The system is not made up of artifacts but rather an elegantly designed void. He says “I prefer to use the analogy of rescuing an endangered species from extinction, rather than engaging in an invasive breeding program the focus should be on the habitat that supports the species. Careful crafting of the habitat by identifying the influential factors; removing those that are detrimental, together with reinforcing those that are encouraging, the species will naturally re-establish itself. Crafting the habitat is what I mean by designing the void.”
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Designing the Void | Management Innovation eXchange - 0 views
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This is about self-organization, putting in place bounderies and internal mechanisms to make the the system self-organize into something desirable. You can see this from a game theory perspective - how to set a game which will drive a specific human behavior.
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This is about self-organization, putting in place bounderies and internal mechanisms to make the the system self-organize into something desirable. You can see this from a game theory perspective - how to set a game which will drive a specific human behavior.
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Very similar to SENSORICA, an environment of entrepreneurs. The argument against this is that not everyone is a risk taker or has initiative. The answer to it is that not every role in the organization requires that.
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Very similar to SENSORICA, an environment of entrepreneurs. The argument against this is that not everyone is a risk taker or has initiative. The answer to it is that not every role in the organization requires that.
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they are also responsible for managing their own capitalization; a form of virtual ownership develops. Everything they need for their work, from office furniture to high-end machinery will appear on their individual balance sheet; or it will need to be bought in from somewhere else in the company on a pay-as-you go or lease basis. All aspects of the capital deployed in their activities must be accounted for and are therefore treated with the respect one accords one’s own property.
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The result is not simply a disparate set of individuals doing their own thing under the same roof. Together they benefit from an economy of scale as well as their combined resources to tackle large projects; they are an interconnected whole. They have in common a brand, which they jointly represent, and also a business management system (the Say-Do-Prove system) - consisting not only of system-wide boundaries but also proprietary business management software which helps each take care of the back-end accounting and administrative processing. The effect is a balance between freedom and constraint, individualism and social process.
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Culture is like climate- it does not exist in and of itself- it cannot exist in a vacuum, it must exist within a medium.
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Incompatibility between the presenting culture and the underlying one provide a great source of tension
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The truth of course is that when tension builds to a critical level it takes just a small perturbation to burst the bubble and the hidden culture reveals itself powered by the considerable pent-up energy.
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Consider again the idea that for the health of an endangered species; the conditions in their habitat must be just right. In business, the work environment can be considered analogous to this idea of habitat.
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A healthy environment is one that provides a blank canvas; it should be invisible in that it allows culture to be expressed without taint
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The over-arching, high-level obligations are applied to the organization via contractual and legal terms.
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But it is these obligations that the traditional corporate model separates out into functions and then parcels off to distinct groups. The effect is that a clear sight of these ‘higher’ obligations by the people at the front-end is obstructed. The overall sense of responsibility is not transmitted but gets lost in the distortions, discontinuities and contradictions inherent in the corporate systems of hierarchy and functionalization.
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employees are individually rewarded for their contribution to each product. They are not “compensated” for the hours spent at work. If an employee wants to calculate their hourly rate, then they are free to do so however, they are only rewarded for the outcome not the duration of their endeavors.
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Another simplification is the application of virtual accounts (Profit and Loss (P&L) account and Balance Sheet) on each person within the business.
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The company systems simply provide a mechanism for cheaply measuring the success of each individual’s choices. For quality the measure is customer returns, for delivery it is an on-time-and-in-full metric and profit is expressed in terms of both pounds sterling and ROI (return on investment).
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The innumerable direct links back to an external reality -like the fragile ties that bound giant Gulliver, seem much more effective at aligning the presenting culture and the underlying embodied culture, and in doing so work to remove the existing tension.
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With a culture that responds directly to reality, the rules in the environment can be “bounding” rather than “binding”- limiting rather than instructive; this way individual behavior need not be directed at all. The goal is to free the individual to express himself fully through his work, bounded only by the limits of the law. With clever feedback (self-referencing feedback loops) integrated into the design, the individuals can themselves grow to collectively take charge of the system boundaries, culture and even the environment itself, always minded of the inherent risks they are balancing, leaving the law of the land as the sole artificial boundary.
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the conventional company, which, instead of rewarding enterprise, trains compliance by suppressing individual initiative under layer upon layer of translation tools.
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without the divisive and overbearing management cabal the natural reaction of humans is to combine their efforts
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recruited by another staff member (sponsor) and they will help you learn the basics of the business management system- they will help you get to know the ropes.
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Along with that job you will be given a cash float (risk capital), P&L Account, a Balance Sheet and computer software to help plan and record your activities. Your operation is monitored by your sponsor to see if you increase the margin or volume, and so establish a sustainable operation. Training and mentoring is provided to support the steep learning curve - but without removing the responsibility of producing a return on the sponsor’s risk capital.
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You will, in the meantime be looking to establish some of your own work for which you will not have to pay a commission or royalty to your sponsor and this will provide you with more profitable operations such that eventually you might pass back to the sponsor the original operation, as it has become your lowest margin activity. It will then find its way to a new employee (along with the associated Balance Sheet risk capital) where the process is repeated by the sponsor.[4]
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Remuneration for staff is calibrated in a way that reflects the balance of different forces around ‘pay’
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there is an obligation upon the company to pay a minimum wage even if the profitability of the operation does not support this
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there are therefore two aspects of the basic pay structure: one is “absolute” and reflects the entrepreneurial skill level of the employee according to a sophisticated grading scale
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A further 20% of the original profit will be paid into his risk capital account, which will be his responsibility to deploy in any way he sees fit as part of his Balance Sheet. Of the three remaining 20% slices of the original profit, one is paid out as corporation tax, another as a dividend to the shareholders and the last retained as collective risk capital on the company’s balance sheet- a war chest so to speak.
