What is the new force driving business success?
Overview
Every business is driven by a unique force defined by its time
period. If you were conducting business in the 19th century, you would
have followed philosophies and ideas of the 1st paradigm. If you are
conducting business in the 21st century, you are doing so in the 3rd
paradigm. Read along to explore the driving force behind businesses throughout
the centuries, and learn how today’s entrepreneurs are shifting to greater
success.
Business History: From the 1st Paradigm
The first paradigm took place in the 19th century. Business philosophies were focused on establishing
superiority by fierce competition. This paradigm emerged industries such as petroleum, steel manufacturing, railroads,
and electrical power. However,
work conditions were often substandard. And, the needs of people were often overshadowed
by the desire to dominate industries. The first paradigm defines the 19th
century as the Era of Competition. It marks early scientific management, and it
provides the initial framework of business philosophies. The first paradigm is characterized
by the spirit of rivalry, economic efficiency, and labor productivity.
The second paradigm is the Era of Cooperation. The second paradigm
produced compassionate business leaders in the 1960s. For the first time in
history, business leaders worked together with communities to encourage civility,
to improve work conditions, and to consider all humans and the quality of their
experiences. While some progress was made, the third paradigm will drive
business practices to fulfill the total human experience.
The third paradigm is the Era of Co-Creation. Today, businesses
have the advantage to learn from history and set a unique trajectory for the
future. Why now? Because this era invites business leaders to create openly. The
history makers of the 3rd paradigm will be entrepreneurs who bring
different people together to produce, improve, or customize products and services
— all while leaving a positive impact on social communities.
The 3rd Paradigm: Practical Ways to Co-Create
Co-creation is all about engaging different people and improving the
quality of the human experience. It is about leaving a long-term, felicific
impression on people — employees, customers, and social media followers. The
measure of how well businesses engage with people is found in marketing and
financial metrics. The more effective a company is in engaging with their team,
clients, and followers, the greater the success. How can businesses co-create? Here
are examples of businesses that have co-created successfully in the 3rd
Paradigm:
Example #1: Co-Creation in Beauty
A beauty company desired to improve its revenue. They engaged with
their customers on social media by liking their customer’s content. Customers
posted videos applying beauty products such as lip gloss, foundation, and
mascara. The beauty company continuously engaged with their diverse customers by
reposting, liking, and commenting.
Why did this work? Because when brands engage with customers, customers feel the
brand sees them and likes them. This makes the brand instantly authentic and lovable.
Example #2 Co-creation in Finance
A private equity firm desired to grow its portfolio. They reviewed
their business credit application process, and created financial services based
on the new insights. In doing so, they produced low-risk products for applicants.
Conversion rates increased as each applicant shared their story and intention
to utilize funding.
Why did this work? Because each applicant has a personal story that spans beyond
financial statements. When the equity firm used data to respond to the needs of
applicants, the firm closed a gap in the community while growing its portfolio successfully.
Suggested
Readings:
The
3rd Paradigm: A Radical Shift to Greater Success by Ivan Misner, et al
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