Posts Tagged ‘economy’

True Capitalism

By admin on October 8, 2010 | Category: Blog | Tags: , , , | No Comments

The unemployment rate is at record high not just in the UK and US but in most western countries. Despite being nearly 2 years since the recession was first diagnosed,  people are still being laid off even those with substantial amount of  industry experience and contacts.

This recession has affected people in every sector, age group, and background, making this recession as crippling as the ‘Great Depression’. The figures being reported in the US are grim with more unemployment yet to come and many people in their 50′s not being able to ever find work again.  Some may see this as  complete doom, however we see it as the shake-up we all needed to analyze value, fairness, and what capitalism actually really means.

We have written before about The New Economy and how we all need to gain back control over our own economy. Now we want to define our own interpretation of capitalism.

Capitalism has always had a scourge-esque connotation, you can imagine a greedy oligarch sitting on a opulent chair greening its teeth at all his wealth, whilst the rest of us sit at his feet.  However, this was never the intention of capitalism, it was originally set-up to offer economic freedom to all. As it is stated by definition capitalism is ‘when investments are made by private actors in the market rather than by a central government’ . ‘Government’ essentially can mean the government itself of the monolithic companies that in the past 70 years have acted in a totalitarian and governing manner. Why would we want this way of capitalism to continue?

We believe that capitalism is the social responsibility of providing services and products to peers for the creation of economy. This isn’t greed or avarice, simply the process of creating an independent flow of economy that can be of benefit to all.

How To Create True Capitalism?

Being an entrepreneur does not mean that you have to make millions or take damaging risks.  You can be a entrepreneur that creates a business, which generates an immediate salary. True capitalism as about independence, so one more person that is creating their own economy is one more person contributing to other businesses and creating economic flow.  The money has not gone away, its   just stagnated and we need to create sustainable enterprises, which will begin to spend again and provide the platform for other businesses.

Coworking spaces are a great breeding ground for true capitalism, you see the members at THECUBE London, exchanging services, generating connections, all whilst maintaining their economic independence. The entrepreneurs in the space may not be the next Donald Trump, however they are contributing to each other’s economy and taking positive steps into creating sustainable and strong businesses. We view coworking spaces as microcosms of a new economic structure, the businesses are acting fairly, setting great value, and providing a new moral code for  business exchange. This isn’t utopia, but we see a fair exchange of business and people collaborating to create a more independence future.

We have a long way to go, but taking small, tangible, and lean steps towards enterprise will begin to generate new streams of money, create independence, fairness, and true capitalism.

How Coworking Spaces Will Help Shape The New Economy

By admin on August 27, 2010 | Category: Blog | Tags: , , | 1 Comment

Idea Engineering  Agency has put together four visions of how coworking spaces will help shape the economy:

THECUBE has created a process to make innovation leaner, faster, and effective for its members. People will be coming to coworking spaces with a lot of questions and we should be prepared to provide answers. With the creation of our Idea Engineering Agency, we are giving our members a leading edge against their competitors. Coworking spaces should be experimenting with processes of innovation and help create enterprises that are quickly sustainable in order to help create faster economy. It will be incredible to look back in five years and see how many jobs were created due to coworking innovation.

Coworking spaces have the ability to create a voice in their respective entrepreneurial communites and as such can begin to support the needs and wants of entrepreneurs beyond the space. We can act like a magnet to attract what would be unattainable resources for our members, like investment firms, sponsorships, and external partnerships. Being a voice and a guide for enterprise will move things faster and help influence change.

Coworking spaces bring together people of different thought processes, experiences, and talents. The interaction between people of such diverse backgrounds makes our spaces a breeding ground for strong idea communities, which will then lead to the creation of new sectors and industries. As we discussed in our article How To Build Economy, new sectors will help build a stronger economy as they will use the intelligence of people in new ways and create better jobs. Coworking spaces provide a faster economy for start-up businesses. One of the most important ingredients in building an economically sustainable business is contacts and community. We are creating tribes of people who are helping each other connect faster.

Not all cities are ready for a coworking space. Many cities have a general population who still feel that the only way to earn is by employment. With a changed attitude and fresher perspective, coworking can help such cities change this philosophy and teach the local community to become innovative. People dont need to be dependent on companies to employ them to make a living.

