advances in science and technology they have generated in the economy, the workforce, the environment and society in general. This is one of my favorite authors inspiring and actually just re-read the three books that I have in his house.

Before you begin, it is important to define what the term “zero marginal cost” refers. In itself, the price is the production of additional units of a good or service. In this case, the production of additional units of a well is nonexistent. That does not mean that producing a good or service does not have a value, but that its cost of sales would be zero.

In this theoretical compendium the author introduces us to his theory of the factual action that the marginal price of multiple items will be close to zero, ie that market competition will lead to many products and services to produce free consumer experiences, reflecting the low value produce circumstantial; reason raises a new economic model given the “fall” of the essence of capitalism.

Although Rifkin understands that there are investors and companies that systematically take into account any opportunity to provide solutions to lower, more profitable for them and for those who purchase prices, leaves at a disadvantage in this kind of changing and more mature market, the current leaders market in each sector. Notably, these pioneers are, increasingly losing market share and positioning and making as many efforts to keep all the capital invested in its innovations.

There is skepticism about it, but some examples developed in the book give me what I think about the possibility. And if not, reflect on the use of free software, the need for Whatsapp or power that has worldwide Wikipedia, the amount of Google services we use every day …la_sociedad_de_coste_marginal_cero

But, what is the proposal? Well, taking as its starting point the analysis, the paper explores various ideas of types of organizations that recognize the need for this business model in which the economic value does not serve as a fundamental reasoning given its tendency to invalidity. This opens the way for a historical account. All these points are encompassed in reading under the name of “collaborative commons” and a strategic growth plans in the future of your model. This terminology refers itself to a system of distribution of goods and alternative services to market and government institutions leaving the gap between consumers and producers very confusing, and goods and services begin to be exchanged laterally without intrusion of a market that regulates .

 

Reviews that provide for all

The reader reaction has been mixed, although it is true most sympathy and support their arguments on collective intelligence, collaboration of companies without economic purposes in some areas and ideas that improve the use and applicability of natural resources; It generates rejection in some cases through the fall of capitalism as the core business model, in which all companies are based today.

This theory of mixed organizations, are often frowned upon, since society is used to evaluate only two economic forms: capitalism and socialism. According to the author in “Society zero marginal cost”, this alternative through the “Internet of things” power a necessary change that is occurring organically.

Here you begin to involve the third industrial revolution, as currently seem, based on the work of the economist, the global monetary dynamics – after emerge and impose globalization – is being rewritten. For example, in China the production of certain goods is robotising and thousands of people are losing their jobs because robots are cheaper than the cheapest labor in the world work. It sounds like a movie? Moreover if we think through machine learning and deeplearning machines can learn, and even learn to learn …

Do not you see zero cost yet?

Me too cost me see the top To view the theory Rifkin more easily, and changing economy that is sharing, we can establish a comparison of how people / companies begin to generate movements to cooperate in the exchange or acquisition of cars, housing, clothing and other items through social networks, rental systems, associations and cooperatives redistribution, with an extremely small value or almost nil.

Another example, the number of students – increase – enrolling in massive open online courses and (Massive Open Online Courses, MOOC) and social enterprises to finance other ventures. In this system, it is essential to society, as important as financial capital; in this case free access property loss. Yes now?

The encounter with the theory

The author shows in the early chapters a very interesting historical precedent. Turning to tell how it operated feudal society, also it analyzes the transition from feudal society to capitalist trade and then, among other no less relevant points. The scenario with the greatest impact has been the introduction of 3D printers, where the author focuses much of his thesis.

It also assesses the behavior of today’s society, where privacy is a new concept. That is, social networks and the stories we shared, have much to do with markets that are emerging. Taking as an example basic information – regardless of age – share; which previously occurred and how the virtual social positioning or online has been more valued than even the reality of each.

So I do some questions … how does it impact this model in the innovation strategies of large corporations? Can you allow a large corporation in a mature market keep doing the same and not invest, belittle or underestimate the power of innovation in business models, products and services?

Undoubtedly “Society zero marginal cost” an extremely interesting, insightful book, you need judgment and understanding is, but you can not deny is logical underpinnings of action that can determine the economy coming years.

If you fancy comment, the debate is open.