business and innovation in networked economy -co-22!10!13 poland

8/10/2019 Business and Innovation in Networked Economy -CO-22!10!13 Poland

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Business and Innovation in Networked Economy

Course Background and Introduction

The dynamic of our society, and particularly our new economy, is increasingly obeying the

logic of networks. Understanding how networks work will be the key to understanding how

the economy works.

We are connecting everything to everything.

Businesses and governments that are able to effectively employ information and

communication technologies find more sophisticated and efficient ways of managing their

external relationships and communications. This growing ICT usage helps form the critical

mass of electronic transactions which supports a networked economy, both in terms of the

network size and the demand for associated goods, services, labor and policy reform.The critical characteristic of the networked economy is a radical decentralization of physical

capital necessary for the production, storage, distribution, and processing of information,

knowledge, and culture. This decentralization has caused a radical distribution of the

practical capability to act in these areas, creating new levels of efficacy for individuals, who

increasingly shift from being consumers to being users and producers. Individuals have now

become capable of doing much more for themselves and for others, both alone and in vastly

more effective loose collaborations with others.

In the industrial economy, hobbyists, no matter how committed, could not come together on

the weekend and compete with the General Motors of the World. The degree of required

concentrated physical capital made their decentralized, social practices ineffective as aneconomic production activity of any significant scale. Industrial information economy

required models that were able to finance large-grained capital investment: government,

through taxes; business, through market transactions; or organized non-profits, through

large-scale and aggregated giving. News production bifurcated between government

ownership in many countries and advertising-based mass media (with the exception of the

BBC, hybrid model). Film and music also split among these three.

The networked information economy has not decreased the total capital intensity of

information production, storage, processing, and communication, but it has decentralized its

ownership. About a billion people on the planet today own the core physical means of

producing information, knowledge, and culture: they own machines that sense, capture,store, process, and communicate their thoughts, observations, manipulations, and

expressions. These machines are, in turn, shareable, i.e., given their production technology

and the distribution of wealth in the populations that own the majority of them, they are

placed into operation by individuals and families for whom they have excess capacity.

The combination of distribution of physical capital and human capital creates a new

situation. For the first time since the industrial revolution, the most important inputs into the

core economic activities of the most advanced economies are widely distributed in the

population. Moreover, there is a significant amount of excess capacity, both physical and

human, that is being pored relentlessly into new forms of information, knowledge, and

cultural production, as well as into provisioning of networking, storage, and processingcapabilities.


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Learning Outcome

Objective of this course is to develop creativity and innovative thinking among participants

to enable them managing multi stakeholder relationships in the information economy.

After the course, a participant will be able to:

i) Critically analyze business situations for forward thinking through innovation

ii) Appreciate the transformation from industrial to networked economy, and therefore

the new way of doing business in different industry verticals.

iii) Be familiar to the major innovations and experiments carried out to harness the

power of networked economy along with the possible downsides of such

innovations.

iv)

Understand the various forms and models of doing business in the networked world;

learning from both Global and Indian success stories

v) Develop a Business Managers view of on-demand business

vi)

Develop techno-savvy capabilities to manage integrated environments in networked

economy

Pedagogy

The Pedagogic approach:

Class discussions to understand the real life implementations of the concepts learnt as

pre-reads.

Case studies to discuss Best of Breed real life implementations in India and abroad

Group work to develop innovative ways that businesses use in various contexts

Course Requirements

1. Since much of the course material requires class discussion, it is important that

participants are prepared for the class to present and defend their ideas. Preparation

for class includes having read the assigned material.

2. A number of cases will be used in this course. Cases are a great educational

experience but they absolutely require readiness for the class. When cases are

assigned, every participant should come to class ready to discuss the issues of the

case. For each case, participants should: a) identify the major problem, b) give

recommendation to resolve this problem (both short and long term), and when

appropriate d) provide supporting analysis (both qualitative and quantitative) for such

recommendations. Answering the questions provided for each case should help in

this effort.

3. The class will be divided into a number of groups. It is mandatory to discuss the case

in groups and while participating in discussion, exhibit high degree of people skills in

managing the participation

4. Each group is expected to take up a live case of innovation being done in the new

economy. The groups are expected to approach the issue based on the concepts,

examples and techniques discussed in the class and submit their report. Each group

will be required to give a presentation. Evaluation for this assignment will be done

based on individual as well as group performance.


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5. Class participation will be based on the value added to the class through questions,

statement, and comments. It is the quality of these that is more important than the

quantity.

Text

1. Davenport Thomas H., Leibold Marius, Voelpel Sven C. ; Strategic Management in

the Innovation Economy: Strategic Approaches and Tools for Dynamic Innovation

Capabilities; John Wiley & Sons (Mar 2006)

Other Texts

1. Tapscott Don; Wikinomics; Atlantic Books (2008)

2. Pitroda Sam, Desai Mehul; The March of Mobile Money; Harpercollins (2010)

Session Plan

Module Discussion

1

The Innovation

Economy

Innovating the way to the Next

Industrial Revolution on Network

Rebooting the World

Principles for the Age of NetworkedIntelligence

From Ideation to Innovation

Evolution of Strategic Innovation

Partner

Bootstrapping Innovation and

Wealth Creation

2

Innovations in

Networked

Economy

Innovation Methods

Invention and Innovation

Innovation success stories

Innovation learning from failures

Networked Business Models


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Module Discussion

3

Developing the

New Strategic

Mindset

Strategic Innovation

Competing with Dual Business

Models

Strategy as Ecology across differentbusinesses

Social Media as Change Agent

Adopting new technologies for new

innovations

5

Summing up

Learning from Global stories,

application in local context

Leading the future

business and innovation in networked economy -co-22!10!13 poland

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