Redefining the economic value
In recent years, big business has caused a number of social, environmental and economic problems. We have seen its effects on health-care systems, the environment, the mortgage crisis and so on. Profit maximization by companies has often been perceived as positive, but there is an increasing belief that this profit is made at the expense of society.
In 2010, the World Health Organization spent USD 5 billion on delivering healthcare solutions to the world. The same year, a global corporation spent USD 25 billion on delivering potato chips to the world. Corporations are incredibly powerful at delivering solutions to problems, but they make absolutely no value judgment about which problems they’re going to solve.
Ericsson’s Networked Society vision, which aims to transform the existing business landscape through business innovations, could be a tremendous opportunity for a new business practice that creates economic and societal value simultaneously.
It has never been so cheap and easy to start up a new business. The growing number of connected devices, combined with high-performing mobile-broadband infrastructure and cloud technology, means a large amount of data and information is available globally. This accessibility to information can help to prevent disasters, fight poverty and empower people, no matter where they are in the world. The sky really is the limit for sustainable business innovations that generate profits for shareholders, while at the same time creating societal value.
I truly believe that this Networked Society vision can be a driver of economic growth and societal development in this all-communicating world.