Emergence of Innovation ecosystems – Part II
Over the last decade, new technologies have changed the way we
listen to music – on the go, rather than at home, on tablets and laptops
instead of a radio or a dedicated sound system; as we choose, rather than as
record manufacturers dictate. We listen at our convenience. This was only the
beginning of a transformation in the way we consume all media and entertainment.
In the media and entertainment industry, unfamiliar groups of people got pulled
to using media in unimaginable ways. In
the classroom, teachers have discovered that even the youngest students have
become self-directed learners, thanks to carefully crafted learning systems
based on, and available through, the World Wide Web. In book publishing, content creation,
circulation, and advertising now draw readers into a more immersive experience. These
changes have left media businesses with no firm place to stand, nothing they
can hold on to in a time of constant change. They result from two propulsive forces.
First, of course, is the rapid evolution of media technologies. Second is the
use of technology by master designers to involve consumers with their products,
to keep them returning as often as possible and staying as long as they can.
They build communities by applying technological innovations to things that
matter to potential customers.
Individuals and entrepreneurs can draw attention on issues that
matter to them and their societies recognizing the power of pull systems. The innovations
in the software industry help figure out how the push/ pull systems work to build new systems
and technologies. Probing into the software designer’s approaches to building
new frameworks and models for complex systems offers possible ways to
understand the digital world which seems to change everything that existed
before. Powerful, interactive models drive these push/pull systems to orchestrate
as well as adapt to collective behaviors and dynamic actions of people
individually and in groups.
Music lovers always want the clearest, most accurate sound they
can get. This has changed drastically. Music listeners now prefer to listen to music
as a social medium activity (for example, iTunes
platform and App stores). The music fans and the bands have leapfrogged and ripped apart
the laws and the gatekeeping recording industries to bring music to the laptops
first. The audio industry itself underwent several phases of transformation to reach
the individual’s tablets and mobile palmtops in the form of compressed audio
file format, the mp3.
Media users have become pioneers in showing how they are not
only groups with a common interest but are also unfamiliar networks of people who
can influence one another. The social network etiquette revolves around
reposting, retweeting, liking, sharing information both new and familiar to
friends and friends of friends. For example, I would use the YouTube channel to
watch my favorite poet’s narrations broadcast by an international TV channel.
Instead of trying to fit my schedule to the TV channel’s broadcasting the
program, I can selectively watch the episode on YouTube. The quality of the
picture or the sound does not have to be of the highest quality, as long as it
is just enough to entertain according to my schedule and my taste. I am not
alone when I watch the YouTube channel. I belong to the huge community of fans
who have similar tastes and preferences. My interests grow along with what the
community offers. The behaviors of social media users when viewed as belonging
to social networks (for example, YouTube community), draw attention to
the design of market pull systems as a subject of interest.
The search to learn has dramatically changed the methods of
teaching as well as marketing. Every student and consumer have become a
researcher more than ever before. A new generation teacher “pulls” the students
with the study material that allows them to search with keywords. The teacher’s
as well as the student’s relationship with the web for information is drastically
different from that of the generation of people who grew up with information
scarcity. Schools and teachers recognize and encourage multi-media use in the
curriculum as well as initiatives like the Khan
Academy,
and the “one
laptop per child,” as catalysts to self-learning at an early age.
The digitization of the book-publishing industry is witness to a
different story altogether. The proliferation of devices, adapting content to
smaller, mobile screens, determining free and subscription models, and the
changing and declining advertising spending structures are contributing to
changes in this industry. The unique experience of reading an e-book comes with
differentiators that are possible only in an online library. The e-book reader
organizes folders of books and related content, accesses the content at a
chapter level exactly where he left off. He can comment and read across a
diverse set of devices. One can get a glimpse of such innovation at the Safari
books online or content platforms such as books24X7. The e-books still have
the look and feel of a digital replica of the printed version. The children’s
story books online on iPad offer the touch and feel of a real book with lighting
and ability to zoom. Interactive books and digital content combine the
traditional elements of journalism to provide a unique experience to their
readers. They are also opening avenues to include the underprivileged and
children with special needs for enjoying the reading experience.
