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Archive for the ‘economics’ Category

Only 20 years from now, WWW was a bulk disruption on how we live, consume, search, think and act. As cycles gear up, it may be the deepest change since…the birth of printing, the “renaissance” era, or more recently, industrialisation. The Internet has created new values, new debates, new democracies, new wealth, new scarcities, new information sharing and above all, a kind of new economy. And the story could stop, steadily hold a strange balance between users and infrastructures/sites builders. In fact, the sleepiness effect of this large revolution shows us, in a short term, the worst faces of Schumpeter’s doom of innovation. The best disruption effects mean to cut off any kind of intermediation, throwing away millions of jobs, and by the way, millions of lives. If WWW brings us, technology speaking, the best of information, education and equality in the world, that efficient technology erases more than it helps us, in the short term. Do many tasks for free, sharp and straight, instead on holding man assistance.
Oh.
You probably mean that machines and technology need more and more jobs to build them. True, but probably not the same profiles than the ones fired in this giganteous turnaround. Training and recovering another job? Too old, not flexible, not relevant could you be answered.

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But over all, if we stare at the revenue sharing of that economy, we could see a scarce race of “winner take it all” actors, who share their revenue with stocks’ holder more than with you. Nothing else to take a look at GAFAM’s world to see the market cap is perfectly valued with the network and the content. Me. You. Everybody who posts something, someday. The whole value of these networks is nothing else than content, freely and daily published by you an me. Former days were journalists, photographers, editors, producers, distributors, who, in their way, were doing their part of the job, truly paied for that. Now that content is free, posted, twitted, re-twitted in seconds all around the world, who pays for that? Brands. But revenues never come to your pocket, but in the digital oligarchy’s one. Charming period where some “jobs” or tasks always exist, but now are unpaid. The Free economy is obviously interesting as a citizen or a consumer, but we are also employees or economic agent, driven to work to live. And that “freeness” may be our death idol. Is Internet really the answer?

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It’s no doubt that the global balance between creation and destruction is far worst than we think. And there’s still no real “huge implementation” of #AI yet…Let’s figure out when many boring tasks will be realized by bots, coding minds, automatic processes like drive, care, produce, publish, deliver…Build bots? But when bots will build bots, what’s next?

This disruption fever may drive us to schizophrenic behavior, with a global rejection of progress, protecting us from…disablation. Switch on, swith off. Someday a robot will push the button for us, to unplug us. Bye. It’s no sense leading to such issue, wasting the best of technology for humankind economic survival. We’ll be “un-revealed”, in an “un” society: unstores, unusual, unhierarchic and holacratic world. Where winner-take-it-all pleases themselve, inventing a mirror world where fashion leads to an “un-anything”. This status is now so true than ever. Value is in the “un-face” of things to unfold deepest desires and hold privacy, scarcity and exclusive vision on things (and people). They know how to cope with it, and we pay it by our blindness and trustiness.

If GAFAM make a lot of money on contents they never create, why don’t they pay the real price for this new kind of (free) suppliers that are friends, members and so long? They push more free tools than ever, to slave us, collect data and make money wherever but our side. That’s the game it seems, hard game, sometimes and in the end, mortal one. Not funny in fact, and the worst is that few have this global awareness of it. We, as human give a lot of energy to dig our own economic grave.

Is it a whole sustainable situation, till when?

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In fact, there’s a growing revolution inside. The most weird thing is that it comes from where raw materials are scarce, the opposant scary and no means. The initial innovation, consuming and wasting capital and buried in pyramidal and lone structures could play its last chance. “Jugaad”, that means “breakthrough growth” or “coping with innovation” in Hindi plays a new role for innovation. More flexible, open and simple. Something to reboot ourselves and renew true mindset, to give hope to despair mass and create a ongoing movement to new creation.
Jugaad Innovation is defined around 6 principles, where collaborative thinking and acting are king:

