Business (r)evolution: Material Meets Immaterial
It’s quite clear that there is a huge transformation happening the the world. This means both local and global businesses, and many business owners and leaders are starting to realize that there is a need to do something different to survive. The ones not understanding this early enough are likely to be in trouble very shortly.
One of the quite clearly recognizable transformations is the change in industrial manufacturing. Globalization is eating the manufacturing business from the western world, relocating it to to BRIC countries and eventually to Africa. This situation is unbearable and requires changes in the value creation.
But how to tackle the problem? If your company has been manufacturing good industrial products for decades? How to compete in the market when competition can design in a similar way, offer almost similar quality, brand the products equally, and offer the products with fraction of the price?
Many people are trying to solve this problem, one of them being Miikka Leinonen, a friend, colleague and intellectual sparring partner.
Miikka has been writing his soon-to-be-published book “Melt” for some time, and the time for the publication is near. I’ve had an opportunity to discuss these scenarios with Miikka several times, and I think he is into something.
Miikka believes that the survivors will have to take their material assets and let it melt together in a symbiosis with the immaterial world. This is not easy, but it is inevitable.
In order to understand the basic thinking, see Miikka’s hugely popular presentation about Melt below.
At this point I have to admit that I have recently discovered a product idea that I think might be a success. I’ve been a bit hesitant to take it forward since the product innovation is all material. Miikka’s Melt thinking has been opening my eyes, and I’ve started to realize how I need to extend that idea with immateriality to make it happen.
What do you think? Does Melt make any sense or not?