1. Dr. Richard Straub | President of the European eLearning Industry Group | Advisor to the Chairman IBM EMEA [email_address] Sustaining Employability- Innovation in Lifelong Learning EDEN Conference Vienna, Austria June 14 - 17, 2006
5. The Environment – Accelerating Change Point Solutions Market/Product Expansion Product/Manufacturing Business Values Generations Organizations Technology To From Economy Continuity/Predictability Baby-Boomers Hierarchy/Horizontal Knowledge/Services Growth through Innovation Disruptive Change BAU Multi-Generational Dis-aggregation Convergence Real World Virtual World/Synthetic World Reality
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7. Worldwide ranking on E-readiness Source: EIU/IBM e-readiness ranking 2006 8.19 Austria ▼ 14 15 8.36 Hong Kong ▼ 6 (tie) 10 ▲ ▲ ▼ ▲ - ▼ ▲ - - Change (Ranks) 8.37 Canada 12 9 8.50 Australia 10 8 8.55 Finland 6 (tie) 7 8.60 Netherlands 8 6 8.64 UK 5 5 8.74 Sweden 3 4 8.81 Switzerland 4 3 8.88 US 2 2 9.00 Denmark 1 1 E-readiness score (of 10) Country 2005 Rank 2006 Rank
8. High Value Jobs moving into Services Estimations based on Porat, M. (1977) Info Economy: Definitions and Measurement, Augmented with recent data and projections from http://www.bls.gov/
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13. An Open ICT Ecosystem – foundation for Interoperability Connected via an Open ICT Ecosystem Policies Strategies Processes Technologies Open Standards Open Source Teacher / Administrator Parent Student Local Authority Government Classroom Business Higher Education
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18. Innovation as the Engine for Growth and Productivity and Jobs Global Collaborative Cross- Disciplinary Traditional R & D Labs New Technologies Existing Technologies Complexity Openness Speed Products Systems Services Processes Business Models Social knowledge- intensive Innovation “ Living Labs” Real World Context Productivity Growth Well-Being
31. Reinventing ways of doing business Instant, in-store promotions are based on real-time view of customer buying behaviors and inventory levels Stores offered same promotions across all stores, based on a predetermined schedule Retail Customs agencies know exact location, origin and contents of containers in a matter of seconds It took customs agencies hours to determine the location, origin and contents of containers arriving at their ports Government Horizontal integration of processes taking product launch down to 8 weeks Launch of new credit product taking up to 7 months Financial Services Collaboration across entire supply chain accelerates root cause analysis, resolving warranty claims 5 days faster. Lack of collaboration between OEMs, suppliers and dealers slowed processing of warranty claims Automotive Passengers can print their own boarding passes at home Passengers waited in line at airport to get boarding pass Airlines Auto insurance rates based on driving and usage patterns Auto insurance rates were based on fixed premiums Insurance On Demand Business Traditional business model Industry
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35. In 2006, CEOs are looking to innovation to drive fundamental change that enables sustainable growth, but . . . Extent of Fundamental Change Needed Over the Next Two Years Past Level of Success at Managing Fundamental Change . . . their track record for managing fundamental change is not stellar A lot of change 65% Moderate change 22% Little or no change 13% No change experience 5% Little to no success 15% Some success 33% Successful 32% Very successful 15%
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37. innovation: how? new forms of collaboration IBM Institute for Business Value, CEO Study 2006 CEOs: Sources of new ideas and innovation “ We have...today a lot more capability and innovation in the [competitive] marketplace...than we [could] try to create on our own.” Business partners Customers Consultants Competitors Associations, trade groups, conference boards Academia Internet, blogs, bulletin boards Think tanks Other R&D (internal) Sales or service units Employees (general population) 5% 15% 25% 35% 45% 45% 35% 25% 15% 5%
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Editor's Notes
So what is Collaborative Innovation? In the past we liked to compare PRODUCT-DRIVEN vs MARKET-DRIVEN models, the former being “built it and they will buy’ mentality vs the later being Build it because we know they need it! SO we can look look at How we have performed Product Innovation by what we call MONOLITHIC INNOVATION and the proposed COLLABORATIVE INNOVATION models In the old model, firms try to control the whole innovation process from the top-down. But you can’t control innovation networks because they evolve organically, rather you focus on what you do best and build symbiotic --or win-win-- partnerships with other specialists in the network. Today firms innovate by using only their own inventions. But in collaborative innovation, you don’t need to invent to innovate. You take your partners’ best inventions and transform them into your own innovations. Corporate lawyers will tell you the “P” in Intellectual property stands for protection: you must own and protect it. But in collaborative innovation models, firms are obsessed with return on intellectual capital: so they willingly share and expand their IP with network partners to grow their business. Innovation processes are too rigid to react to changes in customer demand. But collaborative Innovation Networks give you flexible processes that let you and your partners anticipate AND quickly respond to innovation demand – and grab growth opportunities before they vanish Companies today use patents to measure their innovation success. But in the NEW model, inventions – measured by patents – take a back-seat to customer experience, the best indicator of innovation. And lastly, rather than RECEIVING the product of your inventions, customers are embedded in your Innovation network so their insights help shape your innovations. As you can see, the new Model of SHARING, LEVRAGING BEST PRACTICES/BEST OF BREED and Symbiotic partnerships will be the only way for us to achieve the organic growth we all want for our business in the future
Porat (1977) noticed the growth in services based on information in his efforts to define the information economy. ------------------- Sources: Porat, M. (1977) The Information Economy: Definitions and Measurements, Special Publication 77 12(1), Office of Telecommunications, US Department of Commerce. Agriculture -> farms (plants and animals, hunting, fishing, mining (harvesting of natural resources) Industry (Goods) -> manufacturing, making things, construction Services (info) -> create info, store & organize info, process info, distribute & communicate information (battle uncertainty – remove risk) Services (other) -> maintenance & repair of people and things (battle entropy – remove decay), transport goods, provide utilities, distribute goods and utility services Mitigate risk, uncertainty Mitigate entropy Time Line: http://www.pbs.org/wgbh/amex/telephone/timeline/f_timeline.html Farm Labor: http://www.usda.gov/history2/text3.htm Brief History of Work: http://courses.nus.edu.sg/course/socsja/SC2202/Labor/Occupationsa.html 1800 and the Jeffersonian ideal – citizens as independent and self sufficient 1800 – mobile people called settler (move and stay), conquerors (come in to rule), or sailors (come from afar to trade), changed by 1900 to include travelers -- local travel to family, on business, leisure, schools, medical, government or military service.