It was impossible to imagine that a handy man would arrive at
your home with an iPad to track his appointments as well as payments a decade
ago. There was no iPad then. It makes both the potential criminal and the
police act more responsibly when they are aware that a handful of roadside
walkers with smartphones in hand could be watching them. It is these small
devices in the hands of individuals that aggregated to the Bring Your Own
Device (BYOD) policies at the
modern workplace along with innovative products and processes.
Creating
and Engaging Emergence:
One should be careful in interpreting the pull systems which are
catalysts in transformation. Take the case of the Software Systems and
Technologies innovations offering the infrastructure for ecosystems of today
with the converging cloud, social, and mobile systems. It is crucial to perceive
the actors involved, what type, and stage of technology innovation the pull/
push system works at its best. More reasoning and deeper questions lead to the
elements that factor in the workings of push/ pull systems.
There are several differences between incremental (new versions
with new features) and radical innovations in the software industry. Latzer
(2009) explains in detail how the latter are without predecessors, involve
uncertainty and are driven by technology push. Incremental technology
innovation, on the other hand, is driven by market pull; it is important in the
late phase of technology. For example, technology performance and user
preference improvements happen later. Also, adopting new and disruptive
technologies in the digital age, usually happens at the lower end, with the
lure of cost effectiveness and ease of access. It is easier and natural for the
small and medium-size businesses to adopt the disruptive technologies first. In
the case of open source software and web 2.0 technologies, the
individuals and entrepreneurs embraced the new software and technologies to
make their voices heard.
The digitization movement is challenging as it requires to dig
deeper into the potential of change in using technologies to bring value to the
customers. It challenges the current competencies, systems, and mindset for any
industry to prepare for the future. This forces every professional in that
industry to be a model thinker, designer, and creator to take part and
contribute meaningfully. Digitization has the power to recognize and even
create conditions for emergence.
First, new thinking requires new frames and models of reference
to view the problem and solve the problem differently as if there was no
precedence. In the software systems and technologies industry (for example,
IBM, Microsoft), there is a tendency to search for a solution with the current
system especially when the technology is mature. If there is no existing solution,
the engineer or designer tries to design a new process first to work around the
problem. If one cannot come up with a new process with existing resources,
developing a new tool to solve the problem becomes the next step. If
there is no fit, the designer intensifies his research and inquiry further to
make models and frameworks to develop new solutions. Several new computer
languages, compilers, database management systems and operating systems have
taken shape with this type of innovative thinking.
A professional designer works with a researching, inquiring, and
possibility mindset. The design approach is a result of carefully prepared
strategy and focused thinking with educated guesses. One can envision the work
methods, effort with mastery and expertise during the prototyping phase of
building complex systems. Models for achieving mastery using
innovative techniques are abundant in sociology, political science, economics,
business, education, technologies as well as in several related fields. Business
professionals benefit by learning, exploring, and adopting such techniques to
build new business models.
Peer
effects, organization, growth, innovation, predictions, mechanisms, designs,
dilemmas, collective actions, decisions can be better understood with modeling.
It is difficult to single out one specific model for the complexities of
interactions. Ability to govern and control the workings of models for success,
predict failures, and address them is key to handling the complexities of
ecosystems. People seem to follow simple rules, yet the aggregate behavior can
be quite different than expected depending on how fast they have to react in a
certain communal setting. A standing ovation model is an example of peer effect
- other people stand, so I stand in a concert noticing how a few knowledgeable
people around me are taking the lead and spreading the behavior meeting my
standards. The spread of disease is explained with a disease model that
explains diffusion and recovery. Rational and irrational behaviors together
make up collective actions which are quite evident whether it is bidding or
rioting. Combine the several behavioral models of sociology with the growth
models of biology and economics, the integrated effects can be quite complex in
ecosystems with several moving parts. Complex problems start to appear simple
when we begin to apply the right tools for thinking on the basics as well as
beyond.
The key drivers of the digital ecosystems appear to be
independent, complex systems and models with an identity of their own.
At the same time, they are highly portable,
adaptable, and flexible. They are capable of being subsystems of the larger
ecosystems that can take their counterparts to a complete halt or connect to
collaborate. The emerging ecosystems of organizations and marketplaces are showing
glimpses into the opportunities for innovation to find new ways of doing old
business. To derive value and form dynamic and agile networks for benefits and
exchanges in the desired direction is within reach for anyone.
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