Session 2-1 digitalization and design

digital & design

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“the future is already here, but it is not very evenly distributed.”

- William Gibson

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1.0

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two stories

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st story1

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Harry and Charlie

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May 2007

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56 seconds long

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uploaded by their father

for their godfather

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250 millions views (as of June 2010)

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5,740 re-mix (as of July 2010)

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nd story2

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center for design + innovation

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API

API API

The WordPress network

Plug'in

WordPress0Platform

A hypothetical website with three plug-ins with 1-3 Application Programming Interfaces (APIs) per plug-in

API

API

Plug'in API

Plug'inAPI0(internal)API0

(internal)

API0(internal)

Number of Plug-ins: 13,491

Number of APIs: 288 (internal: 93)

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Color

Number of Plug-ins

2939 2633 1992 1698 1051 1000 821 814

Average API usage

7.29 4.22 5.71 8.81 1.27 6.98 2.93 3.68

Minimum API usage

1 1 2 3 1 3 2 2

Maximum API usage

93 12 16 24 5 21 9 10

Standard Deviation

5.58 1.57 2.31 2.88 0.61 2.34 1.26 1.54

11,0630Plug'ins0in0December02012

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Circos0Diagram

Number'of'plug-ins'in'each'year

0

7500

15000

22500

30000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Number'of'APIs'in'each'year

0

100

200

300

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

#0of0APIs

#0of0Plug'ins

79

325

115

21,100

01/01/20080660APIs,03980Plug'ins

01/01/20090990APIs,012460Plug'ins

0Plug'in0Network0(2008'2009)

01/01/201001420APIs,029400Plug'ins

01/01/201101640APIs,054880Plug'ins

0Plug'in0Network0(2010'2011)

01/01/201202610APIs,094120Plug'ins

0Plug'in0Network0(2012)

12/01/201202880APIs,0134910Plug'ins

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2.0

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evolution of the industrial economy

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2.1

the age of physical machine

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fire

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automation

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capital intensive

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managerial challenge

maximizing asset utilization

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vertical integration diversification

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managerial logic

economy of size and scale

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organizational forms

m-form hierarchy

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management tools

scientific management

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design

graphic designindustrial design

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2.2

the age of smart machine

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managerial challenge

complexity information overload

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management logic

modularization (design rules)horizontal coordination

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organizational forms

network of distributed org.

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management tools

outsourcingvirtualization

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design

interaction design organization design

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2.3

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the age of generative machine

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digital technology

technology is no longer the main obstacle for human imaginations

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digitization of tools and works

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digitization of products

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digitization of contents

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digitization of time & space

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digitization of relationship

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digitization of triviality

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familiar images of computing

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new images of computing experiences

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what’s unique about digital technology

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2.3.1

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it is immaterial

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physical machine

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physical products

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the economy of scarcity

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digital assets

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digital products

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near zero, if not 0, marginal cost

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the economy of ubiquity

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this is why business model became critical

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2.3.2

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separation of form & function

(reprogrammable von Neumann computing architecture)

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separation of contents & media

(general IP network)

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deconstruction of products and industry

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walled garden of products

hardware

network0'00distribuLon

contents

soMware

TV phone book music

hardware

network0'00distribuLon

contents

soMware

hardware

network0'00distribuLon

contents

soMware

hardware

network0'00distribuLon

contents

soMware

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re-configuration of new products

network - distribution

hardware

software

contents

network - distribution

hardware

software

contents

network - distribution

hardware

software

contents

network - distribution

hardware

software

contents

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2.3.4

race against the machineanyone can learn it

all you need is a $300 netbook

digital natives

infrastructure is here

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2.3.5

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a perfect storm for generativity

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technology constantly evolves beyond the

original design

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value is co-created with users through (digital)

symbols and signs

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managerial challenge

deconstruction of productsreconfiguration of value system

convergence

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managerial logic

mutationrecombination

open innovation

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organizational forms

ecosystem of open platform

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management + design

ecosystem designexperiential design

procrastinated binding

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Physical machine

Smart machine

Generative machine

strategic use of information

strategic use of ecosystems

deconstruction of traditional organizations

deconstruction of traditional industrial systems

products

noun

platform

verb

things experiences

creativity generativity

craftsmanship procrastinated binding

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3.0

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design

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3.1

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what is desirable?

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value comes from meeting unmet needs

there are only few basic human needs

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Internet of things

Mobile Internet

Big Data Analytics

Cloud Service

A Big Picture

place

time

things peopleexperiences

atoms bits

B2B

B2C

(c) Youngjin Yoo, 2014

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computed experience

“value is created through algorithmic reality”

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3.2

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production of signs & symbols

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which one is real?

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which one is real?

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which one is real?

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3D printing

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flipping the value proposition

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physical product as avatar of “real” digital

products

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3.3

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liquidification of categories

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re-configuration of new products

network - distribution

hardware

software

contents

network - distribution

hardware

software

contents

network - distribution

hardware

software

contents

network - distribution

hardware

software

contents

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digital deconstructs

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design reconstructs

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properties of digital artifacts7

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programmable

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addressable

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sensible

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communicable

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memorizable

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traceable

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associabile

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re-configuring products and services

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the problems of digital artifacts

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Smart TV TV = an idiot box

Smart TV = Smart Idiot Box

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smart TVTV PC

lean forward

lean backward

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re-imagining meaning and value

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by DESIGN

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who’s your competition?

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the Tyranny of Noun

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are you a noun company

or a verb company?

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procrastinated binding

“value is created after the product was purchased”

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4.0

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next generation business cannot be

discovered

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it must be designed and built

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so stop looking!

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start designing!