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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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The Multinational’s Nemesis----- The rise of ICT-enabled distributed collective intelligence?
Monday, December 15, 2008Panel #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
Panel overview Introduction
Johan Gorecki ICT – enabled distributed collective intelligence Pierre Berthon Philip DesAutels
The Multinational Corporation Brian Donnellan Robin Teigland
Discussion with audience
2
Johan Gorecki
Founder and CEOGlobe Forum, www.globeforum.com
Modern Times Group (MTG), where responsible for Metro and Everyday
One of Skype cofounders
Introduction
Are ICT-enabled distributed collective intelligence organizations challenging the MNC as the superior organizing form?
As efficient and effective at enabling coordinated action?
As superior in facilitating social community?
As more effective as driver of social change?
4
Skype
• Launched in August 2003
• Q1 2006 95 million users
• Q 3 2007 246 million users
• 6.1 billion minutes
• Avg 12 million active users
• 2005 sold to ebay for €1.9 billion
Globe Forum (www.globeforum.com)
MyC4
Microfinancing: Kiva.org
Total capital raised from Kiva internet lenders ($USD mln)
More than USD 13 million raised from 133,000 social investors in 25 months
Own experience, own reflections Time to market Keep the smart people Globalisation Fast communication Integrate in the community
Pick up trends Environmental issues
Panel overview Introduction
Johan Gorecki ICT – enabled distributed collective intelligence Pierre Berthon Philip DesAutels
The Multinational Corporation Brian Donnellan Robin Teigland
Discussion with audience
11
Pierre Berthon
Clifford F Youse Chair of Marketing Professor Bentley University
Philip’s supervisor
PhD candidate at Bentley University
US manager of academic evangelism at Microsoft
Research interests in generative social enterprise
Philip DesAutels
ICT-enabled distributed collective intelligence
Why is the open model more appropriate today?
Requisite variety is ever increasing
There is more turbulence - Socially, economically, environmentally, technologically.
Traditional mechanistic/heir approach to organizations is not able to cope.
Governments – NationalizationE-governmentSocial enterprises
Previous generations were born into hierarchy
oFamilyoSchoolsoSocietyoWorkoReligion
Gen-YConnected – born digital
Autonomous – latchkey, make their own decisions, forced
Multitasking
Why do organizations fail?
Your business is as complex as a
bowl of noodles.Your business is as complex as a
bowl of noodles.
iPhone
99¢
Dove Real Beauty
Real Beauty Movement online community Facebook BBS
Pink
OBAMA dot GOV
Barak Lessig call
Red Flag Linux
Open everything
What can we learn?
Closed
Bounded Facebook Wikipedia Secondlife Makers Faire Chumby Sneaky DS
Open W3C/IETF
Open source is changing the way
we…• Coordinate
• Community• Change
Dimensions of open source
Methods versus Values
Virtual distributed communities
Influence
OΔC
OC
OΔC
Panel overview Introduction
Johan Gorecki ICT – enabled distributed collective intelligence Pierre Berthon Philip DesAutels
The Multinational Corporation Brian Donnellan Robin Teigland
Discussion with audience
30
Brian Donnellan
Faculty member Business Information System National University of Ireland at Galway
20 years working in US multinational corporations
Actively engaged in research on Information System Innovation
The evolution of the MNC (Perlmutter)
Phase 1: Ethno-centric
- Complex in home country, simple in subsidiariesPhase 2: Poly-centric
- Varied and independent
Phase 3: Geo-centric
- Increasingly complex and interdependent
Phase 4: ????????
University Industry R&DProducts $1B markets
Entertainment
Portable communication
CTSS, Multics/BSDUnixSDS 940, 360/67, VMSBerkeley, CMU, CERN
Novell, EMC, Sun, OracleSketchpad, UtahGM/IBM, Xerox, MicrosoftE&S, SGI, ATI, Adobe
Spacewar (MIT), Trek (Rochester)Atari, Nintendo, SGI, PixarARPANET, Aloha, InternetPupDECnet, TCP/IP
1965 1970 1975 1980 1985 1990 1995 2005
Rings, HubnetEthernet, Datakit, AutonetLANs, switched EthernetLisp machine, StanfordXerox Alto
Xerox Star, Apollo, SunEngelbart/RochesterAlto, SmalltalkStar, Mac, MicrosoftBerkeley, Caltech, MOSIS
ManyBerkeley, StanfordIBM 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, UCLAIBM, ICLICL, Teradata, TandemWisconsin, StanfordIBM, Arbor
IRI, Arbor, PlatoIIIiac 4, CMU, Caltech, HPCIBM, IntelCM-5, Teradata, Cray T3DBerkeley
Striping/Datamesh, PetalManyBerkeley, Purdue (CDMA)Linkabit, HughesQualcomm
CERN, Illinois (Mosaic)Alta VistaNetscape, Yahoo, GoogleCMU, SRI, MIT
Bell, IBM. DragonDragon, IBMStanford, UCLA
Bellcore (Telcordia)Amati, Alcatel, Broadcom
PARC, DEC, IBM
SUN, SGI, IBM, HP
Oracle, IBM, Sybase
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
Perspective #1 - Fernando Flores
34
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
The Atom of Work - Flores
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.
