Friday, January 21, 2011

Nature's Model to Harness Uncertainty for Performance

Uncertainty & its Importance

In business, as in life, we are always faced by uncertainty. That not only puts us into a tight fix but also makes our lives extremely difficult to live. This is because it is difficult to make sense of what is going on around us, how the future would unfold and what we are supposed to do now. It is difficult to think why things are the way they are and what steps might prove appropriate to tide over uncertainty to survive and improve performance.

Higher the degrees of uncertainty bigger are the risks and the problems. Over the years we have therefore searched for models, theories, 'five best ways', best methods practices, rules of thumb and techniques to tackle such uncertainty so as to act in a sensible manner. But we are always unsure about the effectiveness of our decisions and actions. Only after an action is taken we might get to know through hindsight whether it proved effective or useless.

Use of Models

To lessen the risk of such uncertainty we tend to use models. There are different types of models. Most models present us with calibrated yardsticks that try to tell us what is going wrong with the present operation and how much off we are from the ideal target or plan. There are some that try to tell us what and how to predict the future while others tell us what is the ideal thing to do (does not quite matter what we do -- growing a business or raising a child) and how that might be done best. And there are models that inform whether we are on the right track and how to monitor so that we don't slip or accidentally fall off the edges. There are still others that tell us what others are doing and how we might catch up with the best in the field. The range and gamut of the models are mind boggling. For an organization juggling with so many models some of which might be in conflict with each other and tending to them can prove to be a bewildering task with the limited manpower they always like to have.

In spite of so many well meaning models for monitoring, growth and performance enhancement we have seen businesses fail miserably, economies collapse all of a sudden and nations going bankrupt overnight. That is unfortunate. But why is that?

Why Models Fail?

Is there something common that runs through all these models? Most models that we presently have are a sort of idealistic abstractions of the human mind. That is we first think of an ideal that we hope to achieve and then find ways and means to achieve that without considering the ground reality the organization, society or a person is in. We then try to impose that 'ideal way' to deal with a current situation with all the techniques and methods outlined in such and such model. The focus is to neatly fit the model onto a given reality without even trying much to understand what gives rise to that reality.  Naturally, the model would refuse to fit.  But we don't give in. We then measure what or how much of present situation goes outside the boundaries of imposed model and try to trim the excesses or eliminate them so as to forcefully fit the model or framework to comfort us that everything is going smoothly as it should if the model is to be applied.

For example, most economists think that having a huge population would only make a country poorer. The leaders in India were concerned. They found that on an average most Indian families have around five children. That they thought is way above the ideal level of two children. The current reality wasn't quite fitting into their economic model. So they went about sterilizing people by force. People reacted to this and in the next election overthrew the government. If they took time and effort to understand the underlying reality of the present situation the solution would have been rather different. Indian parents tend to have more children, especially boys, as an insurance to support them in their old age. If only the leaders understood this reality the huge sums of money they spent on 'mass sterilization' would have been well spent to start old age pension and medical schemes. That would have been more beneficial to assure Indian parents to limit the size of their families.

Similarly, great efforts are underway in the Indian manufacturing sector to enhance quality and systems mostly through Japanese models of improvement. There is nothing wrong with the models as such only that these are applied to completely different context. As a result they simply produce poor cosmetic output that does little to help a business in the long run. The workers don't understand what is going on and why they are being asked to do things which they think are queer. The underlying reality is that the workers are mostly poorly paid and undereducated. So, would it make more sense to put efforts to educate the workforce rather than thrusting upon them methods which they can't make any sense of? For example, if the worker does not know how to estimate the volume of fluid he regularly handles how can one stop him from wasting material? 

So, 'idealism' is a basic flaw in all the existing models that we have seen till date. It is this all pervading idea of idealism that transforms all these models into highly abstract and arbitrary ones. Hence, these models suffer from the disease of an 'absolute idea' and everything is forced to fit into that 'absolute idea'. It simply does not matter whether we are fitting that 'absolute idea' onto nature, societies and organizations or onto our personal lives without taking into account the current realities and how these have come about.

Therefore, we are confronted with the classic 'To be or Not to be' case. The question is whether we construct a theory in our minds based on some 'abstract ideal' and apply it to a given situation or do we gain insights and understanding of a given situation and then think of what best can be done or achieved under the given circumstances and what might be the consequences of our designed actions? In other words, do we arbitrarily foist our 'idea' on the world to forcefully bring about a change or do our minds reflect the world and translate the reflection into actionable thoughts and designs to adapt and change the world or ourselves?

Obviously, the first method hasn't worked well enough and clearly isn't going to work at all. The alternative is to look at the other approach.

