Wednesday, April 9, 2014

Etsy and The Creative Economy


Most of us are already familiar with, or have at least heard of, Etsy.com. Etsy is essentially a central online shop where different vendors can post their products and buyers can access them. The site is predominantly filled with crafts or other handmade goods.

I was surprised to learn that Etsy, despite being a growing billion-dollar group, has reduced it’s error in online technical problems by making about 30 innovations in code/technicality a day. This is a wise and fascinating approach to a completely online business. Etsy explains, “by having very frequent releases of small changes, it was easier to spot and fix problems than when a problem emerged in a release that was a bundle of many changes and it became difficult to figure out exactly where the problem was” (Denning, Etsy). Each change is very small, but each change can bring more money to the organization. Additionally, since the system is almost changing itself and updating its own innovations, the company climate is basically stress-free.

Etsy is a prime example of a business utilizing what the future can bring to them. Etsy is a member of the “Creative Economy.” “The Creative Economy is one in which both manufacturing and services play a role. It is an economy in which the driving force is innovation. It is an economy in which organizations are nimble and agile and continually offering new value to customers and delivering it sooner. The Creative Economy is an economy in which firms focus not on short-term financial returns but rather on creating long-term customer value based on trust” (Denning, Creative Economy). Current business structures do not fully utilize the creative talents and capabilities of their employees. Focus needs to be shifted from the shareholder to the customer. There needs to be a new method of management that uses this creative economy.

 “Just as video went from a handful of broadcast networks to millions of producers on YouTube within a decade, a massive transition from centralized production to a “maker culture” of dispersed manufacturing innovation is under way today” (Denning, Creative Economy).


Sources
Denning, Steve. "Is The US In A Phase Change To The Creative Economy?" Forbes. Forbes Magazine, 31 Jan. 2012. Web. 09 Apr. 2014. <http://www.forbes.com/sites/stevedenning/2012/01/31/is-the-us-in-a-phase-change-to-the-creative-economy/>.

Denning, Steve. "The Future Workplace Is Now: How Etsy Makes 30 Innovations Per Day." Forbes. Forbes Magazine, 04 Apr. 2014. Web. 09 Apr. 2014. <http://www.forbes.com/sites/stevedenning/2014/04/04/at-etsy-the-future-workplace-is-now-thirty-innovations-per-day/>.

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