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기술변천사를 통해 본 인류의 삶과 미래경영 Techno- Physio -Social Co-Evolution and Future Paradigm of Management. Who is Dean Byungtae Lee?. Poor Professor Lee. Agenda. 1. 2. 3. Technology and 4 Major Transformation of Human Life New Management on The Smart Planet Conclusion.
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기술변천사를 통해 본 인류의 삶과 미래경영Techno-Physio-Social Co-Evolution and Future Paradigm of Management
Who is Dean Byungtae Lee? Poor Professor Lee 영림원CEO(2013.4.4)
Agenda 1 2 3 Technology and 4 Major Transformation of HumanLife New Management on The Smart Planet Conclusion 영림원CEO(2013.4.4)
Management on the Smarter Planet 1 Why Does Technology Matter? What is Innovation? 영림원CEO(2013.4.4)
Civilization’s biological prerequisites • Two Hand Tools in 1.8 million years • What is the difference? 영림원CEO(2013.4.4)
What brought mice on our hands? • Food Production of two people • Exchanges (trades) • Specialization by comparative advantages • Exchange better offs all • Specialization brings innovations • Innovations brings more specialization 영림원CEO(2013.4.4)
Human Wealth System Evolutions Macro Human History Hunter-gathering Agriculture Industrial Evolution Information Age 영림원CEO(2013.4.4)
Humanization, Why are we only “economic animal”? • Good hands (dexterity) • Good brain • Benefits of Uprightness • Regulation of temperature (more with hairless) • See farther (Savanna monkey theory) • Look bigger (especially in silhouettes) as the hunted • Reach higher to pick up low hanging fruits • breath higher (Agua monkey theory) • Mating fidelity: genital display to attract females, females conceal ovulations • Huge energy economies in locomotives (70 kg man/Per meter) or 75% savings • 33 calories more in walking than standing • 62 calories more in running than standing • Quadrupedalism needs 48 calories more than bipedalism • Human foragers walk 4 km per day while chimps walk only half km – larger brain? • Free hands (carrying something) • Easy twist to look behind • More sex and kids • Morepowerful down-blow fist fighting Bipedal 영림원CEO(2013.4.4)
Narrowed Birth Canal of Modern Human with Bipedal • Narrow birth canal • Slower maturation of babies Neanderthal versus Modern Human (Cro-Magnon’s) 영림원CEO(2013.4.4)
Generational dependences • 1.8 million years old fossil • Skull from Dmanisi (D3444/D3900) • What does this imply? 77 영림원CEO(2013.4.4)
Hunters and Gatherers – Gender Dependency • Specialization between Sexes • Non-violent communities of women • Trading possibility with strangers 77 영림원CEO(2013.4.4)
Use of Technology – Fire! Broaden food bases dramatically – global presence Cooked food made omnivores & bigger brains (thinking animals) Fire, the first technology that ignited civilization 영림원CEO(2013.4.4)
Techno-Physio-Social Co-Evolution 77 • Three things together • Technology: Fire • Physiology (Body): Bigger brain • Social Systems: • Global Presence (Economic System) • From “Male and Female” to “Husband and Wife” 영림원CEO(2013.4.4)
Wealth System Version 2 Farmers & Shepherds 영림원CEO(2013.4.4)
Farming, the product of the warm planet The Beginning of 1st Agricultural Revolution 77 영림원CEO(2013.4.4)
Why Aborigines are almost gone? • New Worlds • Australia since 40,000 Years • America since 11,000 years • Still poor Africa • Crash between Farmers and Hunter-Gathers Source: Guns, Germs, and Steel (Diamond, 2000) 영림원CEO(2013.4.4) Crops and Cattles
Guns, Germ, and Steel Three Things Go Together High Techs: Crops and Cattles (Horses) Body: Co-evolution with germs Social System: Bigger Society and Writing Systems 영림원CEO(2013.4.4)
Nitrogen Fertilizer by Fritz Haber (1918) • From 0.6 to 9 Billion People Wealth System Version 3 -Industrial Revolution Source: Fogel, 1999 영림원CEO(2013.4.4)
The greener and safer place from no more starvation 영림원CEO(2013.4.4)
Another Unsung Hero who made 9/6 Work- John Harrison • 1735, J. Harrison • Marine Chronometer • Global Navigation & Transportation • Synchronization & Coordination of Human Activities • Ultimate Booster of Labor Productivity 77 영림원CEO(2013.4.4)
The Oldest “Blue Ocean” Case – Model T Revolution in How We Work • Ford’s Innovation with Conveyer Belt System • Process Standardization and Visualization • Role & Responsibility Assignment at Activity level • Forced Service Level Agreement • Job seeks worker than worker seeks a job (Zero-latent operation) 77 영림원CEO(2013.4.4)
Time Well Spent? 99.96% Discount (1915-1995) Source: FRB of Dallas (1997) 영림원CEO(2013.4.4)
Techno-physioEvolution Who you are is what you eat and have. • New species of Homo sapiens • 50% increase in body size • 100% increase in longevity • Acceleration of Technological Changes • Plow (4000 B.C to 200 AD) without design change • Aircraft: a few hundreds flight in 1903, arrived at Moon in 1969 • Color TV, 30 years • Internet (WWW) took only 4 years • Telecommunication and Information Technology even increase this acceleration • Homogeneous Homo sapiens 영림원CEO(2013.4.4)
Co-evolution in Industrial Era Three Things Go Together High Techs: Chemical Fertilizers and Mechanical Watch Body: Bigger Body and Live Longer Social System: Specialized Society & Internationalization 영림원CEO(2013.4.4)
IT= Intelligent Watch 737,681 Lifetimes • More Computer chips than grains of rice since 2007 • Moore’s Law 3min per MIPS 77 영림원CEO(2013.4.4)
IT Business Value Opportunities and Focus ~ 70’s 80’-90’s Y2K ~ 77 영림원CEO(2013.4.4)
Amazon no “brick and mortar” Revenue: 1996$15.7 M2002$3.9 B 2003 $5.3 B2004 $6.9 B2005 $8.5 B $61k/person (256) $524k/person (7.5k) Barnes and Noble 1,000 bookstores & BN.com Revenue: 1996 $2.5 B 2002 $3.9 B 2003 $4.4 B 2004 $4.8 B 2005 $5.2 B Sales/Person:1996 $102k/person (24k) 2002$105k/person (50k) Amazon.com vs. Barnes and Noble • Amazon entered seemingly red ocean with drastic productivity innovation. 77 영림원CEO(2013.4.4)
Market Value – New E-conomy? • US Firm’s future value surged since early 90’s. • Economy with the new paradigm of “Meta Capitalism”. • Korea follows the same path. 77 영림원CEO(2013.4.4)
MetaCapitalism • Meta Capital is based on “intangible asset” • When we can claim “business process” as “working capital” or “asset”? • What is the asset? Old Business Model New Business Model “Push” Focus “Pull” Focus BRAND CAPITAL CustomerFocus Production Focus HUMAN CAPITAL High Low WORKING CAPITAL High Low PHYSICALCAPITAL (Outsourced Network) 77 영림원CEO(2013.4.4)
Innovation Hot spots 77 영림원CEO(2013.4.4)
Current Hot beds of innovation Silicon Valley India South Korea China Route 128 (Boston) Israel Nordics 77 영림원CEO(2013.4.4)
What is the smart technology? 77 • Zero Latency Computing (Always on and No Waiting) • No Booting and App-based (not Web-based) • Ubiquitous Computing – Internet on mobile devices • Human friendly interfaces • Real-time Social Technology 영림원CEO(2013.4.4)
Why iPhone? – Zero Waiting Desktop iPhone> Walk to your PC Touch this app> PC-Booting> Start a Browser > Go Naver.com > Search Weather> Type your city 영림원CEO(2013.4.4)
More Natural Information Processing (Out of key boards) • Human has 5 senses for information processing but so do smart devices • Skin for touch • Eyes for seeing • Ears for sound information • Cochlea for motion detection • New fifth sense of GPS • No nose or Taste buds 영림원CEO(2013.4.4)
Listen and Knows Everything with Digital Ear- Soundhound Shazam: BM with partners Contents are baits for ad audience 영림원CEO(2013.4.4)
See smarter than you – IneedCoffee via Augumented Reality 영림원CEO(2013.4.4)
Co-evolution in Industrial Era 77 High Techs: Information Technology Body: Work and Walk Faster, iBrain Social System: Globalization & Free Information 영림원CEO(2013.4.4)
Management on the Smarter Planet 2 New Management on the Smart Planet 77 영림원CEO(2013.4.4)
Implications of Smart Technology to Management CXO’s Challenges of Smart Management • Strategy and Business Model Innovations • HR Management & Product Design • Marketing & CRM • Public Relations 영림원CEO(2013.4.4)
True/Real-Time Global Network • Trading possibility is the key to technological innovation and economic development. • The recent global warming lead to farming to larger population to the larger trading possibility. 77 영림원CEO(2013.4.4)
Globally Connected World 77 • Emerging a true global real-time network • The GLOBAL metaphysical (Idea & Finance) network will induce globalization of the lower layers (Goods, Services and Labor networks) • More Complex System (Lot more players and nodes) • Some players are black customers and anti-societal people • Unpredictable World • Strategy Paradigm from “Aim Ready Fire” to “Ready Fire Aim” 영림원CEO(2013.4.4)
CEO/CSO’s Challenges • Dynamic and Uncertain World • More frequent challenges to your business model • Tension between short-tem and long-term strategies and capability • Platform Competition • The top priority: building “global organization” • What Japan did fail when they sold “global products” 영림원CEO(2013.4.4)
Globalization and Global Organization 77 “Raising capital where it is cheapest, producing where it is most cost effective, and selling where it is most cost effective, and selling it is most profitable” (N.R. Murthy) Japanese failure in developing global organizations when they developed global products 영림원CEO(2013.4.4)
More innovations at the speed of Light- Car Rental, Zipcar 영림원CEO(2013.4.4)
Strategic Agility – Read your customers • Strategy Paradigm from “Aim Ready Fire” to “Ready Fire Aim” • iPod Touch • From Web (mobile portal) based to App based architecture because of “Jail breakers” • The contradictions in Strategy • Strategic Clarity and Consistency, vs. Operational Agility and Resilience 영림원CEO(2013.4.4)
Ever-greening of IP IP 영림원CEO(2013.4.4)
Service Platform: What makes Samsung Executives worried? • “Made-by-China” Smartphones • What if Apple/Google made them for free? • Lessons • Services (Contents) integrated platform • Software, Software, Software • Design, IP battles • Beyond Manufacturing - Creativity 영림원CEO(2013.4.4)
Implications of Smart Technology to Management CXO’s Challenges of Smart Management • Strategy and Business Model Innovations • HR Management & Product Design • Marketing & CRM • Public Relations 영림원CEO(2013.4.4)
GoldCorp, Inc의 Crowdsourcing 예 • Rob McEwen, CEO • Toronto-based gold mining company in trouble with strikes • Challenge” for $575,000, published all information on 55,000 acre property on the web • More than 1000 contestants from over 50 countries identified 110 new target spots • 50% of them never considered by the company. 80% of them yielded substantial amount of gold 영림원CEO(2013.4.4)
Is Landscape of Value Creation Shifting? • fromSafe Haven • to Middle Kingdomsor • Youniverse • Is your organization ready to sustain in these new ecologies? 영림원CEO(2013.4.4)