Prof Ir. Jaap van Till Telecommunication and Networking Group Technology Faculty HAN University of Applied Sciences, NL eComm  Emerging Communications Conference Oct 28-30 2009 “ What’s next in Telecom, Mobile & Internet Communications” Amsterdam Oct 29  08.45 – 09.05   The Motor: How Networking will get us out of the Crises The question is no longer what PPL can do with telecom but what telecom does to (groups of) People Version 2 “ Let the beauty we love be  what we do . There are 00s of ways 2 kneel & kiss the ground.”  Rumi, 13th century Sufi poet  (recent Tweet on #iranelection)
Early 21th Century Economics: Lessons for all Market  imperfections visible  State  better ? Bad memories ……. Two Nobel Prizes 2009 relevant for our sector ICT Networks: For Physics: Charles Kao for long distance comm on optic fibers For Economics:  Mrs Elinor Ostrom for het work on “ Commons ” Neo Classic Economists: Market / State  &  “TRAGEDY of the Commons” People are not cows!  Possible “ Commedy of the Commons “ Or even “ TRIUMPH of the Commons “!!!  Examples : ISOC IETF Internet process of improvement, Wikipedia, YouTube Open Source SW, Internet Exchanges, SURFnet,  Google, Twitter Flower Auctions, Wi-Fi , Mesh Networks, “waterschappen” Peer-to-Peer : in total more is contributed than taken out Key: What do we share (non competitive) and what not shared (competitive) Choices and rules understood by THE COOPERATIVE
Mark Cooper [22]  The U-Turn !!  Inside-out and Outside-in OPEN  COOPERATIVE   COMMONS like Frequency bands
Mark Cooper : Examples
The FORCE of COOPERATION by P2Peerialists DRIVERS BEHIND the IMPACT OF INTERNET & TELECOM :  Networking Effects 1. Broadcasting of info:  Value  ~ grows with number of listeners, viewers N  Sarnoff’s Law (value for the broadcaster/ advertiser/ spindoctor)  1 + 1 + 1 + 1 + 1 + ……….(N)  2. Communication  V ~ N 2   Metcalfe’s Law  N + N + N + N + N ……….(N)   (Odlyzko-Tilly Law V ~ N Log N) 3. Group Membership  V ~  2 N   Reed’s Law   2 * 2 * 2 * 2 * 2 * 2 ……….(N) ( + Multi Tribe Membership by networking ) 4. Connected people working together  V ~ N !  Van Till’s  Synthecracy Netw. Law Upper bound of possible combinations of contributions  N ! =  N * N-1 * N-2 * …..* 2 * 1  (N) Total space of cooperation = number of configurations in time/space when each  unique  and diverse individual contributes and shares resources and knowledge. [14] Examples: teams, communities of practice, multiuser games, simulation Grids, virtual labs  Mashup Team, Flock, Herd, Evolution by flexible learning and Group Selection  [9,10]
Cooperative NETWORK i.e. WAVE can scale ! Different angles! The Telescope Metaphor: a better picture for ALL by Synthesis   < distance > Max. Size  N Does not scale Issues: Simple Linear Static Issues:  - Complex Non linear Dynamic
The Telescope Metaphor: a better picture for ALL by network sharing of contributions  Different angles ! b. Resolution ~ < distance > contrast Array Grid  IT CAN SCALE UP !! Clusters a. Sensitivity ~  teledensity N*N  CORRELATION  N ! Combinations FFT  NETWORK  “network Lenses Technology It can coordinate, inform, self organise Global Brain  2012
Synthecracy The Trias Telematica : clustering of roles in the NetTech Age  [ van Till 1988, version March 31 2008] CIVIL SOCIETY empowered  Civilians volunteers Freedom  of Choice,  users microtransactions<Douglass North> virtual communities <Maslov ++> distant friend links,  P2P, complexity horizontal  value chains, share Synthesis    Synergy, distr. models * open source softw. dev. * ISOC IETF, organic growth *  mashups, self org netw’s general  public Interest STATE  Governments Institutions  (unipolar extreme:  bureacratic controlaholicism) Reliability and Equality  in  treatment by Law MKT  Businesses Enterprises The power of EBITDA Risk/ Reward vent. Partnerships  Brotherhood s (unipolar extreme:  dominant monopolies) The power of ideas  and know how The power of position (unipolar extreme: selfcentered, intolerance, isolation) [ Separation of State Powers (Montesquieu)] executive legislative judiciary
Sea of Green  community on: #iranelection  (topic on  Twitter .com) Facebook , BBC Farsi  satTV Youtube, Internet, SMS Many parallel paths [4] cannot be blocked.  Volunteer actions [5] Iranians calling for non violent Reform, not Revolution [6]. Economy does not work, even without sanctions. What ppl do with technology ? After Gustave Eiffel, St Cyr, France Surprises and innovations Rooftop chants Outside Home !! Mutual help by unrelated unselfish [7] Show the truth Give practical advice & recipes Make overviews, aggregates Show flourishing art and culture What does  Network Technology   do to PPL ???!!!
