Digital Business

Digital Business insights: Here is the news?

ACCORDING to Wikipedia, news is the communication of selected information on current events – information about things that are new.

Before newspapers, people used to tell each other what was new. Stories would come in from the next village through traders, travellers and officials.

Governments used couriers and proclamations to inform people about policy and the 'big' stories – “King Blod the impaler has been defeated and impaled”, “Corn taxes due next month – get them in or else”, “The Queen has died, long live the Queen” and so on. 

In the 17th century, official government broadsheets were issued.  As interaction between communities grew, so did the need for information. From hand written newsletters evolved printed newspapers, which is what we still have today. And they are all now failing because of the internet.

They can’t compete.

News media is supposed to deliver news.

The issue of whether the “who, what, when, where and why” news information provided is objective, comprehensive, without bias, apolitical, neutral or otherwise is interesting.

In Australia, we have very few publishers of news, and one publisher especially, promotes the views of the owner through its columnists and editorial pieces.

This gives the owner huge influence with politicians and advertisers, but in a digital age, where individuals now have many other sources of information and can also discuss issues with networks of peers, the owner’s power diminishes day by day, except in the minds of politicians, the owner and those who work in his media outlets.

But it doesn’t change the fact that most newspapers and news channels today don’t provide a lot of news, they provide PR releases, opinion pieces and in many cases obvious propaganda.

Objectivity and trust increasingly sits only with national broadcasters such as the ABC and the BBC, plus CNN and Al Jazeera and groups of individuals that we each select as people who know – those who can give us access to the inside story.

In print, the Christian Science Monitor, New York Times, The Guardian and Washington Post ride high on trust.

Reporters have little time, resources or support to look into issues in any depth. Gone are the days of newspaper crusades against corruption, crime and fraud.

This is now largely left to “whistleblowers” – individuals who pay dearly for their bravery and social conscience.

Real news today comes from where it originally came, from informed personal networks enabled by the internet, and supported surprisingly still … by books.

Those rectangular, tactile, analogue objects that allow subjects, issues and ideas to be studied in considerable and considered depth.

The internet has taken us back to the beginning, back to the village, but the village now is global.

In the last century, Marshall McLuhan coined the term 'Global Village', but that village has now become real.

The new informed, personal information networks can inform swiftly and with insight.

Increasingly these global, personal networks are replacing or supplementing the traditional news channels. In effect, people are constructing their own news networks, individual by individual, with every person being a 'reporter'.

It used to happen in the pub, the grocer, in the market or outside the church in every village. Now it happens internationally in internet powered online communities, both private and public such as Linkedin.

Can newspapers compete with this? No.

They will continue to decline and ultimately go the way of the dinosaurs. No matter what they do with paywalls.

They are not smart or agile enough in their current form to provide what people really want. And they can’t compete on price, immediacy and quality of knowledge or insight with the global village, other than to be the new village idiot.

The giant tree falls. Nature abhors a vacuum. Into the gap abdicated by the mass media rushes a host of alternatives competing for the space.

The basic issue hasn’t changed. People want information about the new – for reasons of curiosity, for competitive edge, for personal advantage, for personal improvement. For whatever.

Being able to access new information at the speed of light creates new opportunities and new challenges.

In a global village, who makes the new rules? Nobody can.

Governments already agree about very little and there is no common view on freedom of information.

Dictatorships try to block information access and sharing in whatever ways they can.

Democracies can do little about it, other than to track, record and store as much communication and information traffic as they can.

And national sovereignty now largely sits in the pockets of the multinationals.

People since time began have recognised the power of media control – the storyteller and the story.

Dictators, kings and emperors tried to control the news and access to information.

Media barons after them tried to do the same thing.

The power has swung back to informed individuals, in the global village pubs, grocers and clubs on the internet – the forums, blogs and enewsletters.

But only because of the real authority and trust connected to the commentary.

Who do we trust? We trust firefighters, paramedics, nurses, pilots, doctors, pharmacists – those who demonstrate a shared value, social role.

Who don’t we trust? We don’t trust politicians, used car salesmen, real estate agents, journalists or talkback radio hosts. Surprise, surprise.

In the global village the news and information role has largely shifted to friends, acquaintances, bloggers and personal information networks.

Individuals are building their personal networks day by day. Some are better than others. It is clear even on Linkedin that some groups are more knowledgeable and informed.

