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Supertrends. Agenda. IT Management In Context Supertrends * Richness vs. Reach * Age of Access * Death of Distance * Summing It up *. IT Management in Context. A survey of trends and issues that affect how you manage, why you manage and who cares. Topics. Your Context - PowerPoint PPT Presentation
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MIS 524 1
Supertrends
MIS 524 2
Agenda
• IT Management In Context• Supertrends
Richness vs. Reach Age of Access Death of Distance Summing It up
MIS 524 3
IT Management in Context
A survey of trends and issues that affect how you manage, why you
manage and who cares
MIS 524 4
Topics• Your Context• How You Manage• What You Need to Prepare Yourself with• How Technology helps and hinders.
MIS 524 5
How YouManage
SocietalInfluences
and Trends
PersonalInfluences
and Trends
TechnicalInfluences
and Trends
Effects ofThe Way
You Manage
MIS 524 6
How YouManage
The tools you useThe techniques you employThe attitudes you adoptThe skills you developThe knowledge you acquire
MIS 524 7
SocietalInfluences
and Trends
Social Roles of IndividualsEconomic SituationPolitical InstitutionsDemographicsKnowledge ProductionPopular Culture
=
MIS 524 8
PersonalInfluences
and Trends
Your skill profileYour demographic profileYour relationship to your jobYour goals in life and jobHow you weather CHANGE
=
MIS 524 9
TechnicalInfluences
and Trends
Information TechnologyCommunication TechnologyWork EnvironmentTechnology in GeneralKnowledge level of Society
=
MIS 524 10
Effects ofThe Way
You Manage
What your employees doWhat your company doesWhat future expectations areWhat you get from your jobWhom you interact withWhere you work and how
=
MIS 524 11
How YouManage
Effects ofThe Way
You Manage
Technicaltrends that cut
across boundaries
E-commerceIntranets
ERPProcess
ReengineeringOutsourcing
Communications
MIS 524 12
How YouManage
Effects ofThe Way
You Manage
Socio-Economic and
Culturaltrends that cut
across boundaries
TransformationPrivatizationWorkplacelegislation
GlobalizationUrbanization
MIS 524 13
Supertrends to Watch For
Richness breaking free of ReachAccess overcoming Ownership
&The Death of Distance
MIS 524 14
Content, space, use, and time are being confounded
• Modern ICTs work in many ways to confuse things that used to be certain: The content-space connection seemingly has
been broken The space-use connection has definitely been
broken In addition, a third trend is happening: the use-
time connection is being eroded Also, the time-meaning/value connection is
challenged.
MIS 524 15
The Good Ole Days
In the past, these were certain:There was a fixed relationship between content and
where it could be distributed;There was a fixed relationship between a physical object
and where it could be used;There was a fixed relationship between use and when
use could take placeThere was a fixed relationship between when something
could be used and what its use meant.Thus: content meant something, and little else.
MIS 524 16
Breaking These Bonds
• Now, content, space, use, time and meaning are all independent. Any content can be distributed anywhere Any content can be used by anyone Any content can be used any time Any content can be used in any way, for any
reason. How does this anarchy affect YOU?
MIS 524 17
Overcoming Space
In the past, the amount of content has been limited by our geographical ability to distribute it. This is called the RICHNESS-REACH connection.
This has now been broken.Almost limitless richness is available to distribute
to everyone on earth (potentially, soon)
MIS 524 18
The Richness-Reach Tradeoff-1
Reach: Distribution RangeRic
hnes
s: V
arie
ty a
nd D
epth
of C
onte
nt
In the past, the cost of
communication limited the amount of
information we could distribute
over a given territory
Today, via inter-, intra- and extranets, we can distribute almost limitless variety and amounts of information over a given range, even worldwide.
MIS 524 19
The Richness-Reach Tradeoff-2
Reach: Distribution RangeRic
hnes
s: V
arie
ty a
nd D
epth
of C
onte
nt
Each distribution
channel has its own
characteristic Richness-
Reach tradeoff curve
Attempting to increase
distribution range incurs costs, which
lower the available richness.
MIS 524 20
The Richness-Reach Tradeoff-3
Reach: Distribution RangeRic
hnes
s: V
arie
ty a
nd D
epth
of C
onte
nt
Attempting to increase
richness incurs costs, which
lower the available
distribution reach
MIS 524 21
The Richness-Reach Tradeoff-4
Reach: Distribution RangeRic
hnes
s: V
arie
ty a
nd D
epth
of C
onte
nt
The new media BREAK the relationship between richness and
reach. No reasonable move to increase richness or reach will have any real cost
and hence no effect on the other characteristic.
MIS 524 22
Overcoming Use
In the past, use of an item was restricted to owners, who only made use of things part of the time. This is called the USE-OWNERSHIP connection.
Now the strict relationship between use and ownership has been broken everywhere replacing ownership with “access”
Now everyone owns a piece of time of an object.