Nature's Model - The Alternative View

The difference between the two approaches lies in the perspectives they take. The 'Absolute Idea' model is a static framework to achieve an ideal irrespective of the given circumstances. Since the alternative approach is grounded in understanding 'movement' it is then akin to developing a model based on the reality and modulating it as changes take place. The advantage of doing so is obvious. Nature moves. So having a model that faithfully reflects and replicates that movement is advantageous than having to fit a pre-formed 'idea' model to the reality of movement, which simply wouldn't match. We would call this the 'Nature's Model', which is a context specific model that can be applied to various issues as opposed to 'Absolute Ideal' model, which is an 'idea' specific model looking for applications. 

What would this 'Nature's Model' involve? When we consciously contemplate about the world around us, we see an immense and amazingly complex series of phenomena, an intricate interrelated web of seemingly endless change, cause and effect, action and reaction -- in short we see 'Uncertainty' enveloping us. The motivation to construct a contextual Nature's Model is based on our desire to obtain insights into this bewildering labyrinth of uncertainty, to understand it in order to harness it for the collective good without unintended consequences to Nature and our future generations. We would then look for laws which can separate the general from the particular, the accidental from the necessary, and enable us to understand the underlying themes that give rise to the phenomena that envelope us. We would do that by considering motion or movement as the basic underlying characteristic of all phenomena.

Why would we consider 'movement' to be the basic characteristic of any phenomena? This might be best answered by the words of David Bohm the celebrated physicist and philosopher:

"In nature nothing remains constant. Everything is in a perpetual state of transformation, motion, and change. However, we discover that nothing simply surges up out of nothing without having antecedents that existed before. Likewise, nothing ever disappears without a trace, in the sense that it gives rise to absolutely nothing existing at later times. This general characteristic of the world can be expressed in terms of a principle which summarizes an enormous domain of different kinds of experience and which has never yet been contradicted in any observation or experiment, scientific or otherwise; namely, everything comes from other things and gives rise to other things." 

The fundamental proposition of Nature's Model is that everything is in a constant state of movement and developing new states. Even when it appears to us that nothing is quite happening, in reality, matter and things are always changing. Molecules, atoms and subatomic particles are constantly changing place, always on the move and always developing new states -- always in a state of becoming something else than what it were. Thus Nature's Model is essentially a dynamic interpretation of the phenomena and processes which occur at all levels of both organic and inorganic matter to help us take critical decisions about adapting and/or changing and living moment to moment to survive and perform.

Richard Feynman had this to say, "To our eyes, our crude eyes, nothing is changing but if we could see it a billion times magnified, we would see that from its own point of view it is always changing: molecules are leaving the surface, molecules are coming back." It is the flux of movement that surrounds us creating the 'uncertainty' that we hope to harness for our betterment. 

However, this idea of motion and change as the fundamental characteristic of Nature is not new to human understanding.

Aristotle wrote: "Therefore…the primary and proper meaning of ‘nature’ is the essence of things which have in themselves…the principle of motion."

This is not the mechanical conception of motion as something imparted to an inert mass by an external "force" (Newton Laws) but an entirely different notion of matter as 'self-moving'. For them, matter and motion (energy) was one and the same thing, two ways of expressing the same idea. This idea was brilliantly confirmed by Einstein’s theory of the equivalence of mass and energy.

The germ of this ideas of self movement and self creation or self organization can also be found in ancient thoughts of Hindus through their metaphor of Shiva (chaos), Vishnu (order) and Brahma (self creation) and in Chinese thoughts captured through their metaphor of the Yang-Yin and the Buddhist thoughts of Flow, Change and Interdependence of all matter and phenomena.

Download now or preview on posterous
Uncertainty.PPT (212 KB)
Therefore, the model presented reflects this reality of movement and change in Nature. Matter flows from one state (State 1) to another state (State 2). The path is both linear (ordered) and non-linear (chaos) to reach its highest potential. This is done through a series of internal self-movements and self creation (or self organizing) through a number of internal contradictions or paired opposites helped by a series of interdependences. While this goes on, the quality of the state of matter continually changes. Once it reaches its highest potential (when the number of interdependences are the highest the system becomes too rigid to hold on by itself and loses its resilience to changes) there is a sudden change and collapse of the state (releasing energy) and the highly interdependent state changes to a new state which rushes back to the previous state from where it started out but at one level higher and more complex in nature and behavior. A number of such spiral transformations of 'uncertainties' are going on simultaneously in a system at any point of time. It is a combination of slow gradual changes, medium short term changes and quick and rapid changes.

How is the Model Useful?