  • Search for opportunities in adversity: most of the times, any company gives up facing adversity or difficulty, because of wasting time, money or fearing of failure. We all prefer comfort zones to risk. Then comes Juggad that draws energy and interest from adversity and resistance. Jugaad brings pride, energy and passion to overcome the obstacle. Learn to deal with adversity is one of the keys of Jugaad Innovators, like a new innovation mindset.
  • Do more with less: we may soon live with less. Less raw materials, less growth, less employment, less time…It’s now time to do more with less, re-use things designing them differently. Reinvent different uses and reinvent ourselves. Think for example to use wastes for others capabilities, without being obliged to recycle them. When you live all days with adversity and obstacles, you quickly find solutions with simple existant stuffs. We use to rethink many ways we do and reprocess simply. When tough times are, we must find economic solutions, and the Jugaad method may be relevant and sustainable…to stay ahead of competition
  • Think and act in a more flexible way: big companies organize themselves with hard and complex structures of R&D in long term process that don’t faciltate short term and simple reactions. They don’t (can’t) think flexible way. They keep things complex because they forgot how to think simple. they ignore low cost solutions because they think high value, with large margins. They simply forget customer centric solutions offering complex R&D outputs, outputs that customer don’t want anymore. Cycles get longer, heavy processing, heavier than ever. Capital and resources expenses explode and innovation is not obvious but struggled into secrecy, keeping the cover on patents. This is outpast in the collaborative mindset we live in now. With Jugaad and its ongoing and lean process. that can’t work anymore. Innovation must catch all the few opportunities with few and simple attitudes. The mindset centric thinking and action are mixed into a twirling process, that evolves simply with the single needs of consumer. What has to be created is only what has to be consumed.

JUGAAD-cover_web(c) from the cover of book “Jugaad Innovation”.

  • Target simplicity: never forget “keep it shortly simple”. It seems so obvious for Jugaad mindset, even if make simple is in fact complex. The hardline is that rebuild something from a complex base is really hard, so when you think Jugaad, you start from nothing. You can be light, efficient and straight to the point. Something that big companies forgot, while they keep secrecy on their R&D and innovatios plans. It’s the art of secret and the obsession for technologies or complex buildings with over engineering. Focus on the pure need, focus on value for customer not for company is the only true way to simplicity. The Jugaad process allows the direct thinking to direct needs. Meeting with daily problems, finding daily solutions, directly useful. The direct response for smart innovation.
  • Inclusive innovation: Through structure itself, because of resources consumption and innovation heaviness, the mainstream innovation is mainly for “mass market”, simply because companies couldn’t balance huge R&D expenses with poor markets. Innovation is rarely for disabled people while it could change their life and build a whole story for them. Bringing innovation in middle-class draws wastes and add only a marginal output. It’s a shamy situation where digital fence exists and all efforts might be to reduce it and build a fair world for all. Next to this, the experimentations from “bottom of the pyramid” ou BOP, showed interesting outputs but underlined the limits of “poor segments”: double sentence. As they already have “nothing” the price paid for each single unit is far more expensive than in normal markets. That’s where Jugaad is really different is that solutions are not built by huge companies but by and for local and isolated people. A kind of ABC for exclusion and the ability to include them. The inclusive innovation.

 

bike-pump-jugaad

 

  • Follow heart power and tuition: the notion I prefer far from all others, put some passion and heart in process thinking, doing only what people need and not what he desires. This is one of the great lessons for example, leading to extreme simplification for use and not for engineers’ pride. Focus on needs, engage with local communities, friend with them, learn their daily life is more efficient than any business process or school. Spending time on few essentials lead to main outputs. Don’t forget Steve Jobs who never ever asked anything to a customer, no need to inspire and build what he did. Only his tuitions and faith in design, experience and simplification seemed to draw his whole life. Heart and passion nurture the whole fuel for action, leadong to Jugaad inspire. We may all take the path…

A true and strong revolution, I’m convinced. The one in centuries, beyond fashion and cycles. Maybe there’s already a Jugaad innovator close to you. Neighbour. Travel encountering. Someone valuable for sure. Someone to meet, share and learn from. Respect, Recycle and Reboot. Time to (re)use what we have and (re)invent everything we have, differently. It’s a matter of inclusion, hope and innovation.

Jugaad, our inclusive future, shared with passion.

See: “Jugaad Innovation”. “Passion with no, limit” and THE book. Enlighting the subject with pics ; Reena Jana’s thoughts about it
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I don’t know what’s your actual behavior and consumption of TV, but we can all say there’s probably the biggest revolution since Internet. We used to consider TV as « a whole set, environment of entertainment, emotion and information for the family.