How these networks evolve is fascinating to watch. Some are highly active, attractive, knowledgeable and valuable. Others less so.

The new global village networks will continue to grow.

So here is the new news.

It’s still there. But it is now coming from the global village at a button near you.

- John Sheridan, July 2014.

 *

John Sheridan is CEO of Digital Business insights, an organisation based in Brisbane, Australia, which focuses on helping businesses and communities adapt to, and flourish in, the new digital world. He is the author of Connecting the Dots and getting more out of the digital revolution. Digital Business insights has been researching and analysing the digital revolution for more than 12 years and has surveyed more than 50,000 businesses, conducting in-depth case study analysis on more than 350 organisations and digital entrepreneurs.

http://www.db-insights.com/

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Digital Business insights: Digital strategy and the price of fish

THERE is constant pressure on people as a result of the digital revolution.

It is hard to avoid the technology and the multitude of options available today.

“Which technologies do I choose? Is it relevant to me? Do I really need this? Will it give me a new set of problems? How do I manage the culture change? Can I still compete? Who am I now competing with? Will I be left behind? Does that matter? Should I just retire early and forget it all?”

Individual technology choice is bad enough.

But technology also has an impact on the way our society acts. It changes the ways people communicate and act together. 

It changes the way people source information. It shifts the power of influence from traditional centralised sources to a multitude of new options. It disperses and distributes power. It creates new networks with membership spread across the planet. It creates new market relationships.

How does the “old world” deal with this? Not very well.

And as individuals become more familiar with these extra connections and collaborations, their attitude changes…permanently.

There is no going back.

Even the use of traditional media is managed differently.

Television is dipped into or accessed differently. Advertisements are muted, or channels are shifted. Programs are recorded and ad-breaks sped through at 16 or 32 times normal speed.

The mainstream print media is read for what it is, one of many perspectives, offering a biased view representative of its owners. Propositions are now tested on the internet, commented on, shared, questioned, fact checked and ignored – whether they are sales messages, political messages or news.

The power of propaganda is diminished.

It used to work well, when media sources were few and content could not be so easily discussed. But today, instant sharing and commentary underlines anything that “smells bad”, anything that does not align with the multiple other sources of information, news, opinion and commentary. Cognitive dissonance is amplified.

The ABC, Radio National and some other traditional media sources, in contrast, grow in power and influence as people increasingly appreciate the value of the content, recognise how it aligns with the new media, with sharing, with collaboration and the new.

The digital revolution brings ever more connection, more collaboration and more integration and these are the underlying, major currents of the revolution that drive disruptive change.

They are largely invisible but they are the game changers in the new digital age.

They affect and change the world we live in.

Ready access to information changes our attitude.

It changes our expectations. It makes us more confident. It makes us less patient. It reinforces our relationships with those who really know about something.

It diminishes the hold that traditional organisations and individuals have on us.

It allows us to question the expertise and leverage of the “high priests” in our society – the doctors, lawyers, accountants, politicians, bankers and priests.

More digital connection, collaboration and integration empowers people.

It shifts power from the seller to the buyer.

It transfers control of the agenda from traditional media to the anointed blogger or commentator on a forum, living anywhere on the planet.

The digital currents steadily transform a customer from somebody who doesn’t know to somebody who does.

And with knowing comes new power and confidence.

This is the most fundamental effect of the digital revolution and the one that is the least well understood.

Connection, collaboration and integration build empathy.

Connection, collaboration and integration build trust.

This is a sea change, a weather change, a wind change and a climate change for the better.

It drags power away from traditional power brokers – vendors, media, government, politicians and pundits.

It transfers power, information, knowledge and confidence to customers.

Slow and subtle though this process is, it will have and is having a revolutionary impact on the societies we live in.

The transformation will take many years, but it will have a huge impact on us all.

You can’ t become more connected, more collaborative and more integrated and fully accept inequality and unfairness.

The government still hasn’t understood that it is not a question of them not “selling the budget message” well enough…the message is unfair and fails to resonate with the new digital attitude. Cognitive dissonance on steroids.

And the new attitude is just the old attitude of “fair go” multiplied by new digital technology.

It is conservative with a small “c”. It is national with a small “n”. It is liberal with a small “l”. It is social with a small “s”. It is non political. It is human.

More connection, more collaboration and more integration bring us closer together. It builds community. It builds trust.

And the nature of digital connected change opens the doors and windows, shines light on corruption, lets in the fresh air and inspires a real desire for vision and direction and structure based on the new paradigm.