(Fake: Newspaper  montage) Symbols IRAN  : Surprise uprising after 30 years of oppression[1] [2],  now 2 months old Emancipation of 35 million women:  show  no fear any more 70 % of university students are women 60 % of population are younger than 30  Culture of (micro) blogging
Monument for the Angels of Iran viewing from different angles – Yes, we can Help Eachother !!  August 2009, JvT
Conclusion : After more (elite democracy) or less (mkt creative destruction) successful  versions of Aristocracy,  Meritocracy,  Media-Consumocracy  we will have  Synthecracy  by massive use of network technology.  Crux is distinction what to share and what not: Do not try to share soil, machines , policy, beliefs or utopia’s.  Authorities and hierarchies are no longer very relevant. Thing that work are. Use the creative construction  networking force  of sharing & combining idea’s/ knowledge/ solutions that have shown to be working = Synthecracy. What unique specialised skill can you contribute ?? Around 2012 we enter the age of global network synergy We wish you good connections !
Sources [1]  Images from the Sea of Green  http://www.youtube.com/watch?v=quPXg_GoTOk [2]  Farsi PDF magazine  http://bit.ly/3tEjZx   [3]  van Till “Technologies of Flocking”  http://www.scienceguide.nl/article.asp?articleid=107531 Science Guide July 3  2009 , including link to Stonier article. [4]  Iran’s Modern Communications  http://www.youtube.com/watch?v=r8ROCzKzQNc&feature=related [5]  http://www.haystacknetwork.com/ [6]  American journalists about Iran  http://fora.tv/2009/07/01/Tweeting_The_Revolution [7]  Peter Csermely , “Weak Links&quot; -- Stabilizers of Complex Systems from Proteins to Social Networks”; Springer 2006 [9 ]  Rao, “Market Rebels – How Activists Make or Break Radical Innovations” ; 2009, Princeton University Press [8 ]  Shirky, “Here Comes Everybody – How Change Happens when People Come Together; 2009, Penguin [10]  Earls. “HERD – How to Change Mass Behaviour by Harnessing our True Nature”;  revised edition 2009, Wiley [11]  Carlota Perez, 2009 Open Democracy Journal;  http://www.opendemocracy.net/article/economics/email/how-to-make-economic-crisis-creative [12]  Perez,  http://www.carlotaperez.org/papers/4-technologicalrevolutionsparadigm.htm#comienzo  [13]  Perez,  http://www.carlotaperez.org/papers/2-technologicalrevolutionsparadigm.htm [14]  Lawrence Lessig about the re-use of intellectual property  http://wiki.lessig.org/index.php?title=TheKeenReader [15]  Peizer, “ The Dynamics of Technology for Social Change – lessons learned from the field” ; 2006, iUniverse Inc [16]  Gene Sharp “ From Dictatorship to Democracy – A Conceptual Framework for Liberation, The Albert Einstein  Institution 2002, Original version by Khit Pyaing , Bangkok in 1993. PDF is online. [17]  Popovic, Milivojevic, Djinovic  “Nonviolent Struggle – 50 Crucial Points” Manual ; 2006 CANVAS Belgrade, online as  50CP_Farsi.pdf   or  50CP_English.pdf [18] Siegfried Woldhek  http://www.Nabuur.com [19] Michel Bauwens P2P Foundation  http://p2pfoundation.net/The_Foundation_for_P2P_Alternatives [20] Template Twitter Strategy for Government Departements  (UK mInistries) [21] Fleetwood Mac, “Don’t stop Thinking about Tomorrow”  http://www.youtube.com/watch?v=a8arvEzHsA8 [22] Mark Cooper ”  FROM WIFI TO WIKIS AND OPEN SOURCE: THE POLITICAL ECONOMY OF COLLABORATIVE PRODUCTION IN  THE DIGITAL INFORMATION AGE ” Telecommunications & High Technolgy Law Vol 5,  9/7/2007 Stanford Technologies of Flocking: creative construction towards the Synthecracy Society
