Why is economic education important ?

1 Star2 Stars3 Stars4 Stars5 Stars (2 votes, average: 5.00 out of 5)
Loading...

 

We are close to the beginning of 2018, close to the end of the 2nd decade of the 21st century.  The industrial revolution of the 19th century has transformed and changed the day to day life of individuals and businesses.  The information age has set in with its huge impact on the post-industrial society and way of doing things. Information has become the prime commodity of the today’s society where data and information are influenced by speed and obsolence in the quest for value.

The today’s quest for value is driven by a new way of seeing and understanding your surroundings. As an individual you are on a quest for valuable resources that match your life style and life standards. The benefits of the information age have overwhelmed us with information of all kind. Companies try to convince us a consumer to buy their products or services.

The individual perspective

Do those information match our expectations ? Maybe yes, maybe no.  Where do we know that we have the best offer for our needs ? At some point we “filter” the information flow through the our personal “value filter” based on subjective and objective reasons. The subjective reasons are individual and non- arguable, the individual reasons try to fine-tune our requirements. The objective reasons often consider limitations, value, availability, etc. , that are actually basic economic concepts that we use every day and that match the requirements of the information age that we currently experiencing.

As an individual can we afford not to “filter” the information avalanche for our day to day live ? How do you know that you have the achieved the best for you ?

The basic economic understanding of the day to day challenges will help you get a better understanding of what is going on and why it is going on.

The new Iphone has just been launched these days (09.2017), does it justify it’s very high price ( almost 1000 EUR ). From the tech perspective I am more than convinced that it is packed with cutting edge technology and that most of the phone users will ever use and understand. If you want a brand new smart phone when is the best time to purchase ? Can you afford it ?  Why was the phone priced this way ? Do you understand what product life-cycle and customer experience does ?

With every purchase we make use of basic and not so basic economic concepts that transform our lives. Do you still think that without basic economic education you can make the best decisions for yourself ? Do not let others determine your actions , be smart and determine your own actions.

The business perspective

As an business organisation the market competition in the information age has transformed classical concepts that emerged from the industrial age and got improved by the digital revolution.  Companies want to survive the market competition and therefore have to be permanently on the search for the best sustainable competitive advantage. To be on the top of their game business organisations have to evolve and transform their core values by adjusting to the market requirements.

Business organisations have become a standard commodity that all compete for the same consumers on almost the same markets. Why are some businesses thriving and some go bust ? What is making some business organisations more special than others ? The specific competitive sustainable advantage for each business is not easy to achieve. Those business organisations have transformed themselves to create value for them and for their customers needs determined by the information age.

Can be business organisations afford to adopt the industrial age values and decline or not take seriously the new facts only because their core business is production or sales ?

As a business organisation manager you have not only be the best possible specialist for your business core activity, you have first understand the reasons and the reasoning of your business (especially if it is not your own business). By understanding the reasoning and reasons of your business organisation you can have the  mandatory complete “big picture” and the thereof driving factors. If you look at the big picture you will notice that the core activity development is maximum 30% of the entire picture. There are other aspects that need to be covered by the management of the company , aspects that are not dealing with core activity excellence. The missing aspects have a purely economic origin that got very complex and refined by increased competitiveness driven by globalisation and information, business and economic knowledge of today.

Can businesses afford to not embrace the new digital challenges ? The answer is quite simple, if the business organisation wants to survive, it has to fully embrace and adopt the digital age where information leverages value. Value is a very complex concept that needs to be fostered and educated through permanent and continuous economic education at individual and organisational level.

Can managers ( any managers ) afford to not be able to understand their contribution to the financial statements of their company ? Can any manager afford not to do a return calculation their CAPEX ?

 

Economic education has become the new prime commodity of the digital age that drives and develops the organisation or the individual by assuring sustainable competitive advantages, because yes we all, individuals or organisations, are permanently in some sort of competition.

 

As usual , get in touch with us if you want to know more about the topic.

We are gladly there for anyone who thinks that value counts.

Please rate our post.

Get to the TOP with TopCFO !!!

 

 

 

 

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: