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Venkatraman_Global Work


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Initial thoughts on the challenges of global work.

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Venkatraman_Global Work

  1. 1. Winning in a Network Era: The Changing Geography of Work Professor N. Venkatraman Boston University Keane Workshop November 2006 Email:
  2. 2. May 12, 1896 40.94
  3. 3. Overview <ul><li>Dawn of a Network Era </li></ul><ul><li>New World, New Challenges </li></ul><ul><li>Implications </li></ul>
  4. 4. Imagine life without……
  5. 5. We are in a network era… Live Consume Play Work Create Connect
  6. 6. Or to put it differently…..
  7. 7. Three laws shape the network era Moore’s Law Metcalf’s Law Gilder’s Law Computing Power Network Nodes Connection Speed
  8. 8. With pervasive impacts…. Moore’s Law Metcalf’s Law Bandwidth Law Product Process Service
  9. 9. Even Cartoons deal with the topic
  10. 10. Overview <ul><li>Dawn of a Network Era </li></ul><ul><li>New World, New Challenges </li></ul><ul><li>Implications </li></ul>
  11. 11. Globalization 1.0
  12. 12. One of the First Corporations…
  13. 13. Globalization 2.0
  14. 14. Globalization 2.0 Infrastructure
  15. 15. Globalization 2.0 Infrastructure
  16. 16. Globalization 2.0: Management ideas originated from.. <ul><li>‘ the industry of industries’ -- according to Peter Drucker </li></ul><ul><ul><li>the laboratory for the major management ideas that we know today </li></ul></ul>
  17. 17. Emerging Infrastructure for Globalization 3.0
  18. 18. Globalization 3.0 is about IT-enabled work Onshoring Near-shoring Global Delivery Model Blended Cost Offshoring Global Project Management Captive Operations
  19. 20. Globalization through digital networks..
  20. 21. Remote work
  21. 22. Early observations.. But not prescriptions
  22. 23. Remember lessons from the Motorcycle sector?
  23. 24. It’s not all about accent neutralization!
  24. 25. Globalization 3.0
  25. 26. The Business Agenda is to balance exploration with exploitation Exploration (innovation) Exploitation (implementation) Firm-centric Network-centric
  26. 27. The changing laboratory for management ideas.. <ul><li>‘ early 20th century’ </li></ul>‘ early 21st century’ “ Mass-produced automobiles” “ Networked business models”
  27. 28. The Corporation: Shifting lens Portfolio Of Products Portfolio Of Businesses Portfolio Of Capabilities Portfolio Of Relationships Firm-centric Ownership Vertical Integration Network-centric Relationships Virtual Integration Global Work
  28. 29. Computer industry [circa 1980s] Source: Bill Gates Testimony - link
  29. 30. Computer industry [circa 2002]… Source: Bill Gates Testimony
  30. 31. Lessons from this shift… <ul><li>From vertical integration to virtual integration through linkages </li></ul><ul><li>Ownership of assets to network of influence through relationships </li></ul><ul><li>Competition within a ‘layer’ and cooperation across layers </li></ul><ul><li>Networks are dynamic due to: </li></ul><ul><ul><li>Emergence of new layers </li></ul></ul><ul><ul><li>Shifts in the value across layers </li></ul></ul><ul><li>Value creation and capture in global networks of competencies </li></ul>
  31. 32. Overview <ul><li>Dawn of a Network Era </li></ul><ul><li>New World, New Challenges </li></ul><ul><li>Implications </li></ul><ul><ul><li>4 Questions </li></ul></ul>
  32. 33. 1. Inevitable Globalization of work <ul><li>Inevitable globalization of work </li></ul><ul><ul><li>Shifts in the geography of work </li></ul></ul><ul><ul><li>Shifts in the locus of value creation enabled by technology </li></ul></ul><ul><ul><li>Availability of people talent </li></ul></ul><ul><ul><li>Pervasiveness of technology infrastructure </li></ul></ul><ul><ul><li>Differential cost levels </li></ul></ul>1. Are you capitalizing on the trend?
  33. 34. 2. Lack of clarity in how to architect global work <ul><li>It’s more than call centers </li></ul><ul><li>It’s more than routine, low-value jobs </li></ul><ul><li>It’s more than cost arbitrage </li></ul><ul><li>It’s more than onshore versus offshore </li></ul><ul><li>It’s more than visa restrictions </li></ul><ul><li>It’s more than 24-hour cycle </li></ul><ul><ul><li>Etc… etc… </li></ul></ul>2. So.. are you designing global work for the network era?
  34. 35. 3. Challenges of Governing Global Work <ul><li>It’s about clarifying decision rights amongst all parties </li></ul><ul><li>It’s about redefining roles and responsibilities within dynamic teams </li></ul><ul><li>It’s about articulation of incentives and specific performance metrics </li></ul><ul><li>It’s about designing the organizational architecture for collaborative global work supported by powerful technological functionality </li></ul>3. Are you helping your clients to systematically explore and exploit global work?
  35. 36. 4.The New Global Work Movement Underway 4. What will Keane 2.0 look like to make global work work for you and your clients?
  36. 37. We need to innovate the architecture of global work and educate clients and employees about it.. Thank You Very Much!