Article in the magazine of the Chamber of Commerce
“Networking; the showpiece of the new economy”
He regularly springs up. His eyes sparkle and his enthusiasm is infectious. Hans Ruinemans (1955) speaks passionately about networking, the new economy and innovative entrepreneurship. Speaking is his natural gift. The author of the business book Slangenbezweerders and initiator of Professional Speakers Associaton Holland founded three companies and is familiar with the role of commissioner. Ruinemans gives lively, interactive lectures for universities and Chambers of Commerce about social media.
Text: Wilma Out
Social media, network economy, the digital age. Terms we are all confronted with. What does this phenomenon mean for us as entrepreneurs and how do we prepare ourselves well for the future. Communication strategist Hans Ruinemans answers intriguing questions.
Can you explain what is meant by a network economy?
People are connected to each other in new ways, whether they like it or not. From telephone to internet has seemingly been a small step. But do not underestimate this change. Facebook makes us visible, and via LinkedIn every professional is traceable. And when Barack Obama tweets a message, he reaches 63 million followers in one second. Incidentally, this also applies to the now not so young singer Justin Bieber, mainly known to teenage girls. Justin Bieber's record company reads the fan frenzy and plays on it cleverly. This is an illustration of what a network economy can be. Everyone is connected to each other. That is; if you participate.
Can you give an example of a network economy on a large and small scale?
Yes, I was chairman of the Naarden-Vesting business association. This is also a network economy, partly connected via the internet, but also largely not. A notable downside of being connected via digital channels is that people have a strong need to connect with each other real life to meet. The members of the business association help each other with assignments and introduce their fellow entrepreneurs to existing contacts. At the macroeconomic level, the mutual interconnectedness in the economy is becoming increasingly important. In this economic landscape, the competitiveness of companies depends on the ability to position themselves strategically. No company can ignore the global network. The pillars of the network economy are alliances. You see partnerships on a large and small scale. Of course, ICT, my background, is an important catalyst.
Is this form of economic activity really so new?
Not quite, in times gone by people would haggle at the village pump over the sale of a horse, and the local farrier would be warmly recommended to the residents of the next village. It has just become much more global. The village square has been replaced by the internet, and has created a new consumer. A customer with high expectations of a certain service or product. That forces producers to work with the most specialized partners, wherever they are in the world. Borders are no longer important. So it is not new, but the scale and speed are unprecedented.
What do you think of the proposition that the network economy turns the existing laws of economics upside down?
That is absolutely correct, and it is mainly the gigantic market forces that are rewriting the manuals. In the Netherlands we have seen the collapse of banks, the DSB bank being the first. In my opinion, this bank would not have collapsed in this way without the internet and the role of social media. The collapse became inevitable because the news of the problems spread more than lightning fast. Incidentally, there is a causal link between speed and new entrepreneurship. Young entrepreneurs are obvious multi taskers. It is a group of transparent people, raised in a visual culture. Internet and mobile phones are like tap water for them. They are used to sharing and consulting. This new generation of entrepreneurs already determines part of the economic landscape, and that will only increase.
Does the network economy hinder competition?
No, that is certainly not the case. I understand that the older generation of entrepreneurs has difficulty with the innovations. But they do not have to be afraid of them. The opportunities for them have also increased enormously. A car dealer who has a dark blue BMW with leather upholstery and low mileage can bring the car to the attention of the public through advertisements in a local newspaper. Such an advertisement may be read by a few dozen potential BMW buyers, perhaps even by only seven of them. Who knows? Through targeted media channels, the dealer reaches thousands of BMW enthusiasts, of whom perhaps a few hundred are looking for a dark blue one with leather upholstery. Anyone who supplies a good product or service can profile themselves better than before. That has nothing to do with unfair competition. That is called 'moving with the times'.
How does the outdated adage 'What's in it for me?' relate to the new economy?
For a long time, we have kept the economy going by focusing primarily on our own profit. Both the middle class and the large industrialists participated in this. With this attitude, growth is no longer guaranteed. The customer no longer remains loyal to his own baker, the local contractor and his clothing manufacturer as he used to be. Because the customer has changed, and with it his wishes. By entering into alliances, the baker and the butcher can provide catering together. The contractor in the north of the country accepts a large order in Brabant and borrows staff from a local competitor. And wholesalers in clothing can not only jointly enforce a sharp price at the workshops in far-off countries, but also ensure humane working conditions. Just as the customer wants.
What are the requirements for a smooth running network economy?
The old attitude “What's in it for me?” changes to “How can I serve?”. This institution is the Haarlem oil of the new entrepreneurship. Every entrepreneur must see the importance of cooperation, and in this 'being connected' the magic word. From a ownership based economy we are going to a access based economy. In other words, it is no longer primarily about ownership, but about access. It is not ownership that is the driving force, but gaining access. It is increasingly difficult to remain the owner of knowledge and information. Think of WikiLeaks, and what the consequences are for governments and large industrialists. 'How can I serve' must become a common value.
Thirteen to fourteen percent of the Dutch are ZZP-ers. Nowhere in the world is this figure so high. Can you explain this figure?
It is too easy to refer to our industrious national character or the trading nation. Of course, it is also a direct result of the waves of dismissals in recent years. I suspect that the Dutch are well served by the generous redundancy schemes at companies and the benevolent attitude of the UWV. In addition, the term ZZP-ers is very broadly defined. The doctor who works for a private clinic every now and then in addition to his permanent position at the hospital is also a ZZP-er.
I myself expect a completely different working climate for the future. It seems logical to me that permanent contracts are untenable in the long term. From both sides, by the way. As a speaker, I act for students, upcoming leaders and young managers, and I feel their dynamics. Staticity and supposed certainties do not fit their lifestyle. That may soon make everyone a ZZP-er. Then it is also time to change the term ZZP-er, Zelfstandige Zonder Personeel, to ZP-er. Zelfstandige Professional. Be honest, who wouldn't want to be that?
Comments or additions? E-mail hans.ruinemans@businesstales.com