But what useful thing can happen by understanding movement and change of state? It simply helps us to think about the decisions we might take to flow with the changes and not resist them to self destruct ourselves or make things better.

So when the system collapses our decision would be to innovate and restructure the system based on its present level of complexity and behavior. We would have to carefully look for the smallest favorable movement the collapse has brought about that might take us forward or change course in a new direction. For example, if the new state of communication is 'social media' then businesses might do well to think how to innovate to change their brand images through social media. There would be little point in sticking to the older forms of brand building exercises, which are bound to prove futile or counterproductive with the sudden change of state of communication.

Similarly, when the system starts its upward movement our decision would be to institute a number of small changes to help the growth and development towards the new state, if desirable. Such an effort would be a summation of numerous micro changes to boost self organization or self movement to its desired potential (the maximum the state might reach before it collapses again and tries to go back to its previous state).

But when the state matures to its highest potential then our efforts might be directed to maintaining the state as long as viable without being blind to the fact that all that stability that we enjoy would soon collapse to a new state. Hence our decision might be to maintain stability and prepare for the collapse at the same time. 

So our decisions would change as per the circumstances we are in. Broadly there would be four states -- initial, growth, stability and collapse and creation of a new state. In each case the type and quality of decision to be in the flow would be different. Accordingly the quantity and quality of our efforts would also change depending on the state we are in.

However, it is important to assess the situation as accurately as possible. This can be done through insights that can be gained through our observation of the reality. Gaining insights of the reality (mistaken as uncertainty) has another advantage. Gaining insights from the present movement would also help us to assess how the movement would change within a given time and space and whether it distorts them. Having said that we must implicitly assume the fact that accuracy of such assessment might be off by a wide margin since it can not be predicted accurately. Nonetheless it would be useful to have a general idea of the movement and about what time the collapse might take place.

It is important to remember that our insights would always be context specific and therefore ever changing. Previous insights wouldn't hold true as soon as the context or the movement changes. That calls for mechanisms to have snapshots of the present reality and monitor the changes with respect to previous states. It would always be a work in progress.

Limitation & How do we overcome that?

There is one inherent danger in gaining insights. Gaining insight starts with observation. And that is where the potential difficulty lies. Observing is a state where the confluence of  time, space and observer' mind take place. And there seems to be no guarantee that the mind of the observer would faithfully reflect the state of the reality. The mind of the observer might change the reality instead of faithfully reflecting it leading to distorted understanding and insights. Such irrationality of the human mind is expected due to the interaction between the characteristics of the mind and reality. One way to get over this difficulty is to cultivate the discipline of an open, supple but critical mind. The other way would be to expect and allow failures, be responsive to it and instantly learn and correct the mistake so that reality is not reflected in a distorted manner. Of course the best way forward would be to follow both ways.

Conclusions

We might now conclude that 'uncertainty' is only a delusion. Movement is real and that is the truth behind every phenomenon that we encounter. There is nothing like an 'Absolute Idea' or 'Absolute Ideal'. So, by understanding and gaining insights from 'movement' we can change and adapt to the flow of movement in forms of appropriate decisions and actions. But that would call for understanding the laws of Nature to interprete reality as accurately as possible. That is what Nature's Model hopes to achieve. The leverage that might be gained is enormous. Since the model replicates the movements in Nature it can be easily applied to a host of issues in organization development, business performance, economic viability, sustainability, personal growth and development, design and thinking. One model serves different roles and purposes. Aren't we fortunate? Perhaps!

Posted via email from dibyendu's posterous

Wednesday, January 19, 2011

The Anonymous Letter

Raghubir Singh Rathore zipped his travel bag and buckled his bedding, ready to join his first place of posting at Banskata in Rajasthan and Gujarat border and also not very far from the Indo-Pakistan border. Rathore will be heading a Government of India unit at Banskata. The place is famous for smugglers and also for government officials who regard it as a prize posting but considered a hard posting. A lucrative posting for some and a place to show one’s caliber and mettle. Banskata was famous for smuggling of acetic anhydride (generally used for processing of heroin) from India to Pakistan and narcotics from Sindh (Pakistan) to India.

Rathore was briefed by his immediate officer Mr. Madhab Singh of what he is expected to do. Rathore just out from his college with high ambition and morality loved to live in a utopian world. He was an upright person and hailed from a royal family from Ajmer in Rajasthan.

The five hour journey from Barmer town through the sandy terrain to Banskata had Rathore’s face caked up with the tiny sand particles. Rathore felt irritated, he never lived in this kind of hardship. His clothes smelled of the “beedi” smoke generated by his co-bus passengers. He was received by his colleagues at the bus stand. He went to his office cum residence. He slowly surveyed his new home. The rooms were plastered with mud and were tinned roof. His only companions were the squirrels. He headed for the bathroom to have a shower. He found two earthen pitchers and a mug. He was told by his cook that water is scarce here and one has to use it judiciously.