Addendum
No dictatorships Teleden sity: Fixed phone line conn / 100 inhab Yearly GNP/ inh. Source: Siemens 1997 <--Stonier [art 1983] See [3] ?  ?
Napoleon’s army and bureaucracy Command & Control Information Simple Linear Static Networked P2P Cooperation Creative Construction Coordination  Hierachies and Authorities  less relevant  Contributions that WORK Cooperation  Complex, non-linear, dynamic  Now with  Network Technolgy  We Can !  Value is in the Link / Relation Value is in the centre/ node, authority
Network Technology  removes obstacles  (Liebig’s Law )  Something changed !! see Shirky [8]  I  Governance PR, Decisions Broadcasting Media Newspapers, TV Advertising Propaganda Spin Doctors [20] II Democracy and  Telecommunication Dialogue , in panels  on TV Referendum  online E-democracy Website  input, reactions Email Diversity of Views Majority Rule with respect for minority III Synthecracy Combination of Things that Work  Compl Cooperation MSN, Blogging Tribes Synthesis Twitter Youtube Synergy, Emergent Behaviour Surprises, Value creation
Development of the Networking Cooperation Paradigm towards Synthecracy 1.  Engineers developing working things together examples :  ISOC IETF: Internet Engineering Taskforce IEEE Wi-Fi,  Process of Improvements !! Linux, Open Source Software  QL !! 2.  Economic Innovation in Business Processes   Disruptive Innovations : Rebels & Activists [9,10]  i.e.  Broadband FttH Analysis  of Carlota Perez to get out of the crisis ad recession [12,13] After the creative destruction and meltdowns    Creative Construction 3.  Social networks and political processes P2P Foundation [19] , Perez [11 ], [15] Rebalance of the Trias Telematica by political parties  [16,17,18] Sea of Green IRAN
THE NEW vs. THE TRADITIONAL PARADIGM   ( Perez [12]  A RADICAL AND DIFFICULT SHIFT IN MANAGERIAL COMMON SENSE  (part 1) CONVENTIONAL COMMON SENSE  NEW EFFICIENCY PRINCIPLES AND PRACTICES    COMMAND AND CONTROL Centralized command   Vertical control   Cascade of supervisory levels   &quot;Management knows best&quot;   Central goal-setting and coordination   Local autonomy/Horizontal self-control   Self-assessing/self-improving units   Participatory decision-making   STRUCTURE AND GROWTH  Stable pyramid, growing in height and complexity as it expands   Flat, flexible network of very agile units   Remains flat as it expands   PARTS AND LINKS Clear vertical links   Separate, specialized functional departments   Interactive, cooperative links between functions, along each product line       STYLE OF OPERATION  Optimized smooth running organizations   Standard routines and procedures   &quot;There is one best way&quot;   Definition of individual tasks   Single function specialization   Single top-down line of command   Single bottom-up information flow   Continuous learning and improvement   Flexible system/Adaptable procedures   &quot;A better way can always be found&quot;   Definition of group tasks   Multi-skilled personnel/ Ad hoc  teams   Widespread delegation of decision making   Multiple horizontal and vertical flows   PERSONNEL AND TRAINING Labor as variable cost   Market provides trained personnel   People to fit the fixed posts   Discipline as main quality   Labor as human capital   Much in-house training and retraining   Variable posts/Adaptable people   Initiative/collaboration/motivation