Despite different revolutions like new consumption (VOD, OTT, catchup TV…), new wirings (DSL, DTH, DTT…), new quality (HD, 3D), TV remains a matter of contents. Believe me, as I worked for more than 10 years, in pay TV environments.

And, yes, it is still a question of content. To inform, entertain or turn upside down. It’s always contents that drive audience and make the money business. But since users started to generate contents (UGC) with social tools, the power between broadcasters, content producers and audience has been completely blended, from a steady flow, one at a time, to multi-producing anytime, anywhere, any device. And guess where we focus most of our time now?

Not on old TV formats, but the web. Web audience boosted since few years now, and consumption of any contents on mobile screens overtook the old devices.

The next big thing is this incredible second screen concept that shapes the exact new relation between:

  • audience, e.g. who becomes active/reactive and participating
  • content producers, e.g. who try to produce high potential contents and sustainable rights to engage in a longer lifetime, that is, more revenues
  • advertisers and brands (here there’s no change but the increasing need to hold revenues and efficiency, anytime!
  • broadcasters, e.g. whose job is keeping the light on overnight and increase revenue due to more audience from advertisers.

Fair game isn’t it? I’m probably writing a piece of this article on my laptop, while watching TV, sending twits
to engage with the actual TV show. And it’s not a question of the Y generation or being a millennial, as I’m neither.

 

SocialTV_ecoS

 

The fact is that, socialize relations, sectors, or industries, means tumble down the easy flow of former
relations because:

  • You won’t be able to know how many times and how long, the former viewer is now, while he can zap, play, change the content – with one finger
  • You won’t be able to value advertising and the guarantee for brands to invest in big channels, another effect of the long tail, created with the web
  • You probably will be obliged to change, quick and dirty, programming because of twitter #attacks, ongoing, throwing away all your programming strategy
  • The whole investments you do in long term programs is turned into a short formats of videos, soaps, viewed, reviewed, cached, and screened wherever but the TV

Think about how it’s changing the whole chain: skills, training, actors, eye-catching snaps, promotion, the relevance of a whole programming guide.

Where the web brought freedom and creativity, television lost traction moreover in youngest generation who nearly were born, without TV addiction. Many years ago, most of us believed that social TV was nothing more than bringing the web on TV screens and bloomed many connected TVs with new interfaces and web browsing.

Social means individualism because the essence of participating is the collaboration and the addition of multiple individual shares, talks, and debates. Soon (or already now?), you’ll be able to have an individual end for your favorite soap. The one you’ll choose, the one you’ll have, your end.

In some way, where technologies brought us the ubiquity of TV everywhere (DTH, Cable, xG Mobile, DTT, etc.), social brought us our network that awakes us more, engages us to participate, and allows us to be more aware of what’s going on.

In some way, we’re more actors than we think. We create the new content experience we finally want to see. What is more important in marketing than to have the choice to buy something we REALLY want?

Social TV is our choice, our experience, our chance to be more engaged than ever and keep the little flame for creation. Let’s light on.

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Seems Bitstrips raised a lot of money recently and I must admit at first was very sceptical. Let’s say it’s a funny tale and another social story, gamed with cartoons and a “do-it-yourself” use of drawings through several opportunities. Fair enough. If the “cartoonisation” gives clever scenes and enhances our “gamability”, I’m still wondering what kind of value is behind these large valuation and viral expanding. Guess what? The value is in you. As digital networks invade the world, the real value is built, day after day, with the increasing datas and profiles, users. You. Me. Friends. Fans. No one missed the last Facebook starving price with this astronomic deal with Whatsapp.

What’s incredible in the “digital network” is that few people now concentrate value, revenue and growth. Where millions of employees had to participate in industrial era, smart teams (eg 13 for Instagram, and 55 for Whatsapp for example) do the job for billions of stocks valuation. If indeed they created and built something relevant, the most part of the value comes now from the network and the potential of its members/profiles. What they do, post, discuss, members who do anything for free, anytime, anywhere, filling timelines with pictures, text messages and conversations. And the contents blooming in these platforms bring value to the whole project. Ask yourself how these companies’ stocks are valued: from the users they drew to the network (eg value of a user between 20 to 100$, according to returning and activity rates x number of members). Why do we value these networks with members figures without sharing any revenue with these members?!

