5 features of old and new economy

Here are 5 features of the Old Economy and 5 features of the New Economy:

Old Economy (Industrial Economy, circa 1800s-1980s)

  1. Mass Production: Focus on producing large quantities of standardized products using assembly lines and economies of scale.
  2. Vertical Integration: Companies controlled every stage of production, from raw materials to finished goods, to maintain quality and reduce costs.
  3. Hierarchical Organization: Bureaucratic structures with clear lines of authority and decision-making processes.
  4. Job Security: Employees were often lifetime employees, with stable careers and benefits.
  5. National Borders: Economies were largely contained within national borders, with limited international trade and investment.

New Economy (Information Economy, circa 1980s-present)

  1. Knowledge Work: Focus on creating and managing knowledge, information, and intellectual property, rather than physical goods.
  2. Networked Organization: Companies are organized around networks of relationships, with flatter hierarchies and more flexible decision-making processes.
  3. Globalization: Economies are increasingly interconnected, with rapid international trade, investment, and communication.
  4. Flexibility and Adaptability: Companies must be able to quickly respond to changing market conditions, technologies, and consumer preferences.
  5. Digital Platforms: The rise of digital platforms, such as the internet, social media, and mobile devices, has transformed the way businesses operate and interact with customers.

These features are not exhaustive, and the Old Economy and New Economy are not mutually exclusive. However, they provide a general framework for understanding the key differences between the two eras.