Many Of The Emerging Business Models Do Not Fit Into The Existing Regulations

The organisations in these new models are increasingly decentralised and networked plus moving away from physical markets to open, borderless world's; thus making them hard to regulate. Governments worldwide are struggling to come to terms with the technological changes. For example, smart phones only came into existence in 2008 but their impact has been significant, eg

- turbocharging the digital revolution and industries like taxis, equipment & hire car to accommodation, office rentals, deliveries, freelance work, retail, music, media, etc
- this digital revolution will spread deeper into industries once thought immune, like universities, manufacturing, banking, etc
- the established firms and the whole world of work is being challenged by freelancing sites & distributed networks as government struggle with workplace laws to handle the new situations, like permanency versus casual/contract, etc
- both large organisations and governments are nervous about the decentralised networks and marketplaces that are not controlled centrally and prose a problem to regulate
- most government leaders and bureaucrats still have the mindset to understand markets in the physical sense that they know about rather than the total open, borderless world that we are moving into

Governments worldwide are struggling to come to terms with the technological changes. For example,  smart phones only came into existence in 2008 but their impact has been significant

"...they're already turbocharging the digital revolution and industries from taxis, equipment and hire car to accommodation, office rentals, deliveries, freelance work, retail, music and media. In the future, this digital revolution will spread deeper into industries once thought immune, such as universities and manufacturing. The established firms and the whole world of work are being turned upside down by freelancing sites and distributed networks......government grapples with workplace laws. Further on, ride sharing combined with autonomous cars could make millions of drivers redundant......what frightens large organisations and governments is that decentralised networks and marketplaces that don't have centralised controls are really tricky to regulate...... the problem is most government leaders still think of markets in the physical sense because that's what they know...... rather than the total open , borderless world that we are currently living in or moving towards..."

Ben Potter, 2015

Usually incumbents don't see the new entrants as competitors until it is too late, like the large telephony AT&T regarded Skype as a toy in 2003. Yet by 2013, Skype had 30% of the long-distance phone market!!!!

 

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