It is no accident that we are having so many enquiries into corruptions and abuses of all kinds at this moment in time.

Digital revolution demands looking forwards not backwards. It is a paradigm shift. And it is not comfortable for many.

There is a conflict of cultures in play…a contest between the past and the future.

But the past has gone and gone forever.

The digital revolution is remorseless, constantly disrupting, changing and evolving. It offers enormous opportunities. They are being picked up and manifested every day.

This is fundamental change. Affecting not just single businesses, but sectors, regions, states, countries, associations, councils, governments and academia.

Digital is about a lot more than just social media and websites. It is far more profound and disruptive than that.

“Focusing solely on web and social… is like a few penguins standing on an ice floe discussing the price of fish and how to sell them, when the ice floe is melting beneath them, the orcas are circling in the water around them and the ice floe is being carried towards an enormous whirlpool, that is destroying icebergs 5000 times the size of the ice floe they stand on.”

True digital strategy first looks at the causes of digital disruption, the impacts overall, the affects on industry sectors and supply chains…and only then starts to consider how best to use the tools of the digital revolution to maximise benefit.

Anything else is just discussing the price of fish.

- John Sheridan, July 2014.

 

John Sheridan is CEO of Digital Business insights, an organisation based in Brisbane, Australia, which focuses on helping businesses and communities adapt to, and flourish in, the new digital world. He is the author of Connecting the Dots and getting more out of the digital revolution. Digital Business insights has been researching and analysing the digital revolution for more than 12 years and has surveyed more than 50,000 businesses, conducting in-depth case study analysis on more than 350 organisations and digital entrepreneurs.

http://www.db-insights.com/

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Real-time digital technology can save millions for insurers

 

AUSTRALIAN insurance companies could save millions of dollars by adopting cutting-edge mapping technology to deal with the impact of natural disasters in real time, according to a spatial technology industry expert.

Esri Australia principal consultant Gary Johnson said geographic information system (GIS) technology should be used during significant disaster events to deliver cost-effective, high-quality customer service. 

Mr Johnson said insurance companies were already using the technology around the globe during crises such as hailstorms, cyclones and bushfires, to instantly identify potential damage and resulting claims.

“For example, US company Amica Mutual Insurance uses GIS technology to quickly calculate exposure during natural disasters and rapidly respond to high claim volumes,” Mr Johnson said. He addressed the recent FST Future of Insurance Conference in Sydney.

“By mapping and analysing information such as real-time weather feeds, emergency updates and policy holder information, GIS technology can quickly provide insurers with a highly accurate estimate of potential claims, as an event unfolds.

“Previously, it may have taken days, or even weeks, to gauge the impact of a large-scale disaster on an insurer’s portfolio. 

“This technology has the potential to completely transform Australia’s insurance sector – as the quicker an insurer can respond to claims, the faster people can rebuild and get on with their lives.”

Mr Johnson said using GIS technology to hasten the claims process during critical incidents was just one example of how insurance companies could use intelligent mapping to increase the efficiency of their operations.

“From a marketing perspective, mapping analysis can pinpoint low-risk areas where insurers can target potential policy holders with more affordable quotes – thereby expanding market share while reducing their exposure to risk,” Mr Johnson said.

“Insurance companies can also develop further mapping applications to improve the efficiency of their business, from addressing issues of fraudulent claims to assisting with strategic planning.

“GIS technology has a role to play at every level of the insurance industry with solutions that benefit both insurers and customers.”

www.esriaustralia.com.au

 

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Digital Business insights: Who do I call?

Recently I tried to call Microsoft with an enquiry. It was a revealing experience.

First, I was shepherded through a variety of call options, none of which applied to me. I finally ended up with an operator who answered my call.

“Could I have your name, please?” 

“John Sheridan.”

“Right Sean, how can I help?”

“It’s not Sean, it is John.”

“That’s what I said…Sean.”

“No, not Sean … John.”

“Right, Jean … can I have your email address please?”

“Why do you want my email address? I am trying to get in contact with a Microsoft employee in Canberra and need their phone number.”

“I can’t give that to you.”

“Right, I will call somebody in the ACT who will then. Goodbye.”

Which I did. Successfully.

Frustrating, and time wasting.

Not rude, just disinterestedly reading a script.

But a sign of things to come shortly.

Later that day I went online to the Microsoft store and tried to buy something.