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Julian Wilson and Andrew Holm sell products / services to their staff (such as office space and software) they have an identical customer/supplier relationship with the other employees.
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Naturally there are some people that can’t generate a profit. The sponsor’s risk capital will eventually be consumed through pay. After a process of rescue and recovery- where their shortcomings are identified and they are given the opportunity to put them right, they either improve or leave, albeit with a sizeable increase in their skills.
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there is a gradual process of accustomisation; the void of the new employee is surrounded by others dealing with their particular activities, offering both role models and operations they may wish to relinquish. One step at a time the new employee acquires the skills to become completely self-managing, to increase their margins, to make investments, to find new business, to become a creator of their own success. Ultimately, they learn to be an entrepreneur.
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Matt Black Systems it is not simply commitment that they targeted in their employees, rather they aim for the specific human qualities they sum up as magic- those of curiosity, imagination, creativity, cooperation, self-discipline and realization (bringing ideas to reality).
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a new form of association of individuals working together under the umbrella of a company structure: a kind of collective autonomy
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Turning an organisation on its head- removing all management, establishing a P&L account and Balance Sheet on everyone in the organisation and having customers payment go first into the respective persons P&L account has revolutionised this company.
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This innovative company’s approach views business success as wholly reliant upon human agency, and its wellspring at the individual level.
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problem (of unnecessarily high overheads placed on production) that arguably is behind the decline in western manufacturing
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organizational design brings to light the unconscious socio-philosophical paradigm of the society in which it exists, organizational development points to how change occurs.
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scientific management employs rationalism and determinism in pursuit of efficiency, but leaves no place for self-determination for most people within the system.
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today, a really “modern” view of an organization is more likely to be depicted in terms that are akin to an organism.
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the Taylorist approach may be more real in theory than in practice: its instrumentalist view of the workforce is cursed by unintended consequences. When workers have no space for their own creative expression, when they are treated like automata not unique individuals, when they become demotivated and surly, when they treat their work as a necessary evil; this is no recipe for a functional organization.
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The natural, human reaction to this is unionization, defiance and even outright rebellion; to counter this, management grows larger and more rigid in pursuit of compliance, organizations become top heavy with staff who do not contribute directly to the process of value creation but wield power over those who do.
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Even when disgruntled employees strike free and start their own businesses they seem unable to resist the hegemony of the conventional command-and-control approach
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Making the transition involves adherence to a whole new sociology of work with all the challenging social and psychological implications that brings.
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In the “theory of constraints” the goal is to align front-line staff into a neat, compact line for maximum efficiency. Surely the most considered approach is to have front-line staff self-align in pursuit of their individual goals?
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The removal of hierarchy and specialization is key to a massive improvement in both profitability and productivity. In summary: there are no managers in the company, or foremen, or sales staff, or finance departments; the company is not functionally compartmentalized and there is no hierarchy of command. In fact every member of staff operates as a virtual micro-business with their own Profit & Loss account and Balance Sheet, they manage their own work and see processes through from end to end
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if one creates a space in which staff pursue their own goals and are not paid by the hour, they will focus on their activities not the clock; if they are not told what to do, they will need to develop their own initiative; if they are free to develop their own processes, they will discover through their own creative faculties how to work more productively- in pursuit of their goals
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The human qualities which are of greatest potential value to the business are: curiosity, imagination, creativity, cooperation, self-discipline and realization (bringing ideas to reality)
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These qualities are the very ones most likely to be withheld by an individual when the environment is ‘wrong’.
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Any elements in the business environment that undermine the autonomy and purpose of the individual will see the above qualities withheld
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the responsibility of the individual is formalized, specified and restricted. An improved system is not one where responsibility is distributed perfectly but rather one where there is simply no opportunity for responsibility to be lost (via the divisions between the chunks). Systems must be reorganized so responsibility -the most essential of qualities -is protected and wholly preserved.
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Matt Black Systems believe this can only be done by containing the whole responsibility within an individual, holding them both responsible and giving them ‘response-ability’
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productivity is up 300%, the profit margin is up 10%[3], customer perception has shifted from poor to outstanding, product returns are at less than 1%, “on time and in full” delivery is greater than 96%, pay has increased 100%.
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staff develop broader and deeper skills and feel greater job security; they get direct feedback from their customers which all go to fuel self-confidence and self-esteem.
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What is particular about their story is that behind it is a very consciously crafted design that surrounds the individualism of each person with hard boundaries of the customer, the law and the business. It is these boundaries rather than the instructive persona of ‘the boss’ that gives rise to the discipline in which individuals can develop. Autonomy is not the same as freedom, at least not in the loose sense of ‘do as you please’. An autonomous person is a person who has become self-governing, who has developed a capacity for self-regulation, quite a different notion from the absence of boundaries. Indeed, it is with establishing the right boundaries that the business philosophy is most concerned. The company provides the crucible in which the individual can develop self-expression but the container itself is bounded. Wilson calls this “designing the void”. This crucible is carefully constructed from an all-encompassing, interconnecting set of boundaries that provide an ultimate limit to behaviours (where they would fall foul of the law or take risks with catastrophic potential). It is an illusion to think, as a director of a company, that you are not engaged in a process of social conditioning; the basis of the culture is both your responsibility and the result of your influence. The trick is to know what needs to be defined and what needs to be left open. The traditional authoritarian, controlling characters that often dominate business are the antithesis of this in their drive to fill this void with process, persona and instruction. Alternatively, creating an environment that fosters enterprise, individuals discover how to be enterprising.