THE NEW vs. THE TRADITIONAL PARADIGM  (Perez [12]) A RADICAL AND DIFFICULT SHIFT IN MANAGERIAL COMMON SENSE  ( part 2 ) Prof. Carlota Perez  shows us the way out of the crises !  General Purpose Technolgy  (GPT):  Electro / mechanical/ chemical     ICT / Network Technology EQUIPMENT AND INVESTMENT Dedicated equipment   One optimum plant size for each product   Each plant anticipates demand growth   Strive for economies of scale for mass production   Adaptable/programmable/flexible equipment   Many efficient sizes/Optimum relative   Organic growth closely following demand   Choice or combination of economies of scale, scope or specialization   PRODUCTION PROGRAMMING Keep production rhythm; Use inventory to accommodate variation in demand.   Produce for stock; shed labor in slac   Adapt rhythm to variation in demand   Minimize response time (&quot;Just-in-time&quot;)   Use slack for maintenance and training   PRODUCTIVITY MEASUREMENT A specific measure for each department (purchasing, production, marketing, etc.)  ercent tolerance on quality and rejects   Total productivity measured along the whole chain for each product line   Strive for zero defects and zero rejects   SUPPLIERS, CLIENTS AND COMPETITORS Separation from the outside world: Foster price competition among suppliers Make standard products for mass customers Arms length oligopoly with competitors   The firm as a closed system   Strong interaction with outside world: Collaborative links with suppliers, with customers and, in some cases, with competitors (Basic R&D for instance)   The firm as an open system
 

Jaap Van Til's Presentation at Emerging Communication Conference & Awards 2009 Europe

  • 1.
  • 2.
    Prof Ir. Jaapvan Till Telecommunication and Networking Group Technology Faculty HAN University of Applied Sciences, NL eComm Emerging Communications Conference Oct 28-30 2009 “ What’s next in Telecom, Mobile & Internet Communications” Amsterdam Oct 29 08.45 – 09.05 The Motor: How Networking will get us out of the Crises The question is no longer what PPL can do with telecom but what telecom does to (groups of) People Version 2 “ Let the beauty we love be what we do . There are 00s of ways 2 kneel & kiss the ground.” Rumi, 13th century Sufi poet (recent Tweet on #iranelection)
  • 3.
    Early 21th CenturyEconomics: Lessons for all Market imperfections visible State better ? Bad memories ……. Two Nobel Prizes 2009 relevant for our sector ICT Networks: For Physics: Charles Kao for long distance comm on optic fibers For Economics: Mrs Elinor Ostrom for het work on “ Commons ” Neo Classic Economists: Market / State & “TRAGEDY of the Commons” People are not cows! Possible “ Commedy of the Commons “ Or even “ TRIUMPH of the Commons “!!! Examples : ISOC IETF Internet process of improvement, Wikipedia, YouTube Open Source SW, Internet Exchanges, SURFnet, Google, Twitter Flower Auctions, Wi-Fi , Mesh Networks, “waterschappen” Peer-to-Peer : in total more is contributed than taken out Key: What do we share (non competitive) and what not shared (competitive) Choices and rules understood by THE COOPERATIVE
  • 4.
    Mark Cooper [22] The U-Turn !! Inside-out and Outside-in OPEN COOPERATIVE COMMONS like Frequency bands
  • 5.
    Mark Cooper :Examples
  • 6.
