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Business Impacts

Business Impacts. IACT 302 Corporate Network Planning. Main Themes. “Connectivity is shrinking our world and, in the process, transforming business.”. Main Themes.

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Business Impacts

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  1. Business Impacts IACT 302 Corporate Network Planning

  2. Main Themes • “Connectivity is shrinking our world and, in the process, transforming business.”

  3. Main Themes • “As communication between people becomes more fluid and pervasive, it is creating what looks like a global brain, in which ideas procreate freely, and we collaborate to filter an ever-expanding universe of information.”

  4. Main Themes • “However, just a small proportion of the planet's population is connected. It is critical that we extend participation as broadly as we can.”

  5. What the Changing Flow Means for Businesses • The coming of hyper-connectivity and the living networks has implications for almost every aspect of business • Five key issues • How companies create value with their customers, suppliers, and partners. • How people work within organizations • Innovation and intellectual property • Strategy and positioning • How individuals provide leadership and create personal success

  6. What the Changing Flow Means for Businesses • How companies create value with their customers, suppliers, and partners • The rapidly increasing ease and speed of information flow is blurring the boundaries of organizations • To survive and thrive, • Companies must create new kinds of relationships with their customers, suppliers, and partners • Based on transparency, collaboration, and sharing value • This requires new ways of working.

  7. What the Changing Flow Means for Businesses • How people work within organizations • Work today is based on people's networks within and across organizations • Knowledge needs to flow by connecting the right people, and diverse groups working in different locations and often different companies need to collaborate effectively to do their work

  8. What the Changing Flow Means for Businesses • Innovation and intellectual property • Economy is increasingly dominated by innovation and intellectual property • Increasing complexity of technology means that collaboration is becoming essential to develop valuable ideas • Need for new models to share in the value of intellectual property • At the same time, an ever-larger proportion of intellectual property can be captured in digital form and can thus flow freely between consumers, requiring a shift to new business models for content

  9. What the Changing Flow Means for Businesses • Strategy and positioning • economic activity converging to a model based on the flow of information and ideas • This emerging flow economy comprises a vast array of industries, including • Telecoms • Technology • Media • Entertainment • Publishing • Financial services • Professional services • New competitive threats • Massive new opportunities open up

  10. What the Changing Flow Means for Businesses • How individuals provide leadership and create personal success • In this world of connectivity, collaboration, and blurring, executives no longer have control over most things that matter, sometimes even including their own business processes • They must provide true leadership inside and outside the organization to successfully implement new ways of working, while skirting the associated risks • Free agents also need to develop new approaches to create success in a networked world • Positioning themselves effectively within networks • Fully exploiting the intellectual property they create

  11. How Connectivity Shrinks Our World • It is a big world when you only know your immediate neighbours

  12. How Connectivity Shrinks Our World • Adding just a few more diverse connections can create a small world for everyone

  13. How Connectivity Shrinks Our World • The formation of these diverse bridges between people describes what is happening in our hyper-connected world • Increased mobility and migration mean that, even in a small community, you are likely to know people born in many different countries • New forms of communication are giving us new ways to interact socially • Mobiles Phones • Email

  14. Micromessages Make Communication Fluid • When you call a fixed telephone, you call a place; when you call a mobile phone, you call a person

  15. Micromessages Make Communication Fluid • In 2001, around 40 billion text messages were sent on mobile phones, with a forecast of close to 50 percent annual growth in the subsequent years • 47% of Swedes • 39% Of Italians • 2% of Americans • Finland • Vending machines • Scandinavia • Parking • Survey: Peering round the corner The Economist. London:  Oct 13, 2001. Vol. 360, Iss. 8235;  pg. 6

  16. Micromessages Make Communication Fluid • Instant messaging has paralleled the SMS boom • Buddy list • Are they online??? • Real-time • From its roots as a social tool, instant messaging is shifting to become extensively used in organizations • RE/MAX real estate • U.S. Navy • IBM (two million instant messages sent daily in 2001)

  17. Micromessages Make Communication Fluid • These types of communication allow for fluidity • Less formal • Less intrusive??? • Micromessages allow smaller things to be communicated • They have become a means of sharing daily experiences and thoughts • SMS and instant messaging can be powerful marketing tools, if treated appropriately

  18. The Global Brain • Communication Technology allows a rich flow of ideas and information • All of these connections are giving rise to a global brain • Using these new technologies human ideas are gaining a life of their own • desire to produce and consume mass media • engage more richly with others • Immortality • Filtering • essential survival skill • Now a determinant of success

  19. Town Limits • It's easy to forget quite how starkly different life is for the majority of the world's population • Population of over six billion people • Of those, probably close to half have never made a telephone call • Less than one in ten has access to the Internet

  20. What does the ITU say?- Land Lines • 689 million land lines at the beginning of 1995 • Over 1 billion by the end of 2000 • 1.2 billion by the end of 2003

  21. What does the ITU say? - Land Lines • Average annual growth rate of just over 7% • Cumulative improvement in that period of over 50% • First two-thirds of the world's phone lines were run between 1876 and 1994 • Remaining third were run between 1995 and 2000 • Half again as many land lines were run in the last 6 years of the 20th century as were run in the whole previous history of telephony

  22. What does the ITU say? - Land Lines • From 1995 to the end of 2000, 8 countries achieved compound average growth rates of 25% or more for land lines per 100 people (against a world average of 7% ) • These included • Sudan (which improved six-fold) • Albania • China • Went from 41 million land lines to 179 million in those 6 years • Sri Lanka • Vietnam • Ghana • Nepal • Cambodia • 35 additional countries, including India, Indonesia, and Brazil, with annual growth of between 10 and 20% from 1995 to 2000, meaning they at least doubled the number of land lines in that period

  23. What does the ITU say? - Mobile Telephony • Mobile Telephony offers a way for a country to increase its telephone penetration extremely quickly • 1995, there were roughly 91 million cellular subscribers • By 2000, the number had risen to 946 million • In 2003 mobile phone subscribers exceeded land lines

  24. What does the ITU say? - Mobile Telephony • Twenty-seven countries had growth rates of over 100% annually • Meaning that, at a minimum, they doubled and doubled again, 6 times, achieving better than sixty-fold cumulative growth • 22 of those had better than hundred-fold growth • By the end of 2000, there were 25 countries where cell phone users made up between two-thirds and nine-tenths of the connected populace • New telecommunications infrastructure was deployed from scratch in these countries

  25. What does the ITU say?

  26. What does the ITU say? • Half the World by Clay Shirky • http://www.shirky.com/writings/half_the_world.html • ITU Statistics • http://www.itu.int/ITU-D/ict/statistics/

  27. Globalization • Of the multiplicity of themes encompassed by the term "globalization," two are especially relevant to the emergence of the living networks • The increasingly borderless nature of the global economy, especially when the majority of economic activity is comprised of information-based services • The second is the apparent cultural integration of the world

  28. Globalization • For a very large and increasing proportion of work, it doesn't matter where in the world it's done • This creates many opportunities for developing countries • Developed world workers must upskill themselves and do the higher level work that differentiates them

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