The 21st Century Mom & Pop

By admin on August 19, 2010 | Category: Blog | Tags: , , , , | 5 Comments

Strap in Ladies and Gentleman. This might be a long one. I’ll try to keep it straight-forward…

If it wasn’t for Detroit’s unique position to capitalize on its characteristics that are unlike any typical western city, I would not feel as driven to work here. Detroit has the potential to become a representational city of how to revitalize urban communities in the 21st century. The decline of major manufacturing is turning our cities into ghost towns (Detroit isn’t the only one- look at all major industrial cities), and I strongly believe that major commercial retail will be next to go. Yep- it might be decades before we really notice the difference, but something is shifting. Everything I read, hear, study, and analyze is based on the main principle that consumerism as we know is changing. People are beginning to realize the destructiveness of a linear production system on our planet and many just simply cannot afford the mass consumption lifestyle that was once a reality for many of us.

The Story of Stuff does a great job of explaining why a mass consumption lifestyle became the norm over the last 50 years, and exploits what the true cost is of a linear production system. If you haven’t seen the video or explored the website yet, you can find it here.

We are just beginning to see patterns emerge that point to a shrinking consumer culture. The entire conversation about shrinking cities, growing food/the local movement, and certainly everything presented in James Howard Kunstler’s work, suggests that people are seriously interested in recreating a time of village-like community oriented living. Cities in the 21st century and beyond will need to reflect this. I don’t think we’re going to see too many luxury skyscraper condominiums going up anymore (look at the Chicago Spire- the budget for that monstronsity dried up post fall 2008 by no coincidence… and the site is still sitting empty today.)

I think that attracting large mainstream retailers to downtown Detroit will offer little value and long-term consequences. In order to arrive into the 21st century mindset on time, we need to be proactive, not reactive. Detroit needs to show the world that it is thinking ahead, not simply copying the progressive actions of others who were innovating decades beforehand.

In a sense we’re lucky, because we won’t need to experience the undoing that cities like Chicago and New York are going to go through, eventually. I see no reason why those cities won’t go through a similar decline, although perhaps not as severe. But, their response is going to need to be the same as Detroit’s.

Consider the pop-up shop trend, which is huge in London. Even a big brand like Doc Martens opted for a pop-up shop in Spitalfields Market ,rather than committing to a permanent retail space in the area. The real question to be argued here is: Is this kind of decision the effect of the present recession or is there a gradual yet permanent shift occurring? (I welcome your comments!)

So what is the solution? Well, have you noticed all of the local, independently-owned retail shops popping up? What if we did more to empower would-be retailers to set up shop, and simply narrow the scope of retail in general, making way for more civically minded activities and areas like parks, farms, festivals, and education/entertainment centers. These things are going to be huge players in every city in the decades to come. Retail will thrive in temporary pop-up shops, festivals, and semi-permanent/part-time channels like space at market stalls or downtown street kiosks.

I mean frankly, do any of us really need to go shopping at a 50,000 square foot warehouse in the middle of a concrete jungle on top of what used to be a wetland?

It’s going to take more work, but our quality of life will be more rewarding, if we learn to be more community-centric in our consuming. And I strongly believe that it will benefit Detroit and other cities far better than whoring ourselves out to any unethical and un-community oriented chain stores. To be fair, they would of course be welcome if they adopt their own businesses to meet the changing urban needs of these times. But that’s going to mean a major overhaul of many very bureaucratic organizations, and aspiring would-be retailers/creative enterprises are going to be able to respond faster, with a lot help (money) from their friends and family, etc.

A sales tax holiday for 10 years would fit in brilliantly with all of this, without needing any help from companies like Gap (who of course also own Old Navy, Banana Republic and Bath & Body Works, etc.) If the city government could work to make this happen along with easing the process of setting up new business in the city, then we’ll have even more Leopold’s Books and “Good Girls” type businesses, both locally-owned and independently created. There’s momentum with these types of businesses and they shouldn’t be overlooked. Adding typical chain retailers to Detroit will not make anyone care more about Detroit. To the contrary, The reason why most Detroiters care so much about the city is because of their fellow new business owners and the friendly community they’re creating. Not to mention the fact that a place like The Gap will cause any fashion retailer in the city to have to complete with outrageously unrealistic margins and won’t be able to afford to maintain their businesses if they try to compete. And cheap, homogenized, bland retail is not going to create the kind of environment that will attract a vibrant culture of residents.