Rathore has a seven member team which includes four individuals who are above fifty five years old and suffer from various age related diseases. The other three are below thirty years old whose main objective in life was to get a government job which they got. Most of them got posted at Banskata as “punishment posting”. They are inefficient and trouble makers so no officers liked them. They were shoved to a place where there is hardship though the place was very good in terms of work output.  Rathore thought how to get work from these deadwoods. He must do something to motivate his workforce.

The next morning he called a meeting. He addressed his team members and urged them to put in their best and make use of their experience they have gathered over the years. Rathore’s tried his best to motivate his dead army. His predecessor   had never gone out of his way to show his output. He just completed his tenure and played cards with other government officials of different agencies operating in the area.

Six months passed, Rathore was working almost single handedly. He believed in “The leader shows the way”. He did achieve some good results which were appreciated at his Headquarters. Rathore was called for the half yearly progress meeting. He went to attend the meeting at Jodhpur. He was felicitated by his senior officers. He was buoyed by his achievements.  He started to apprise his senior officers of the HR problems being faced by him, but no one was ready to listen to his problems. “Your problems will be taken care of” was the pet reply from the officers.

One year had passed. Rathore was working well but the rift was widening between him and his subordinates. His staff asked him to pass their false Travelling Allowances bills and Medical bills as they thought it is was a rightful compensation from the government and a prerogative for making them stay in a hardship area. It was also the time for Annual Confidential Reports (ACRs). Rathore gave very low assessment marks to most of his subordinates. The ACRs were accepted by the reviewing officer also. Most of them got “bad remarks” which were conveyed to the staff individually.

The senior officers in Jodhpur were in a huddle. They watched wide eyed. The anonymous letter contained vivid details of how Raghubir Singh Rathore made huge money through smuggling of narcotics from Pakistan. The phone rings. The PA transfers the phone to his boss, the call was from the head of Narcotics Control Bureau (NCB). The NCB officials were after Rathore like a pack of hungry hyenas. The officers were desperate to save Rathore. They knew the anonymous letter was the handiwork of those deadwoods posted at Banskata unit. A special SUV was sent to Banskata immediately with the direction to move Rathore to Jodhpur.

Next morning Rathore signed the attendance register at Jodhpur. A new team was formed at Banskata unit.

Lessons learned:

1. The management saying 'that all progress is done by the unreasonable man' doesn't seem to work on all occasions and the probability of the 'unreasonable' man being hurt by the system is high.

2. The management concept 'of working at the fringes to create results' also seems suspect.

3. One is limited by the constraints imposed by the system. 'Free will' can only be exercised within the given circumstances and the state of the system.

4. Doing something out of the context always produces disasters. One has to understand the context and work accordingly. That is what is actually meant by 'going with the flow'.

5. A collapsing system can't be revived by bringing in an effective and efficient leader. The only  effective way is to totally restructure or revamp the system.

 

Mr. Sitendu De is the contributor of this post.

Posted via email from dibyendu's posterous

Monday, January 17, 2011

Robots Run the Asylum

Winter was mild and cool

Time for fun& play

But old Mr. Ram was hard at work

 

25 years back on a fine summer day

Mr. Ram opened his factory

So that it never shuts down

 

Within last 5 seasons

Mr. Ram bought or built 6 more factories around the globe

So that his businesses never close & monies flow

 

Last autumn, when leaves were losing colors

Mr. Ram turned 72

He suddenly became young at heart & more adventurous

 

So, on a fine winter morning

He vowed never hit the streets to the airport again

Except visit his oldest factory once a day

 

50 years back

He was the brightest management student around

Now he thinks all management theories are nothing but junk

 

So he decides to muddle the mud on the shop floor

With his own ideas tinged by ‘creativity’

Rejecting all that he passionately knew


One Sunday evening when the moon shone bright

He had one of his brightest ideas

Why not have three Works Managers instead of one?

 

Next morning when employees trooped in grudgingly

They saw the notice board in awe

Henceforth each one would handle 5 bosses


By afternoon, when the sun shone dimly on the wintry sky

Managers were crest fallen – not knowing what to do

Employees smiled clearly knowing the path ahead

 

By Friday evening the air was chill

Productivity went through the floor

Lunatics ran the asylum

 

Darkness fell, stilling everything around

Motion came to a grinding halt.

