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


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Panel at International Conference on Information Systems in Paris, France December 2008. Looks at the rise of ICT-distributed collective intelligence in relationship to Multinational Corporations

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

  1. 1. The Multinational’s Nemesis ----- The rise of ICT-enabled distributed collective intelligence? Monday, December 15, 2008 Panel #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
  2. 2. Panel overview <ul><li>Introduction </li></ul><ul><ul><li>Johan Gorecki </li></ul></ul><ul><li>ICT – enabled distributed collective intelligence </li></ul><ul><ul><li>Pierre Berthon </li></ul></ul><ul><ul><li>Philip DesAutels </li></ul></ul><ul><li>The Multinational Corporation </li></ul><ul><ul><li>Brian Donnellan </li></ul></ul><ul><ul><li>Robin Teigland </li></ul></ul><ul><li>Discussion with audience </li></ul>
  3. 3. Johan Gorecki Founder and CEO Globe Forum, www.globeforum.com Modern Times Group (MTG), where responsible for Metro and Everyday One of Skype cofounders
  4. 4. Introduction <ul><li>Are ICT-enabled distributed collective intelligence organizations challenging the MNC as the superior organizing form? </li></ul><ul><ul><li>As efficient and effective at enabling coordinated action ? </li></ul></ul><ul><ul><li>As superior in facilitating social community ? </li></ul></ul><ul><ul><li>As more effective as driver of social change ? </li></ul></ul>
  5. 5. Skype <ul><li>Launched in August 2003 </li></ul><ul><li>Q1 2006 95 million users </li></ul><ul><li>Q 3 2007 246 million users </li></ul><ul><li>6.1 billion minutes </li></ul><ul><li>Avg 12 million active users </li></ul><ul><li>2005 sold to ebay for €1.9 billion </li></ul>
  6. 6. Globe Forum (www.globeforum.com)
  7. 7. MyC4
  8. 8. Microfinancing: Kiva.org
  9. 9. Total capital raised from Kiva internet lenders ($USD mln ) More than USD 13 million raised from 133,000 social investors in 25 months
  10. 10. Own experience, own reflections <ul><li>Time to market </li></ul><ul><li>Keep the smart people </li></ul><ul><li>Globalisation </li></ul><ul><li>Fast communication </li></ul><ul><li>Integrate in the community </li></ul><ul><li>Pick up trends </li></ul><ul><li>Environmental issues </li></ul>
  11. 11. Panel overview <ul><li>Introduction </li></ul><ul><ul><li>Johan Gorecki </li></ul></ul><ul><li>ICT – enabled distributed collective intelligence </li></ul><ul><ul><li>Pierre Berthon </li></ul></ul><ul><ul><li>Philip DesAutels </li></ul></ul><ul><li>The Multinational Corporation </li></ul><ul><ul><li>Brian Donnellan </li></ul></ul><ul><ul><li>Robin Teigland </li></ul></ul><ul><li>Discussion with audience </li></ul>
  12. 12. Pierre Berthon <ul><li> Clifford F Youse Chair of Marketing Professor </li></ul><ul><li> Bentley University </li></ul><ul><li> Philip’s supervisor </li></ul>
  13. 13. PhD candidate at Bentley University US manager of academic evangelism at Microsoft Research interests in generative social enterprise Philip DesAutels
  14. 14. ICT-enabled distributed collective intelligence
  15. 15. Why is the open model more appropriate today?
  16. 16. <ul><li>Requisite variety is ever increasing </li></ul><ul><ul><li>There is more turbulence - Socially, economically, environmentally, technologically. </li></ul></ul><ul><ul><li>Traditional mechanistic/heir approach to organizations is not able to cope. </li></ul></ul><ul><ul><ul><ul><li>Governments – </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Nationalization </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>E-government </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Social enterprises </li></ul></ul></ul></ul></ul>
  17. 17. <ul><li>Previous generations were born into hierarchy </li></ul><ul><ul><li>Family </li></ul></ul><ul><ul><li>Schools </li></ul></ul><ul><ul><li>Society </li></ul></ul><ul><ul><li>Work </li></ul></ul><ul><ul><li>Religion </li></ul></ul><ul><li>Gen-Y </li></ul><ul><li>Connected – born digital </li></ul><ul><li>Autonomous – latchkey, make their own decisions, forced </li></ul><ul><li>Multitasking </li></ul>
  18. 18. Why do organizations fail? Your business is as complex as a bowl of noodles.