MIS 524 23
Forms of Access-Ownership
• Leases• Franchises• Time-shares• Licenses• Membership• Sectional Title
Bill
Me
Tom, Harry
Time
Acc
ess
Me
MIS 524 24
The Age of Access-1
Jeremy Rifkin’s new book The Age of Access examines what is happening to capitalism as it shifts its essential emphasis from (private) property and the working of assets to produce gain to access and the working of intellectual resources for gain. He discusses three major ideas: Networks are supplanting markets, ownership is giving way to access, and ownership is giving way to use. The implications are enormous and it seems all to depend on information (systems) phenomena
PROPERTY ACCESS
MIS 524 25
The Age of Access-2
First, there is the replacement of markets (which replace hierarchies and their peculiar structural implications) with networks. In networks, there is no “moment of exchange”; rather people “stay in touch”. Instant organisations (Rifkin terms this the “Hollywood Organizational Model”) is changing the notion of “organization” perhaps irrevocably.
MARKETS NETWORKS
MIS 524 26
The Age of Access-3
Next, organizations are divesting themselves of assets and becoming “weightless” meaning they are not burdened with the effort of owning things. Real estate, assets, money, and savings are not necessary as all can be borrowed. A primary example is the trend towards franchising. A franchisee doesn’t actually own anything and may have no real freedom in how the things apparently controlled are used. The major “asset” in a franchise is a brand
OWNERSHIP BORROWING
MIS 524 27
The Age of Access-4
It is the intangible assets that are adding value; intellectual property is replacing property itself. Ideas are becoming commodities. Even culture is becoming commoditized and sold (eg, tourism). The culture business is the biggest business on earth. There are numerous implications to this in the legal, social and economic arenas.
OWNERSHIP BORROWING
MIS 524 28
The Age of Access-5
Finally, goods are giving way to services; there will be, he says, no more sales, only service. There is ample evidence of this through licensing, giving away of software or items to be replaced for income purposes with after sales services. No longer do people buy things, they are buying the services that go along with things.
GOODS SERVICES
MIS 524 29
The Age of Access -6
Rifkin doesn’t specifically point to explanations of these phenomena, but does interrelate them (theory). However, it is clear that information (about products, processes, people and environments), networking, and increased computer usage drives much of what is happening. These phenomena at least make Rifkin’s ideas plausible. Other possible explanations include demographics, shift from wartime to peacetime economies, and the “death” of communism.Info
Networking
Computer Usage
The AgeOf Access
MIS 524 30
The Age of Access -7
Weightless economy, society
Relationships based on connections
Information-enabled relationships
People don’t own anything, including information about themselves
People participate in fleeting relationships through computer-mediated connections including businesses, families, etc.
Information ABOUT objects motivates services, franchising, leasing rather than ownership.
MIS 524 31
The Age of Access -8
It’s interesting to see that the supposed “causes” can also be thought of as “effects”. Technology doesn’t exist independently of forces in society, or does it? A theory of this sort requires rather wide data. Another question is the level of aggregation concerned: firm, industry, society, world? Rifkin’s ideas are about capitalism rather than a geographical entity and changes in such a complex mode of behavior do not take place all at once. Is this a stable phenomenon he is talking about? How is it changing the way you manage or interact with employees or your employer or clients?
MIS 524 32
Age of Access:Summary
Changes in Capitalism
Ownership
Access
Products
Services
Ideas
Commodities
Markets
Networks
MIS 524 33
Overcoming Space-2
In the past, our ability to interact was limited by our physical and geographical “strength”: speed, power, size.
This relationship now been broken.Almost limitless reach is available to interact with
almost everyone on earth
MIS 524 34
Death of DistanceEffects of Distance
1. Error / Slowness2. Need for Coordination3. Reach/Richness Tradeoff4. Localization5. Fixed Community6. Fixed Roles7. Mass Production8. Size9. Fixed Asset Investment10. Fixed markets
Distance puts a premium on precise communication,
coordination, and rules in order to combat noise, delays
and error.
Rules and roles grow naturally out of an attempt to bring order to an expensive and
threatening process.
Conventions -- a sort of least common denominator -- arise
to favor bigness and dedicated assets
MIS 524 35
Death of Distance
What if Distance is no longer a concern, no
longer dictates criteria for communication, but
instead represents “reach”, an asset rather
than a liability?
Effects of Death of Distance1. Frictionless Markets2. “Democratic” Connections3. Information Overload4. Globalization5. Community of Practice6. More Mobility of Role7. Mass customization8. Irrelevance of Size9. Investment in Intellectual Assets10. Instant Niches
Effects of Distance1. Error / Slowness2. Need for Coordination3. Reach/Richness Tradeoff4. Localization5. Fixed Community6. Fixed Roles7. Mass Production8. Size9. Fixed Asset Investment10. Fixed markets
MIS 524 36
Death of DistanceEffects of Death of Distance
1. Frictionless Markets2. “Democratic” Connections3. Information Overload4. Globalization5. Community of Practice6. More Mobility of Role7. Mass customization8. Irrelevance of Size9. Investment in Intellectual Assets10. Instant Niches
?
MIS 524 37
The New Cosmology
Content
Space
Use
Time
BusinessAnd
Management
ICTValue
MIS 524 38
Question: How Does This Affect You?
• Your Job• Your Employees• Your Clients• Your Profession• Yourself
Easier…………..………..Harder
More Fun………..…….Less Fun
Longer term…….…Shorter Term
More important….Less important
More demanding.Less demanding
Nicer……………………..Nastier
MIS 524 39
Sources
• Rifkin, Jeremy. The Age of Access, 2000• Wurster, Philip, and Thomas Evans. Blown
to Bits. Harvard University Press, 1999. • Cairncross, Frances. The Death of
Distance 2.0. Harvard University Press, 2000