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POWER-CURVE SOCIETY: The Future of Innovation, Opportunity and Social Equity in the Eme... - 1 views
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how technological innovation is restructuring productivity and the social and economic impact resulting from these changes
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concern about the technological displacement of jobs, stagnant middle class income, and wealth disparities in an emerging "winner-take-all" economy
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personal data ecosystems that could potentially unlock a revolutionary wave of individual economic empowerment
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As the technology boom of the 1990s increased productivity, many assumed that the rising water level of the economy was raising all those middle class boats. But a different phenomenon has also occurred. The wealthy have gained substantially over the past two decades while the middle class has remained stagnant in real income, and the poor are simply poorer.
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America is turning into a power-curve society: one where there are a relative few at the top and a gradually declining curve with a long tail of relatively poorer people.
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For the first time since the end of World War II, the middle class is apparently doing worse, not better, than previous generations.
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as businesses struggle to come to terms with this revolution, a new set of structural innovations is washing over businesses, organizations and government, forcing near-constant adaptation and change. It is no exaggeration to say that the explosion of innovative technologies and their dense interconnections is inventing a new kind of economy.
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the new technologies are clearly driving economic growth and higher productivity, the distribution of these benefits is skewed in worrisome ways.
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the networked economy seems to be producing a “power-curve” distribution, sometimes known as a “winner-take-all” economy
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major component of this new economy, Big Data, and the coming personal data revolution fomenting beneath it that seeks to put individuals, and not companies or governments, at the forefront. Companies in the power-curve economy rely heavily on big databases of personal information to improve their marketing, product design, and corporate strategies. The unanswered question is whether the multiplying reservoirs of personal data will be used to benefit individuals as consumers and citizens, or whether large Internet companies will control and monetize Big Data for their private gain.
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A special concern is whether information and communications technologies are actually eliminating more jobs than they are creating—and in what countries and occupations.
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Is it polarizing income and wealth distributions? How is it changing the nature of work and traditional organizations and altering family and personal life?
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many observers fear a wave of social and political disruption if a society’s basic commitments to fairness, individual opportunity and democratic values cannot be honored
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what role government should play in balancing these sometimes-conflicting priorities. How might educational policies, research and development, and immigration policies need to be altered?
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Conventional economics says that progress comes from new infusions of capital, whether financial, physical or human. But those are not necessarily the things that drive innovation
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economists have developed a number of proxy metrics for innovation, such as research and development expenditures.
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Atkinson believes that economists both underestimate and overestimate the scale and scope of innovation.
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Calculating the magnitude of innovation is also difficult because many innovations now require less capital than they did previously.
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believes that technological innovation follows the path of an “S-curve,” with a gradual increase accelerating to a rapid, steep increase, before it levels out at a higher level. One implication of this pattern, he said, is that “you maximize the ability to improve technology as it becomes more diffused.” This helps explain why it can take several decades to unlock the full productive potential of an innovation.
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innovation keeps getting harder. It was pretty easy to invent stuff in your garage back in 1895. But the technical and scientific challenges today are huge.”
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costs of innovation have plummeted, making it far easier and cheaper for more people to launch their own startup businesses and pursue their unconventional ideas
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Atkinson conceded such cost-efficiencies, but wonders if “the real question is that problems are getting more complicated more quickly than the solutions that might enable them.
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we may need to parse the different stages of innovation: “The cost of innovation generally hasn’t dropped,” he argued. “What has become less expensive is the replication and diffusion of innovation.”
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A lot of barriers to innovation can be found in the lack of financing, organizational support systems, regulation and public policies.
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there is a serious mismatch between the pace of innovation unleashed by Moore’s Law and our institutional and social capacity to adapt.
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This raises the question of whether old institutions can adapt—or whether innovation will therefore arise through other channels entirely. “Existing institutions are often run by followers of conventional wisdom,”
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The best way to identify new sources of innovation, as Arizona State University President Michael Crow has advised, is to “go to the edge and ignore the center.”
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Paradoxically, one of the most potent barriers to innovation is the accelerating pace of innovation itself.
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Part of the problem, he continued, is that our economy is based on “push-based models” in which we try to build systems for scalable efficiencies, which in turn demands predictability.
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The real challenge is how to achieve radical institutional innovations that prepare us to live in periods of constant two- or three-year cycles of change. We have to be able to pick up new ideas all the time.”
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The App Economy consists of a core company that creates and maintains a platform (such as Blackberry, Facebook or the iPhone), which in turn spawns an ecosystem of big and small companies that produce apps and/or mobile devices for that platform
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tied this success back to the open, innovative infrastructure and competition in the U.S. for mobile devices
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small businesses are becoming more comfortable using such systems to improve their marketing and lower their costs; and, vast new pools of personal data are becoming extremely useful in sharpening business strategies and marketing.