  19. 19. iPhone 99¢
  20. 20. Dove Real Beauty <ul><li>Real Beauty Movement online community </li></ul><ul><ul><li>Facebook </li></ul></ul><ul><ul><li>BBS </li></ul></ul>
  21. 21. Pink
  22. 22. OBAMA dot GOV <ul><li>Barak </li></ul><ul><ul><li>Lessig call </li></ul></ul>
  23. 23. Red Flag Linux
  24. 24. Open everything
  25. 25. What can we learn?
  26. 26. <ul><li>Closed </li></ul><ul><li>Bounded </li></ul><ul><ul><li>Facebook </li></ul></ul><ul><ul><li>Wikipedia </li></ul></ul><ul><ul><li>Secondlife </li></ul></ul><ul><ul><li>Makers Faire </li></ul></ul><ul><ul><li>Chumby </li></ul></ul><ul><ul><li>Sneaky DS </li></ul></ul><ul><li>Open </li></ul><ul><ul><li>W3C/IETF </li></ul></ul>
  27. 27. Open source is changing the way we… <ul><li>Coordinate </li></ul><ul><li>Community </li></ul><ul><li>Change </li></ul>
  28. 28. Dimensions of open source <ul><ul><li>Methods versus Values </li></ul></ul>Virtual distributed communities
  29. 29. Influence <ul><ul><li>O  ΔC </li></ul></ul><ul><ul><li>O  C </li></ul></ul><ul><ul><li>OΔ  C </li></ul></ul>
  30. 30. Panel overview <ul><li>Introduction </li></ul><ul><ul><li>Johan Gorecki </li></ul></ul><ul><li>ICT – enabled distributed collective intelligence </li></ul><ul><ul><li>Pierre Berthon </li></ul></ul><ul><ul><li>Philip DesAutels </li></ul></ul><ul><li>The Multinational Corporation </li></ul><ul><ul><li>Brian Donnellan </li></ul></ul><ul><ul><li>Robin Teigland </li></ul></ul><ul><li>Discussion with audience </li></ul>
  31. 31. Brian Donnellan <ul><li> Faculty member </li></ul><ul><li> Business Information System </li></ul><ul><li> National University of Ireland at Galway </li></ul><ul><li> 20 years working in US multinational </li></ul><ul><li> corporations </li></ul><ul><li> Actively engaged in research on </li></ul><ul><li> Information System Innovation </li></ul>
  32. 32. The evolution of the MNC (Perlmutter) Phase 1 : Ethno-centric - Complex in home country, simple in subsidiaries Phase 2 : Poly-centric - Varied and independent Phase 3 : Geo-centric - Increasingly complex and interdependent Phase 4: ????????
  33. 33. University Industry R&D Products $1B markets 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 Entertainment Portable communication CTSS, Multics/BSD Unix SDS 940, 360/67, VMS Berkeley, CMU, CERN Novell, EMC, Sun, Oracle Sketchpad, Utah GM/IBM, Xerox, Microsoft E&S, SGI, ATI, Adobe Spacewar (MIT), Trek (Rochester) Atari, Nintendo, SGI, Pixar ARPANET, Aloha, Internet Pup DECnet, TCP/IP 1965 1970 1975 1980 1985 1990 1995 2005 Rings, Hubnet Ethernet, Datakit, Autonet LANs, switched Ethernet Lisp machine, Stanford Xerox Alto Xerox Star, Apollo, Sun Engelbart/Rochester Alto, Smalltalk Star, Mac, Microsoft Berkeley, Caltech, MOSIS Many Berkeley, Stanford IBM 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, UCLA IBM, ICL ICL, Teradata, Tandem Wisconsin, Stanford IBM, Arbor IRI, Arbor, Plato IIIiac 4, CMU, Caltech, HPC IBM, Intel CM-5, Teradata, Cray T3D Berkeley Striping/Datamesh, Petal Many Berkeley, Purdue (CDMA) Linkabit, Hughes Qualcomm CERN, Illinois (Mosaic) Alta Vista Netscape, Yahoo, Google CMU, SRI, MIT Bell, IBM. Dragon Dragon, IBM Stanford, UCLA Bellcore (Telcordia) Amati, Alcatel, Broadcom PARC, DEC, IBM SUN, SGI, IBM, HP Oracle, IBM, Sybase
  34. 34. Perspective #1 - Fernando Flores 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
  35. 35. The Atom of Work - Flores
  36. 36. 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.
