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Presentation I gave at the Innovation Imperative Forum in Hong Kong.
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Innovating Social Enterprise
Through New Social Technologies
Hong Kong 31 March 2009
Doug [email protected]
The Big Ideas
• The era of services
• People as the source of value
• Social enterprise
• Social technology
• Architectures
It’s a good time to be focusing on social enterprise
Irruption
The Industrial
Revolution
Age of Steam
and Railways
Age of Steel, Electricity
and Heavy Engineering
Age of Oil, Automobiles
and Mass Production
Age of Information and
Telecommunications
Frenzy Synergy Maturity
Panic
1797
Depression
1893
Crash
1929
Dot.com
Collapse
• Formation of Mfg. industry
• Repeal of Corn Laws opening trade
• Joint stock companies
• Industry exploits economies
of scale
Current period of
Institutional Adjustment
• Separation of savings,
investment banks
• FDIC, SEC
• Build-out of Interstate
highways
• IMF, World Bank, BIS
1
2
3
4
5
Source: “Technological Revolutions and Financial Capital, Carlota Perez, 2002
Panic
1847
1771
1829
1875
1908
1971
1873
1920
1974
1829
Crash
30 Years32 Years
30 Years26 Years
30 Years27 Years
30 Years45 Years
“The turning point has to do with the balance between individual and social interests within capitalism. It is the swing of the pendulum from the extreme individualism of Frenzy to giving greater attention to collective well-being.”
Innovation Deployment
We are in an era of services dominance
� Evolving to new dominant logic – services-centered
– Away from goods exchange
– Toward exchange of intangibles
� Skills (S) specialization
� Knowledge (K)
� Processes
– Customers buy offerings rendering services that create value
� Service: “[the] application of specialized competences (S & K) through deeds, processes, and performances for benefit of another entity or the entity itself […]”
Stephen L. Vargo & Robert F. Lusch, “Evolving to a New Dominant Logic
for Marketing”, Journal of Marketing, Vol. 68 (January 2004), 1–17
“The great economic law is this: Services are exchanged for services…. It is trivial, very commonplace; it is, nonetheless, the beginning, the middle, and the end of economic science.”
Frederic Bastiat, 1860
Some might say it has always been the era of services
% of U.S. employment
agriculture
services
manufacture
Service System/Network1. People 2. Technology3. Shared Information4. Organizations
connected by value propositions
Computational System
More transistors, more powerful
Requires investment roadmap
More win-win interactions, more value
Requires investment roadmap
Service Science: Grand Challenge ProblemDiscover a Moore’s Law for service system improvement
Service Science: First Small StepsProgress Toward Service Science…
• Education– 200+ courses, programs, or degrees
established in 50+ countries
– 12 centers, seminars, or groups established
• Government– 11+ programs for service research
and education in 11 countries
– $500M+ committed worldwide
• Industry– SRII established to promote service
research and innovation agenda, with sponsorship from IBM, Oracle, Xerox, Microsoft and others
• Association Service SIGs– AIS, INFORMS, AMA, etc.
Service Science: First Small Steps
http://www.ibm.com/university/ssme
A proposed Platinum Rule for effective services:
• Provide results for clients that meet their desires
– Foundation: Knowledge of what clients, as human beings, desire in order to further their well-being
– Corollary: Anticipate desires they don’t yet know they have
It’s not just services -- other key factors and trends are converging to emphasize the social nature of enterprise
• Proliferation of human and ecological problems - local to global • Increasingly globalized economy • Systematically undercapitalized and underestimated potential of people –
treated as factors of cost, not value-creators• Enterprises are increasingly fragmented, and reintegrating in the form of
ecosystems of specialized firms– widespread outsourcing – global supply chain networks
• Financialization of the global monetary production economy• On-line marketplaces, like EBAY, for previously undervalued assets.• Mash-up world of Internet technologies make global markets
commonplace• Ubiquitous communication networks and continuous connectivity• Projection of self in everyday life
– Personal branding– Has a dark side – e.g. Choi Jin Sil, a S. Korean actress, hounded to death by
web posts
The fundamentally social nature of enterprise• Enterprise is: “a purposeful or industrious undertaking”
– http://www.onelook.com
• At the heart of enterprise is human desire
• The purpose of enterprise is to foster well-being
• “There is a fundamental insight underlying all management sciences. It is that the business enterprise is a system of the highest order: a system whose parts are human beings, contributing voluntarily of their knowledge, skill and dedication to a joint venture.”