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Another great boost to innovation in some business sectors is the ability to forge ahead without advance permission or regulation,
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“In bio-fabs, for example, it’s not the cost of innovation that is high, it’s the cost of regulation,”
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“In Europe and China, the law holds that unless something is explicitly permitted, it is prohibited. But in the U.S., where common law rather than Continental law prevails, it’s the opposite
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What do we need corporations for and how does Valve's management structure fit into tod... - 0 views
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Valve’s management model; one in which there are no bosses, no delegation, no commands, no attempt by anyone to tell someone what to do
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Every social order, including that of ants and bees, must allocate its scarce resources between different productive activities and processes, as well as establish patterns of distribution among individuals and groups of output collectively produced.
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the allocation of resources, as well as the distribution of the produce, is based on a decentralised mechanism functioning by means of price signals:
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Interestingly, however, there is one last bastion of economic activity that proved remarkably resistant to the triumph of the market: firms, companies and, later, corporations. Think about it: market-societies, or capitalism, are synonymous with firms, companies, corporations. And yet, quite paradoxically, firms can be thought of as market-free zones. Within their realm, firms (like societies) allocate scarce resources (between different productive activities and processes). Nevertheless they do so by means of some non-price, more often than not hierarchical, mechanism!
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The miracle of the market, according to Hayek, was that it managed to signal to each what activity is best for herself and for society as a whole without first aggregating all the disparate and local pieces of knowledge that lived in the minds and subconscious of each consumer, each designer, each producer. How does this signalling happen? Hayek’s answer (borrowed from Smith) was devastatingly simple: through the movement of prices
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The idea of spontaneous order comes from the Scottish Enlightenment, and in particular David Hume who, famously, argued against Thomas Hobbes’ assumption that, without some Leviathan ruling over us (keeping us “all in awe”), we would end up in a hideous State of Nature in which life would be “nasty, brutish and short”
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Hume’s counter-argument was that, in the absence of a system of centralised command, conventions emerge that minimise conflict and organise social activities (including production) in a manner that is most conducive to the Good Life
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Hayek’s argument was predicated upon the premise that knowledge is always ‘local’ and all attempts to aggregate it are bound to fail. The world, in his eyes, is too complex for its essence to be distilled in some central node; e.g. the state.
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The idea here is that, through this ever-evolving process, people’s capacities, talents and ideas are given the best chance possible to develop and produce synergies that promote the Common Good. It is as if an invisible hand guides Valve’s individual members to decisions that both unleash each person’s potential and serve the company’s collective interest (which does not necessarily coincide with profit maximisation).
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Valve differs in that it insists that its employees allocate 100% of their time on projects of their choosing
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In contrast, Smith and Hayek concentrate their analysis on a single passion: the passion for profit-making
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Hume also believed in a variety of signals, as opposed to Hayek’s exclusive reliance on price signalling
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One which, instead of price signals, is based on the signals Valve employees emit to one another by selecting how to allocate their labour time, a decision that is bound up with where to wheel their tables to (i.e. whom to work with and on what)
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He pointed out simply and convincingly that the cost of subcontracting a good or service, through some market, may be much larger than the cost of producing that good or service internally. He attributed this difference to transactions costs and explained that they were due to the costs of bargaining (with contractors), of enforcing incomplete contracts (whose incompleteness is due to the fact that some activities and qualities cannot be fully described in a written contract), of imperfect monitoring and asymmetrically distributed information, of keeping trade secrets… secret, etc. In short, contractual obligations can never be perfectly stipulated or enforced, especially when information is scarce and unequally distributed, and this gives rise to transaction costs which can become debilitating unless joint production takes place within the hierarchically structured firm. Optimal corporation size corresponds, in Coase’s scheme of things, to a ‘point’ where the net marginal cost of contracting out a service or good (including transaction costs) tends to zero
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As Coase et al explained in the previous section, the whole point about a corporation is that its internal organisation cannot turn on price signals (for if it could, it would not exist as a corporation but would, instead, contract out all the goods and services internally produced)
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Each employee chooses (a) her partners (or team with which she wants to work) and (b) how much time she wants to devote to various competing projects. In making this decision, each Valve employee takes into account not only the attractiveness of projects and teams competing for their time but, also, the decisions of others.
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Hume thought that humans are prone to all sorts of incommensurable passions (e.g. the passion for a video game, the passion for chocolate, the passion for social justice) the pursuit of which leads to many different types of conventions that, eventually, make up our jointly produced spontaneous order
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Valve is, at least in one way, more radical than a traditional co-operative firm. Co-ops are companies whose ownership is shared equally among its members. Nonetheless, co-ops are usually hierarchical organisations. Democratic perhaps, but hierarchical nonetheless. Managers may be selected through some democratic or consultative process involving members but, once selected, they delegate and command their ‘underlings’ in a manner not at all dissimilar to a standard corporation. At Valve, by contrast, each person manages herself while teams operate on the basis of voluntarism, with collective activities regulated and coordinated spontaneously via the operations of the time allocation-based spontaneous order mechanism described above.
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In contrast, co-ops and Valve feature peer-based systems for determining the distribution of a firm’s surplus among employees.
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There is one important aspect of Valve that I did not focus on: the link between its horizontal management structure and its ‘vertical’ ownership structure. Valve is a private company owned mostly by few individuals. In that sense, it is an enlightened oligarchy: an oligarchy in that it is owned by a few and enlightened in that those few are not using their property rights to boss people around. The question arises: what happens to the alternative spontaneous order within Valve if some or all of the owners decide to sell up?
