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Transformation Economy

Turning Societal Challenges into Business

through Value Sharing

BY SIMONA ROCCHI, BAHAA EDDINE SARROUKH, KARTHIK SUBBARAMAN,
LUC DE CLERCK AND REON BRAND

How do brands stay meaningful and rele- With products becoming commodities, leading
st
vant in the 21 century? One powerful route companies began developing experiences as a
is to deliver high value to customers while way to compete, setting the scene for aspirational
addressing wider social and environmental brands such as Armani, Louis Vuitton, Camel and
issues as an integral way of doing business. Apple. In the 1990s and the 2000s, the Internet and
But doing this requires rethinking how value is digital information and communication technolo-
created. In this article, we explore case studies gies triggered a third wave, where value creation
of leading companies who are putting this became democratised with almost anyone able
new value creation and sharing into practice. to generate value. Digital platforms such as eBay,
From these we draw seven recommendations KickStarter and Shapeways 3D Printing supported
for enterprises wanting to follow this trans- self-empowerment, e-business and peer-to-peer
formative economic path. opportunities.
Today, these various economic paradigms
T o understand how to go forward, it’s useful coexist in advanced and emerging markets,
progressing at different speeds and scale.
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tive path has emerged as the latest wave of And a fourth wave is starting to appear: the
value creation. The initial wave arose during the “Transformation Economy”. This is driven by
Industrial Revolution when large numbers of
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produced goods that improved their lives. In the Transformation Economy is driven by the
1980s, this form of value creation came under realisation that despite economic progress, the
pressure in advanced economies as businesses
faced relentless competition, market saturation, world’s population is facing persistent socio-economic
changing labour conditions and stricter regulation. inequality and mounting environmental challenges.

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