Robots moved everywhere not knowing where to go

Posted via email from dibyendu's posterous

Sunday, January 16, 2011

Designing Our Future -- Distributed Living

This video of around 27 minutes gave me a great insight about how we would be living in the future and what type of design would shape it.

The video talk offers two central concepts, which are the emergence of 'distributed energy' and 'distributed information'.

This two when coupled forms a new emerging social pattern. That means that we are slowly and steadly drifting towards a new state.

How is that?

So long large electricity companies held the monopoly over energy. They produced it and then distributed it to thousands and millions of people. So we had a small group of producers and a large base of consumers. And consumers paid for their consumption whatever the producers demanded from time to time.

Similarly, schools, universities, publishers, newspapers, television companies and large organizations produced information and then distributed it to the public for consumption. The schools, universities and other organizations that held exclusive rights to the information decided on how such information would be distributed, when it would be distributed, how would it be distributed and how would people pay for consumption of such privilaged information.

All this is about to change. Changes are taking place in the way we are now creating and distributing information. Now individuals create information and share them with others who return the favor through their own contribution to the general pool of available information resources for the consumption of others. It is needless to mention that internet and social media brought about such dramatic changes in our modern lives. And it is has worked wonders. It has virtually wiped out all traditional newspapers in the US and elsewhere. We no longer look up an Encyclopedia for information. We click on Wikipedia for information. And most of the information is free, easily available and mostly accurate. I have virtually stopped visiting my favorite library for quite some time. I get what I want to know on the net. And if needed, buy books through online portals just with the same effort and ease I take to book my air, train and movie tickets. 

Post offices are no longer important source of distribution of information. We exchange information at the click of a button and email them all over the world in seconds. We are slowly making landline phones redundant. Mobile phones are now being used more for data usage & transfer rather than as a phone devices. We can now do all that talking for free through Skype and other similar platforms. 

The power of individual leadership is now unleashed. One can choose whom to follow, whom to have a discussion with, whom to turn to for advice in case of need and whose articles are worth the wait, time and effort. In short we can choose our teachers and choose what to learn. We are no longer dependent on old archaic structures that try to shove down our throats information which we care least about.

The power to do something now rests on the consumer not the producer.

If we choose to look carefully the same thing is happening in the energy sector. Centralized energy production and distribution are giving way to consumer driven energy production and distribution. First in the line were the industries. They went off the grid to have their own source of power. And they had a good reason to do that. It costs them lot cheaper than taking power from the grid. They did not stop at that. If they were left with any excess power they wheeled it back into the grid and sold the units they contributed. This further lowered the energy cost of manufacturing. Just to give an idea most were producing and consuming electricity at half the cost. With such an arrangement the consumer now becomes the producer and the consumer at the same time.

Others have been quick to follow. Individual homes are setting up their own power back up sources. At the lower end they store power in batteries and use it during power cuts. At the higher end consumers are producing their own electricity from alternative sources of energy -- wind, sun, tides and wastes. It covers almost the entire requirement.

We see similar changes taking place in the water supply systems. Earlier it was the Government's responsibility to provide its citizens with fresh, clean potable water. In many countries like India the system is broken. The onus or responsibility can no longer be taken care of by Government authorities. Hence people are now having their own water supply systems that provide them with clean potable water. The consumer has taken up the responsibility. And it is no longer centralized.

Where is all this leading to?

We are moving away from centralized systems to decentralized or distributed systems. The inherent contradiction between the producer and the consumer has automatically paved the way for people to assume the role of being both a producer and consumer at the same time. And there is something more. After consuming whatever is needed the excess is shared with other consumers in exchange for things others are willing to contribute and potential consumer are willing to accept.

Now we have a formidable combination of three important emergences, which are a) distributed energy b) distributed information c) contribution economy.

As we combine these three emergent properties new design possibilities open up that would have the potential to change the way we choose to live in the near future.

I would like to draw a potential scenario as follows:

1. Individual houses would give way to high-rise landscaped building complexes almost resembling a 'village' of yesteryears but far better and more complex.

2. Such complexes would produce their own energy from alternative sources -- solar, wind, waste, hydrogen cells, tidal and geothermal depending on the location and the circumstances.

3. And they would produce their own information -- for building or supporting education systems, training and developing others and offer services to others. 

4. They would create and maintain their own water sources and harvest whatever is available to make their system self sustaining.

5. They might choose to produce their own food sources and means of entertainment.

6. They would take support of effective alternative health systems that are way cheaper than traditional systems.

7. They would create their own local economies to make their 'villages' sustainable.

8. The occupants would produce and consume their own energy, information, water, food etc and combine them in novel ways to sustain their economies.

9. They would share the excess of what they consume with other neighboring 'villages' and also borrow from them what they need.