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shared by Kurt Laitner on 05 Jan 15
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Owning Together Is the New Sharing by Nathan Schneider - YES! Magazine - 0 views
www.yesmagazine.org/...ng-together-is-the-new-sharing
ouishare sensorica loomio enspiral cobudget ethereum sovolve swarm ownership sharing paper
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VC-backed sharing economy companies like Airbnb and Uber have caused trouble for legacy industries, but gone is the illusion that they are doing it with actual sharing
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The notion that sharing would do away with the need for owning has been one of the mantras of sharing economy promoters. We could share cars, houses, and labor, trusting in the platforms to provide. But it’s becoming clear that ownership matters as much as ever.
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Léonard and his collaborators are part of a widespread effort to make new kinds of ownership the new norm. There are cooperatives, networks of freelancers, cryptocurrencies, and countless hacks in between. Plans are being made for a driver-owned Lyft, a cooperative version of eBay, and Amazon Mechanical Turk workers are scheming to build a crowdsourcing platform they can run themselves. Each idea has its prospects and shortcomings, but together they aspire toward an economy, and an Internet, that is more fully ours.
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Jeremy Rifkin, a futurist to CEOs and governments, contends that the Internet-of-things and 3-D printers are ushering in a “ zero marginal cost society“ in which the “collaborative commons” will be more competitive than extractive corporations
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once the VC-backed sharing companies clear away regulatory hurdles, local co-ops will be poised to swoop in and spread the wealth
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“We’re moving into a new economic age,” says Marjorie Kelly, who spent two decades at the helm of Business Ethics magazine and now advises social entrepreneurs. “It needs to be sustainable. It needs to be inclusive. And the foundation of what defines an economic age is its form of ownership.”
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It’s a worker-owned cooperative that produces open-source software to help people practice consensus—though they prefer the term “collaboration”—about decisions that affect their lives.
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From the start Loomio was part of Enspiral, an “open value network“ of freelancers and social enterprises devoted to mutual support and the common good.
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The team members recently had to come to terms with the fact that, for the time being, only some of them could be paid for full-time work They called the process “participatory downsizing.”
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And they can take many forms. Loomio and other tech companies, for instance, are aspiring toward the model of a multi-stakeholder cooperative—one in which not just workers or consumers are voting members, but several such groups at once.
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Loconomics is a San Francisco-based startup designed, like TaskRabbit, to manage short-term freelance jobs
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“People who have been without for a long time,” she says, “often operate with a mindset that they can’t share what they have, because they don’t know when that resource will come along again.”
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As Loconomics prepares to begin operations this winter, it’s running out of the pocket of the founder, Josh Danielson
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The ambition of a cooperative Facebook or Uber—competitive, widespread, and owned by its community—still seems out of reach for enterprises not willing to sell large parts of themselves to investors. Organizations like
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His fellow OuiShare founder Benjamin Tincq is concerned that too much fixation on a particular model will make it hard for well-meaning ventures to be successful. “I like the idea that we don’t need to have a specific legal status,” he says. “It’s more about hacking an existing legal status and making these hacks work.”
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Fenton’s new undertaking, Sovolve, proposes to “create innovative solutions to accelerate social change,” much as CouchSurfing did, but it’s doing the innovating cautiously. All work is done by worker-owners located around the world. Sovolve uses an internal platform—soon to become a product in its own right—through which contributors decide how much they want to be paid in cash and how much in equity. They can see how much others are earning. Their virtual workplace is gamified, with everyone working to nudge their first product, WonderApp, into virality
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Loomio’s members use a similar system, which they call Loomio Points. But Sovolve is no cooperative; contributors are not in charge.
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Open-source software and share-alike licenses have revived the ancient idea of the commons for an Internet age. But the “ commons-based peer production“ that Sensorica seeks to practice doesn’t arise overnight. Just as today’s business culture rests on generations of accumulated law, habit, and training, learning to manage a commons successfully takes time
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It makes possible decentralized autonomous organizations, or DAOs, which exist entirely on a shared network
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The most ambitious successor to Bitcoin, Ethereum, has raised more than $15 million in crowdfunding on the promise of creating such a network.
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all with technology that makes collective ownership a lot easier than a conventional legal structure
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A project called Eris is developing a collective decision-making tool designed to govern DAOs on Ethereum, though the platform may still be months from release.
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For now, the burden of reinventing every wheel at once makes it hard for companies like Sensorica and Loomio to compete
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For instance, Cutting Edge Capital specializes in helping companies raise money through a long-standing mechanism called the direct public investment, or DPO, which allows for small, non-accredited investors.
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Venture funding may be in competition with Dietz’s cryptoequity vision, but it provides a fearsome head start
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Co-ops help ensure that the people who contribute to and depend on an enterprise keep control and keep profits, so they’re a possible remedy for worsening economic inequality
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Sooner or later, transforming a system of gross inequality and concentrated wealth will require more than isolated experiments at the fringes—it will require capturing that wealth and redirecting its flows
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A less consensual strategy was employed to fund the Catalan Integral Cooperative in Spain; over the course of a few years, one activist borrowed around $600,000 from Spanish banks without paying any of it back.
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In Jackson, Mississippi, Chokwe Lumumba was elected mayor in 2013 on a platform of fostering worker-owned cooperatives, although much of the momentum was lost when Lumumba died just a few months later.
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Welcome to the new reputation economy (Wired UK) - 1 views
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banks take into account your online reputation alongside traditional credit ratings to determine your loan
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reputation data becomes the window into how we behave, what motivates us, how our peers view us and ultimately whether we can or can't be trusted.
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The difference today is our ability to capture data from across an array of digital services. With every trade we make, comment we leave, person we "friend", spammer we flag or badge we earn, we leave a trail of how well we can or can't be trusted.
