Lim Social life information

Social LifeofInformation: 

Top Management Program Shanghai, May 25, 2004 Social Life of Information

General trends: 

General trends Volatility (uncertainty) Complexity Unfamiliarity (new things, environments)

Global business trends: 

Global business trends Consolidation Intense competition/relentless cost cutting Outsourcing/near sourcing Global supply chains Networking and alliance building

Global business trends, continued: 

Global business trends, continued Overcapacity Market shifts slow market growth Market fragmentation/micro marketing Free capital flow/instant comm Brain drain (e.g. Doctor diaspora) Value chain migration (e.g. Downstreaming to higher value) Marketing to the poor

Even if we know where these trends are headed…: 

Even if we know where these trends are headed… Why is it so difficult to manage these times?

Not so much managing trends, but…managing tensions: 

Not so much managing trends, but…managing tensions The future presents complex dilemmas We have opposed tensions, paradoxes Opposition = 180 We cannot choose—we must address each end, not one or the other

In 1964 there were 52 independent car producers: 

Alvis Borgward Bristol Daf Facel Glas Hillman Innocenti Jensen Matra Nash Simca Studebaker Sunbeam Talbot Tatra Trabant Triumph Wolseley 1997 GM Ford Toyota Volkswagen DaimlerChrysler Fiat Nissan Honda Mitsubishi Renault Hyundai BMW Daewoo Subaru Volvo Porsche 2005 Toyota DaimlerChrysler Ford GM Volkswagen Renault-Nissan ??? In 1964 there were 52 independent car producers  Professor Dr. M. Perlitz, University of Mannheim

Cooperations ofAirlines (1999): 

Professor Dr. M. Perlitz, University of Mannheim Cooperations of Airlines (1999)

Technology vs. socialization: 

Technology vs. socialization Virtual and physical Dis- and re-intermeidation Do it yourself vs. do-it-with-others

“End” ism – Info Agemeans the end of. . .: 

“End” ism – Info Age means the end of. . . Paper, books: paperless office Offices: hot desking Librarians: intelligent agents Universities: distance learning Alvin Toffler, Marshall McLuhan, Nicholas Negroponte, Soshanna Zuboff

“Endism” failures: 

“Endism” failures Paperless office Fax, paper ever more useful Hot Desks Chiat & Day back to the old ways Intelligent Agents No negotiation, no tacit recognition Distance learning Remote learning still a promise, not a reality.

Does IT matter?: 

Does IT matter? Productivity uncorrelated with IT investments: companies overspending, IT projects fail Sellers overselling their products Most companies’ applications are simple—not ERP, not SCM, but Word, Excel Bulk of network storage old emails, spam IT success not IT, but from Learning opportunities from IT Resulting innovation and productivity (improved processes) Nicholas Carr, Harvard Business Review May 2003

A Middle Ground?: 

A Middle Ground? The Social Life of Information John Seely Brown & Paul Duguid © 2000, HBS Press: Boston Images copied from www.creatingthe21stcentury.org

Basic idea: information is limited: 

Basic idea: information is limited Information broad, not deep Lacks social context, e.g. book marks Info giving-taking not linear It’s a continuous, messy exchange We negotiate meaning with others and selves Info  knowledge Learning about  learning to be Process  practice Communities of practice

Focus on non-socialmade “Endism” fail: 

Focus on non-social made “Endism” fail Paperless office Paper inherently social by nature Paper a medium for thinking; we “negotiate” with piece of paper and think and rearrange Hot Desks Need people for social belonging Intelligent Agents We shift goals, we change rules Distance learning Need people interaction for learning

Objectives: leverage IT with: 

Objectives: leverage IT with Learning & Sharing In communities of practice

Elements of a community of practice: 

Elements of a community of practice Interaction space Practice & improvisation Trust

Interaction space: 