– Peter Drucker (2004)
• Enterprise architectures are based on autopoietic systems– Interplay of closure and openness– Ongoing co-creation between the parts and the whole, within self-created
boundaries– It’s not necessarily “life” as we know it
• Biological• Social• Technological
With the social enterprise we are dealing with the softest (and most challenging) situations *
•Hard technology relates to the tools, implements, machines, devices and equipment that are the physical embodiment of technology, and/or technological process based on engineering techniques and principles …•Soft technology, in contrast, is the ‘scaffolding’ (support systems, group process techniques, design methodologies, decision making processes) for individual and collective self-determination …•The development of soft technologies goes hand in hand with the appearance of new challenges and opportunities in society
* Alexander Laszlo and Kathia Castro Laszlo, various publications
We need to consider why it is that we have not met the challenge of matching technological intelligence with a commensurate advancement in sociocultural intelligence and wisdom.
What do you see here?
Not all wealth creation can be traced back to commodities or survival mechanisms.
If you’re him …
… this is what happens.
Through new technologies and new institutional structures, new forms of propertification are coming into existence
Kim Slocum and Randy L. Thomas, “The Healthcare Information Technology Industry—Past, Present And Future”, February 2003 - http://www.himss.org/content/files/proceedings/2003/Workshop/workshopM_slides.pdf
Any source of wealth must somehow be recognized as property by players in the economic system
Communities are asset-rich
• People are the source of value, and through communities they identify their personal capital
• The highest form of capital is developed via problem-solving services– These highest-value types of capital are developed through intellect and
insight– Much of the wealth of communities literally exists in their own minds
• Every knowable thing (once known) is a form of capital– Each of these forms of capital is a potential seed for a community
• There is static and dynamic value in communities– Static value is a snapshot of people, assets and social infrastructure– Dynamic value is realized as community interacts internally and externally – The value of communities arises from people’s interactions
• Value creation through community emerges from an abundance of problems and problem-solvers rather than scarcity of resources
• This idea reverses the premise for insurance: underwriting potential rather than underwriting the risk of loss
A new source of opportunity is based on certain properties of communities
• A community is a bounded sociality
• A community can be seen as a field …
… or a plasma
• Communities are like standing waves – forming and collapsing
• Value creation occurs in a structure we provide as a containmentvessel
http://www.jet.efda.org/pages/fusion-basics/fusion2.html
A community vault is the containment vessel for value creation
Past
Asset usages
Future
Declared assets
Historical performances
Payments
Category
Projects
Performativeaccords
Assets in a category
Liquid Contract position
Liquid Contract position
X-ray of an asset
Asset name:
Value adjustment
Owner:
Description:
Asset type:
Categories:
Initial value:
Liability:
Limitation to liability:
Date declared:
Currency:
Value adjustmentValue
adjustmentValue adjustment
Demurrage eventDemurrage
event
PerformativeaccordPerformative
accord
PerformancePerformance
Performance valuation
LC inclusionLC
inclusionLC inclusion
LC spread position allocation
LC spread position allocation
LC spread position allocation
Reputation evaluation
Asset complementarity
Asset commitment
There are many socially-focused dimensions of business architecture
• Eco-systems• Organization structures• Processes and procedures• Practices• Social networks• Roles and accountabilities• Institutional architecture• Brand architecture• Cultures• Decision architecture• Social bonds• Meaning• Communities and boundary objects
A view of the semi-conductor industry ecosystem
1985
DistributorDistributorDistributor
DistributorDistributorDistributor
SemiconductorManufacturerSemiconductorSemiconductorManufacturerManufacturer
Capital Equipment
Manufacturer
Capital Capital EquipmentEquipment
ManufacturerManufacturer
Indirect SupplierIndirect Indirect SupplierSupplier
Technology Reseller
Technology Technology ResellerReseller
ComponentManufacturer
ComponentComponentManufacturerManufacturer
Raw Material Supplier
Raw Material Raw Material SupplierSupplier
System OEMSystem OEMSystem OEM End User
2003
Service Provider
FoundryAssembly
& TestContract
Manufacturer
FablessDesign/
IP House
System Design House
Created by Denis Mathias, BCS partner.
Organization structure
reporting relationship
Organization
Manager
Organization
Manager
Organization
Manager
Organization
Manager
Organization
Manager
Organization
Manager
reporting relationship
Process and procedural models
A well-known macro-architecture framework is Stafford Beer’s Viable Systems Model.