I found the right page, followed the prompts and was told to put in my account details. I put in my email address but couldn’t remember my password, so was prompted to put in my date of birth.

Which I did … only to be informed that it wasn’t my date of birth. When of course it was.

Impasse.

Back on the phone.

How do I let Microsoft know that they have my identity details wrong?

Back to the menu of options, none of which applied.

Arghh!

More time wasted, and more frustration and these guys want me to move even further onto a “cloud” platform, where everything happens online. With nobody to call when things go wrong.

A platform that doesn’t work properly.

A platform that gives me no easy way to fix my problems.

A platform designed to make their lives easier not mine.

And they want me to trust them with my business.

I have no problem with that in principle. But in practice, everything has to work simply, easily and reliably for me to be happy, and it doesn’t. So I am not.

And I know that at some point in the future I will have to call them about this issue. Some time when I have hours to waste and I am feeling very relaxed and patient.

And who do I call? Who do I speak with to resolve my identity issue?

I didn’t even know I had an identity issue.

Now I do. But only with them.

Yet I know who I am. I know when I was born. So what is going on?

How has it come to this?

It used to be simple and straightforward to buy software. Probably still is for most people. But apparently not for me.

Something that should be simple and straightforward has now become complex and awkward. It is intimidating.

And even worse is not being able to speak to somebody that might be able to help.

Who do I call?

- John Sheridan, May 2014.

 

John Sheridan is CEO of Digital Business insights, an organisation based in Brisbane, Australia, which focuses on helping businesses and communities adapt to, and flourish in, the new digital world. He is the author of Connecting the Dots and getting more out of the digital revolution. Digital Business insights has been researching and analysing the digital revolution for more than 12 years and has surveyed more than 50,000 businesses, conducting in-depth case study analysis on more than 350 organisations and digital entrepreneurs.

http://www.db-insights.com/

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Digital Business insights: Earn or learn

 

IT IS hard to argue with that idea, earn or learn. The principle is right, but does the opportunity exist to fulfill it?

Can a young person (or any person) reasonably expect to earn a living today in the way it was possible fifty years ago, twenty years ago or even ten years ago?

Is getting into work as easy as it used to be? 

Are there plenty of entry-level jobs around?

The answer to both these questions is no.

“I can’t get a job without experience, but how do I get the experience to get a job?” is still the complaint of those beginning their working lives.

And it’s not just a young person’s problem.

It certainly hits the young hard. There is 30% youth unemployment in some parts of Australia, and 12.5% nationally.

The jobs just aren’t there for anyone any more in the way they used to be. You try getting a job past the age of 50. It’s not easy. And for many it’s impossible.

Why have we ended up in this mess? The problem is worse than it has ever been and it doesn’t look like it is going to improve any time soon.

One reason for fewer jobs is the impact of the digital revolution on all aspects of our society.

Automation and computerisation has had a bigger impact on jobs and wages than most people expected or hoped. It has not only cut the number of jobs but also wages.

The increased supply of educated office workers has resulted in a sharp decline in wages, relative to production workers. The supply has outpaced demand.

Computerisation increases the demand for educated administration staff, but permits many tasks to be automated. Which means fewer jobs overall.

Computerisation has diminished the value of design skills. Many previously highly skilled creative tasks have been substituted and replaced by preformed templates and affordable, desktop design programs.

Computerisation has diminished the value of video capture and production. A wide range of specialised and highly paid creative tasks have been substituted and replaced by easy to use, and affordable video hardware and software editing tools.

And this has all happened in the last 20 years.

Computerisation has also shaken and disrupted the industries surrounding graphic design, film and video production, like advertising, media and entertainment.

So computerisation and automation doesn’t just replace standardised production skills, it also allows individuals with no or little design or production training to enter a previously high wage environment and change it forever.

Today just about anyone can be a designer, typographer, videographer, editor, producer, director with very little training and experience. And they are.

Even though it can be argued (and it is) that the overall standard of design, or video production quality drops as a result, to most people this is not an issue.

Lower cost and faster turnaround outweighs quality of production.

This has been witnessed in graphic design, brochure production, book production, newspaper production, magazine production, video production and even broadcast quality TV production.

The use of design software tools and affordable hardware (including digital printing) has made these areas accessible to just about anybody, forcing the contraction of the printing, design, news and video production industries and causing a decline in wages.

The same impact of automation on wages and jobs can be seen in market research, legal services, accounting, advertising and administration.

