Design and Determination: the global role of information systems 1 Steve Little, Centre for Innovation Knowledge and Enterprise, Open University Business

Design and Determination: the global role of information systems 1

Design and Determination: the global role of information systems

Steve Little,Steve Little,Centre for InnovationCentre for Innovation

Knowledge and Enterprise,Knowledge and Enterprise,Open University Business SchoolOpen University Business School

andand

Centre for Innovation, Knowledge and DevelopmentCentre for Innovation, Knowledge and Development

www.stephenelittle.com

www.design-and-determination.com

www.open.ac.uk/ikd


Design and Determination: the global role of information systems

Drivers of Globalisation Global Knowledge Global Communities of Practice Inclusion/Exclusion New Paradigms

• Storytelling• Metagovernance


Technology Drivers

Toward the end of the second millennium of the Christian Era, several events of historical significance have transformed the social landscape of human life. A technological revolution, centred around information technologies, is reshaping the material basis of society. Economies throughout the world have become globally interdependent, introducing a new form of relationship between economy, state and society, in a system of variable geometry.

Castells, 1996, p.1


Economic Drivers

The notion that something fundamental is happening, or indeed has happened, in the world economy is now generally accepted. As we look around us all we seem to see is the confusion of change, the acceleration of uncertainty, feelings currently intensified by our proximity to the new millennium with all its promises – and threats – of epochal change.

Dicken, 1998, p.1


Business Drivers

The firm is an institution that has evolved to make the most efficient and effective use of the factors of production – traditionally labour, money and materials. These factors of production are being transformed by the increasing importance of knowledge in economic activity. As the factors of production change, so too must the nature of the firm.

Burton Jones, 1999, p.57


Information and Knowledge:Growing Awareness

““Economists have, of course, always recognised the dominant role that increasingly knowledge plays in economic processes but have, for the most part, found the whole subject of knowledge too slippery to handle.”

Edith Penrose, Theory of the Firm (1959)

“Knowledge, during the last few decades, has become the central capital, the cost centre and the crucial resource of the economy”

Peter Drucker The Age of Discontinuity (1969)

“Knowledge is the axial principle of post-industrial society”

Daniel Bell, The Coming of Post-Industrial Society (1973)


Putting Technology in its Place?

“Knowledge management is

70 per cent people, 20 per cent process

and 10 per cent technology.”

Marc Baker, Knowledge Management Programme, Royal Mail, 1998


Knowledge Loss within a global system

Organisational learning is needed to move beyond the technical effects of direct substitution of information technology for manual processes (Sproull and Kiesler; 1991).

The transformative gains of the "informated organisation" (Zuboff; 1988), will come about in the globalised arena only through an understanding of the meaning of cultural interoperability at both pre-competitive and competitive stages of development (Kaye & Little; 1996).


Social learning

Short term technical learning• measurable objectives of efficiency

Longer term social learning • possible redefinition of organisational

objectives Sproull and Kiesler (1991)

Capturing Social learning• The Road Warrior phenomenon

– Early adopters may be ahead of the technology providers


Perils of Prediction

Every major US city will have a telephone• 1880s business journalist quoted by Marvin (1988)

“When Old Technologies were New” Internet and its impact predicted, but confined

within (US) national boundaries• John Brunner “Shockwave Rider” 1975


Global Production/Global Consumption

Waves of capitalist development operating on a world-wide scale (David & Wheelwright, 1989).• C19-C20 U.K.>U.S.A.>Japan/East Asia

Three dominant super-regions, NE Asia, North America and Western Europe, the 'triad' described by Ohmae (1990)

The rapid cross-diffusion of innovations within an emerging globalised economy dependent on the widespread use of information and communication technologies.


Re-alignments in a Global System

Post-Cold War Era, • growing global economic integration • disparate national and regional cultures

increasingly interacting within networked and globalised organisations.

• facilitation through information & communication technologies

In the post-cold war era difference and diversity are resources (Delamaide; 1994, Ohmae; 1995).


Leads and Lags

Productivity Paradox• Weak relationship between ITC investment and

performance measures• Remedy - “User Centred Design”

Landauer (1995) Institutional Lag

• Systems of corporate and social governance• New forms of organisation • E-governance response


New Institutions New Relationships

World Trade Organisation New Rules - New Responses

• U.S.A.• E.U.• India• China


Globalizing Response

“Zebra strategies” (Ohmae; 1995)• play to the relative strength of the most developed

components of national economies • create regional synergies. • Taiwan Straits• Malaysia-Singapore

Differential development entrenched• global infrastructure driven by the priorities of the

dominant developed economies.• key supporting technologies, in particular ICT

infrastructure, may be optimised for externally-driven activities.


Chains into Networks

Global Production Chains replaced by Global Production Networks• linkages among members of the Triad account for

the majority of global trade (Dicken, 1998)– production AND consumption at both ends – substantial areas and populations are excluded from the

global cycle of technical innovation and improvement Network Organisations

• flexible coalitions– within and between existing corporations (Castells,

1996)– between independent partners (Inoue, 1998)


Impact on Knowledge Needs of Organisations

Increasingly dynamic & competitive environments Technological convergence

• Reduction in cost, capacity and increased connectivity of IT

Emphasis on competencies rather the industry structure• Growth in alliances and partnerships• Larger players can mimic the agility of smaller firms

and invade niche markets


Information Systems to Knowledge Systems

1990s Business Process Re-engineering (BPR)• Downsizing - “rightsizing” • staff displacement becomes main measure• individuals “rightsized” out of organisations took

with them key knowledge. 1980s

AI-Knowledge-based Systems Hype• Rule-based systems deal with explicit or codifiable

knowledge• Neural nets or inductive systems face problems of

transparency


Textures of Globalisation

Differences between centre and periphery, between large and small scale economic activity • central to an understanding of the impact of globalisation

and its supporting technologies. Differences within individual national states

• as significant that those between developed and developing states.

Excluded regions• difficulty maintaining modest economic objectives. • excluded from policy making processes • no influence over the emerging global information system • reducing ability to negotiate sustainable exploitation of their

own resources


Life Space & Knowledge Space

“Brazilianisation of the West”• Beck (2000)• changes in the nature of employment reflecting

prevailing neo-liberal economic policies• discontinuous, flexible working

Cost Spiral• temptation to compete on labour cost and flexibility at

the expense of depth of skills and communities of practice

• threatens cultures supportive of knowledge management


Response of Established Players

Shifting Focus to Higher Value Activities• distinction between products & services is eroding• ICL from IT manufacture to IT services• Unilever disposal of specialist chemicals and

concentration on Consumer Packaged Goods, reducing from 1600 to 400 high value brands

• ICI taking Unilever specialist chemicals and disposing of bulk chemicals

UK and EU programmes• promoting alliances with Asian partners


Re- positioning Knowledge

Asian companies establishing R&D facilities in markets• eg Korean & Malaysian automotive companies in UK• Indian pharmaceuticals in UK and USA• Cross investment between India and Korea

Gains• knowledge of local market characteristics• development of regionally targeted products

– Nissan Primera

• access to intellectual capital base– enhancement of home based operations


Brain Drain to Brain Circulation

Government programmes to encourage return of skilled workers from overseas• China• India

Cultural barriers• Treatment of long term overseas residents• Korea versus Japan

Documents

Design and Determination: the global role of information systems 1 Steve Little, Centre for Innovation Knowledge and Enterprise, Open University Business