Often change is not the result of one specific thing rather it is the convergence of numerous factors coming together to create collective change. One would have to be living in a cave not to recognize that changes in markets, economics, politics, power and communications are all being fueled by digital technology.
The forces driving much of the need to change are new market models being discovered by those creating innovative products and this entirely new markets. The forces pushing against these new models are the old mental models of organizations and markets being threatened by the new market models. However even those living in the old mental models are being forced to adopt to new measures of success for fear of loosing what they got.
The economic engine of the 20th Century relied on factories, equipment and labor to produce more things for consumption. The economic engine of the 21st Century relies on factories of ideas, technology and networks of minds to create more value. That represents a significant shift is what ought to be measured to really understand the welfare of a country, a state or an organization. It also represents a shift required to understand what markets want in terms of value creation and delivered.
Measuring Input to Create Improved Output
Today intangible capital (human, strategic, structural & relationship capital) is becoming the new measure that determines economic outcomes. Advancements in technology has transformed intangible capital into tangible visible results. This transformation is fueling our economic engines and subsequently business, governments and society in ways unforeseen in the past.
We are witnessing a shift in economic inputs that drives the output of our global economy. Measurement of output alone or simply monetary measures are no longer effective measures of what is really influencing the welfare of a country, a state or an organization. The measures needed to reflect the changing dynamics of a truly globally connected marketplace whose economic output is largely influenced by the new mental models.
If you look at the foundation of these new mental models you will see they are all grounded in recognizing the value of intangible capital. When the measures change, everything changes.