What were once considered to be high value sectors are hollowing out of medium well paid workers and polarising towards a smaller proportion of higher paid (cognitive) and a larger proportion of lower paid (administrational) workers.

The pressure upon workers to be even more agile, flexible and adaptable grows, and the skills required to succeed in this new disruptive environment are multifaceted, including computer skills, traditional writing, reading, comprehension and numeracy skills as well as the unique skills and experience related to a particular industry.

These skills are not learned at school or university but are built upon a common platform of academic skills enhanced and constantly upgraded in other ways – through short courses, MOOCs, on the job training and other means.

Over the last decade, there has been an overall decline in the demand for skill and knowledge workers, even as the supply of workers with higher education has grown.

Many high-skilled workers have moved down the occupational ladder, taking jobs traditionally performed by low skilled workers, pushing low skilled workers even further down the ladder and to some extent out of the workforce altogether.

This is particularly the case with older workers pushed out of the workforce by closures, cuts, contractions, redundancies and job reallocation, who now also have to address and confront ageism as well as try to find work in a new digital environment.

It is also the case with school leavers and the young unemployed (12.5%) who struggle with the two options of finding work (very hard) or reentering education (even harder for some) and now increasingly expensive.

Government support for both options has been slashed and the agencies designated to address the employment issues in a hollowed-out marketplace for both the young and the old are out of ideas.

Computerisation has traditionally been applied to routine tasks that can be accomplished by machines.

But computerisation is now steadily moving into non-routine tasks. Navigating a car through traffic is not a routine task, but it has been achieved by Google and is likely to become a reality in some locations and states soon.

Fast-forward a few years and truck drivers, taxi drivers and delivery drivers will feel the winds of change.

Computerisation is spreading into every non-routine task where data becomes available.

In healthcare, computers can now do diagnostic tasks formally done by medical specialists, more reliably, effectively and efficiently.

In law, the same thing is happening in pre-trial research. In transport, finance and agriculture the same thing is happening. Computers can operate with less bias, consistently and for 24×7.

Estimates by McKinsey Global Institute suggest that algorithms could substitute for 140 million full-time knowledge workers worldwide.

Computers will increasingly challenge human labour in a wide range of cognitive tasks.

So where does that leave us? Where does it leave you, me or our children?

Government doesn’t seem to have joined all the dots on the implications of this new world.

There is no indication in the current budget that any of these issues are addressed. In fact, they seem to be completely ignored.

There will be an increasing divide between those with jobs in innovative, imaginative, design-led, value adding industries and those left behind in some way – either out of work, too young, too old, no skills, can’t speak English, not enough education, too much education, with the wrong skills and wrong certification.

The new “haves” and “have-nots”.

There are no jobs for life, no stable careers, and an ever-decreasing number of niche jobs, government and academic jobs. Even the reliable building and construction trades are not safe from the digital flood.

There is no job security, even fewer opportunities and now a new universal demand for everybody to learn, and keep learning.

Plus an older workforce that can’t afford to retire, and is forced to reinvent itself.

There are not enough jobs to go around. And learning is set to become even more expensive than ever.

Not everyone can work in retail or the health, aged care and community services sectors.

We have to invent new jobs, in value added, productive industries, in agriculture, manufacturing, tourism, cleantech, medtech, greentech, biotech, creative industries, ICT, education and training, design-led professional services, trades and infrastructure.

New jobs will come mainly through startups. And they will need support.

Lose a job and people will face long periods of unemployment and enter a twilight zone with no direction or real options and opportunities. Unless networks are well established this is a period when even professionals can disappear into a cul-de-sac of irrelevance, the wrong history or experience, or too much of it.

Moving from secure employment to occasional projects, or self-employment is a shock and requires a different mindset to cope and flourish.

Higher skilled individuals will enjoy greater flexibility, telework, and work from anywhere.

The lower skilled will compete for fewer positions and opportunities, will become frustrated, dismayed and disaffected, some turning to education and some to crime and disconnection in a variety of ways.

Qualifications will mean less. Ability to deliver will mean more. The problem of evaluation will grow. Deliverables and outcomes will be measured and rewarded not just potential and promises.

Inequality itself is disruptive and unsustainable.

It can’t be managed traditionally in the manner of the 20th century, through propaganda and force in the face of a new connective and collaborative digital revolution in which most people increasingly participate, including the disadvantaged.