Interaction space Nickelodeon Open stairwell, b-ball goals in lobby SAS Wednesday M&M’s, choir KAO Open meeting areas, spaces Xerox White boards and wired coffee pots Ideo Deep dive Cohen & Prusak, Social Capital

Practice & Improvisation: 

Practice & Improvisation BPR a top-down approach; processes not the same as practice Xerox: Stories and walkie-talkies Machines evolve over time UPS Drivers and lunches

Trust: 

Trust  Niceness or intimacy = Openness, clear signals Cannot be mandated, coerced Bred by Example of trusting behavior Rewarding trusting behavior Trust a foundation for ERP, SCM, KM

Starbucks: 

Starbucks Concept “Third place”: not home, not work. Concept is communicated through ambiance, lifestyle USD 12 B company Business model: partnerships, not franchises Expansion Opened 1st overseas branch in ’96; in 7 years, 35 country coverage The French, Italians, and Middle Easterner cafes alarmed by Starbucks invasion Thriving despite common sense: 56 stores in Philippines, despite poor economics Gen-MTV model; 3rd world strategy model Scott, Gulf Business (2004)

Smart Telecom: 

Smart Telecom Prepaid cell phone services Filipinos: 300M SMS a day Farmers’ commodity prices Election vote counting/governance Social products “Pass a Load” Girl txt

Coping with volatility + tensions: 

Coping with volatility + tensions Knowledge through learning culture Requisite variety and complexity Innovative processes and products Fine sense of communication. What “diversification, derivatives, Insurance” can mitigate general volatility?

Rules for the new Economy: 

Rules for the new Economy “Embrace the swarm”— Kevin Kelly

Slide29: 

[The new economy] is not about computers. Computers are over…[While] they have sped up our lives, and made managing words, numbers, and pixels quite extraordinary, they have not had much more effect beyond that. The new economy is about communication, deep and wide. …Communication is the foundation of society, of our culture, of our humanity, of our own individual identity, and of all economic systems…its cultural, technological, and conceptual impacts reverberate at the root of our lives. Kevin Kelly, “Rules of the New Economy”

Rules for the New Economy: 

Rules for the New Economy Embrace the swarm Power of decentralized, individuals in swarm Networks encourage increasing returns: value flows from abundance, not scarcity Prices eventually move to “free”: give things away Let go at the top: new economy is about co-evolution Instability natural, so move on after successes Use technology to build trusting relationships E.g. texting selves

Individuals: 

Individuals Learn to learn: let go at the top Seek requisite complexity. Build multiple skills, knowledge, context experience Reinvent self every ten years Build emotional intelligence: relationship tech Tech skills not a guarantee; you can be outsourced Self-awareness, regulation Empathy, heedful interrelating

Individuals, continued: 

Individuals, continued Think plentitude, not scarcity Share, not withold knowledge. Sharing increases your value. Learn to communicate: Stories, metaphors, and analogies, which will allow you to communicate better Complex systems thinking, circular reasoning

Organizations: 

Organizations Match complexity by investing in continuous learning Leverage technology internally Cross-post employees Build absorptive capacity Hire or partner for diversity Gender Social class Nationality

Volatility-proof Asian organizations: 

Volatility-proof Asian organizations Infosys, Wipro, Mittal (India) Dusit Group (Thailand) Lamoiyan (Philippines) Li & Fung (Hong Kong) Blue Bird (Indonesia)

Singapore’s CREST: 

Singapore’s CREST Island’s workforce must take “critical enabling skills training” (CREST) Factors: Learning to learn Basic literacy (reading, writing, computation) Listening and oral communication Problem-solving and creativity Personal effectiveness (self-esteem, goal setting, and motivation) Group effectiveness (interpersonal, teamwork, and negotiation Organization effectiveness and leadership

Conclusions: 

Conclusions Tensions, volatility and complexity here to stay Flexibility needed Keys to flexibility: Learning and knowledge building Building absorptive capacity, requisite variety Developing sense of communication Innovating processes and products