Organising and disorganising (Thompson)
The environment is on everyone’s agenda
Climate Savers Computing Initiative
The Initiative is comprised of consumers, businesses and organizations that have come together to drive energy efficiency by:
•Increasing energy efficiency of new PCs and servers
•Promoting use of power management Goal: reduce computer power consumption 50% by 2010!1
40
Robin Teigland
Associate ProfessorCenter for Strategy and CompetitivenessStockholm School of EconomicsSweden
PhD on knowledge flows through informal networks in MNCs and impact on competitive advantage
Especially interested in virtual worlds
Multinational corporation as social community
Specializes in creation and transfer of knowledge
Superior to market as organizational vehicle to transfer knowledge across geographical borders
The more tacit the knowledge, the more likely transferred within the firm
Kogut & Zander 1993
42
Best practices and knowledge flow through networks and communities of practice
http://www.slideshare.net/SOMESSO/speaker-1-bettina-kahlau-presentation
Organizing in MNCs
Network picture from http://n-e-r-v-o-u-s.com/blog/?m=200712
HierarchyLinear, static, process-based organization
HeterarchyDynamic, integrated
collaboration networks
eZ Systems and the eZ ecosystem: #1 open source content management software
45
eZ Partners CommunityCustomers
Enterprise open source – “Grow the cake”•60 Employees in 8 countries (Europe & Asia)•230+ Partners•5000+ Customers•30,000+ Community members
www.ez.noSkien, Norway
History tends to repeat itself….
46
Steam engine
Internal combustion engine
Microelectronics
Late 18th C Late 19th C Late 20th CSchön 2008
A new workforce is appearing…
47
Mahaley 2008, Merrill Lynch 1999, Beck and Wade, Prensky
“Digital Immigrants”“Digital Natives”
Company loyaltyWork ≠ PersonalCompany loyaltyWork ≠ Personal
Professional loyaltyWork = Personal
Professional loyaltyWork = Personal
Towards 3-D internetTowards 3-D internetLevel of Interaction
Level of Interaction
TimeTime
Individual Individual Web 1.0 Web 1.0 ThinkingThinking
Mosaic, Prodigy, Mosaic, Prodigy, Compuserve, Compuserve, AOL, NetscapeAOL, Netscape
Connected Connected Web 2.0 Web 2.0 ThinkingThinking
Facebook, Facebook, Friendster, Friendster, Yahoo, Yahoo, Blogger, Blogger, Wikipedia, Wikipedia, eBay, Typepad, eBay, Typepad, LinkedIn. LinkedIn. Amazon,Amazon,
MySpace,MySpace,Textamerica,Textamerica,Delicious, Delicious, HubPagesHubPages
SENSORYSENSORY3D Internet3D InternetThinkingThinking
SecondLife, SecondLife, Active Worlds, Active Worlds, There, There, SimsOnline, SimsOnline, Club Penguin, Club Penguin, World of World of Warcraft, 3D Warcraft, 3D planets, planets, ToonTown, ToonTown, Habbo, VSlide, Habbo, VSlide, ProtosphereProtosphereHamilton 2008Hamilton 2008
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
3D internet
50
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
China is making big efforts in Virtual Worlds!
•A “virtual economy district – a world where millions will work, communicate, and be in love”
•Reaching out to the 150 mln overseas Chinese
•7 million inworld at same time
•Five virtual banking licenses auctioned for $404,000
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
Discussion – Some questions to ponder
What defines the boundaries of the MNC? From nonporous to porous Ecosystems and “open source”
What defines an employee of the MNC? From binary membership to fuzzy membership Microemployees and community members
Where is the MNC located? From the physical to the blended (physical & virtual)
Labor “mobility”
52
Are we stuck in a traditional mindset?
Knowledge creation and transfer in MNCs superior to the market…..but is it
superior to networks?
Thank you! Johan Gorecki, Globe Forum Business Network
johan.gorecki@globeforum.com
Pierre Berthon, Bentley University pberthon@bentley.edu
Philip DesAutels, Microsoft philipda@microsoft.com
Brian Donnellan, NUI-Galway brian.donnellan@nuigalway.ie
Robin Teigland, Stockholm School of Economics
robin.teigland@hhs.se
53
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