DigitalNetwork

But this value is not distributed (eg for example in jobs raising, revenue sharing or anything else) to third part anymore. We’re facing the worst side of digital revolution, destructing value: no more jobs needed – lean companies -, value created for free by userswho are the next unemployed. I must admit, being an early adopter of digital wave, this theory that we can find in Janier’s book “who owns the future” made my day and the real danger zone is already there: the more you’re opt-in, the more you’ll have free information. Your “Opt-Inness” make you more valuable but the question is: for who? Finally, more free information makes the world poorer because in the long term, there’s a massive destruction of employment, directly from the fact that industry now needs far less people to work. We all, using and consuming free and low cost services, participate to this slow and steady destruction of middle class. The one that holds the global edifice and raises children. The bulky one that create the motion for mass markets. It’s time for revenue sharing between, friendly users and startup aces, and rebuild another model for digital economy. Sustainable, fair and collaborative centric. Kind of we could be proud, without fear of being smashed up from the system.

Think of it before your next content feed. It may worth much money, but not for you

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Being involved once more in a particular piece of survey, built by The Boston Consulting Group for its customers, and tested on different panels from HEC Business School. Always searching to shape the future, engaged since 50 years now, the famous consulting group conceived and held a great framework with different layers to grow a relevant model for new guidelines for leadership…We can, by the way, just imagine that leadership was in the past more dedicated to a specific “person” and then shifts to a collective movement, on the influence of collaborative sessions everywhere. Even is the spread has been done many years from now, on the Anglosaxon world, the dynamics from digital and tools ahead draw another picture of “work” and project building. The resume that was enlighted was “Why will leadership be different in the 21st century and what will it take to be a 21st century leader?” (if it’s still an individual matter more than a collective one). So?

The framework was built around a “navigation row”, with 4 poles like: Navigate, Empathize, Self-Correction and Win-Win. While past models celebrate things like “integrity, vision, intelligence, judgment, courage and drive”, it’s not enough for the next big pictures…The way we see risks is not the same we did, and the global uncertainty growing in the world, lead us to more flexibility. But that doesn’t mean not to be clear, because leadership is still a kind of example, that shows the way, with a clear course to follow.

SocialChangeLeadership

The social arena leads us to more “social” relations, and in the working environment that means to influence more than “manage” or use authority. Charism, experience or conviction are our best weapons to deal with negotiation and motivation. It supplies us more ability to forecast and embrace global uncertainty, through troubled periods. The shift from pyramid to project management leads us to rethink way of driving the change, with teams, empowering talents and guiding them more than ordering. We then develop a win-win method that grows the whole organization. It requires some underlined competences like: vision, intelligence but courage and judgment to be flexible and self-correcting, ongoing. Integrity, drive and tenacity will complete the panel of skills for success and garantee a strong footprint, mindset and influence for modern leaders.

A very interesting study/survey or tool to evaluate and frame the “how-to” for next generations, HR compliance and driving change with talents.

For more, see:

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Participating again to the OECD forum (@OECDLive), it was the opportunity to mark a new position, talking about the “Better Life Index” (BLI) that is monitored and measured in main countries in the world. Because GDP is not the only KPI now and we may be closed to “happiness” than ever, while the world is changing of  “business and transaction” model with lot of uncertainty. BLI, for its 3.0 verse, is based on, wherever you live, the main facts and feelings about the quality of daily life and how people hold “performed and advanced” conditions, in their situation. In short, “what’s really important” for people: education, safety, environment, growth, governance, equality, trust in the future and institutions and what’s scheduled for them. BLI has been launched in Russia in January, and we enter in a consolidation year for 2013. Improve “people’s life” must be the first issue of any country in the world, and sometimes, we need not much resources than we believe. And the path and main goal is to turn KPIs and measurements into “actions, changes and relevant improvements for people”. There’s still some differences of course between developing countries and mature ones, and the BLI must be adapted to any configuration, to capture the essence of needs, live, snapshotting the main opportunities. Be ready for the next very interesting idea: link BLI results and managing government in any country, just to get some feedback about people who were elected, and how they drive and achieved or not, their democracy issues…Some surprises to come!

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SMEs: backbone of the economy?