10. The possibilities are endless... a whole new world would open up.

The possibility of such new design is emerging. And the advantages of such designs are many, some of which would be the following;

a. Carbon free. It is estimated that 60% of the energy a nation consumes goes in housing and transportation.

b. Sustainable and more natural living under more natural habitats.

c. Save the bother and expenses to commute to work.

d. Moving away from monopolistic economies

e. The common man decides the way they live, produce, consume and work.

f. Act local and think global -- drawing on resources all over the world to meet specific local needs of the economy.

g. Contribution economy -- something quite different to both capitalistic and socialist forms of production and consumption.

h. Other advantages would be evident as we go along.

The best thing such designs offer would be to create self-sustaining societies that would primarily be sustained through social contribution of distributed energy and distributed information and sharing of resources. That is probably the beginning of a viable 'Contribution Economy'. An appropriate term for all these put together might be 'distributed living'.

However it is also evident that all societies would not progress towards this concept of 'distributed living' simultaneously. It definitely depends on the present conditions and the collective consciousness of our existing societies that grossly differ in terms of their social behavior that arises from their individual social context.

The first baby steps towards such design for a new way of distributed living is underway in some European societies (I just shy away from using the word 'nations' since this concept is becoming redundant in the modern context of distributed living). Such baby steps would set the trend for others to follow suit.

This is truly the century that throws up the distinct possibility of architects, designers, engineers, design thinkers, system thinkers and leaders to join hands to create a Brave New World.

It remains to be seen how we grab this upcoming opportunity and go forward to save us from natural extinction as human species towards which we are now headed for.

But I am sure of one thing. We now need more leaders at small group levels than ever before.

Where are they hiding?

 

Posted via email from rdarchitect's posterous

Designing Our Future -- Distributed Living

This video of around 27 minutes gave me a great insight about how we would be living in the future and what type of design would shape it.

The video talk offers two central concepts, which are the emergence of 'distributed energy' and 'distributed information'.

This two when coupled forms a new emerging social pattern. That means that we are slowly and steadly drifting towards a new state.

How is that?

So long large electricity companies held the monopoly over energy. They produced it and then distributed it to thousands and millions of people. So we had a small group of producers and a large base of consumers. And consumers paid for their consumption whatever the producers demanded from time to time.

Similarly, schools, universities, publishers, newspapers, television companies and large organizations produced information and then distributed it to the public for consumption. The schools, universities and other organizations that held exclusive rights to the information decided on how such information would be distributed, when it would be distributed, how would it be distributed and how would people pay for consumption of such privilaged information.

All this is about to change. Changes are taking place in the way we are now creating and distributing information. Now individuals create information and share them with others who return the favor through their own contribution to the general pool of available information resources for the consumption of others. It is needless to mention that internet and social media brought about such dramatic changes in our modern lives. And it is has worked wonders. It has virtually wiped out all traditional newspapers in the US and elsewhere. We no longer look up an Encyclopedia for information. We click on Wikipedia for information. And most of the information is free, easily available and mostly accurate. I have virtually stopped visiting my favorite library for quite some time. I get what I want to know on the net. And if needed, buy books through online portals just with the same effort and ease I take to book my air, train and movie tickets. 

Post offices are no longer important source of distribution of information. We exchange information at the click of a button and email them all over the world in seconds. We are slowly making landline phones redundant. Mobile phones are now being used more for data usage & transfer rather than as a phone devices. We can now do all that talking for free through Skype and other similar platforms. 

The power of individual leadership is now unleashed. One can choose whom to follow, whom to have a discussion with, whom to turn to for advice in case of need and whose articles are worth the wait, time and effort. In short we can choose our teachers and choose what to learn. We are no longer dependent on old archaic structures that try to shove down our throats information which we care least about.

The power to do something now rests on the consumer not the producer.

If we choose to look carefully the same thing is happening in the energy sector. Centralized energy production and distribution are giving way to consumer driven energy production and distribution. First in the line were the industries. They went off the grid to have their own source of power. And they had a good reason to do that. It costs them lot cheaper than taking power from the grid. They did not stop at that. If they were left with any excess power they wheeled it back into the grid and sold the units they contributed. This further lowered the energy cost of manufacturing. Just to give an idea most were producing and consuming electricity at half the cost. With such an arrangement the consumer now becomes the producer and the consumer at the same time.

Others have been quick to follow. Individual homes are setting up their own power back up sources. At the lower end they store power in batteries and use it during power cuts. At the higher end consumers are producing their own electricity from alternative sources of energy -- wind, sun, tides and wastes. It covers almost the entire requirement.

