ICIS Final Panel - The Rise of ICT-distributed collective intelligence

The Multinational’s Nemesis----- The rise of ICT-enabled distributed collective intelligence?

Monday, December 15, 2008Panel #3, 16:00 to 17:30

Chair: Johan Gorecki, Globe Forum Business Network, Sweden

Panelists: Pierre Berthon, Bentley University, USA Philip DesAuthels, Microsoft, USA Brian Donnellan, National University of

Ireland – Galway, Ireland Robin Teigland, Stockholm School of Economics,

Sweden

Panel overview Introduction

Johan Gorecki ICT – enabled distributed collective intelligence Pierre Berthon Philip DesAutels

The Multinational Corporation Brian Donnellan Robin Teigland

Discussion with audience

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Johan Gorecki

Founder and CEOGlobe Forum, www.globeforum.com

Modern Times Group (MTG), where responsible for Metro and Everyday

One of Skype cofounders

Introduction

Are ICT-enabled distributed collective intelligence organizations challenging the MNC as the superior organizing form?

As efficient and effective at enabling coordinated action?

As superior in facilitating social community?

As more effective as driver of social change?

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Skype

• Launched in August 2003

• Q1 2006 95 million users

• Q 3 2007 246 million users

• 6.1 billion minutes

• Avg 12 million active users

• 2005 sold to ebay for €1.9 billion

Globe Forum (www.globeforum.com)

MyC4

Microfinancing: Kiva.org

Total capital raised from Kiva internet lenders ($USD mln)

More than USD 13 million raised from 133,000 social investors in 25 months

Own experience, own reflections Time to market Keep the smart people Globalisation Fast communication Integrate in the community

Pick up trends Environmental issues

Panel overview Introduction

Johan Gorecki ICT – enabled distributed collective intelligence Pierre Berthon Philip DesAutels

The Multinational Corporation Brian Donnellan Robin Teigland

Discussion with audience

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Pierre Berthon

Clifford F Youse Chair of Marketing Professor Bentley University

Philip’s supervisor

PhD candidate at Bentley University

US manager of academic evangelism at Microsoft

Research interests in generative social enterprise

Philip DesAutels

ICT-enabled distributed collective intelligence

Why is the open model more appropriate today?

Requisite variety is ever increasing

There is more turbulence - Socially, economically, environmentally, technologically.

Traditional mechanistic/heir approach to organizations is not able to cope.

Governments – NationalizationE-governmentSocial enterprises

Previous generations were born into hierarchy

oFamilyoSchoolsoSocietyoWorkoReligion

Gen-YConnected – born digital

Autonomous – latchkey, make their own decisions, forced

Multitasking

Why do organizations fail?

Your business is as complex as a

bowl of noodles.Your business is as complex as a

bowl of noodles.

iPhone

99¢

Dove Real Beauty

Real Beauty Movement online community Facebook BBS

Pink

OBAMA dot GOV

Barak Lessig call

Red Flag Linux

Open everything

What can we learn?

Closed

Bounded Facebook Wikipedia Secondlife Makers Faire Chumby Sneaky DS

Open W3C/IETF

Open source is changing the way

we…• Coordinate

• Community• Change

Dimensions of open source

Methods versus Values

Virtual distributed communities

Influence

OΔC

OC

OΔC

Panel overview Introduction

Johan Gorecki ICT – enabled distributed collective intelligence Pierre Berthon Philip DesAutels

The Multinational Corporation Brian Donnellan Robin Teigland

Discussion with audience

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Brian Donnellan

Faculty member Business Information System National University of Ireland at Galway

20 years working in US multinational corporations

Actively engaged in research on Information System Innovation

The evolution of the MNC (Perlmutter)

Phase 1: Ethno-centric

- Complex in home country, simple in subsidiariesPhase 2: Poly-centric

- Varied and independent

Phase 3: Geo-centric

- Increasingly complex and interdependent

Phase 4: ????????

University Industry R&DProducts $1B markets

Entertainment

Portable communication

CTSS, Multics/BSDUnixSDS 940, 360/67, VMSBerkeley, CMU, CERN

Novell, EMC, Sun, OracleSketchpad, UtahGM/IBM, Xerox, MicrosoftE&S, SGI, ATI, Adobe

Spacewar (MIT), Trek (Rochester)Atari, Nintendo, SGI, PixarARPANET, Aloha, InternetPupDECnet, TCP/IP

1965 1970 1975 1980 1985 1990 1995 2005

Rings, HubnetEthernet, Datakit, AutonetLANs, switched EthernetLisp machine, StanfordXerox Alto

Xerox Star, Apollo, SunEngelbart/RochesterAlto, SmalltalkStar, Mac, MicrosoftBerkeley, Caltech, MOSIS

ManyBerkeley, StanfordIBM 801

Berkeley, Wisconsin

Timesharing

Client/server computing

Graphics

Internet

LANs

Workstations

Graphical user interfaces

VLSI design

RISC processors

Relational databases

Parallel databases

Data mining

Parallel computing

RAID/disk servers

World Wide Web

Speech recognition

Broadband in last mile

IBM

Tokyo, Wisconsin, UCLAIBM, ICLICL, Teradata, TandemWisconsin, StanfordIBM, Arbor

IRI, Arbor, PlatoIIIiac 4, CMU, Caltech, HPCIBM, IntelCM-5, Teradata, Cray T3DBerkeley

Striping/Datamesh, PetalManyBerkeley, Purdue (CDMA)Linkabit, HughesQualcomm

CERN, Illinois (Mosaic)Alta VistaNetscape, Yahoo, GoogleCMU, SRI, MIT

Bell, IBM. DragonDragon, IBMStanford, UCLA

Bellcore (Telcordia)Amati, Alcatel, Broadcom

PARC, DEC, IBM

SUN, SGI, IBM, HP

Oracle, IBM, Sybase

People Transfers

Source: D. Clark et al.: Innovation in Information Technology National Research Council of the National Academies http://darwin.nap.edu/openbook.php?record_id=10795&page=R1

Perspective #1 - Fernando Flores

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Transactions between people in business boil down to requests and promises on the one hand, and offers and acceptances on the other

What is missing is a clear understanding of the conditions of satisfaction

The Atom of Work - Flores

Perspective #2 - Michael Thompson

There is no such thing as an organisation, there are only ways of organising and disorganising: the individualistic, the hierarchical, the egalitarian, the fatalistic and the autonomous - each of which is a way of disorganising or subverting the other four.

