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