If there was ever a time and place in history to fully get behind independent and small businesses, this would be it and Detroit would be the place. Let’s not miss this opportunity to decrease retail/consumer mediocrity. The new mainstream consumer is beginning to demand ethical/responsibly sourced merchandise for a fair price and with a unique quality. Hey, rather than attracting the nearby suburban shoppers, why don’t we position Detroit as the most unique shopping city in the country and attract interested parties from all over? It’s a bold idea, but one completely worth exploring before we fall back on the bland, boring, not to mention often unethical big brands that have already ruined other cities’ characters (and I’ll say one more time that Detroit’s character is the only thing that it has going for itself and the only thing that keeps people like us interested!)

My favorite author on the subject of creative city initiatives, Charles Landry, offers the following perspective in his book The Creative City:

Shopping centres are usually formulaic, lack local distinctiveness, have no real public space.They rarely retain natural features; the mix of shops is predictable; opportunities are rarely taken to integrate public buildings such as an arts centre or a library. Distinctiveness is key, for although cities draw on each other, the danger is that pioneering cities around the world quickly become textbook case studies for city officials. Cities then tend to adopt generic models of success without taking into account the local characteristics and conditions that contributed to those successes. The result is a homegenous pastiche of building- aquariums, convention centres, museums, shops, and restaurants- that prove to be remarkably similar the world over. If you replaced one city name by another you would not know the difference.

Promoting local distinctiveness can be difficult. In Liverpool, people appreciated the character of the place, its creativity and rebelliousness while outsiders liked that eccentricity in a framework of security: city marketers emphasized either one or the other. The city marketing task is to show that, under the surface, the city is diverse and vibrant, but that is not immediately readable or dramatic. Tourism promotion can damage what makes a city attractive by pushing out local identity. Peter Hall’s analysis of innovative cities shows how outsider cities cut off from the mainstream are often the most innovative- Los Angeles, Memphis or Detroit, Glasgow or Manchester at different periods of their lives.

The workings of capital produce tension between reducing cost and increasing value and quality. This assessment shapes the built environment where there is a constant temptation to focus on short-term profits by reducing quality rather than generating longer-term value. This requires doing ‘context evaluations’ of real cost and benefits going beyond the project itself.

In other words, suburbanites traveling downtown just to snag a deal at The Gap will not create a sense of PLACE, which is the real value of any town or city, and is most certainly the concept that Detroit needs to make No. 1 priority.

As far as general consumer behavior goes, we need to change our collective mindset. Some major retailers are beginning to respond to the demand for organic, local, etc. This is a trend that shouldn’t be ignored. We need to focus on rewiring consumer behavior in the same way that we need to encourage people to take climate change seriously. It’s coming, but it will take a while. However, we can get Detroit ready now, and we can create a PLACE where forward-thinking individuals flourish and set a good example.

Another option is this. Let’s create a massive local movement, and force the major retailers to respond. If I have a choice between Gap and something unique from a Detroit boutique, I’ll go with the boutique simply based on its unique offering even if it costs 2x as much. But what could really work here is some cooperative solutions between local makers (hello, CCS wonder designers) and the chain stores. If anyone still feels like we absolutely must have a Gap, what if it was a conceptual Gap that stocked some regular Gap products but also promoted the work of local designers through competitions and design briefs? Kind of like how H&M commissions people like Stella McCartney to design a line, but in reverse by commissioning common folk (emerging Detroit designers) in a competition format, and if they win then they get their designs produced and sold at the downtown Detroit Gap and a percentage of the proceeds goes into a fund for them to start their own Detroit-based brand or open a boutique (depending on their aspirations… design or merchandising, or both.) That would solve the problem of having to find companies with the money to set up shop in that downtown stretch of Woodward yet could simultaneously promote local makers and create some place identity along with meeting the needs of both the average joe Gap shopper and the forward-thinkers I’m certain Detroit will be full of in time.

