Category - knowledge economy

October 27, 2008

So what does it all mean?


This is the latest excellent video from Karl Fisch et al from shifthappens, the previous iteration of which you can see here.  It's provocative stuff, for everyone, not just those in education at whom it was first targetted.


Thank you to Dominic Campbell for bringing it to my attention.

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October 09, 2008

What is the right size to thrive in a recession?

One of my favourite observations of the last couple of days comes from James Cherkoff who runs his own small business who asks:

"What do I say the next time my commercial bank asks for a solid business plan?"

Pot calling kettle, and all that. Anyway, the current crisis really demonstrates how everything and everybody is linked to everything else. And in particular that trust (between large financial institutions) is the bedrock upon which the 21st century networked economy is all about.

So our economic fate is increasingly intertwined with others and we are experiencing our first real networked global recession as Charlie Leadbeater says. This obviously means we have to find £400bn pounds when our banks get too creative, but it also creates plentiful opportunities if we know how to embrace them. So, ever the optimist, I am wondering whether, can we turn this to our advantage given the diversity and connectedness of the UK.

Desperation is the father of necessity (with necessity being the mother of invention) and it may well be the smaller agile businesses who can find the bigger opportunities in the next 12 months, though obviously the corporates ought to find it easier to whether the storm i.e. Small is Beautiful but Big is Powerful.

The crisis is a fascinating reminder for large swathes of the population (and estate agents) in how markets can go down as well as up, but more importantly is possibly a once in a generation opportunity to really radically redesign and rethink our politics, economics, and society for the better.

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October 03, 2008

The talkoot of the town (& bothy)

I’ve recently learned of the Finnish word ‘talkoot’ (from these guys) which is described as follows:

Talkoot is the cultural equivalent of common work in a village community, although adopted to the conditions of Finland, where traditionally many families lived in isolated farms, often miles away from the nearest village.

A talkoot is per definition voluntary, and the work is unpaid. The voluntary nature might be imaginary, due to social pressure, especially in small communities; and one's honor and reputation may be severely damaged if one doesn't show up — or proves to be a poor worker.

Learning this new word immediately reminded me of when I used to live in Edinburgh, and when we had many a great trip to bothies (such as the one in the above below). Bothies are described as simple shelters in remote country (usually means at least 2 hours walk from the nearest road and certainly no electricity or plumbing) for the use and benefit of all who love wild and lonely places.

Picture_001_4

Bothies appear to me to have a lot in common with the isolated Finnish farms where the idea of Talkoot arose. There is an implicit understanding in bothies that you temporarily share the space with anybody else who may be there, and collectively work together to gather firewood, make food, clean up etc. (As an interesting aside, Euan McIntosh also used bothies as a powerful analogy of social networks back in May at Nesta’s innovation edge conference, but I won’t go into that again here.)

But why, you might well ask, am I talking about talkoot and bothies on a blog about collaborative innovation? Well as Peter Drucker says (via Euan Semple):

In a knowledge economy there are no such things as conscripts - there are only volunteers. The trouble is we have trained our managers to manage conscripts.

Organisations based on hierarchical command and control structures have proven to be very efficient for mechanistic or specific tasks but generally terrible at stimulating innovation and creativity. So in seeking to create these new organisations in a world increasingly based on ideas and relationships, which required an environment that encourages voluntary and spontaneous contributions, perhaps we have something to learn from the spontaneous and voluntary nature of both bothies and talkoot.

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September 22, 2008

Over-Specialisation Nation!

Fractaltree Is it is possible to become too specialised?

The dramatic events of last week on the financial markets are one example how, I believe, specialisation can cause major problems. The ever increasing (so called) 'sophistication' of financial instruments have become so complicated that they can't be understood by enough people, certainly not the financial regulators, and therefore the products that end up having no bearing on genuine economic reality, leading to the recent bubble and subsequent credit crunch.

Similarly, I have long felt frustrated at specialists in academia or industry who are so narrowly focused on their narrow niches that it is practically impossible to understand what they say and what they are working on, and only a handful of other people can even question them let alone understand them.

Don't get me wrong. Without question we desperately need well trained and educated specialists who understand complex issues in great detail, be it financial or philosophical. The world is a complicated place, and I'm not for one moment advocating a retreat to creating renaissance men and women, however appealing a romantic notion that may be. It's simply not possible for individuals to be sufficiently knowledge about a breadth of issues or disciplines as it once was.

However I think when swathes of business and academia get so specialised and riddled with jargon that they become practically incomprehensible, then I think we've gone too far and need to take a step back. I think businesses, academia and governments need to create more space for specialists to interact with larger groups of people across traditional boundaries. This is what we try to do with our NESTA Connect programme. As I've said previously this space might be provided by talented people who span multiple disciplines themselves, or organisations that act as intermediaries.

This excessive specialisation is a global phenomenon, and yet the UK is interesting in that a) it has one of the most specialised education systems in the world, and yet b) the opportunities open to graduates of a particular discipline tend to be wider here compared with Germany, and possibly the rest of Europe, for example.

So in conclusion, I believe we should no longer tolerate the uber-specialist who talks to no-one but their immediate micro peer groups. Else we run the risk of losing the ability to discuss, debate and question other people, leading to the ludicrous situation that precipitated the recent crash in financial markets.

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August 11, 2008

Artificial dualities, digital yoga and the embodied web

I call it artificial.  Clay Shirky calls it "an accident of history".  We're talking about the distinction made between online & offline.  The other common terms for this pair is virtual & real or (dare I even say it) cyberspace & meatspace.  Whatever the language used however, the problem I have is not with the words per se but with the split itself.

Differentiate then integrate.  For any innovation in whatever field to really become pervasive, it pretty much has to follow this simple three word formula.  If you're reading this blog, more likely than not, you've lived through the period where the internet and web technologies have differentiated and now we are in the first real phase of integration.  If you're not sure what differentiate means, the simple test is to remember life before Facebook.  If you're not sure what integrate means, the test for that is to remember life without email. See!

This is why Clay talks of making a distinction between online and offline as an accident of history.  No ten year old uses this language because their digital life is conditioned so early.  Show me the person today who considers a phone call a virtual experience.  But back in the day, holding and speaking into a piece of metal resulting in the voice of your grandmother who lives in Idaho must have been a pretty ethereal experience.

The reality of our lives contain all experience, be that spent reading this post, slaying a demon on World of Warcraft or having a coffee with a new friend.  By using stark binary dualities as virtual and real, we are distinguishing one as having more substance than the other.  This is separation and perhaps a disservice - our world probably has enough of that.  Let us consign this particular accident of view to history and instead move to a far more interesting problem.

A relationship that I am finding much more useful to explore is that between the non-binary pair of web and place.  Or to use an equivalent spiritual pairing, mind and body.  As a culture which has become ever more dependent on the intellectual faculties of mind since the Renaissance (thank you M. Descartes), our disconnection between mind and body has become increasingly acute.  In fact, the information economy in which most of us live pretty much does not require our bodies at all, much of the time we may as well be brains in vats.

The Sanskrit word yoga means union, for through its practices body and mind, though never ever really apart, are invited back into intimate relationship.  This can take effort, it certainly takes patience and commitment but the results are well worth it since they are harmony, peace, learning and a strength that can move mountains.

(Please excuse any contradiction but) There is danger in the web remaining a web-only phenomenon.  So what we need now is a digital yoga - the reconnection between web and place.  I call this the Embodied Web. Enough brains in vats.  Let's get integrating.

Thankfully of course this is inevitable. Thankfully of course this is already happening.  Alternate reality games, geo-social networking tools like Brightkite and everyone born in affluent circumstances since 1992 are all early examples of this artificial boundary becoming more and more blurred.  You'll probably be alive to see it dissolve completely.  Be excited.

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August 07, 2008

Dealing in more than one currency

I remember after a relatively lazy lunch some years ago, asking a friend of mine who worked at the Bank of England what this thing money really was.  After the initial look of alarm in his eyes, normal service resumed and, being a solid economist, a solid economist's answer is what I got.  Somewhat unsatisfied, I then perused the rather fun Bank museum but to no avail for my question remained: what currency truly motivates our actions?

While the term online transaction may conjure up images of frozen Paypal screens and shoes which looked good on screen but give you blisters on the street, let me use it to refer to the motivation behind interacting in online communities, be that the blogosphere, social networks or whatever.  The intention behind this transaction is rarely clearcut but there appears to be two main contributions.  One is the wish to share and connect.  The other is the desire to be seen.

Together these two factors constitute whuffie, the currency introduced in Cory Doctorow's cult hit Down and Out in the Magic Kingdom

Tara Hart in an excellent recent post on this topic clarifies whuffie when she says that:

Whuffie has replaced money, providing a motivation for people to do useful and creative things. A person’s Whuffie is a general measurement of his or her overall reputation, and Whuffie is lost and gained according to a person’s favorable or unfavorable actions. The question is, who determines which actions are favorable or unfavorable? In Down and Out, the answer is public opinion. Rudely pushing past someone on the sidewalk will definitely lose you points from them (and possibly bystanders who saw you), while composing a much-loved symphony will earn you Whuffie from everyone who enjoyed it.