SMEs are probably the main source of the economy in the rising countries, and by the way, great suppliers for employment (in emerging countries, 97% of jobs are created in SMEs!). More flexible, agile and speed driven, they lead the competitiveness but are very exposed to bankruptcy: lack of liabilities or size, inequality in taxes comparing to larger groups, theres’s many way to improve the environment of SMEs, starting with “understandings” of what is a SME and its daily life? It seems so obvious that post of governments forget about it and only adapt rules that are driven to failure. Access to talents (draw and get trust), financial resources, trust, hold the operations line and so long are not so obvious and we’re facing many unequal statements that grip the wheel. Talking about Germany, that is celebrated to be really succesfull for its innovation and working floor for SMEs, they had to build a “specific plan”, customized, but underlining the roots and a very operational approach. No theory, no smart talks but actions and relevant environment built to success. Create conditions of success mean a whole environment of help: education, coaching, funding, capital and equity managing, training talents, taxes improvements, leveraging SMEs in organizing fair cooperation and competition between larger groups and startups. But yes they are smart “backbones” for new economy, where services take place instead of old industries…

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The Asian Century

The huge demand in the zone makes it possible to go into the Asian century. But demand is not the only valuable indicator, to settle trust and sustainable conditions. Mindset and political stability may be as important as growth or wealth. And when we look at mistrust for China or North Korea, we have to consider they have some keys from inside, to turn their huge demand into sustainable and stable markets. If poor countries from the zone benefit from “low working class” conditions, making them employable, it’s already a progress but not sufficient to say the goal is over. As the competition is worldwide now, we must consider social, education, goods and services suppliance and welfare spreading as necessary step, to build a better society.

These are some milestones I had the opportunity to share and listen, in this troubled world. Talking about the main issues of unemployment, education, poverty but also happiness and security, every zone in the world has its own challenges, but saying so doesn’t mean everything is apart. Currencies, sales exchanges, custom tarifs and production costs, are linked I guess. And the necessity to progress in sustainable and green development may not be so central, as developping zones like BRICS may not hold their unlimited needs and growth. How can we deal with such problems, while growth isn’t enough and debt is increasing in Europa? Let’s have a look at the future with trust and hope demanding countries could find a way to prosper in this weird world…

Thanks to OCDE team again for this awesome event and so many networking facts.

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When WWW was built, it was nothing else than a private, closed and scientific network to share and exchange files, articles, in a steady rythm. Fair enough. From Tim Bernes-Lee’s Arpanet to Vinton Cerf and Robert Kahn who created TCP/IP protocol, everything was done in a “scientific, military, professional” approach, for few users in fact. And from a couple of hundred scientifics to 2,4 billions users, let’s say there’s probably a huge gap…And the emergency to rebuild something different, from scratch or in incremental way, but reboot the system. Some say that the only IPv6 solution (eg that solutes the problem of the exponential needs for IP address) is already a titans’ work…And don’t believe it will be possible to start from zero, and recreate something more efficient.

The experts say there’s challenges that this new “web” must overcome, as:

  • security: inside and bornbuilt security systems to avoid firewalls and sustain authentification, without identity hacking
  • mobility: only the network counts, as you’re mobile, you never have to be unplugged by ruptures in the different networks/rates. content everywhere, anytime, anydevice and without any interruption
  • resources: always find the best way with less consumption to deliver content
  • multilanguages: to improve the writing, characters and different signs in any language
  • repetition: push messages on several networks at-a-time

wwwNo need to say that facing these big issues, the former structure of Internet is not sufficient anymore. And different theories with for example, IP concepts that identified localised adress more than identity, or identify contents or services more than machines. Internet may be tomorrow a single highway more than a network of networks, which was the spirit of the begining. And has to be more “fluent” and flexible, dealing with the huge amount of datas and contents that goes every day all around the world. The future is in creating emergency roads, to double and increase the different ways to deliver datas rate, called “redondance”, and give up with old IP notion: enhance security and hold the real identity online, through a personal adress, linked to people/place (eg mobile) more than device. A very interesting journey and project, and we know it worths all over the efforts to get there.

Moreover:

http://www.strategyland.com/2011/rebuild-the-internet

http://bits.blogs.nytimes.com/2011/08/04/a-call-to-rethink-internet-search

http://thepeninsulaqatar.com/techfile/240835-smartphones-make-internet-giants-rethink-strategy.html

http://www.rethinkeverythingblog.com/the-internet-of-things

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