However, I see that as a last resort. Granted we can’t control who decides to take advantage of that space, but we can look for ways of securing the opportunities for more authentic businesses.

What if there was a Spitalfields Market type model in that stretch of Woodward? If you’re not entirely familiar, Spitalfields (massive shopping centre in East London), features a mixed-format retail opportunity for essentially any brand big or small. There are large chain restaurants (Wagamama, Giraffe, etc.), mixed in with market stalls in the centre (low barrier to entry), temporary pop-up space, (low-to-mid barrier to entry- good for prototyping), and then high-end boutique space (the $200 dress kind of boutique.) It works because there is literally something for everyone. Even with food, there is the small “come get these cookies I just baked” kiosks set up next to the massive chain-style eateries. Something like this could support an Eastern Market annex and an amalgam of different types of retail.

Another thought I just had is if we could magically discourage the cliche suburb chains like Gap and attract the higher quality yet still affordable and popular retailers that other cities have but aren’t otherwise available in Michigan. If we could attract TopShop, for example, to set up in Detroit instead of Somerset, then every bubble-gum chomping suburban teenager and 20-something female would make at least one patronage to get their signature Kate Moss inspired wares.

Here’s another suggestion from Charles Landry:

The cliche ‘if it ain’t broke don’t fix it’ may have some truth, but it does more harm than good in modern cities. Where issues are addressed only reactively they are already problems if not crises, and responses are defined by the problems themselves, so we are forced to deal with yesterday’s problem not tomorrow’s opportunity. The pace of urban change demands that policy makers be forward-looking, proactive, and address issues which are not yet problematic. Trends need monitoring accurately to detect little changes that may become significant in the future.

Detroit is, will be, and should be, a niche city. We’re not trying to create another Chicago or another Manhattan (right?) I think you can absolutely ‘just have niche stores’ in Detroit. I don’t see how destination stores (um, Pottery Barn? Sick of talking about the Gap) will drive anymore shoppers downtown then the niche shops will. Quite the contrary, people will shop downtown in boutiques anywhere- to get things they can’t get at the mall.

Enter the 21st Century Mom & Pop: local, independently-owned retailers with a conscience towards community/social responsibility, and a creative/innovative product offering. Whether you see it as us returning to an older tradition or creating a new phenomenon, it’s these types of businesses that give a city its sense of place.

Written by Bethany Betzler

bethany@ideaengineeringagency.com



How to Build Economy

By admin on August 13, 2010 | Category: Blog | Tags: , , , , , , | 1 Comment

Not since Teddy Roosevelt’s presidency has America had to look at itself as a business collective. The entire country has to find its role in the economic recovery process. Individuals, towns, cities, and states need to create enterprise programs that will lead to new economy and job creation. The results have to be long lasting, forward thinking and innovative – no looking back.

It is not just America of course, the UK, China, Japan, Brazil,and India are all fighting to create better and stronger economies. Every single entrepreneur has the responsibility to at least weigh the economic value and strength of their company. Will it create jobs? Will it help their community? Is the company testing out a new market or industry? Is it supporting other entrepreneurs? Is it original and do we need it now?
The argument has been posed by Intel’s CEO, Andy Grove that we need manufacturing not enterprise. This statement comes from his growing frustration with the unemployment figures of Silicon Valley (it is higher than the national 9.7% average). The statement has been received with a ravenous rapture from people desperately clinging on to the past and afraid to embrace something new and unknown. Sure, China and India are now leading in manufacturing and it is doing wonders for their middle class, but they are where America was 60 years ago, therefore we need to be looking at the next thing. There is also the question of who will buy what they are manufacturing if leading western economies continue to dwindle. Andy Grove thinks enterprise will not sustain economy, but was is not enterprise that gave us manufacturing in the first place? If we all continue to support innovation and enterprise it will lead to new sectors and industries, ones that will then lead to more employment and economy.
We are not totally discrediting manufacturing, it is true that manufacturing leads to a lot of job creation, however it needs to be a new type of manufacturing one that is sustainable, intelligent,ecologically friendly, and immediate. What Andy Grove suggests will take at least 20 years to implement we cannot expect for a whole new manufacturing sector to rise in a flash, so what do we do now? How do we create jobs now?
Below are our possible solutions and observations;

A. Funded training programs for jobs that require a skill which cannot be duplicated by technology and are needed right now, such as nursing, mechanics, book-keeping, and technicians.

