VUCA is the shortcut for volatility, uncertainty, complexity, and ambiguity in the 21st century business world and becomes the meme of the 21st century labor market, where the global knowledge flow generates creativity, innovation, new issues for the upcoming Industrial Revolutions.
Knowledge workers are particularly concerned, because their knowledge is no longer a reliable investment for the future, but a volatile and uncertain added value.
They become HITS: human intelligence task services.
Volatility is turbulence, and the 21st century labor market is unpredictable for everybody. Global companies have already reorganized for resilience adapting their operating system to the new digital issues inside the global workflow.
Volatility creates uncertainty.
The global information flow and the acceleration of change create complexity that may lead to chaos and utter confusion. Everything becomes ambiguous, i.e. Open to more than one interpretation. And the individual worker in the new freelance economy? How does he get a clear vision about the future of his work to counter volatility?
Every company has to face the VUCA economy, and this also means a complete reorganization of their operating system. Short term becomes the priority of investments, supply chains and services.
For the Small Businesses, (more than 90% of all enterprises) the freelance economy proves to be a suitable business solution.
For the individual worker, some facts are quite visible:
Short-term employment becomes the ordinary rule, and dependent workers become independent workers: freelancers in motion.
Volatile capital has one target: Realizing a short term ROI and the best profit margin.
What‘s their favorite business strategy? Short term investment ideas. Mobile, flexible, agile short term units working in a decentralized supply chain and gravitating around a few big global players.
What's the future of employment in short term business units, created to be sold as soon as they are marketable?
Volatility and short-term strategies generate uncertainty, and the short- term investments destroy any long term targets. The global information flow and the acceleration of change create complexity that may lead to chaos and utter confusion.
The VUCA era generates complex economies, and they are never in equilibrium. The five characteristics of complex economies:
Openness: The complex economy is open, dynamic, nonlinear, and far from equilibrium.
Archipelization: In a complex economy, production and supply chains become archipelago, i.e. Agents with limited information. When faced with novel environments, the shift to new heuristics is uncertain. In neoclassical economy, by contrast, agents have perfect information and can costlessly optimize.
Network Effect: the complex economic agents take part in ambiguous and overlapping networks that we