Management must be concerned with “clumsiness”: with encouraging those subversions that are constructive for the pluralised totality and with discouraging those that are not.

Organising and disorganising (Thompson)

The environment is on everyone’s agenda

Climate Savers Computing Initiative

The Initiative is comprised of consumers, businesses and organizations that have come together to drive energy efficiency by:

•Increasing energy efficiency of new PCs and servers

•Promoting use of power management Goal: reduce computer power consumption 50% by 2010!1

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Robin Teigland

Associate ProfessorCenter for Strategy and CompetitivenessStockholm School of EconomicsSweden

PhD on knowledge flows through informal networks in MNCs and impact on competitive advantage

Especially interested in virtual worlds

Multinational corporation as social community

Specializes in creation and transfer of knowledge

Superior to market as organizational vehicle to transfer knowledge across geographical borders

The more tacit the knowledge, the more likely transferred within the firm

Kogut & Zander 1993

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Best practices and knowledge flow through networks and communities of practice

http://www.slideshare.net/SOMESSO/speaker-1-bettina-kahlau-presentation

Organizing in MNCs

Network picture from http://n-e-r-v-o-u-s.com/blog/?m=200712

HierarchyLinear, static, process-based organization

HeterarchyDynamic, integrated

collaboration networks

eZ Systems and the eZ ecosystem: #1 open source content management software

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eZ Partners CommunityCustomers

Enterprise open source – “Grow the cake”•60 Employees in 8 countries (Europe & Asia)•230+ Partners•5000+ Customers•30,000+ Community members

www.ez.noSkien, Norway

History tends to repeat itself….

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Steam engine

Internal combustion engine

Microelectronics

Late 18th C Late 19th C Late 20th CSchön 2008

A new workforce is appearing…

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Mahaley 2008, Merrill Lynch 1999, Beck and Wade, Prensky

“Digital Immigrants”“Digital Natives”

Company loyaltyWork ≠ PersonalCompany loyaltyWork ≠ Personal

Professional loyaltyWork = Personal

Professional loyaltyWork = Personal

Towards 3-D internetTowards 3-D internetLevel of Interaction

Level of Interaction

TimeTime

Individual Individual Web 1.0 Web 1.0 ThinkingThinking

Mosaic, Prodigy, Mosaic, Prodigy, Compuserve, Compuserve, AOL, NetscapeAOL, Netscape

Connected Connected Web 2.0 Web 2.0 ThinkingThinking

Facebook, Facebook, Friendster, Friendster, Yahoo, Yahoo, Blogger, Blogger, Wikipedia, Wikipedia, eBay, Typepad, eBay, Typepad, LinkedIn. LinkedIn. Amazon,Amazon,

MySpace,MySpace,Textamerica,Textamerica,Delicious, Delicious, HubPagesHubPages

SENSORYSENSORY3D Internet3D InternetThinkingThinking

SecondLife, SecondLife, Active Worlds, Active Worlds, There, There, SimsOnline, SimsOnline, Club Penguin, Club Penguin, World of World of Warcraft, 3D Warcraft, 3D planets, planets, ToonTown, ToonTown, Habbo, VSlide, Habbo, VSlide, ProtosphereProtosphereHamilton 2008Hamilton 2008

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Increasing effectiveness in traditional industries

“Soon all fashion designers will be originating their designs and managing the production in virtual worlds….Why such a dramatic change? Economics, pure and simple.”Shenlei Winkler, Director Fashion Research Institute

3D internet

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Before the first plate of steel is even bent for production, the passengers will have flown, the crew will have serviced, and the

pilots will have flown the plane.

CEO of Boeing supplier

China is making big efforts in Virtual Worlds!

•A “virtual economy district – a world where millions will work, communicate, and be in love”

•Reaching out to the 150 mln overseas Chinese

•7 million inworld at same time

•Five virtual banking licenses auctioned for $404,000

www.crd.gov.cn, www.foreignpolicy.com

“The real China is only a piece of land. We believe that there must be a China in

the virtual world and the real world.”Robert Lai, Chief Scientist, CRD

Discussion – Some questions to ponder

What defines the boundaries of the MNC? From nonporous to porous Ecosystems and “open source”

What defines an employee of the MNC? From binary membership to fuzzy membership Microemployees and community members

Where is the MNC located? From the physical to the blended (physical & virtual)

Labor “mobility”

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Are we stuck in a traditional mindset?

Knowledge creation and transfer in MNCs superior to the market…..but is it

superior to networks?

Thank you! Johan Gorecki, Globe Forum Business Network

johan.gorecki@globeforum.com

Pierre Berthon, Bentley University pberthon@bentley.edu

Philip DesAutels, Microsoft philipda@microsoft.com

Brian Donnellan, NUI-Galway brian.donnellan@nuigalway.ie

Robin Teigland, Stockholm School of Economics

robin.teigland@hhs.se

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