BLUR: Driving Forces Behind The Connected Economy

BLUR: The Speed of Change in the Connected Economy is a highly influential business book by Stan Davis and Christopher Meyer, first published in 1998.

The central theme of the book is that a “new economy” is emerging, characterized by a rate of change so rapid it creates a “blur,” dissolving the traditional boundaries that once defined business.

The book’s main ideas revolve around three converging forces and the resulting “blurring” of key business distinctions at the levels of the economy, the organization, and the individual.

The Three Driving Forces of the New Economy:

The authors identify three primary forces responsible for the blurring of the traditional business landscape:

1. Speed (Time): The dramatic shrinkage of time due to near-instantaneous communication and computation (e.g., real-time transactions).
2. Connectivity (Space): The shrinkage of space through the advent of the internet, e-mail, and other communication technologies, creating a highly connected global economy.
3. Intangibles (Mass): The increasing value of assets without physical mass, primarily knowledge, talent, and experience (intellectual capital), which are easily mobile due to speed and connectivity.

The Blurring of Traditional Boundaries:

The convergence of these forces is blurring the lines between several formerly distinct business concepts:

• Product and Service → “Offers”: The distinction between goods and services is dissolving as products are increasingly bundled with services (e.g., an automobile that includes real-time diagnostics and navigation services). Everything is becoming an integrated “offer.”
• Buyer and Seller → “Exchanges”: The traditional one-way transaction of a buyer paying for a product is replaced by a more complex, two-way “exchange.” Both parties trade various forms of value: economic, informational, and emotional (e.g., a customer provides data and feedback in exchange for a personalized product/service).
• Capital and People: Intellectual capital (knowledge and talent) becomes more valuable than physical capital.
• Employee and Entrepreneur → “Free Agents”: Individuals are increasingly becoming “free agents” or entrepreneurs who contract their specialized skills and knowledge to the highest bidder, managing their careers like small businesses. The book even cites the example of musician David Bowie selling options on his future earnings.
• Real and Virtual: Physical markets and virtual markets blend together.
• Work and Home: Connectivity blurs the boundaries of professional and personal time and space.

The BLUR Framework:

Davis and Meyer provide a framework for navigating this new environment, which they suggest is “fractal,” meaning the same concepts apply at the level of the economy, the company, and the individual.

The framework organizes the blurred world around three key concepts applied at each level:

In summary, BLUR is a revolutionary guide that outlines the transition from the old industrial rules (mass production, fixed organizations) to a connected economy where adaptability and constant change are paramount for both businesses and individuals to thrive.