Environment
Present
FutureIntelligence
Co
ord
inati
on
Control
Policy
Op Unit 1
Op Unit 2
Op Unit 3
From: Rudolf Kulhavy, From Banks to Banking: Architecting Business Performance Transformation, 2005
Ontologies create a semantic bridge between business communities
Conversations
Commitments
Contracts
Transactions
Corpus of business content
Lexicon
Implicit Ontology
Explicit Ontology
UpperOntology
A semantic architecture disambiguates meaning between business terminology and IT manifestations
Generic business concepts
Industry-specific extensions
Ontological models
Terminology models
Information systems modelsObject model
E/R modelReverse-engineered
model
A high-level view of a semantic architecture
BusinessSituation
BusinessPurpose
BusinessCommitment
BusinessOutcome
BusinessRole-player
BusinessFunction
BusinessResource
BusinessBehavior
BusinessLocation
constrainsmotivates
defines
alterssenses
supports fulfills
mandates
negotiatesgoverns
produces incorporates
performs
manipulates
facilitates
houses
Is assigned as
Invokes and
sequences
Based on: "A Standard for Business Architecture Description" D. W. McDavid, IBM Systems Journal, v. 38, no. 1, 1999.http://www.research.ibm.com/journal/sj/381/mcdavid.html
enacted by
A simple example shows various types of boundary objects that span business language communities.
Name:
Question:
Answer:
Question:
Answer:
Template
definitionPersonnel management
Employee
Personnel hotline agentCall
tracking
system
HR
professionalism
Hotline group
Benefits department
Employee
database
COBRA
benefits
Paper
notes
Post-It
1. Employee #
Procedures
Procedures
Escalation
From: Cherbakov and McDavid, Boundary Objects to Bridge the Gap, PLTE, 2005 (RBV080) -- Based on: Mark S. Ackerman and Christine Halverson, “Organizational Memory: Processes, Boundary Objects, and Trajectories,” Proceedings of the Thirty-second Annual Hawaii International Conference on System Sciences, IEEE, 1998.
Name:
Question:
Answer:
Question:
Answer:
Business ServicesSupports enterprise business process and goals
through businesses functional service
Enterprise Service Bus
Interaction Services
Enables collaboration
between people,
processes & information
Process Services
Orchestrate and
automate business
processes
Information Services
Manages diverse data
and content in a unified
mannerDevelopment
Services
Integrated
environment
for design and
creation of
solution assets Partner Services
Connect with trading partners
Business App Services
Build on a robust,
scaleable, and secure
services environment
Access Services
Facilitate interactions
with existing information
and application assets
Management
Services
Manage and
secure
services,
applications &
resources
Infrastructure Services
Optimizes throughput, availability and utilization
Ap
ps
&
Info
As
se
ts
Service Registry
SOA Foundation Reference Architecture
• Basics– Store and retrieve
– File service and document sharing
– Versioning
• Tracking interactions– Hits
– Click-throughs
– Cookies
• Content types– Textual, graphical, and audio
– Still vs. active.
• Accessibility– Search
– Tagging
– Ontologies and controlled vocabularies – Text analytic
• Boundaries– Zones of availability on a various scales.
• Intranet• Extranet • Internet• Access control
– Links
• Threading– Text chat – Voice
– Video
ICT Architecture considerations for sociable technology
• Communication modalities– Broadcast
– Narrowcast
– Pointcast
– Peer-to-peer
– Publish and subscribe
• Interactions– Real-time or asynchronous
– Two-way or multiple participants
• Complex ICT services– Calendar
– Work allocation,
– Groups
– Automated message origination
– Decision-making.
