Networks, communication

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Networks, communication technologies

• Rodolfo Baggio
• Master in Economics and Tourism
• Dondena Center for Research on Social Dynamics
• Bocconi University, Milan, Italy
• rodolfo.baggio_at_unibocconi.it

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By using real-time and context-specific
information such as location, proximity to
transport services, journey purpose, time of day,
calendar entries etc. - a trusted travel
assistant could plan each journey, and then
co-pilot the traveler along his itinerary,
alerting him whenever there is an interesting
opportunity, a problem or a choice to be made.
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Main keywords

• Collaborative effort
• stakeholders operational business processes
• inter-organizational models
• forms of cooperation
• Intensity and quality of communications and
  interaction modes
• partner/partner
• user/partner
• user/user

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Hence it is evident that the state is a creation
of nature, and that man is by nature a political
animal. And he who by nature and not by mere
accident is without a state, is either a bad
man or above humanity.
Aristotle (384-322 BC)
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A complex world

• Large numbers of different interacting elements
• All interacting with environment
• Collective behavior emerges from the
  contributions of its parts
• A complex system is
• non-linear, non-deterministic
• dynamic
• self-organizing
• error-tolerant
• most basic functions preserved under errors and
  failures

No analytical solutions Need models and
simulations
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Network anatomy
Structure affects function(s)

• e.g.
• topology of a computer network affects
  capabilities to access information
• topology of social networks affects the spread
  of information

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Networks processes
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Not only theory
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Organizational structures
Formal organization
Social organization

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Communication, information
One of the effects of living with electric
information is that we live habitually in a state
of information overload. There's always more
than you can cope with. Marshall McLuhan
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The limits

• How Much Information is There in an Economic
  Organization and Why Can't Large Ones be
  Optimal?De Vany, A. (1998). Brazil. Electr. J.
  Econ. 1(1)Economic organizations represent
  order and structure. They may be characterized as
  coalitions of agents bound by multilateral
  contracts. When a new organization is formed, new
  information comes into being. ...
• An "impossibility" theorem is stated which shows
  that "large" organizations cannot be optimal and
  realizable in finite time.

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• No one knows everything,
• everyone knows something,
• all knowledge resides in humanity.

networks
Adapted from Lévy 1997
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The advantages

• On the advantages of information
  sharingLachmann, M. et al. (2000). Proc. R. Soc.
  Lond. B, 2671287-1293
• During the evolution of life, there have been
  several transitions in which individuals began to
  cooperate, forming higher levels of organization,
  and sometimes losing their independent
  reproductive identity. Several factors that
  confer evolutionary advantages on higher levels
  of organization have been proposed.
• In this paper we highlight one additional factor
  the sharing of information between individuals.
  Information sharing is not subject to the
  intrinsic conservation laws that characterize the
  sharing of physical resources. A simple model
  will illustrate how information sharing can
  result in aggregates in which the individuals
  both receive more information about their
  environment and pay less for it.

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Structure, creativity and innovation
A
B
Teigland 2003
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It is not the strongest species that survive, nor
the most intelligent, but the ones most
responsive to change.
Charles R. Darwin
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Shifting sources of value

• Competitive advantage is increasingly based on
  an organizations ability to change and adapt
• Adopting open business models
• competitive advantage through leveraging
  external resources
• definition of effective efficient dynamic
  communication standards protocols
• permeable organizational boundaries
• redefinition of acceptable sources of value and
  knowledge
• Recognizing environmental sources of value
• users as organizational resource
• value created by user interactions with
  organizations through user-generated contents

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gt 1 billion Internet users
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The emergence of social media

• A powerful global conversation has begun. Through
  the Internet, people are discovering and
  inventing new ways to share relevant knowledge
  with blinding speed. As a direct result, markets
  are getting smarter - and getting smarter faster
  than most companies.
• The Cluetrain Manifesto (1999)

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When the rate of change outside an organization
is greater than the change inside, the end is
near.
Jack Welch
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Benefits from social media (or is it all hype?)
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Besides that
Trust reciprocity are essential for knowledge
exchange and business in social networks
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Cutting-edge technology Open dynamic
collaboration Different stakeholders Clear easy
rules Each stakeholder has advantages Users play
important role
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Excellence is achieved by the mastery of
fundamentals.
Vince Lombardi
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Thank you for your attention