But does working in this kudos or gift economy get you fed?  Tara says oh yes it does, and is confident that as the value of online communities continue to grow and evolve this can only be more and more the case.  In fact, she is so confident that November will see the publication of her new book on this very topic. 

In the next few years, I believe the ability to deal in multiple currencies in a consistent and integral way will become an increasingly key skill for fruitful 21st century living.  Money, time, carbon, whuffie and attention all have their value and their place, but to over-emphasise one to the exclusion of the others can limit our view and therefore our capacity for innovation.

PS Guess how much it costs to visit the Bank of England's museum

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June 05, 2008

Hyper Island and Dare

A surprisingly recurrent question that I find myself asking about creative innovation at NESTA is "How do they do it in Sweden?". The Swedes seem to have a track record in good innovation practice.

So when Skillset launched their excellent Media Academy programme, which aims to nurture creative people for the new media sector, they drafted in Mattius Hanson from the wonderful Hyper Island.

I'm glad to say that the UK (notably Scotland) can hold its own too with Dare to be Digital having an equally successful record of getting talented people into industry - this time in games.

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April 21, 2008

Are these really the 50 most innovative companies?

Business_week Business week has just published its annual list of top 50 innovative companies available here. Are these really the 50 most innovative companies? Who do you think should be on the list?

I think the list is rather predictable and tells us more about what people think of as innovation. These are big brand product led companies which are important but is that really what we mean by innovation?  As always the list is more telling for who it leaves out rather than who it includes - what about companies from sectors such as architecture/construction, financial services, media, brand and PR, financial services and tourism and hospitality?

Nesta recently published a policy brief on innovative firms which talked about the UK not having produced 'Gorillas' like Google and Microsoft. It's often said that if Bill Gates had started Microsoft in the UK he'd now be heading up the biggest software business in Guildford i.e. we lack the aggressive ambition to grow in the UK.

However many organisations are becoming increasingly distributed and outsourced. Over 40m US citizens are self employed 'free agents' and 20% of UK workforce will soon be working from home. Whilst the UK would surely benefit from more brands that act as hubs in the global economy, there are many examples of small companies or even individuals who act as powerful nodes which can be more agile, responsive and dare I say it, innovative.

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April 18, 2008

Are online social networks the new cities?

You may have seen that Nesta is planning it's forthcoming Innovation Edge conference which is shaping up to be a really interesting day.  In preparing for the event I casually mentioned to the organisers that it might be interesting to have a session on the topic of social networks as the new cities. This casual comment has now morphed into a great line up of speakers including Michael Birch (Bebo), Richard Leese (Manchester City Council), Jon Gisby (Ch4), Inkie (Street Artist and SEGA) and Charlie Leadbeater (We-think Author).

The session is getting very popular so I'm getting a little nervous about how the themes we should and could debate and discuss. So I thought I'd ask readers of this blog if there were particular points of view of questions you might have for any of the panelists that we can feed in to the preparation for this session?

My take, for what it's worth, is that cities have traditionally been the financial, social and creative of the world. However technology now enables new centres of gravity to form online and we now carry our 'communities' on the devices in our pockets? I think this is profoundly impacting on the way we connect, interact and collaborate and will fundamentally change our cities and traditional social hubs. Obviously the death of cities is far from being realised with most cities growing rather than contracting, so we still crave the interaction and benefits that close proximity affords. And yet many people complain that we don't know our neighbours and our communities are increasingly isolated. With our expanding and increasingly global social networks, what do you think this will mean socially, politically and geographically in 5, 10 or even 20 years time?

These are all huge themes and I'm not expecting complete answers, but I'd really welcome any thoughts and ideas you might have that we could pose to the panel to discuss and debate at the event. BTW, the event will be webcast so if you can't make it you will still be able to see what happens.

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April 17, 2008

Control the Process NOT the ideas

I spent the day yesterday listening to the diverse experiences of four leading interdisciplinary collaborators, as selected by a community of over 450 other noted interdisciplinary practitioners. This was part of a Nesta research project which is still in it's early days so I won't attempt to summarise the findings here just yet.

However one thing occurred to me as the day progressed to be a common thread in each person's experience. Namely that successful interdisciplinary collaboration thrives in an environment with clear boundaries or controls around process and behaviours, but limited or no controls around the legitimacy or control of ideas.

For me this was an interesting insight as in setting up new collaborations we often spend a lot of time imposing controls over the ideas, but not enough contrals around the process and environment. These collaborations then often fail due to distrust or disagrements around the intellectual property or different intellectual perspectives. A much more productive collaboration would flourish with infrastructure and incentives that liberate the cross fertilisation of ideas through a clear set of boundaries and process.

What's your experience? Are we looking to control the wrong thing?

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