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Golden rules offered
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Liu Fuzhong
CLAUDE SMADJA, managing director of the World Economic Forum, sees the new economy as both good and bad. During his speech on Friday, he identified seven problems with the new economy and gave seven golden rules as possible solutions.
According to Smadja, the new economy features injection on a massive basis of information technology into every economic sector, contributing to a significant increase in productivity. "The United States reaped US$100-150 billion in wealth without incurring inflation at the end of 1990s. This is an indication of the strong power of the new economy to improve a nation's productivity," Smadja said.
He also noted the hybrid cooperation between new technologies and traditional businesses in, for example, the automobile industry. And for the first time information transparency helps remove many unnecessary restrictions. People also see greatly improved connectivity, putting a value on both tangible and intangible assets. Consumers are unprecedentedly empowered. And lastly the new economy also has social implications. People no longer feel secure about their jobs. Anxiety and wealth, for the first time in history, go hand in hand.
He offered seven golden rules as policy and corporate advice:
1 Integrate new technological innovations at a fast speed and for the greatest benefits
2 Move with speed and flexibility.
3 Create your own brand. The Internet is not a equalizer. With so much information readily available, brand recognition is extremely important for a company's success.
4 Build up your networking power.
5 Build up your communicating power and collective buy-in.
6 Strengthen your ability to leverage diversity in technology, culture and geographic dispersion.
7 Build up your ability to efficiently manage your finances in the capital-intensive new economy.
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