B. Scholarships for students wanting to study engineering, science, and green technology. We have a huge deficit of people with these skills, as most are retiring and we need them to create lasting innovation.

C. Change school system education to inculcate engineering, problem solving, and innovation skills. Our entire psychology needs to change. We need schools to teach people how to be better thinkers in order create leaders.

D. Increase incentives for enterprise. There are cities like Detroit and Glasgow desperately needing new thinkers and creators of grass-roots businesses. These type of cities will give rise to new fruitful industries, because they have no other choice but to create opportunities for themselves. Of course the next layer of enterprise is that it will then create jobs.

E. Stop outsourcing everything and create less expensive alternatives in our own respective country. For example, if a local fashion designer wants to produce a collection lets engineer ways to make factories run more efficiently and cheaper, so he doesn’t have to go abroad. A local wants to distribute their own brand of juice, lets find ways to cut on distribution or create a small, efficient, and flexible factories.

F. Change in the psychology of the ‘America Dream’, our priorities need to change. It is not about owning the the latest products, but putting in hard work at every level to create and support businesses growth.

G. Change the psychology of economy. We all presume that we need employment, but that is technically quit archaic thinking. We need to give graduates and the unemployed skills that will create autonomy, push them to start their business where possible. If you give people skills that provide them with a business that will sustain a family that is better than employment. Employment causes dependency and a lazy psychology that someone else will or should give you an opportunity. There are programs being sponsored for graduates to prepare them for innovation and business, such as INCUBATE8 at THECUBE coworking space in London. In the long run all these new enterprises will create jobs, but right now we need to focus on creating enterprise not employment.

H. Creating new sectors, for example Brazil is trying to turn the traditional economic structure upside down. They want to create a economy that does not destroy the country or its resources. They want to use their own knowledge, technology and resources to create an economy that is sustainable. The Brazilian government has coined their economic goal to be a “environmental superpower”. They currently lead the world in the use of alternative energy. About 50% of the cars in Brazil run on ethanol fuel.

I. In the West we do not need more product, therefore to just create manufacturing for the sake of its not going to help. Who will buy what is being produced? What we need is to create sustainable and intelligent manufacturing that is centered on green technology. There are many emerging sectors within this industry, which will need manufacturing for example, in construction the use of bamboo is becoming more popular in the United States, turning unused farmland into ethanol farms, which is much better for the environment, or solar panel manufacturing. Not only will the manufacturing in these sectors create jobs, but they will be providing products that will be essential to our way of life. If we produce products that people need, there will automatically be a market and thus create lasting economy. We have become used to products satisfying ‘wants’, but ‘wants’ are too fickle and unreliable to create a lasting economic impact.

J. Creating strong start-ups will also ensure that we create a better economy. Vulnerable start-ups that do not last are not good for the entrepreneur, potential employees, or for local businesses as they take away economy instead of creating it. For this reason Idea Engineering was create to act as a metric for which to measure the strength and in consequence the success of an enterprise. More people would feel confident to choose enterprise if risk was reduced.

K. The psychology of pricing must also change. The population must change the way they think about the pricing of products, as western manufacturing will be more expensive due to labour regulations. The solution of course is not to out source, but create a population that can afford the products that are being made nationally. Henry Ford was credited for creating a car that was affordable but he also created a wage that would allow his employees to afford the car.

In the Autumn THECUBE will be starting a THINKTANK to discuss and open up conversations around this topic.

The Change of Economy

By admin on July 22, 2010 | Category: Blog | Tags: , , | No Comments

According to Newton’s Law of Motion, ‘to every action there is always an equal and opposite reaction.’ Idea Engineering is using this law to help explain the pivotal change that is beginning to occur during this time in history. Simply speaking, it means that every action we take has an equal consequence or reaction.