We see similar changes taking place in the water supply systems. Earlier it was the Government's responsibility to provide its citizens with fresh, clean potable water. In many countries like India the system is broken. The onus or responsibility can no longer be taken care of by Government authorities. Hence people are now having their own water supply systems that provide them with clean potable water. The consumer has taken up the responsibility. And it is no longer centralized.

Where is all this leading to?

We are moving away from centralized systems to decentralized or distributed systems. The inherent contradiction between the producer and the consumer has automatically paved the way for people to assume the role of being both a producer and consumer at the same time. And there is something more. After consuming whatever is needed the excess is shared with other consumers in exchange for things others are willing to contribute and potential consumer are willing to accept.

Now we have a formidable combination of three important emergences, which are a) distributed energy b) distributed information c) contribution economy.

As we combine these three emergent properties new design possibilities open up that would have the potential to change the way we choose to live in the near future.

I would like to draw a potential scenario as follows:

1. Individual houses would give way to high-rise landscaped building complexes almost resembling a 'village' of yesteryears but far better and more complex.

2. Such complexes would produce their own energy from alternative sources -- solar, wind, waste, hydrogen cells, tidal and geothermal depending on the location and the circumstances.

3. And they would produce their own information -- for building or supporting education systems, training and developing others and offer services to others. 

4. They would create and maintain their own water sources and harvest whatever is available to make their system self sustaining.

5. They might choose to produce their own food sources and means of entertainment.

6. They would take support of effective alternative health systems that are way cheaper than traditional systems.

7. They would create their own local economies to make their 'villages' sustainable.

8. The occupants would produce and consume their own energy, information, water, food etc and combine them in novel ways to sustain their economies.

9. They would share the excess of what they consume with other neighboring 'villages' and also borrow from them what they need.

10. The possibilities are endless... a whole new world would open up.

The possibility of such new design is emerging. And the advantages of such designs are many, some of which would be the following;

a. Carbon free. It is estimated that 60% of the energy a nation consumes goes in housing and transportation.

b. Sustainable and more natural living under more natural habitats.

c. Save the bother and expenses to commute to work.

d. Moving away from monopolistic economies

e. The common man decides the way they live, produce, consume and work.

f. Act local and think global -- drawing on resources all over the world to meet specific local needs of the economy.

g. Contribution economy -- something quite different to both capitalistic and socialist forms of production and consumption.

h. Other advantages would be evident as we go along.

The best thing such designs offer would be to create self-sustaining societies that would primarily be sustained through social contribution of distributed energy and distributed information and sharing of resources. That is probably the beginning of a viable 'Contribution Economy'. An appropriate term for all these put together might be 'distributed living'.

However it is also evident that all societies would not progress towards this concept of 'distributed living' simultaneously. It definitely depends on the present conditions and the collective consciousness of our existing societies that grossly differ in terms of their social behavior that arises from their individual social context.

The first baby steps towards such design for a new way of distributed living is underway in some European societies (I just shy away from using the word 'nations' since this concept is becoming redundant in the modern context of distributed living). Such baby steps would set the trend for others to follow suit.

This is truly the century that throws up the distinct possibility of architects, designers, engineers, design thinkers, system thinkers and leaders to join hands to create a Brave New World.

It remains to be seen how we grab this upcoming opportunity and go forward to save us from natural extinction as human species towards which we are now headed for.

But I am sure of one thing. We now need more leaders at small group levels than ever before.

Where are they hiding?

 

Posted via email from rdarchitect's posterous

Friday, January 14, 2011

Assessing Customer needs vs Collaborating to Co-create Wealth

Owens is a world leader in glass. It had ambitious plans in India. So it set up a few modern plants across India to produce glass bottles.

Its operation was ‘world-class’. They did everything by the book. No mistakes. But soon Owens lost out to its local rival Hindustan National Glass (HNG), a privately held Indian firm. And in a few years it was forced to sell its entire Indian business outfit except one plant to its rivals. Why?

The issue was inventory of finished goods. Owens went by the copy book style of having the minimum possible inventory, producing just what is needed as much as is needed at any specific point of time – all decided by their excellent management tools. But HNG held obscene levels of finished goods inventory, which other called – ‘insanely absurd’.

Theory informs that holding such insane levels of stock means death of the company. While Owens believed this, HNG didn’t. But in the end HNG won the race.  

HNG understood that their customers simply did not have a way of predicting and knowing how many bottles they might need and when they would need them. But there were certain times of the year when demand shot through the roof and stayed high for a few days.

HNG capitalized on this phenomenon. When such booms came HNG was ready with the necessary stock while Owens simply could not figure out a way to deliver the huge requirement in such a short time.  

