TRANSFORMING A COMMUNITY TOWARD A KNOWLEDGE SOCIETY

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TRANSFORMING A COMMUNITY TOWARD A KNOWLEDGE
SOCIETY THE WINDS OF CHANGE
DR. KIP BECKER BOSTON UNIVERSITY KBECKER_at_BU.EDU GO
GLOBAL_at_BU.EDU
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WHAT IS KNOWLEDGE BASED?
SMART

• WHAT IT IS NOT
• ABOUT THE TECHNOLOGY / INFORMATION
• QUEST FOR MAGICAL A SOLUTION OR BEING
• A WORLD CENTER

• WHAT DOES IT MEAN TO BE SMART
• HOW TO GET THINGS DONE
• WHERE THINGS ARE
• SITUATION OPPORTUNITIES AND SOLUTIONS
• CONSUMER ORIENTED NEXT
  GENERATION WANTS
• GOALA NATION OF SMART PEOPLE WITH ATTITUDE

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LEARNING TO MANAGE INFORMATION TO CREATE VALUE

• RESOURCE RICH AFRICA
• INDONESIA OIL
• SURINAM BAXITE

VALUE ADDED SOLUTIONS Columba - Seattle
Washington India- Dominican Republic call
centers
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INTERNATIONAL COMPETITION NO FIRM OR GOVERNMENT
NO MATTER HOW LARGE OR STRONG IS SAFE
OLD RULES ARE OUT

• BIG STALE GUYS NO LONGER RULE
• MUST DRIVE OUT OLD ATTITUDES MARCU C Komatsu
• KNOWLEDGE AND SMART RULE

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BUSINESS HAS REACHED END OF INCREMENTALISMCATCHIN
G UP NOT THESAME AS GETTING AHEAD
Strategy NEEDS TO BE CREATED FOR THE FUTURE NOT
FOR THE PRESENT FORWARD
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THE WAY THE WORLD THINKS IS CHANGING
MASS PRODUCTIONEngineering
Model Make it ? Store Inventory To Sell From
Then Came 70s
Early Information Importance LEAN JAPANESE
MODELJust In Time (JIT), TQM, 6 SIGMA Match
Production Inventory / Sales
INFORMATION AGE MODEL EMOTIONAL
TECHNOLOGY AND CULTURAL INNOVATION Consumer
Information ? Produce
BETTER, FASTER, CHEAPER then
Todays Competition
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Cultural Innovation
Emotional Technology
OBM
PRODUCT DESIGN ADD - VALUE
VALUE ORIENTATION PRODUCTION ORIENTATION
ODM
OEM
Production
DESIGN STYLE
Cultural Innovation Buy me because through
better marketing awareness of customer needs I am
able to make you feel special in some important
non specific non functional way such as the
elegance and lack of clutter associated with the
Apple Computer brand, the beauty of the Asus
netbooks exterior finish or integrated ease of
use, or the playfulness of some Asian cell phone
packaging.
Emotional Technology Buy me because through
incorporating technology I am better on some
powerful but specific functional criteria such as
lower price or lower weight (as seen in the
netbooks list of features) iphone apps
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THOSE NON KNOWLEDGE ADVANTAGES CAN BE TRANSITORY
POLAROID -KODAK FUJI

• MORANO GLASS

PLANS FOR THE FACTORIES OF LOWEL STOLEN FROM
ENGLAND

• HISTORY OR RUBBER
• Manaus 1890-1920

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COMPETITIVE ADVANTAGES

• SUBJECT TO
• SHIFTS IN CONSUMER DEMAND
• LACK OF PROTECTION OF TECHNOLOGY
• REPLACEMENTS OF PRODUCTS BY TECH

• OLD ADVANTAGES
• Low cost labor/ Labor relationships
• Favorable debt financing
• Domestic subsidies
• Protected home markets
• Superior tax systems

• NEW ADVANTAGES
• Smart Society
• Consumer aware
• Responsive Infrastructures
• Education
• Enthusiastic to Change and Quick to market
• Technology Innovation Driven
• Competition based on Knowledge Advantages

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• FRONTAL STRAGEGY CAN BE SUCCESSFUL WHEN
• FIRM UNDERSTANDS WHAT CONSUMER WANTS?
• Caterpillar
• A guarantee equipment, on a desert airport
  project or Arctic Circle oil would be fixed
  quickly

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SMART MEANS WINNING BY FLANKING
FLANKING
Attack the market where the competitor is
weakest INFORMATION INTENSIVE
60S JAPANESE CARS, COPIERS MOTORCYCLES
2000s KOREA
COMPETITION
Sidewinder
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SMART WINNING BY TECHNOLOGY BYPASS
WATCHES SWISS to CITIZENS, SIEKO
Offering new product making
theirs unnecessary RESEARCH CONSUMER INTENSIVE

Japan TOTO
COMPETITION
POLAROID -KODAK FUJI
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THREE NATIONAL STORIES
SHANGAI
DUBAI
BRAHAIN
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The problem is not really so much how to get
new, innovative thoughts into your mind, but how
to get old ones out
I THINK THERE IS A MARKET FOR MAYBE FIVE
COMPUTERS - THOMAS WATSON CHAIRMAN IBM
1943THERE IS NO REASON ANYONE WOULD WANT A
COMPUTER IN THEIR HOME KEN OLSON, PRESIDENT
CHAIRMAN FOUNDER DIGITAL EQUIPMENT 1977
It is generally much easier to kill an
organization than change it substantially.

• Kevin Kelly, Out of Control

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Knowing what the CUSTOMER wants not just what
you want to make
INNOVATIONS KEY IN GLOBAL STRATEGY
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Technology, friend or foe?
1097 Pope Urban II outlawed crossbow
THE DUTCH FLOWER GROWERS (DFA) AND THE
TELE-FLOWER AUCTION (TFA)
11,000 SELLERS 3,500 FLOWER TYPES 5,000
BUYERS 120 AUCTION GROUPS
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SPEED AND FLEXIBILITY DEMANDS
Facebook 1 yr
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PRODUCTION SERVICES
PRODUCTIVITY GOODSSERVICE
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WHAT DOES IT TAKE?
NEVER HAS ENVIRONMENT BEEN MORE RECEPTIVE TO NEW
IDEAS MORE HOSTILE TO EXISTING FIRMS and
NATIONS(KNOWLEDGE)COMPANIES MORE LIKELY TO BE
AMBITION CONSTRAINED THAN RESOURCE CONSTRAINED
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KEEPING UP WITH CHANGETechnology Pace of Change
SIU AND CHINESE BASEBALL

• SONY WALKMAN HAS HAD TO PRODUCE 160 MODELS SO
  SUSTAIN IDENTY AGAINST CLONES
• 1976 TEXAS INSTRUMENTS 90MK SHARE LOW PRICED
  DIGITAL WATCHES (19.95)
• 1983 LOW END IS 3.00 TI CAN NOT BE PROFITABLE
• In only 7 years TI went from MK leader to extinct

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PART OF GAME OF DEVELOPING INTERNATIONALLY
COMPETITIVEKNOWLEDGE BASED SOCIETY IS BEING
INTERNATIONAL

• WHAT TO DEVELOP?
• HOW MUCH CONTROL ARE YOU WILLING TO GIVE UP?
• WHAT / HOW TO ASSIMILATE?
• WHAT CHANGES TO CULTURE ARE EXPECTED?
• WHAT IMPEDIMENTS TO CHANGE?

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THANK YOU