venkatraman_global work
DESCRIPTION
Initial thoughts on the challenges of global work.TRANSCRIPT
Winning in a Network Era:The Changing Geography of Work
Winning in a Network Era:The Changing Geography of Work
Professor N. VenkatramanBoston University Keane WorkshopNovember 2006
Email: [email protected]
Professor N. VenkatramanBoston University Keane WorkshopNovember 2006
Email: [email protected]
(c) Venkatraman, 2006 2
May 12, 1896May 12, 1896
40.94
(c) Venkatraman, 2006 3
OverviewOverview
Dawn of a Network Era
New World, New Challenges
Implications
Dawn of a Network Era
New World, New Challenges
Implications
(c) Venkatraman, 2006 4
Imagine life without……Imagine life without……
(c) Venkatraman, 2006 5
We are in a network era…We are in a network era…
Live
ConsumePlay
Work Create
Connect
(c) Venkatraman, 2006 6
Or to put it differently…..Or to put it differently…..
(c) Venkatraman, 2006 7
Three laws shape the network eraThree laws shape the network era
Moore’sLaw
Metcalf’sLaw
Gilder’sLaw
Computing Power
Network Nodes
Connection Speed
(c) Venkatraman, 2006 8
With pervasive impacts….With pervasive impacts….
Moore’sLaw
Metcalf’sLaw
BandwidthLaw
Product Process Service
(c) Venkatraman, 2006 9
Even Cartoons deal with the topicEven Cartoons deal with the topic
(c) Venkatraman, 2006 10
OverviewOverview
Dawn of a Network Era
New World, New Challenges
Implications
Dawn of a Network Era
New World, New Challenges
Implications
(c) Venkatraman, 2006 11
Globalization 1.0Globalization 1.0
(c) Venkatraman, 2006 12
One of the First Corporations…One of the First Corporations…
(c) Venkatraman, 2006 13
Globalization 2.0Globalization 2.0
(c) Venkatraman, 2006 14
Globalization 2.0 InfrastructureGlobalization 2.0 Infrastructure
(c) Venkatraman, 2006 15
Globalization 2.0 InfrastructureGlobalization 2.0 Infrastructure
(c) Venkatraman, 2006 16
Globalization 2.0: Management ideas originated from..
Globalization 2.0: Management ideas originated from..
‘the industry of industries’ -- according to Peter Drucker the laboratory for the major management
ideas that we know today
‘the industry of industries’ -- according to Peter Drucker the laboratory for the major management
ideas that we know today
(c) Venkatraman, 2006 17
Emerging Infrastructure for Globalization 3.0
(c) Venkatraman, 2006 18
Globalization 3.0 is about IT-enabled work
Globalization 3.0 is about IT-enabled work
(c) Venkatraman, 2006 19
(c) Venkatraman, 2006 20
Globalization through digital networks..
Globalization through digital networks..
(c) Venkatraman, 2006 21
Remote work Remote work
(c) Venkatraman, 2006 22
Early observations.. But not prescriptions
Early observations.. But not prescriptions
(c) Venkatraman, 2006 23
Remember lessons from the Motorcycle sector?
Remember lessons from the Motorcycle sector?
(c) Venkatraman, 2006 24
It’s not all about accent neutralization!It’s not all about accent neutralization!
(c) Venkatraman, 2006 25
Globalization 3.0Globalization 3.0
(c) Venkatraman, 2006 26
The Business Agenda is to balance exploration with exploitation
The Business Agenda is to balance exploration with exploitation
Exploration(innovation)
Exploitation(implementation)
Firm-centric Network-centric
(c) Venkatraman, 2006 27
The changing laboratory for management ideas..
The changing laboratory for management ideas..
‘early 20th century’‘early 20th century’ ‘early 21st century’
“Mass-produced automobiles”
“Networkedbusinessmodels”
(c) Venkatraman, 2006 28
The Corporation: Shifting lensThe Corporation: Shifting lens
PortfolioOf
Products
PortfolioOf
Businesses
PortfolioOf
Capabilities
PortfolioOf
Relationships
Firm-centricOwnershipVertical Integration
Network-centricRelationshipsVirtual Integration
(c) Venkatraman, 2006 29
Source: Bill Gates Testimony - link
Computer industry [circa 1980s]Computer industry [circa 1980s]
(c) Venkatraman, 2006 30Source: Bill Gates Testimony
Computer industry [circa 2002]…Computer industry [circa 2002]…
(c) Venkatraman, 2006 31
Lessons from this shift…Lessons from this shift…
From vertical integration to virtual integration through linkages
Ownership of assets to network of influence through relationships
Competition within a ‘layer’ and cooperation across layers
Networks are dynamic due to: Emergence of new layers Shifts in the value across layers
Value creation and capture in global networks of competencies
From vertical integration to virtual integration through linkages
Ownership of assets to network of influence through relationships
Competition within a ‘layer’ and cooperation across layers
Networks are dynamic due to: Emergence of new layers Shifts in the value across layers
Value creation and capture in global networks of competencies
(c) Venkatraman, 2006 32
OverviewOverview
Dawn of a Network Era
New World, New Challenges
Implications
4 Questions
Dawn of a Network Era
New World, New Challenges
Implications
4 Questions
(c) Venkatraman, 2006 33
1. Inevitable Globalization of work1. Inevitable Globalization of work
Inevitable globalization of work Shifts in the geography of work
Shifts in the locus of value creation enabled by technology
Availability of people talent
Pervasiveness of technology infrastructure
Differential cost levels
Inevitable globalization of work Shifts in the geography of work
Shifts in the locus of value creation enabled by technology
Availability of people talent
Pervasiveness of technology infrastructure
Differential cost levels
1. Are you capitalizing on the trend?
(c) Venkatraman, 2006 34
2. Lack of clarity in how to architect global work
2. Lack of clarity in how to architect global work
It’s more than call centers
It’s more than routine, low-value jobs
It’s more than cost arbitrage
It’s more than onshore versus offshore
It’s more than visa restrictions
It’s more than 24-hour cycle Etc… etc…
It’s more than call centers
It’s more than routine, low-value jobs
It’s more than cost arbitrage
It’s more than onshore versus offshore
It’s more than visa restrictions
It’s more than 24-hour cycle Etc… etc…
2. So.. are you designing global work for the network era?
(c) Venkatraman, 2006 35
3. Challenges of Governing Global Work
3. Challenges of Governing Global Work
It’s about clarifying decision rights amongst all parties
It’s about redefining roles and responsibilities within dynamic teams
It’s about articulation of incentives and specific performance metrics
It’s about designing the organizational architecture for collaborative global work supported by powerful technological functionality
It’s about clarifying decision rights amongst all parties
It’s about redefining roles and responsibilities within dynamic teams
It’s about articulation of incentives and specific performance metrics
It’s about designing the organizational architecture for collaborative global work supported by powerful technological functionality
3. Are you helping your clients to systematically explore and exploit global work?
(c) Venkatraman, 2006 36
4.The New Global Work Movement Underway
4.The New Global Work Movement Underway
4. What will 4. What will Keane 2.0Keane 2.0 look like to make global work look like to make global work workworkfor you and your clients?for you and your clients?
We need to innovate the architecture of global work
and educate clients and employees about it..
We need to innovate the architecture of global work
and educate clients and employees about it..
Thank You Very Much!Thank You Very Much!