Responses to inequality will be both positive and negative.

There will be an increasing movement towards more connection, more collaboration, and more automation for all industries – nowhere to hide.

Job losses and barriers to employment (ageism, no experience, disability etc) will create political pressure to address these problems through skills programs, (but do the traditional agencies know what skills to provide and promote? No).

Where will the vision on training and the training itself come from? Government will have to contribute more to education, skills development and training (not less) as well as PAYG, MOOCs and free skills programs. TAFES and RTOs are already in crisis mode and governments have done little to help.

What are the barriers to success?

The status quo. Ideology. CEOs. Industry associations and chambers of commerce. Unions and councils.

The traditional brokers and enablers are bankrupt of ideas and vision. They are losing memberships and relevance, and are now a roadblock on the highway rather than a gateway.

This has to change.

The emphasis on startups (beginning a business) trialed and promoted in many parts of the United States over the past five years in response to unemployment and job contraction has proven successful.

It frees individuals from the limitations of vision, lack of innovation and agility endemic to large organisations and allows them to take control of their own destinies.

In disruptive times, employers run lean ships, keeping staff levels to a minimum, so startups are an important focus for new job creation. Net job growth comes from startups in the first five years.

Starting a business is really only an option for the educated, courageous, skilled and connected (supported by family, friends and fools). But we have few other options than offering real support.

The digital revolution will continue to impact and change all industries as adoption and familiarity increases. The customer has changed. Customers will collaborate more to influence the outcomes described above.

We need innovation, imagination and experiment in this awkward time.

At a time when these things are seen as risky, it is imperative that we “try” and “see”. Launch and learn.

Only then will we be able to earn and learn.

- John Sheridan, May 2014.

John Sheridan is CEO of Digital Business insights, an organisation based in Brisbane, Australia, which focuses on helping businesses and communities adapt to, and flourish in, the new digital world. He is the author of Connecting the Dots and getting more out of the digital revolution. Digital Business insights has been researching and analysing the digital revolution for more than 12 years and has surveyed more than 50,000 businesses, conducting in-depth case study analysis on more than 350 organisations and digital entrepreneurs.

http://www.db-insights.com/

 

Brisbane businesses asked to join free wi-fi network

BRISBANE’S free wi-fi network has been turned on at South Bank, the Queen Street Mall and on the linking Victoria Bridge. Brisbane City Council is now calling on Brisbane businesses which offer free wi-fi to join the network and be publicised.

Visitors to Brisbane, as well as the city’s residents and business community, can connect on the go with the free public wi-fi service ahead of the G20 Summit to be held later this year. 

Free wi-fi is now live at 25 sites, including Brisbane Botanic Gardens and King George Square, opposite City Hall.

Brisbane Lord Mayor Graham Quirk said more than a million users logged on to Brisbane City Council’s free wi-fi service last year. The new wi-fi connection will allow the 17,000 people a day who travel over the Victoria Bridge to get between South Bank and the Queen Street Mall, to remain connected on the go.

Each of Brisbane City Council’s 33 libraries and the entire CityCat river ferry fleet also offer free wi-fi, the Lord Mayor said.

Digital Brisbane encourages local businesses, including cafes, restaurants and retailers, to be part of a broader and connected city by providing free wi-fi to their customers.

Nearly 250 local businesses have already put themselves on Brisbane’s digital map. Businesses offering free wi-fi are being encouraged add their business details to Digital Brisbane's free wi-fi map at digitalbrisbane.com.au.

“Providing free wi-fi brings benefits to operators by encouraging foot traffic, enticing customers to stay longer and spend more and promoting customer loyalty,” a council spokesman said.

www.digitalbrisbane.com.au

www.brisbanemarketing.com.au

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POSTED MAY 17, 2014.

 

Digital Business insights: What is innovation all about?

“IF I’D ASKED my customers what they wanted, they would have told me a faster horse.” - Henry Ford.

 

DON’T ask somebody who doesn’t know, for an answer that defines solutions … ask them to more clearly define their problems.

Then think about them.

Is there a better way to get the job done?

Big organisations and government are blinded by and tied to a historical investment in better ways to get their job done more efficiently, consistently and effectively.

The business practices they use evolved during the industrial revolution as manufacturing and business processes were segmented, compartmentalised and departmentalised to ensure greater efficiency. This approach was successful for hundreds of years right up until the latter part of the 20th century and much of our society is still structured in this way.