    The FORCE ofCOOPERATION by P2Peerialists DRIVERS BEHIND the IMPACT OF INTERNET & TELECOM : Networking Effects 1. Broadcasting of info: Value ~ grows with number of listeners, viewers N Sarnoff’s Law (value for the broadcaster/ advertiser/ spindoctor) 1 + 1 + 1 + 1 + 1 + ……….(N) 2. Communication V ~ N 2 Metcalfe’s Law N + N + N + N + N ……….(N) (Odlyzko-Tilly Law V ~ N Log N) 3. Group Membership V ~ 2 N Reed’s Law 2 * 2 * 2 * 2 * 2 * 2 ……….(N) ( + Multi Tribe Membership by networking ) 4. Connected people working together V ~ N ! Van Till’s Synthecracy Netw. Law Upper bound of possible combinations of contributions N ! = N * N-1 * N-2 * …..* 2 * 1 (N) Total space of cooperation = number of configurations in time/space when each unique and diverse individual contributes and shares resources and knowledge. [14] Examples: teams, communities of practice, multiuser games, simulation Grids, virtual labs Mashup Team, Flock, Herd, Evolution by flexible learning and Group Selection [9,10]
  • 7.
    Cooperative NETWORK i.e.WAVE can scale ! Different angles! The Telescope Metaphor: a better picture for ALL by Synthesis < distance > Max. Size N Does not scale Issues: Simple Linear Static Issues: - Complex Non linear Dynamic
  • 8.
    The Telescope Metaphor:a better picture for ALL by network sharing of contributions Different angles ! b. Resolution ~ < distance > contrast Array Grid IT CAN SCALE UP !! Clusters a. Sensitivity ~ teledensity N*N CORRELATION N ! Combinations FFT NETWORK “network Lenses Technology It can coordinate, inform, self organise Global Brain 2012
  • 9.
    Synthecracy The TriasTelematica : clustering of roles in the NetTech Age [ van Till 1988, version March 31 2008] CIVIL SOCIETY empowered Civilians volunteers Freedom of Choice, users microtransactions<Douglass North> virtual communities <Maslov ++> distant friend links, P2P, complexity horizontal value chains, share Synthesis  Synergy, distr. models * open source softw. dev. * ISOC IETF, organic growth * mashups, self org netw’s general public Interest STATE Governments Institutions (unipolar extreme: bureacratic controlaholicism) Reliability and Equality in treatment by Law MKT Businesses Enterprises The power of EBITDA Risk/ Reward vent. Partnerships Brotherhood s (unipolar extreme: dominant monopolies) The power of ideas and know how The power of position (unipolar extreme: selfcentered, intolerance, isolation) [ Separation of State Powers (Montesquieu)] executive legislative judiciary
  • 10.
    Sea of Green community on: #iranelection (topic on Twitter .com) Facebook , BBC Farsi satTV Youtube, Internet, SMS Many parallel paths [4] cannot be blocked. Volunteer actions [5] Iranians calling for non violent Reform, not Revolution [6]. Economy does not work, even without sanctions. What ppl do with technology ? After Gustave Eiffel, St Cyr, France Surprises and innovations Rooftop chants Outside Home !! Mutual help by unrelated unselfish [7] Show the truth Give practical advice & recipes Make overviews, aggregates Show flourishing art and culture What does Network Technology do to PPL ???!!!
  • 12.
    (Fake: Newspaper montage) Symbols IRAN : Surprise uprising after 30 years of oppression[1] [2], now 2 months old Emancipation of 35 million women: show no fear any more 70 % of university students are women 60 % of population are younger than 30 Culture of (micro) blogging
  • 13.
    Monument for theAngels of Iran viewing from different angles – Yes, we can Help Eachother !! August 2009, JvT
  • 14.
    Conclusion : Aftermore (elite democracy) or less (mkt creative destruction) successful versions of Aristocracy, Meritocracy, Media-Consumocracy we will have Synthecracy by massive use of network technology. Crux is distinction what to share and what not: Do not try to share soil, machines , policy, beliefs or utopia’s. Authorities and hierarchies are no longer very relevant. Thing that work are. Use the creative construction networking force of sharing & combining idea’s/ knowledge/ solutions that have shown to be working = Synthecracy. What unique specialised skill can you contribute ?? Around 2012 we enter the age of global network synergy We wish you good connections !
