Is there really a “next economy”?
Many people talk about the next economy.
But economies rarely disappear. They evolve. And eventually they begin to coexist.
When we look at the development of economic value creation, we often describe a sequence:
- Agrarian economy
- Industrial economy
- Service economy
- Experience economy
- Transformation economy
- Purpose economy
At first sight this looks like a timeline in which one economy replaces another.
Reality is more complex.
New forms of value creation tend to emerge in a particular order because they build on earlier economic structures. Industrial production could only develop once agriculture created stable societies. Services expanded once industrial production created mass markets. Experiences emerged when services became widely available and organisations needed new ways to differentiate.
This is why we often present these economies as a sequence.
However, this does not mean that earlier economies disappear.
They continue to exist.
In some regions agriculture still dominates the economy. In others, industrial production remains the main driver of growth. Many organisations still compete primarily through services. And in sectors such as tourism, hospitality and the MICE industry, value is increasingly created through experiences.
The coffee example explained
A simple example illustrates this:
Take the coffee bean (a well known example in the Experience economy).
In the Industrial economy, the value lies in producing coffee beans.
In the Service economy, the value lies in serving coffee.
In the Experience economy, the same cup of coffee gains additional value when it becomes part of a memorable experience. Imagine drinking coffee at the top of the Eiffel Tower.
In the Transformation economy, the value lies in the change experienced by the person. For example, caffeine-free coffee for people who want to live healthier or sleep better.
In the Purpose economy, the value lies in the impact on the world around us. For example, sustainably produced or fair trade coffee that contributes to better living conditions for farmers.
The product remains the same. But the source of value shifts.
What organisations should ask
For organisations, the most important question is therefore not: Which economy comes next?
The real question is: Which form of value creation defines the value you create for your stakeholders?
In the MICE industry we see this every day.
An event can simultaneously provide services, create memorable experiences, transform participants and contribute to broader societal goals.
The most successful events today combine several layers of value creation.
Whether the Purpose Economy will ultimately be recognised as a distinct economic model remains to be seen.
What is already clear is that organisations increasingly seek to create value not only for individuals or organisations, but also for society and the environment.
And that makes this development particularly interesting.
Because in the end organisations are not only remembered for what they produce.
They are remembered for the value they create for people and for the world around them.
Learn more in From Experience to Purpose
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