I am a Techonomist, and this year will be attending my third Techonomy conference. Techonomy explores “the role of technology in business and social progress.”
I love the word “progress.” It has that gentle flavor of positivism; in the direction of better. I am more and more convinced that we don’t need innovation; we need progress.
How is progress reflected in a modern company? What does a 21st century company look like? Or maybe we should start thinking about what a 22nd century company would look like. (22nd century indeed: somebody born in 2012 will only be 88 years old in 2100. If Ray Kurzweil’s predictions are realized, it will be a piece of cake by then.)
People might grow older, but companies will die younger. John Hagel proves that with the Shift Index that most companies don’t last longer than 40 years. Most of today’s companies will not exist in 2100. The question is: What are the characteristics of sustainable companies?
Here is a list of some memes I’ve come across in recent months: the Adaptable Company, the Decentralized Company, the Sharing Company, the Participating Company, the Collaborative Company, the Connected Company, the Connecting Company, the Coherent Enterprise, the Elastic Company, the Human Company, the Learning Company, the Living Company. I could go on.
I propose that there are at least six characteristics that will be typical in the 22nd century company:
1. Peer-to-Peer Networks
Decentralized organizations with peer-to-peer networks of highly skilled knowledge workers will best create and sustain knowledge flows and enable employees to self-organize. The jury is still out on whether knowledge workers will most often be hyper-specialists or hyper-generalists, but the successful company of the future will behave as a living organism where peers organize themselves in “cells.”
In The Connected Company Dave Gray calls such organizations “pods”: Hyper-connected cells building relations with other cells based on a common principles, a common set of values, a common pattern language.
2. Architects of Serendipity
Being an architect of serendipity is about creating connections and providing opportunities for collisions between nodes in a network that learn from the collisions and continually adapt. The collisions are not random. Instead, this is designed serendipity, which might sound like an oxymoron.
Tony Hsieh, CEO of Zappos, the shoe company acquired by Amazon last year, is setting the scene for architected serendipity with his Downtownproject. Instead of venturing in yet another luxury corporate campus with everything on-site from shops, restaurants, doctors, and central idea-incubation, Hsieh sees the value in integrating the Las Vegas fabric to catalyze collisions. He is investing about $350 million in local startups, small businesses, education, arts, culture, and residential and commercial real estate.
This campus of the future starts to look more and more like a complex living organism.
Forget the old alliteration, the 4 P’s and 5 C’s of Kottler and Drucker. The C’s of this new era are those of hyper-connected learning organizations: Curated content, Community, Culture of openness, Collaboration, Creativity and optimism, Co-Learning, Co-Working, Co-Creation, Collisions, Connections.
3. Empowered Radicals Instigating a Corporate Spring
Some call them Corporate Catalysts, Catalyst Peers, or Corporate Rebels. Steve Johnson described these instigators in his excellent new book Future Perfect: The Case For Progress in the Networked Age: “the most striking thing about these new activists and entrepreneurs was the personal chord that reverberated in me when I listened to them talk about their projects and collaborations—and their vision of the progress that would come from all that work.”
In September, I wrote a blog post called Companies Are Movements of Greatness. Catalyst peers in our organizations instigate these movements, whether these organizations are hierarchies or peer-to-peer networks. The point is we have to unleash the energy of these “positive deviants.” I joined with a group of enthusiasts around the globe to put together a Corporate Rebels Manifesto. It’s all about a common set of principles, a pattern language for helping our companies succeed in the Hyper-Connected economy. It’s about creating a new global practice for value creation. It’s about progress.
4. Empowered Platforms
Amazon, Google, Apple, and Facebook are celebrated for their platform approach, exposing their core functionality through application program interfaces (APIs) so that other players in their networks–customers, partners, developers–can create new value on top of their platform.
We are only at the beginning of this trend, which will encompass all trade and commerce supply chains. In the end, I believe a wide variety of entities, including people, businesses, devices, and programs will have their own clouds and APIs.
What should come next in this evolution is an interoperability among clouds, a layer of services, protocols, and standards that let a Cambrian Explosion of Everything share data in real time, securely and with the appropriate governance and trust. Every company may have to carve out a role as a platform player.
5. Empowered and participative customers
Doc Searls has written extensively about The Intention Economy and customers taking back control of their data. Many organizations have implemented Open Innovation techniques, calling upon the intelligence in their networks to discover and develop new ideas.
The motto “We know more than me” applies the principles of Crowdsourcing. Barclays Bank recently launched BarclayCardRing, a crowdsourced credit card that empowers customers with highly transparent services and shares the program’s profits and losses and monthly financial statistics. In simple language, the data explain how the program is performing. Customers become producers, in partnership with the companies that serve them.
6. Deeply Digital and Human
It’s been almost 20 years since Techonomist Nicholas Negroponte wrote Being Digital. We now swim in a sea of data and the sea level, so to speak, is rising rapidly. Billions of connected people, far more billions of sensors, and trillions of transactions now add up to create unimaginable amounts of information. This new environment will require extraordinary adaptability: It is as if we are a species from dry land that has to learn to live in the ocean.
The digital age environment requires a new design for companies, which presents both threats and opportunities. Companies will be disintermediated, will see the erosion of their market share as new entrants muscle in, and technology companies will threaten the position of incumbents in more and more industries, threatening profitability.
But there are also opportunities: sources of rich information are multiplying, and more information is being digitized all the time. Every business is becoming a digital business.
However, the potential benefits of the explosion in number of nodes and the volume of data is being squandered due to low levels of trust, concerns about security, and barriers to monetization. That’s why my company, SWIFT, has launched a project called the “Digital Asset Grid.” The Grid is a research initiated by Innotribe, SWIFT’s Innovation initiative for collaborative innovation. With the Grid, Innotribe proposes a new infrastructure for banks to provide a platform for secure peer-to-peer data sharing between trusted people, business, and devices.
I am looking forward to the 2012 edition of Techonomy. The conference convenes discussions among leaders focusing on the implications of technology change. Kevin Kelly put technology “in charge” in his seminal work What Technology Wants, challenging the notion that humans control the direction of technology. I look at it more and more as a form of symbiosis.
The Internet, with its built-in peer-to-peer-network architecture, made new forms of collaboration possible. Creative energy unleashed at the edges of the network challenges how we will organize our intelligence and our companies.
Peter Vander Auwera is the Co-founder of Innotribe and Innovation Leader at SWIFT. He was a participant at the Techonomy 2012 conference in Tucson, November 11-13. Click here for a complete video archive of Techonomy 2012.