Here you have a simplified example of an ecosystem for learning regarding K-12 – key participants – connected via an open ICT ecosystem. The power of connecting the players and having them interoperate is obvious. This creates dynamics for innovation in learning that we have never seen before. We have the first great examples where parents are getting involved in the activities of their kids in schools or where local authorities can discover in real time patterns about performance problems in schools and help with the initiation of remedial actions. Or, along the same lines, where governments can receive key policy input about developments in schools across the country, without waiting 2 years to receive a report. However – the interconnection can only be achieved in a sustainable way if based on open standards. Proprietary standards would rather lead towards a world that is “closed” – maybe someone would like to write a book “The world is closed…”. For sure this will not be IBM..!
Thank you
1. Lisbon declaration, with emphasis on knowledge 2. In response MS recognised that education & training systems in Europe must reform to meet challenges of a knowledge society. Stockholm Council agreed that emphasis be placed on Quality, Access and Openness 2. Barcelona Council set the aim for Europe to become a worldwide quality reference by 2010 This will be achieved bottom-up, the responsibility being with MS and the regions. The Commission will support this process
Enterprises in different industries have applied technology to significantly change the way they do business.
Two years ago, we interviewed CEOs at 456 companies in every major industry sector. And, just recently, we completed interviews with 765 such CEOs to dig a little closer and get a better idea of just what’s keeping them up at night. In this latest survey, two-thirds of them said definitively that they’re looking to innovate. But they didn’t all agree about what they needed to innovate. Those who are looking to innovate their business model seemed to feel that products and services can be copied, but the business model is the true differentiator. The business process innovators think that’s the toughest thing for the competition to duplication, so that’s where their competitive advantage will lie. Meanwhile, the product and service innovators are afraid that innovations in processes and business models are too ephemeral for their tastes. And they’re under a lot of pressure, especially, because products and services are, of course, most prone to being turned into commodities.
With massive processing power connected by the Internet, easier and more successful integration of enterprises, a wider understanding and acceptance of the need to collaborate, and the new services and service delivery models from new entrants in that market segment... ...it’s now actually possible to create and run a company that can concentrate on the one thing it does best. Our clients can integrate their partners into their business – partners handling everything from supply chain and accounting, to the actual development of the products they sell and the relationship they have with their own customers. This has never been possible before quite to the extent it is now. That’s because every one of these elements, and every other element of a business’s operations, has been broken down into components that can be mixed and matched. That helps an enterprise see which components it should do itself and which it can rely on a partner to contribute. [click to reveal IBM capabilities] And it needs a partner like IBM to help integrate and manage it all, using everything at our disposal, such as the Component Business Model, employing service-oriented architectures, and bringing our various offerings to bear in helping our clients specialize in what differentiates them, and leaving the rest to someone else.
In our industry, we’ve perhaps seen this trend in sharper relief than any other, but in fact, collaboration and co-creation are shaping every industry in one way or another, and they represent a huge opportunity for our clients in innovating for their own advantage. For example, this shows all the various answers CEOs gave in our most recent survey as to where they get their best ideas. Notice that they’re seeing almost as many good ideas coming from their business partners as from their employees who work with those partners. And they’re getting about twice as many innovation insights from customers as they are from the sales and service units who work directly with those customers. What they’re realizing -- in some of the ways we’ve learned from our work in open source and open standards, and from many of our joint development projects -- is that they no longer have to create – and own -- everything themselves, as they once believed.
William Mougayar, Gobalization 2.0: The future organization is an OPEN CORPORATION. It has a functional architecture that allows it to absorb external touch points in an open manner. Openness means easier business once standards of interaction are adhered to, but it does not mean blindly acquiescing to, or exposing everything. Open means flexibility in aligning priorities, budgets, resources and people to dynamically changing objectives. Open facilitates technical and business integration but it doesn’t resolve it on its own. Open accounting and financial disclosures breed confidence and trust and eases efficient integration and engagement of stakeholders, customers, partners and investors.
“ Community of Practice” (Etienne Wenger, 1990s) is a shared domain of interest, where members interact and learn together and develop a shared repertoire of resources. Mobile Learning defines new relationsships and behaviors among learners, information, personal computing devices, and the world at Large (Ellen Wagner, Bryan Alexander)