Society has stretched the action of monolithic corporate expansion to its limits and now an equal reaction must occur. There was once a time where the corporation was essential. We needed to provide financial security, and corporate expansion was the only way to create an infrastructure large enough to produce mass goods. Operating a big business costs a lot of money and thus needs a big team to execute its needs. Big corporate structure was born out of the dearth of the Great Depression, WWI, and WWII. Western (and especially U.S.) society craved material abundance and comfort. We wanted luxury homes, big cars, big appliances, and expansive highways; all of which big corporations were able to provide. This was the era of mass production.

Now however, corporations’ significance in society is becoming less prevalent. We no longer need them to provide financial security (nor can they necessarily provide us with this anyway), and we are starting to define our successes in different terms, away from corporate status. We work increasingly in transglobal clusters all over the world, making it harder to sustain corporate appeal. Technology has made enterprise more affordable by creating opportunities for self-starters to communicate their business message globally through the Internet, and by allowing people to work together virtually. This has led to the increasing amount of people who are opting out of corporate work to start their own business.

And now many of us are craving the reverse of material abundance; we are looking to simplify our lives. We have begun to consume goods from local retailers, want to know where our food is coming from, like to stay in small boutique hotels, and seek authentic travel destinations over corporate resorts. The growth of minimalist design is increasing, and we are waking up from the American dream. A renewed sense of community, even in big cities, is on the rise.

The Signs of Change
In his book ‘The Brain That Changes Itself’, Norman Doidge tells the story of how the entire population of a Gypsy nomadic tribe in the Indian Ocean survived the 2004 tsunami. How did they do it? The tsunami caught many people by surprise, and caused a shocking amount of damage. When Doidge spoke with the tribe leader he explained his reaction with a simple metaphor: most people were looking at the squid, while the gypsy tribe payed attention to their wider surroundings. In other words, whilst most people were just looking down at their catch of the day, this tribe observed the subtle changes around them. The detracting of the ocean, the small ripples, the elephants going inland, the dolphins swimming upstream, etc. After they observed all of this they decided to change their course and avoided being caught out by the tsunami.

So what does this teach us? We have to start observing the subtle changes that are happening if we are to create successful businesses and communities and not become a casualty of today’s tempestuous business environment. Consider that:

  • Big corporate pillars are falling. There is no longer a company that is ‘too big to fail.’
  • The increased use of social networking sites to build new virtual communities. People want to be connected to other people that have common needs or wants, regardless of where they live.
  • Corporations making huge mistakes and having a slow reaction time to solutions. BP’s recent oil spill disaster demonstrates that a big company is not infallible or even always resourceful.
  • Political language of transparency and change.
  • Studies focusing on ideas and a new age of enlightenment- working to create little to no waste.
  • Graduates declining jobs that don’t fit their life ethos ( yes, this is actually occurring.)
  • The rise of at-home restauranteurs providing home cooked meals for patrons.
  • Neurologists rejecting the hardwired model of the brain and opting for its plasticity.
  • Countries which once were dogmatic of corporate life (like Japan), now having to make redundancies for the first time in their corporate history.
  • Migration out of cities and the growth of rural areas. The emergence of urban farms where industrial factories used to stand. Similarly, migration out of suburbs and into cities.
  • Collaborative tools being developed to help people work more nomadically and rurally.
  • Countries like Italy being short of a corporate workforce due to less births.
  • The bankruptcy of entire western countries such as Iceland and Greece.
  • The challenge of industries like newspapers, video rental chains, automotive, and music.
  • Dubai, where a lot of investors were excited at the prospect of a ‘Golden City’. It seemed that Dubai could not build it fast enough, or big enough, or luxurious enough. Indicating that fast and unregulated growth is not sustainable.
  • There are also the American rustbelt cities that have industrially collapsed due to the demise of big industry and the local population not knowing how to react.
  • People are increasingly interested in how to make things sustainable and green.
  • People are investing more money to buy locally sourced goods.
  • Eco-tourism is on the rise.
  • The social enterprise sector is becoming increasingly economically sustainable.
  • People are looking for fulfilment, happiness, and health more than ever before. Sectors related to these needs are on the rise.

The Process of reaction
No one is an expert on millennial change as not many have been alive long enough to have reference to the 20th century turn over. However, we are going to make a leap at a process, which can be implemented in any industry.