  37. 37. Organising and disorganising (Thompson)
  38. 38. The environment is on everyone’s agenda
  39. 39. Climate Savers Computing Initiative <ul><ul><li>The Initiative is comprised of consumers, businesses and organizations that have come together to drive energy efficiency by: </li></ul></ul><ul><ul><ul><li>Increasing energy efficiency of new PCs and servers </li></ul></ul></ul><ul><ul><ul><li>Promoting use of power management </li></ul></ul></ul>Goal: reduce computer power consumption 50% by 2010! 1
  40. 40.
  41. 41. Robin Teigland Associate Professor Center for Strategy and Competitiveness Stockholm School of Economics Sweden PhD on knowledge flows through informal networks in MNCs and impact on competitive advantage Especially interested in virtual worlds
  42. 42. Multinational corporation as social community <ul><li>Specializes in creation and transfer of knowledge </li></ul><ul><li>Superior to market as organizational vehicle to transfer knowledge across geographical borders </li></ul><ul><li>The more tacit the knowledge, the more likely transferred within the firm </li></ul><ul><li>Kogut & Zander 1993 </li></ul>
  43. 43. Best practices and knowledge flow through networks and communities of practice http://www.slideshare.net/SOMESSO/speaker-1-bettina-kahlau-presentation
  44. 44. Organizing in MNCs Network picture from http://n-e-r-v-o-u-s.com/blog/?m=200712 Hierarchy Linear, static, process-based organization Heterarchy Dynamic, integrated collaboration networks
  45. 45. eZ Systems and the eZ ecosystem: #1 open source content management software eZ Partners Community Customers <ul><li>Enterprise open source – “Grow the cake” </li></ul><ul><li>60 Employees in 8 countries (Europe & Asia) </li></ul><ul><li>230+ Partners </li></ul><ul><li>5000+ Customers </li></ul><ul><li>30,000+ Community members </li></ul>www.ez.no Skien, Norway
  46. 46. History tends to repeat itself…. Steam engine Internal combustion engine Microelectronics Late 18 th C Late 19 th C Late 20 th C Schön 2008
  47. 47. A new workforce is appearing… Mahaley 2008, Merrill Lynch 1999, Beck and Wade, Prensky “ Digital Immigrants” “ Digital Natives” Company loyalty Work ≠ Personal Professional loyalty Work = Personal
  48. 48. Towards 3-D internet Level of Interaction Time Hamilton 2008 Individual Web 1.0 Thinking Mosaic, Prodigy, Compuserve, AOL, Netscape Connected Web 2.0 Thinking Facebook, Friendster, Yahoo, Blogger, Wikipedia, eBay, Typepad, LinkedIn. Amazon, MySpace, Textamerica, Delicious, HubPages SENSORY 3D Internet Thinking SecondLife, Active Worlds, There, SimsOnline, Club Penguin, World of Warcraft, 3D planets, ToonTown, Habbo, VSlide, Protosphere
  49. 49. 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
  50. 50. 3D internet 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
  51. 51. China is making big efforts in Virtual Worlds! <ul><li>A “virtual economy district – a world where millions will work, communicate, and be in love” </li></ul><ul><li>Reaching out to the 150 mln overseas Chinese </li></ul><ul><li>7 million inworld at same time </li></ul><ul><li>Five virtual banking licenses </li></ul><ul><li>auctioned for $404,000 </li></ul>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
  52. 52. Discussion – Some questions to ponder <ul><li>What defines the boundaries of the MNC? </li></ul><ul><ul><li>From nonporous to porous </li></ul></ul><ul><ul><li>Ecosystems and “open source” </li></ul></ul><ul><li>What defines an employee of the MNC? </li></ul><ul><ul><li>From binary membership to fuzzy membership </li></ul></ul><ul><ul><li>Microemployees and community members </li></ul></ul><ul><li>Where is the MNC located? </li></ul><ul><ul><li>From the physical to the blended (physical & virtual) </li></ul></ul><ul><ul><li>Labor “mobility” </li></ul></ul>Are we stuck in a traditional mindset? <ul><ul><ul><li>Knowledge creation and transfer in MNCs superior to the market…..but is it superior to networks? </li></ul></ul></ul>
  53. 53. Thank you! <ul><li>Johan Gorecki, Globe Forum Business Network </li></ul><ul><ul><li>[email_address] </li></ul></ul><ul><li>Pierre Berthon, Bentley University </li></ul><ul><ul><li>[email_address] </li></ul></ul><ul><li>Philip DesAutels, Microsoft </li></ul><ul><ul><li>[email_address] </li></ul></ul><ul><li>Brian Donnellan, NUI-Galway </li></ul><ul><ul><li>[email_address] </li></ul></ul><ul><li>Robin Teigland, Stockholm School of Economics </li></ul><ul><ul><li>[email_address] </li></ul></ul>