It helped us build machines, improve our health, win wars, produce more food, go to the moon and get us to where we are today.

But what was good practice then is disabling now.

Big businesses and governments have established cultures that have evolved around efficiency and productivity and best practice and profit with associated rewards for employees who best support these approaches.

Employees who don’t support them are encouraged to move on. “I’m sorry, you don’t fit into the culture of our organisation.”

This is fine in periods of economic stability. It is fine when organisations are growing and maturing.

It is not fine in the current period of digital disruption and it is not fine when organisations have completely lost the skills and ability to respond with intelligence to change.

Today, we see all organisations being impacted by digital disruption and only a few even recognise the source of their new problems.

And it is not about the computers and digital devices. It is about the impact that more connection, more collaboration and more integration and convergence are having on our world.

As far as responding with intelligence and vision to the new challenges, there is little evidence to suggest any success, whether we look at government, large established businesses, academia, unions, associations, chambers of commerce or not-for-profits.

It is not for lack of intelligent people within those organisations. It is for lack of ways and means to engage their brainpower with these new problems and challenges.

The effort required to respond agilely in solving societal problems is impacted by the resilience of the cultures and structures that have been built since the industrial revolution to deliver and maintain stable efficiency, growth, productivity and profit.

And the open mindedness and vision required to recognise, understand and respond to external and internal digital disruption is way beyond most organisations.

Even though they have powerful resources – money, smart people and influence – gathering and focusing these resources upon the problem is beyond them.

There is a conflict between talk and action. Big businesses can speak about innovation and they do. But they don’t do it.

The culture and structure of big business and government actually punishes innovation, in the same way our immune system attacks and kills bacteria and viruses. Foreign. Out of sync. Not attuned.

It is ingrained. It is done without thinking. It is done subtly. It is done automatically. That is why whistle-blowers have such a hard time.

Anyone pointing out a flaw or inconsistency is branded a traitor and attacked. Edward Snowden is just one of a long line of people punished by cultural immune systems.

It is even done under the guise of innovation. The real potential innovators, the mavericks, the oddballs within organisations are moved on.

Risk is not rewarded, it is fined. Experiments are not allowed when they threaten or interfere with daily process and operations. They cannot be justified under a regime of business as usual.

The ‘shareholders’ are used as an excuse to stifle innovation.

Processes are put in place to mitigate risk not encourage it. Can’t do anything without more research. Must put it to more committees, more focus groups, give it more consideration, take more time.

Everything that waters down, dilutes, slows down and stifles innovative change. Avoids leadership, spreads responsibility.

Government can speak about innovation and it does. It even includes the word in its departmental titles.

Department of innovation?

Dream on. Not going to happen.

Government spends a lot of time and money on conferences and events discussing and promoting the idea of innovation.

But it can’t do it.

Government and business continually trot out various combinations of approaches that worked “once upon a time” in the good old days of the late 20th century.

Back when business plans were possible. Back in an environment with milestones and targets.

An environment with landmarks, and reference points and KPIs.

The past. History.

We are now all adrift in the digital ocean, with no landmarks, just waves of change.

There are no borders in the information ocean.

In an environment of more connection, more collaboration and more integration, what used to be none of my business now becomes all of our business.

In an environment of more connection, more collaboration and more integration, the implications are profound.

In an environment of more connection, more collaboration and more integration, how do you define what your business is or isn’t?

That is a tough question for Telstra, Microsoft, HP, Yahoo, IBM and the others.

How do you speak about borders and boundaries and constituencies when there are none?

That is tough for councils, mayors, states, premiers and nations.

In an environment of more connection, more collaboration and more integration, how do you go it alone?

You don’t. Collaboration and shared value is the new currency.

Google has got it right in many ways. It just looks at whatever it decides it wants to look at and gets on with it. Search. Maps. Health. Death. Whatever.

There is an overwhelming amount of data about past and present.

There is no data about the future.

Just imagination and vision.

That is what innovation is all about.

 

 

John Sheridan is CEO of Digital Business insights, an organisation based in Brisbane, Australia, which focuses on helping businesses and communities adapt to, and flourish in, the new digital world. He is the author of Connecting the Dots and getting more out of the digital revolution. Digital Business insights has been researching and analysing the digital revolution for more than 12 years and has surveyed more than 50,000 businesses, conducting in-depth case study analysis on more than 350 organisations and digital entrepreneurs.

http://www.db-insights.com/

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