  • Observe how the Signs of Change which will impact your industry. For example, if you are running a luxury brand, is there something in your communication strategy you can change to fit with the pivot in buyer psychology?
  • Does your business need to pivot and if so then in what direction?
  • Integrate your business with your local community and listen to their needs.
  • Observe your clients and see if they will experience new needs and find services/products that will suit these needs.
  • Innovate- look for the non-obvious solutions.
  • React quickly- the faster you move on from the problem to the solution, the quicker you will create a new economy.
  • Create a prototype of the solution so you can start testing it sooner.
  • Stay lean and simple. In a period of change the last thing you want is to add chaos, so staying lean and simple will create clearer solutions rather than confusion.
  • Measure the economic space of the new idea.
  • Ask empathetic questions about the changes occurring.

Reaction Tools
The use of the internet continues to enable us to communicate faster and we have access to a wide range of information, and can create international communities.

  • 3D printing.
  • Social networking sites.
  • Community-led events.
  • Coworking spaces.
  • New software (keep an eye on what’s coming out).
  • Open-soure collaborative tools and wikis.
  • Online spaces to exchange ideas.
  • Think Tanks.
  • Idea Engineering or other innovation processes.
  • Innovative conferences.
  • ‘Pop-Ups.’

Who is reacting?
Below is a list that has been at our fingertips, but by no means is it complete.

  • TED
  • Launch48
  • Rewire London
  • Blank Spaces – LA
  • THECUBE – London
  • The Hub- International
  • minimoko
  • Bracket Projects
  • WHY Create!
  • Matthew Miller
  • Ackenhurst Consultants
  • IDEO
  • Smart Car
  • Ford
  • Tesla
  • Launchlings
  • Rosen Hotels
  • Berlin
  • NYC
  • Boulder, Colorado
  • Copenhagen
  • Word Press
  • Skype
  • Google
  • E-Rejuvenation
  • Founders Forum
  • Kauffman Group
  • Y combinator
  • The Enemy
  • Radio Head
  • The Loft
  • Meet Up
  • Bistrotheque
  • Not Just A Label
  • Bill Gates’s Intellectual Ventures

Innovation Across The Board
It’s not just about commodity-based innovation, it’s about creating innovation that will lead to a vital foundation and sustainable society. It will be created strong enough to be recession-proof.

The only reason we as a society are recession prone is because collectively we have let a small group of people (corporate and political leaders) take control. We don’t work as a collective to create economy equally amongst all sectors; however, now that enterprise has become more accessible, this will change.

In today’s society, many talented university students turn to the Finance sector for their careers, rather than science and research, rightfully assuming that they can play the game and potentially create vast wealth. While the Finane sector has its rightful place, Western societies need to pivot to support and encourage accelerated growth in science, research, and engineering, where innovation is created.

Education
There needs to be more education about the benefits of studying engineering and science as we are losing a generation of innovators and inventors. We need to inculcate the interest from an early stage as kids are losing interest in these types of industries. There is also a need for more neurological-based education, teaching tools on how to think better and problem solve.

Agriculture
Create seeds with minimal elements, which can be used in any soil and climate conditions to help developing countries that have stark climates. Expand our indigenous variety of food, to import less. Re-introduce produce that has gone out of ‘fashion’ to increase diversity in our diet to reduce our dependency/exploitation of certain foods. Encourage urban farming, support local produce, and personal cultivation to reduce local poverty levels.

Manufacturing
We need intelligent manufacturing; one that creates smart, sustainable, innovative products. We need to return to products and manufacturing to balance off service based companies, which will help create employment. However we need to produce products that are based on societal needs rather than commodities. For example focusing on manufacturing more green technology based products.

Hiring green engineers to teach factories how to we make less of an environmental impact, whilst still providing high levels of manufacturing.

Engineering
Industries need to pivot the use of industrial engineers to create more efficient, lean, less wasteful, and innovative enterprises, ones that will make a difference to the profit margins, society, and environmental impact. For example, in India, engineers created a system to deliver lunch for students for $28 a year. They steamed the food to retain nutritional integrity. Some of the process was automated and trucks were used to increase the capacity of delivery and decrease the chance of the food being scraped. This programme is not just feeding a lot of kids, but it also gives them a nutritional diet, so it’s a win/win.