  • 15.
    Sources [1] Images from the Sea of Green http://www.youtube.com/watch?v=quPXg_GoTOk [2] Farsi PDF magazine http://bit.ly/3tEjZx [3] van Till “Technologies of Flocking” http://www.scienceguide.nl/article.asp?articleid=107531 Science Guide July 3 2009 , including link to Stonier article. [4] Iran’s Modern Communications http://www.youtube.com/watch?v=r8ROCzKzQNc&feature=related [5] http://www.haystacknetwork.com/ [6] American journalists about Iran http://fora.tv/2009/07/01/Tweeting_The_Revolution [7] Peter Csermely , “Weak Links&quot; -- Stabilizers of Complex Systems from Proteins to Social Networks”; Springer 2006 [9 ] Rao, “Market Rebels – How Activists Make or Break Radical Innovations” ; 2009, Princeton University Press [8 ] Shirky, “Here Comes Everybody – How Change Happens when People Come Together; 2009, Penguin [10] Earls. “HERD – How to Change Mass Behaviour by Harnessing our True Nature”; revised edition 2009, Wiley [11] Carlota Perez, 2009 Open Democracy Journal; http://www.opendemocracy.net/article/economics/email/how-to-make-economic-crisis-creative [12] Perez, http://www.carlotaperez.org/papers/4-technologicalrevolutionsparadigm.htm#comienzo [13] Perez, http://www.carlotaperez.org/papers/2-technologicalrevolutionsparadigm.htm [14] Lawrence Lessig about the re-use of intellectual property http://wiki.lessig.org/index.php?title=TheKeenReader [15] Peizer, “ The Dynamics of Technology for Social Change – lessons learned from the field” ; 2006, iUniverse Inc [16] Gene Sharp “ From Dictatorship to Democracy – A Conceptual Framework for Liberation, The Albert Einstein Institution 2002, Original version by Khit Pyaing , Bangkok in 1993. PDF is online. [17] Popovic, Milivojevic, Djinovic “Nonviolent Struggle – 50 Crucial Points” Manual ; 2006 CANVAS Belgrade, online as 50CP_Farsi.pdf or 50CP_English.pdf [18] Siegfried Woldhek http://www.Nabuur.com [19] Michel Bauwens P2P Foundation http://p2pfoundation.net/The_Foundation_for_P2P_Alternatives [20] Template Twitter Strategy for Government Departements (UK mInistries) [21] Fleetwood Mac, “Don’t stop Thinking about Tomorrow” http://www.youtube.com/watch?v=a8arvEzHsA8 [22] Mark Cooper ” FROM WIFI TO WIKIS AND OPEN SOURCE: THE POLITICAL ECONOMY OF COLLABORATIVE PRODUCTION IN THE DIGITAL INFORMATION AGE ” Telecommunications & High Technolgy Law Vol 5, 9/7/2007 Stanford Technologies of Flocking: creative construction towards the Synthecracy Society
  • 16.
  • 17.
    No dictatorships Teledensity: Fixed phone line conn / 100 inhab Yearly GNP/ inh. Source: Siemens 1997 <--Stonier [art 1983] See [3] ? ?
  • 18.
    Napoleon’s army andbureaucracy Command & Control Information Simple Linear Static Networked P2P Cooperation Creative Construction Coordination Hierachies and Authorities less relevant Contributions that WORK Cooperation Complex, non-linear, dynamic Now with Network Technolgy We Can ! Value is in the Link / Relation Value is in the centre/ node, authority
  • 19.