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peer-to-peer marketplaces, where a high degree of trust is required between strangers; and where a traditional approach based on disjointed information sources is currently inefficient, such as recruiting.
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But this wealth of data raises an important question -- who owns our reputation? Shouldn't our hard-earned online status be portable? If you're a SuperHost on Airbnb, shouldn't you be able to use that reputation to, say, get a loan, or start selling on Etsy?
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"People are currently underusing their networks and reputation," King says. "I want to help people to understand and build their influence and reputation, and think of it as capital they can put to good use."
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"The implication of our study is that different types of reward are coded by the same currency system." In other words, our brains neurologically compute personal reputation to be as valuable as money.
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Personal reputation has been a means of making socioeconomic decisions for thousands of years. The difference today is that network technologies are digitally enabling the trust we used to experience face-to-face -- meaning that interactions and exchanges are taking place between total strangers.
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Trust and reputation become acutely important in peer-to-peer marketplaces such as WhipCar and Airbnb, where members are taking a risk renting out their cars or their homes.
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When you are trading peer-to-peer, you can't count on traditional credit scores. A different measurement is needed. Reputation fills this gap because it's the ultimate output of how much a community trusts you.
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Welcome to the reputation economy, where your online history becomes more powerful than your credit history.
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A wave of startups, including Connect.Me, TrustCloud, TrustRank, Legit and WhyTrusted, are trying to solve this problem by designing systems that correlate reputation data. By building a system based on "reputation API" -- a combination of a user's activity, ratings and reviews across sites -- Legit is working to build a service that gives users a score from zero to 100. In trying to create a universal metric for a person's trustworthiness, they are trying to "become the credit system of the sharing economy", says Jeremy Barton, the 27-year-old San Francisco-based cofounder of Legit.
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His company, and other reputation ventures, face some big challenges if they are to become, effectively, the PayPal of trust. The most obvious is coming up with algorithms that can't be easily gamed or polluted by trolls. And then there's the critical hurdle of convincing online marketplaces not just to open up their reputation vaults, but create a standardised format for how they frame and collect reputation data. "We think companies will share reputation data for the same reasons banks give credit data to credit bureaux," says Rob Boyle, Legit cofounder and CTO. "It is beneficial for one company to give up their slice of reputation data if in return they get access to the bigger picture: aggregated data from other companies."
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are measuring social influence, not reputation. "Influence measures your ability to drag someone into action,"
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"Reputation is an indicator of whether a person is good or bad and, ultimately, are they trustworthy?"
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Early influence and reputation aggregators will undoubtedly learn by trial and error -- but they will also face the significant challenge of pioneering the use of reputation data in a responsible way. And there's a challenge beyond that: reputation is largely contextual, so it's tricky to transport it to other situations.
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Many of the ventures starting to make strides in the reputation economy are measuring different dimensions of reputation.
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Reputation capital is not about combining a selection of different measures into a single number -- people are too nuanced and complex to be distilled into single digits or binary ratings.
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It's the culmination of many layers of reputation you build in different places that genuinely reflect who you are as a person and figuring out exactly how that carries value in a variety of contexts.
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we will be able to perform a Google- or Facebook-like search and see a picture of a person's behaviour in many different contexts, over a length of time. Slivers of data that have until now lived in secluded isolation online will be available in one place. Answers on Quora, reviews on TripAdvisor, comments on Amazon, feedback on Airbnb, videos posted on YouTube, social groups joined, or presentations on SlideShare; as well as a history and real-time stream of who has trusted you, when, where and why. The whole package will come together in your personal reputation dashboard, painting a comprehensive, definitive picture of your intentions, capabilities and values.
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By the end of the decade, a good online reputation could be the most valuable currency in your possession.
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GitHub Has Big Dreams for Open-Source Software, and More - NYTimes.com - 0 views
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GitHub has no managers among its 140 employees, for example. “Everyone has management interests,” he said. “People can work on things that are interesting to them. Companies should exist to optimize happiness, not money. Profits follow.” He does, however, retain his own title and decides things like salaries.
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Another member of GitHub has posted a talk that stresses how companies flourish when people want to work on certain things, not because they are told to.
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Asana bases work on a series of to-do lists that people assign one another. Inside Asana there are no formal titles, though like GitHub there are bosses at the top who make final decisions.
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For all the happiness and sharing, real money is involved here. In July GitHub received $100 million from the venture capital firm Andreessen Horowitz. This early in most software companies’ lives, $20 million would be a fortune.
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GitHub’s popularity has also made it an important way for companies to recruit engineers, because some of the best people in the business are showing their work or dissecting the work of others inside some of the public pull requests.
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Mr. Preston-Werner thinks the way open source requires a high degree of trust and collaboration among relative equals (plus a few high-level managers who define the scope of a job and make final decisions) can be extended more broadly, even into government.
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“For now this is about code, but we can make the burden of decision-making into an opportunity,” he said. “It would be useful if you could capture the process of decision-making, and see who suggested the decisions that created a law or a bill.”
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As complex as an open-source project may be, it is also based on a single, well-defined outcome, and an engineering task that is generally free of concepts like fairness and justice, about which people can debate endlessly.
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Google once prided itself on few managers and fast action, but has found that getting big can also involve lots more meetings.
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Still, these fast-rising successes may be on to something more than simply universalizing the means of their own good fortune. An early guru of the Information Age, Peter Drucker, wrote often in the latter part of his career of the need for managers to define tasks, and for workers to seek fulfillment before profits.