Enterprise
By definition enterprise is the start of something new which will takes a high quantity of innovation, therefore we should move from creating ego-based enterprises and from saturated sectors. Entrepreneurs need to ask themselves the following questions: Is my product or service going to make an impact in my industry or am I just another number? Is my idea a reaction of a need or anticipation of one? Can my idea help the economy both locally and nationally? Will my idea make a social or societal impact? Could someone else produce my idea better? Do I have strong community link? Have I valuated my idea within my community to ensure that it has an immediate economy? Are you just repeating jargon or are you starting something truly innovative?

Social Enterprises and Not For Profits
They need to be more economically sustainable, administratively leaner, less bureaucratic, and community led. They also need to follow the same formula as a regular enterprise; how innovative is your idea? Have all the right observations been made? Has the sociology of the local community been observed and respected? What are the cultural customs of the society your social enterprise is looking to impact? How do you create long lasting innovation and sustainability after your programme has finished? Are you creating independence? Are you solving a problem or alleviating a symptom? Is long lasting economy being created?

Inclusive Intelligence in Human Resources
Employees sharing mindfull intelligence amongst one another creates a more aware corporate community. Employing a person gives them the resources to pay their bills. Even though employment is crucial, it should be held hand in hand with enterprise. By creating partnerships with your team members, you empower them to gain a better understanding of the business, industry, or project at hand, and in turn they become a more beneficial collaborator for the entire entity.

New types of Economy

Circular Economy
This is a great growth strategy for start-ups. Economy is not just about money, and especially not in the beginning of an enterprise. As most entrepreneurs who start a business post employment have great contacts, we believe that it is more valuable at the start to create economy for each other based on contacts. For example, you are starting a business in fashion and you have great fashion industry contacts, you meet a young fashion designer that has developed a great software programme for the industry, which you need. Instead of paying them for their time, why not connect them with valuable industry contacts in exchange for their time? This way its a win/win- you help each other by giving a service but also creating a potential economy. Of course there is the option of referral, however in this way you create a partnership with a contact based currency, allowing start-up enterprises.

Communal Economies/Economy Clusters
As technology and coworking spaces continue to make enterprise easier and less expensive, many people will opt out of employment more so than in past recessions. There is no longer the need for huge start-up costs and large employee pools.

We believe this is going to cause people to create more partnerships, expanding and contracting as needed. However, the rise of the one person enterprises or partnerships will create a new type of economy. One cluster of collaborators selling to other clusters of collaborators. A bit like in the hunter gatherer societies: there were no employees, just partnerships for the greater economy of the community.

The End Of Corporation
If these new economic clusters work and create sustainable economies, we will, someday, see the end of the monolithic corporation. However, it is important that rewired innovation takes its place. It’s not good enough to just state their negative effect.  All of the signs of change point to a society that rejects the corporate structure both as a consumer and as an employer. We have observed in our own coworking space, THECUBE, that people who leave the corporate world are doing so to create a more meaningful life. This tends to lead them to revaluate their whole life structure, creating fundamental change in their lifestyle. From the way they consume, travel, to the type of enterprise they set-up. Little by little these new entrepreneurial structures will take over the once all mighty corporation.

The question now lies with you: how will you react and how fast?

Written By: Araceli Camargo-Kilpatrick
Edited and Brainstormed By: Idea Engineering Team

Idea Engineering Team
Araceli Camargo-Kilpatrick
Bethany Betzler
Daniel C. Gutierrez

NOTES TO THE EDITOR

Idea Engineering is a hybrid process of neurology, psychology, and industrial engineering.
It is the in-house consultancy for THECUBE
THECUBE is a coworking space for ideas and enterprise based in Shoreditch East London.
Idea Engineering was founded to create a process for which to implement any idea and create sustainability.

Araceli Camargo-Kilpatrick
0207 3779279
info@thecubelondon.com

Client Thoughts

Without Idea Engineering, our business would not have been possible.

THECUBE
www.thecubelondon.com

Client Thoughts

It helped turn my ideas in to reality and I felt like an entrepreneurial support group that gave people the confidence, advice and even contacts to go for it!

Celia Norowzian