• Opinions– Rating
– Ranking
– Rewards
– Reputation
• Visual design
• Commerce– Advertisements
– Purchasing software
• Openness to integration
SmallBlue
understanding your social network, locating expertise
� Mechanisms to locate skills and affinity groups across IBM
� Capture tacit knowledge without requiring user to proactively enter data in a separate repository
� Bring transparent and secure information sharing to Notes and Sametime
Bee Hive: virtual office walls and desks
� Shared pictures of company events, families and friends, and “What I did on my vacation”
� Jokes, philosophies, experience reports
� Ad hoc events convened electronically
Virtual World Games
Open Source Software Development
Social Networking
Defense, Medical, Corporate, Entertainment
Collaboration, Training, Distance Learning, Marketing
Virtual World Technologies
• Manner of use– Artifacts
• Utilitarian or aesthetic• Past, present or future• Real world renderings or fanciful creations
– Activities• Performance • Simulation • Collaboration
– Simple meetings– Conferences – Joint development of intellectual content
• Focus of use– Mode of engagement
• Uses -- VW is used in conjunction with other activities• Within -- VW is the place to conduct business• About -- Virtual space is the business opportunity
– Issues addressed• Long list, started on the next slide
Taxonomy of usage of virtual world technology
• Technology – Hardware, software, and hosting for VW• Physical world simulations – Power plants, refineries, etc.• Marketing
– Branding statements – static displays, interactive events– Market research
• Product sales – Channel for real-world products • Services
– Social services – Public services by jurisdictions, non-profit, NGOs – Business services – Accounting, law, consulting,– Personal services – Medical, fashion, personal shopping– Education – Academic institutions and corporate education
• Travel-cost offset – Commuting, long-distance travel
Open for business – virtual world opportunity areas
Molecule
rezzers
IT-oriented simulations
Grand Slam tennis
Real World Retail
IBM Innovation Jam results:
Funding for ‘3D Internet’
Lots of publicity
IBM
Business Center
IBM’s entry into the virtual world was aided immensely by the New Media Consortium
• The NMC complex of islands is growing rapidly
• The original campus was the model for IBM’s Almaden Island
http://www.nmc.org/
Rehearsal Services
VUC weekly meeting adjourns outside Jacob Hall to salute Ada Alfa’s impending nuptials!
You know you’ve ended a successful meeting when a party breaks out, complete with dance floor & disco ball.
I chose to live in a place that has interesting neighbors!
Features of this location in the Yurim sim
• Near Jnana software• Art• Orientation trail• Meeting space• Professor from GWU• SL Herald managing editor• Space for the pirate ship …
The virtual world converged with the real world in the form of a visit to
Almaden Research Lab by a well-known RL and SL artist
The first time this presentation was given in 3D – on Info Island
Key aspects of the virtual world experience
• Interacting in a virtual world provides a strong feeling of being in the same place with other people
• There is an ability to distance oneself from current real life situations through projection of self onto an avatar
• Intimacy and trust are often easier to achieve in a virtual world• Anonymous interactions can be supported, if desired• Official hierarchy and rank can be downplayed or hidden• Virtual objects and environment can be used as a kind of “memory palace”• Shared vivid experiences are engaging and memorable• Serious work can be commingled with fun and entertainment• Objects can be uses as visual ontologies• Animation of avatars can express limited emotional nuance• There are infinite degrees of freedom to design the visual experience, from real life
replicas to fanciful things and places that could only exist in virtual space• It is possible to manifest community boundaries and boundary-spanning objects • Multi-media (streaming audio, video and machinima) close the loop between real world
and the virtual world• External application logic can be invoked from inside a virtual space• A game paradigm (competition with rules and constraints) is an option
Enterprise architectures are structurally coupled to ICT architectures
• We are operating from these definitions: – “Structural coupling is the term for structure-determined (and structure-determining)
engagement of a given unity with either its environment or another unity. The process of engagement which effects a ...history or recurrent interactions leading to the structural congruence between two (or more) systems". (Maturana, 1987)
– It is “...a historical process leading to the spatio-temporal coincidence between the changes of state” (Maturana, 1975) in the participants. As such, structural coupling has connotations of both coordination and co-evolution. (Thellefsen, on-line)
– Niklas Luhmann has repurposed Maturana’s concept specifically for social systems theory. Luhmann described structurally coupled systems as being in a state of mutual irritation and resonance. “Structural coupling is a state in which two systems shape the environment of the other in such a way that both depend on the other for continuing their autopoiesis and increasing their structural complexity.” (Moeller, 2006)
• Enterprises and technologies are rapidly co-evolving, enabled by such technologies as Web 2.0 and virtual worlds.
• The generation coming into the workforce expects to find such technical affordances in the workplace.
• Technology is not an inert enabler, but through an ecosystem of technological specialists is itself composed of an accountable set of human enterprises.
• Sociable technologies are coupled to the functions of enterprise that project the self of individuals and organizations into a globally open market of services and collaboration.
The enterprise in the clouds is the platform for 21st Century Innovation
Accounting Cloud
Collaboration Cloud
Transaction Cloud
Innovation Cloud
Marketing Cloud
Features and characteristics
• Cloud computing
• SOA-based
• Platinum rule of services
• People as source of value
• Standard processes
• Buying and selling as two
sides of the same coin
• Continuous close
Meaning Cloud