Naturally customers preferred HNG to Owens and even paid the premium HNG demanded during such crisis periods. And they kept making obscene amounts of profits year on year.

Acquiring the Owens outfits made HNG still stronger and almost monopolistic in the market.   

Morale: Ship as much as possible and as quickly as possible when customers demand.

Are we collaborating with the customer to create wealth for both?

Posted via email from dibyendu's posterous

Thursday, January 13, 2011

Innovator's Field Day -- Learning from Nature

Nature furnishes a wealth of examples of the nature of 'relationships' that leads to chaos, complexities, emergence, uncertainty and transformations -- embraced by the Rapidinnovation model. 

In this post we would discuss one of the fundamental laws that relates two fundamental terms quantitiy and quality. We observe in Nature that quantity changes the quality of an emergence. Even a small quantity can produce a dramatic effect on the output quality or create a dramatic emergent pattern. This would give innovators a clue as to what we might we use to create new relations, new systems, new products or simply solve nagging social and business problems. 

For instance, let us examine the relation between the different kinds of electromagnetic waves and their frequencies, that is, the speed with which they pulsate or vibrate at a given energy level.

Maxwell’s work showed that electromagnetic waves and light waves were of the same kind. However, at a later date, Quantum mechanics proved that the situation is much more complex and contradictory, but at lower frequencies, the wave theory holds good.

It is interesting to note that the properties of different waves is determined by the 'number of oscillations per second' or Hertz (the technical term used in the study of vibration).

The difference squarely lies is in the frequency of the waves, the speed with which they pulsate or the frequency of vibration. Hence it is quite clear that the property (or quality) of the waves changes (an emergent property) when the frequency (or quantity) changes. This change of property implies a change of behavior too. That is to say, quantitative changes give rise to different kinds of signals that differ in quality.

Translated into colours, red light indicates light waves of low frequency. An increased frequency of vibration turns the colour to orange-yellow, then to violet, then to the invisible ultra-violet and X-rays and finally to gamma rays. If we reverse the process, at the lower end, we go from infrared and heat rays to radio-waves. Thus, the same phenomenon manifests itself differently, completely depending on the frequency of vibration (higher to lower frequency). And this is determined by the quanity of energy we add or substract.

Interesting to note that as we move up the frequency ladder the emergent behavior changes from 'fields' to 'waves' and then to 'particles'. This is an important insight, the significance of which we would understand in a moment.

Thus Quantity changes into Quality.

Refer the Electromagnetic Table below.

The Electromagnetic Spectrum

Frequency in Hertz

Name

Rough behavior

102

Electrical disturbance

Field

5 X 105-106

Radio Broadcast

 

108

FM-TV

Waves

1010

Radar

 

5 X 1014-1015

Light

 

1018

X-rays

 

1021

y-rays, nuclear

Particle

1024

y-rays, "artificial"

 

1027

y-rays, in cosmic rays

 

Source: R. P. Feynman, Lectures on Physics, chapter 2, p. 7, Table 2-1.

The Innovators' Field Day.

Application of this law to both engineering and mangement can make any innovator or problem solver very happy.

This is because, as innovators or problem solvers we may cleverly use this law to innovate.For example, the microwave oven is based on this principle. Or invention of infra-red ports, mouses and thermal imaging are based on this principle. Similarly, NASA effectively uses cosmic rays to cure and heal astronauts orbitting the space for months. Likewise we can also understand as to how the use of CFL (compact flurorescent lamp) can affect our health. Or for example, we also notice how low frequency electromagetic radiation affects our hearts and anti-friction bearings in machines alike (fields).

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Similarly, when we apply the principle in management systems we can also effectively use the concepts of fields, waves and particles all differeing in energy content, where all changes in management systems are composed of low frequency slow cycles -- fields -- the culture, ethics, vision and strategy of the company and faster cycles of change (medium to high frequencies) which are in the form of waves (general improvement initiatives for a short duration of time) and particles (focussed improvements). It is fair to admit that both low, medium and high frequency cycles co-exist, just as it does in Nature. 

It would not be therefore surprizing to see Design and Systems Thinkers use this prinicple to effectively bring about social changes in fields like health, education and sustainable living. 

And it would also not be difficult to envisage how designers might use this principle to design effective machines and systems (energy, transportations etc) to reduce global energy consumption and global warming.

And architects can also bring about dramatic changes by using the same prinicple of Quanity to Quality to bring about unique relationships between human beings and their dwellings and their energy consumption and their activities and of course their pets.

They are all important for the brave new world that lies before us begging our intelligent thinking and action.

Posted via email from systemvibes