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Innovative schemes for open innovation and science 2.0 INSO-4-2015 - 0 views
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assist universities to become open innovation centres for their region in cooperation with companies, realising the ERA priorities, and to enable public administrations to drive innovation in and through the public sector.
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help universities, companies and public authorities to enhance their capacity to engage in science 2.0 and open innovation.
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effective linkages for innovation between universities and companies and other employment sectors, and provide freely accessible innovation training platforms, including digital platforms.
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develop or (further) implement open innovative schemes to strengthen linkages between academia, industry and community
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Research institutions together with companies are expected to build sustainable structures which help to absorb needs of users and thereby become co-creators of new solutions. SMEs should be encouraged to participate.
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developing curricula and providing freely through online platforms, possibly combined with other delivery mechanisms, innovation training for public administrations and researchers.
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The Culture Deck - Medium - 2 views
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the goal of building a radically open company where people are engaged, energized, and have a say in what the company does and how it operates
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At the heart of the lean company is the ability to see waste in the system.
Can the Crowd Run a Company? - Shareable - 0 views
www.shareable.net/...can-the-crowd-run-a-company
peper crowd company OVN self-organizing horizontal adaptive open company
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The Way Companies Are Getting Financed Is Completely Changing - 0 views
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Kerr Scientific Instruments - Brain Slice & Tissue Recording Systems - 0 views
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shared by Kurt Laitner on 09 Jan 14
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Goodbye, Dilbert: 'The Rise of the Naked Economy' » Knowledge@Wharton - 2 views
knowledge.wharton.upenn.edu/...bye-dilbert-rise-naked-economy
sensorica the rise of the naked economy book review
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The old cubicle-based, static company is increasingly being replaced by a more fluid and mobile model: “the constant assembly, disassembly, and reassembly of people, talent, and ideas around a range of challenges and opportunities.”
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Therefore, the new economy and its “seminomadic workforce” will require “new places to gather, work, live, and interact.”
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The consumer electronics company Plantronics, for example, knowing that on any given day 40% of its workforce will be working elsewhere, designed its corporate campus to only 60% capacity
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Their joint enterprise, NextSpace, became their first venture into what they call “coworking,” or the creation of “shared collaborative workspaces.”
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also nurtures what the authors call “managed serendipity” — ad hoc collaboration between people with diverging but complementary skills
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Coonerty and Neuner found that the most productive collaborations tended to pair highly specialized experts with big-picture thinkers
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Clients get the specialized help they need at a cost below that of a full-time employee or traditional consulting firm, and specialists are well compensated and rewarded with flexible schedules and a greater degree of choice about which projects to take.
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This has produced a new market dynamic in which the headhunter of yesteryear has been replaced by “talent brokers” who connect highly specialized talent with companies on a project-by-project basis
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Matthew Mullenweg, doesn’t have much faith in traditional office buildings or corporate campuses: “I would argue that most offices are full of people not working.”
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On the other hand, Mullenweg is a big believer in face-to-face collaboration and brainstorming, and flies his teams all over the globe to do so.
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Additionally, a 2010 Kauffman-Rand study worried that employer-based health insurance, by discouraging risk-taking, will be an ongoing drag on entrepreneurship
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How Peer to Peer Communities will change the World - 0 views
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emergent communities of practice are developing new social practices that are informed by the p2p paradigm
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At this stage, there is a co-dependency between peer producers creating value, and for-profit firms ‘capturing that value’, but they both need each other.
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Peer producers need a business ecology to insure the social reproduction of their system and financial sustainability of its participants, and capital needs the positive externalities of social cooperation which flow from p2p collaboration.
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peer producing communities should create their own ‘mission-oriented’ social businesses, so that the surplus value remains with the value creators, i.e. the commoners themselves, but this is hardly happening now.
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Instead what we see is a mutual accomodation between netarchical capital on one side, and peer production communities on the other.
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For peer producers the question becomes, if we cannot create our own fully autonomous institutions, how can we adapt while maintaining maximum autonomy and sustainability as a commons and as a community.
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In commons-oriented peer production, where people aggegrate around a common object which requires deep cooperation, they usually have their own infrastructures of cooperation and a ecology combining community, a for-benefit association managing the infrastructure, and for-profit companies operating on the market place; in the sharing economy, where individuals merely share their own expressions, third party platforms are the norm. It is clear that for-profit companies have different priorities, and want to enclose value so that it can be sold on the marketplace. This in fact the class struggle of the p2p era, the struggle between communities and corporations around various issues because of partly differential interests.
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Even commercially controlled platforms are being used for a massive horizontalisation and self-aggregation of human relationships, and communities, including political and radical groups are effectively using them to mobilize. What’s important is not just to focus on the limitations and intentions of the platform owners, but to use whatever we can to strengthen the autonomy of peer communities.
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The fact today is that capital is still capable of marshaling vast financial and material resources, so that it can create,
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using mainstream platforms for spreading their ideas and culture and reach greater numbers of people, while also developing their own autonomous media ecologies, that can operate independently, and the latter is an engagement for the ‘long haul’, i.e. the slow construction of an alternative lifeworld.
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The commons and p2p are really just different aspects of the same phenomena; the commons is the object that p2p dynamics are building; and p2p takes place wherever there are commons.
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So both p2p and the commons, as they create abundant (digital) or sufficient (material) value for the commoners, at the same time create opportunities to create added value for the marketplace. There is no domain that is excluded from p2p, no field that can say, “we wouldn’t be stronger by opening up to participation and community dynamics”. And there is no p2p community that can say, we are in the long term fully sustainable within the present system, without extra resources coming from the market sector.