    Network Technology removes obstacles (Liebig’s Law ) Something changed !! see Shirky [8] I Governance PR, Decisions Broadcasting Media Newspapers, TV Advertising Propaganda Spin Doctors [20] II Democracy and Telecommunication Dialogue , in panels on TV Referendum online E-democracy Website input, reactions Email Diversity of Views Majority Rule with respect for minority III Synthecracy Combination of Things that Work Compl Cooperation MSN, Blogging Tribes Synthesis Twitter Youtube Synergy, Emergent Behaviour Surprises, Value creation
  • 20.
    Development of theNetworking Cooperation Paradigm towards Synthecracy 1. Engineers developing working things together examples : ISOC IETF: Internet Engineering Taskforce IEEE Wi-Fi, Process of Improvements !! Linux, Open Source Software QL !! 2. Economic Innovation in Business Processes Disruptive Innovations : Rebels & Activists [9,10] i.e. Broadband FttH Analysis of Carlota Perez to get out of the crisis ad recession [12,13] After the creative destruction and meltdowns  Creative Construction 3. Social networks and political processes P2P Foundation [19] , Perez [11 ], [15] Rebalance of the Trias Telematica by political parties [16,17,18] Sea of Green IRAN
  • 21.
    THE NEW vs.THE TRADITIONAL PARADIGM ( Perez [12] A RADICAL AND DIFFICULT SHIFT IN MANAGERIAL COMMON SENSE (part 1) CONVENTIONAL COMMON SENSE NEW EFFICIENCY PRINCIPLES AND PRACTICES   COMMAND AND CONTROL Centralized command Vertical control Cascade of supervisory levels &quot;Management knows best&quot; Central goal-setting and coordination Local autonomy/Horizontal self-control Self-assessing/self-improving units Participatory decision-making STRUCTURE AND GROWTH Stable pyramid, growing in height and complexity as it expands Flat, flexible network of very agile units Remains flat as it expands PARTS AND LINKS Clear vertical links Separate, specialized functional departments Interactive, cooperative links between functions, along each product line     STYLE OF OPERATION Optimized smooth running organizations Standard routines and procedures &quot;There is one best way&quot; Definition of individual tasks Single function specialization Single top-down line of command Single bottom-up information flow Continuous learning and improvement Flexible system/Adaptable procedures &quot;A better way can always be found&quot; Definition of group tasks Multi-skilled personnel/ Ad hoc teams Widespread delegation of decision making Multiple horizontal and vertical flows PERSONNEL AND TRAINING Labor as variable cost Market provides trained personnel People to fit the fixed posts Discipline as main quality Labor as human capital Much in-house training and retraining Variable posts/Adaptable people Initiative/collaboration/motivation
  • 22.
    THE NEW vs.THE TRADITIONAL PARADIGM (Perez [12]) A RADICAL AND DIFFICULT SHIFT IN MANAGERIAL COMMON SENSE ( part 2 ) Prof. Carlota Perez shows us the way out of the crises ! General Purpose Technolgy (GPT): Electro / mechanical/ chemical  ICT / Network Technology EQUIPMENT AND INVESTMENT Dedicated equipment One optimum plant size for each product Each plant anticipates demand growth Strive for economies of scale for mass production Adaptable/programmable/flexible equipment Many efficient sizes/Optimum relative Organic growth closely following demand Choice or combination of economies of scale, scope or specialization PRODUCTION PROGRAMMING Keep production rhythm; Use inventory to accommodate variation in demand. Produce for stock; shed labor in slac Adapt rhythm to variation in demand Minimize response time (&quot;Just-in-time&quot;) Use slack for maintenance and training PRODUCTIVITY MEASUREMENT A specific measure for each department (purchasing, production, marketing, etc.) ercent tolerance on quality and rejects Total productivity measured along the whole chain for each product line Strive for zero defects and zero rejects SUPPLIERS, CLIENTS AND COMPETITORS Separation from the outside world: Foster price competition among suppliers Make standard products for mass customers Arms length oligopoly with competitors The firm as a closed system Strong interaction with outside world: Collaborative links with suppliers, with customers and, in some cases, with competitors (Basic R&D for instance) The firm as an open system
  • 23.