building the knowledge economy 15-10-2004 1 building the knowledge economy itu-conference ‘digital...

Building the knowledge economy 15-10-2004

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Building the knowledge economy

ITU-conference ‘Digital Agenda’Oslo

15 October 2004

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Introducing: Knowledgeland

Independent thinktank based in Amsterdam (1999)

Mission: Turn the Netherlands into a strong region in the knowledge economy, in a manner that creates both economic and social value

Our strategy:1) Vision: Build shared vision & action-oriented innovation strategies2) Action: Initiate and support projects that turns vision into action3) Learning: Create learning networks of innovators

www.kl.nl

Spin offs

Initiating

Action

Vision

Learning

Mission

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Questions

• What is the knowledge economy?

• What kind of education do we need?

• What would be my Digital Agenda for education?

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Economy is changing

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A new labor division

• Production work

• Personal services

• Knowledge workers

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Knowledge workers

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Knowledge economy

The basic economic resource – the means of production’, to use economist’s term – is no longer capital, nor land, nor labor. It is and will be knowledge. (..)

Value is now created by productivity and innovation, both applications of knowledge to work

Peter Drucker (1993)

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Transformation

Machines

Products

Mass production

National

People

Services

Mass-customization

Global

Agriculture5.000 bc - 1500

Industry1500 - 1970

Knowledge1970 -

Land

Food

Hand labor

Regional

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Elements

Knowledge Economy• Intangibles

• Innovation

• Interdependence

Information Society• Information

• Internet

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Intangibles: Hard to touch

• Services is largest sector in the economy

• Value of intangible assets is growing

• Creating value through:– Service– Customisation– Design– Marketing

If all people drop their work,

only 8% will hurt their feet

Kevin Kelly

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Innovation

6 months 2 months 2 weeks

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It never stops..

If we bring out an advanced new product, within 3 to 4 months an improved copy will be ready to ship from China to the world market

Gerard Kleisterlee – CEO Philips

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Interdependence: a smaller world

• Lower transaction costs– Transportation– Travel– Communication

• Global exchange of products and services

• Internationalisation of production and labor

Containers in Rotterdam

0

500000

1000000

1500000

2000000

2500000

1970 1975 1980 1985 1990 1995 2000

Skype.lnk

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Talent

Keep your tax incentives and highway intersections, we will go where the talent isCarly Fiorina – CEO Hewlett Packard

The most important asset of your company is walking out the door every dayMathieu Weggeman – Professor Knowledge Management

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The challenge

Companies are looking for the best talent

Talent is looking for the best places to work and live

Create the best place with the best talent,

you will attract the best companies

+

=

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Building the Knowledge Economy

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People

• Investing in participation

• Renewing the education system

• Promoting a knowledge society

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Public expenditure on education (% BBP)

Norway: 6.1%

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Higher education degrees (25-34 yrs)

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People with only lower education

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S&T students

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Life long learning (% working pop.)

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Teachers per 1.000 students

0 20 40 60 80 100 120

United Kingdom

Ireland

Netherlands

Germany

United States

Finland

France

Sweden

Spain

Norway

Belgium

Italy

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Renewing the education system

• Strategic competencies

• Creativity

• Life long learning

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Strategic competencies

Information

Reflection

Interaction

Interdisciplinarity

Self organisationRisk

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Creativity

• Capacity to formulate new problems and challenges instead of letting others do that for you

• Capacity to apply what you have learned in different contexts

• Capacity to recognise learning is taking place incrementally and means making mistakes

• Capacity to focus your attention towards realising a goal

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Life long learning

1. Learning to know

2. Learning to do

3. Learning to live together

4. Learning to be

General knowledge base

Capacity to learn and specify your knowledge base

Professional skills

Capacity to work in different situations

Social skills

Capacity to live and work together

Develop your own identity

Capacity to act and judge independently

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Innovation vs Uniformity

“We have made systems that make it very hard for bad people to be bad,

but those same systems make it impossible for good people to be excellent...”

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What can ICT do in that process?

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History of the internet

• The principle of universal readership:

"if information is available, then any (authorized) person should be able to access it from anywhere in the world."

• A history of unintentional events in a culture of freedom– hypertext

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Growth beyond expectations

HARDWARE

Internet hosts worldwide, (1995-2002)

HOSTS

USERS

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(R)evolution?

• Over 700 million users worldwide in 15 years

• Already over 100 million broadband users

• Peer to peer network much bigger than internet– 5 petabytes to 40 terabytes

• Text, sound and image are all being embraced by the internet

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Use of content

Two scenarios for the future

Closed Open

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Creative Commons

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Digital Agenda

• Developing new methods and new content

• Creating opportunities for independent learning

• Supporting schools to become smarter

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1. New methods and content

• Most ICT investments in infrastructure and licenses

• Slow uptake by traditional publishers for new content

• Closed model of innovation

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New competencies

Access

Basic skills

Strategic competencies

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Open model of innovation

Investing in new methods and new content by using an open model of innovation:

• Make schools innovators, not publishers or Dpt.• Create new instruments for innovation• Build systems for sharing public content (CC)• Stimulate development of open source software

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Some instruments

• Digital Pioneers– Direct money for small-scale innovations– Active strategy for roll out of successful experiments

• DISC: – Testing and publishing useful Open Source software– National license structure for Creative Commons– Stimulating specific public content under CC

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2. Independent learning

• School no longer has monopoly on learning– Digital Playgrounds

• From mass-production to personalised learning– Weekendschool

• Learning independent from time and place– Digibeter

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3. Smarter schools

• Need for better IT-systems often ignored

• Opportunities for improving HRM / KM / FM

• Look at process innovations in other sectors

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ERP-systems for schools

• Step 1: Experiment with one school

• Step 2: Test-project with 12 schools

• Step 3: Roll out through the market

Server

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Promoting a knowledge society

• A creative society

• A learning society

• An open society

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Knowledge as water

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Joeri van den Steenhoven

www.kl.nl

js@kl.nl

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Changes in all domains

Society

PoliticsEconomy

Technological

change

Organisational

change

Cultural

change

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Traditional enterprise

Fac

DD       

Division X

Trustees/StakeholdersBoard

pb

Dir

pSD

SD

AH

Department X

Jr

Dir

pDG

ParliamentCabinet

DG

SG

Sr

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Network enterprise

Design

Marketing

R&D

Management

Business Units, Partners & Suppliers

supplier

partner

supplier

Business unit

partner

Business unit

supplier

supplier

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Network enterprise & Internet

• Scalability• Interactivity• Management of flexibility• Branding• Customisation

The Internet adds to the network enterprise the capacity to evolve organically with innovation, production systems and market demand while keeping its focus on the ultimate goal of business: money makingManuel Castells

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International knowledge workers

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Cultural change

• Higher educated people

• Rise of Individualism

• More leisure time

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Challenges

• Create opportunities for people to participate in the knowledge society

• It’s more than information and the internet

• Vision must be more than words

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3 stages of interaction

Communication Organisation Information