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One trend is the distribution of current infrastructures and practices, i.e. introducing crowdsourcing, crowdfunding, social lending, digital currencies, in order to achieve wider participation in current practices. That is a good thing, but not sufficient. All the things that I mention above, move to a distributed infrastructure, but do not change the fundamental logic of what they are doing.
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we are talking about the distribution of capitalism, not about a deeper change in the logic of our economy.
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No matter how good you are, no matter how much capital you have to hire the best people, you cannot compete with the innovative potential of open global communities.
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the opposite is also happening, as we outlined above, more and more commons-oriented value communities are creating their own entrepreneurial coalitions. Of course, some type of companies, because of their monopoly positions and legacy systems, may have a very difficult time undergoing that adaptation, in which case new players will appear that can do it more effectively.
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the corporate form is unable to deal with ecological and sustainability issues, because its very DNA, the legal obligation to enrich the shareholders, makes its strive to lower input costs, and ignore externalities.
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we need new corporate structures, a new type of market entity, for which profit is a means, but not an end, dedicated to a ‘benefit‘, a ‘mission’, or the sustenance of a particular community and/or commons.
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entrepreneurs attaching themselves to open design projects start working from an entirely different space, even if they still use the classic corporate form. Prevent the sharing of sustainability designs through IP monopolies is also in my view unethical and allowing such patents should be a minimalist option, not a maximalist one.
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The high road scenario proposes an enlightened government that ‘enables and empowers’ social production and value creation and allows a much smoother transition to p2p models; the low road scenario is one in which no structural reforms take place, the global situation descends into various forms of chaos, and p2p becomes a survival and resilience tactic in extremely difficult social, political and economic circumstances.
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Making sure that we get a better alternative is actually the historical task of the p2p movement. In other words, it depends on us!
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I don’t really think in terms of technological breakthroughs, because the essential one, globally networked collective intelligence enabled by the internetworks, is already behind us; that is the major change, all other technological breakthroughs will be informed by this new social reality of the horizontalisation of our civilisation. The important thing now is to defend and extend our communication and organisation rights, against a concerted attempt to turn back the clock. While the latter is really an impossibility, this does not mean that the attempts by governments and large corporations cannot create great harm and difficulties. We need p2p technology to enable the global solution finding and implementation of the systemic crises we are facing.
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Design Like No One Is Patenting - How SparkFun Stays Ahead of the Pack - 0 views
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Electronics supplier SparkFun designs dozens of products a year and they haven’t patented a single one. It’s worked out pretty well so far.
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makes its living by shipping kits and components like bread boards, servo motors and Arduino parts to a mixture of students, hobbyists, and professionals making prototypes
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the company has made its name is in a stable of its own custom parts and kits, the designs for which it gives away for free.
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“We find that people will copy your design no matter what you do,” she says. “You might as well just play the game and go ahead and innovate. It’s fun, it keeps us on our toes.”
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the open hardware model means that SparkFun’s existence depends not on any particular product, but on an ongoing relationship with customers that’s not too dissimilar to the loyalty commanded by a fashion house.
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You can learn a lot about what a company cares about by looking at what they give away and what they protect.
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SparkFun’s actual value is in the community of fans and loyal customers that keep coming back, and the expertise under its roof in servicing their needs.
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“We try to do small runs and order in small quantities. Especially something that’s going to be obsolete quickly.”
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along with inventory and CMS management, tries to predict demand for different components and ensure they get ordered with sufficient lead time to account for how long it takes to get there.
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the innovation (revisions and new releases) here at SparkFun is organic and not planned,” says Boudreaux, “But we do a few things to make sure we are keeping up.”
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monitors all costumer feedback from emails to the comment section that is present on every page of the company’s site. They also ensure that team members have time to tinker in the office, write tutorials, and visit hackerspaces and maker events. “For us, designing (and revising) widgets is the job.”
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“They eat these products up, even if the products are not ready for the mainstream & educator community due to minimal documentation or stability.”
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symbiotic relationship with these early adopters, where feedback helps SparkFun revised and improve products for use by the rest of the community
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“There’s balance in everything,” says Boudreaux, “Innovation does not necessarily need speed in order to create valuable change. Sometimes innovation works at a slower pace, but that does not mean it is any less valuable to those that benefit from it, and we are constantly balancing the needs of two very different customers.”
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“We have to be willing to kill ideas that don’t work, take a lot of tough criticism, and move fast. If we stay agile, we stay relevant.”
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Value network - Wikipedia - 0 views
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customers or recipients, intermediaries, stakeholders, complementary, open innovation networks and suppliers
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Verna Allee defines value networks [5] as any web of relationships that generates both tangible and intangible value through complex dynamic exchanges between two or more individuals, groups or organizations. Any organization or group of organizations engaged in both tangible and intangible exchanges can be viewed as a value network, whether private industry, government or public sector.
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Allee developed Value network analysis, a whole systems mapping and analysis approach to understanding tangible and intangible value creation among participants in an enterprise system
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participants, transactions and tangible and intangible deliverables that together form a value network.
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biological organisms, including humans, function in a self-organizing mode internally and externally
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The purpose of value networks is to create the most benefit for the people involved in the network (5)
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58 Canadian Companies Get Partnership Opportunities With 3M - 0 views
Guy Kawasaki: The Top 10 Mistakes of Entrepreneurs - YouTube - 1 views
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