bror.salmelin@cec.eu.intbror.salmelin@cec.eu.int

European Commission, New Working EnvironmentsEuropean Commission, New Working Environments

Technologies driving systemic innovation-

Creative destruction of boundaries

Shaping your Future in Knowledge Society,

Amsterdam Jan 2005

2

Starting point: The Lisbon agendaStarting point: The Lisbon agenda

Lisbon councilLisbon council …. …. ““To become the most To become the most competitivecompetitive and dynamic knowledge-based and dynamic knowledge-based economy in the world, capable of sustainable economic growtheconomy in the world, capable of sustainable economic growth with with more and better jobsmore and better jobs and and greater social cohesiongreater social cohesion.”.”

Knowledge & SkillsKnowledge & Skills determines the success of individuals and companies determines the success of individuals and companies in the global economy in the global economy

Organisations inhibit or catalyse value creation in knowledge economy, Organisations inhibit or catalyse value creation in knowledge economy, add no value themselves!add no value themselves!

Harnessing the Harnessing the creativity and innovationcreativity and innovation of 450 M Europeans for the of 450 M Europeans for the knowledge economy ---- knowledge economy ---- the target the target BEYOND CONSUMERS,WORKERS BEYOND CONSUMERS,WORKERS OR DEPENDENTS: A EUROPE OF CREATORSOR DEPENDENTS: A EUROPE OF CREATORS

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Globality: challenges and opportunitiesGlobality: challenges and opportunities

Challenges…Challenges…

Productivity gap?Productivity gap?

Relocation Relocation of low quality standardized jobs and, high skilled work to of low quality standardized jobs and, high skilled work to countries outside the EUcountries outside the EU

Job lossesJob losses

Inclusion (regional, rural, skills)Inclusion (regional, rural, skills)

Opportunities… Opportunities…

Strengthening Strengthening the European Research Area – the IST is a priority the European Research Area – the IST is a priority

Investing in human capital Investing in human capital – expand the base of qualified ICT – expand the base of qualified ICT practitioners in strategic areas, emerging technologies, skills of ICT practitioners in strategic areas, emerging technologies, skills of ICT users of innovative systems…users of innovative systems…

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Value Creation in Knowledge EconomyValue Creation in Knowledge Economy

intangible economyintangible economy– extended products including embedded services, extended products including embedded services,

covering entire life cyclescovering entire life cycles

knowledge based economyknowledge based economy– digital content and servicesdigital content and services

networkingnetworking– simultaneous, complex and multidisciplinarysimultaneous, complex and multidisciplinary

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Productivity gap?Productivity gap?

World Competitiveness ranking 2004 World Competitiveness ranking 2004 (http://www.weforum.org) :(http://www.weforum.org) :

– Finland, USA, Sweden, Taiwan, Denmark, Norway, Singapore,…..-Finland, USA, Sweden, Taiwan, Denmark, Norway, Singapore,…..-> different models, very holistic!> different models, very holistic!

ILO statistics ILO statistics ((http://www.ilo.org/public/english/employment/strat/kilm/htm)http://www.ilo.org/public/english/employment/strat/kilm/htm)

– Productivity growth per hour not higher in US than in Europe! (US Productivity growth per hour not higher in US than in Europe! (US 3,4% p.a, e.g. Fi 5,6, UK 3,8%, F 3,9% in years 1980-2001)3,4% p.a, e.g. Fi 5,6, UK 3,8%, F 3,9% in years 1980-2001)

– We work far less hoursWe work far less hours– -> societal model and societal values-> societal model and societal values

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Change of ParadigmsChange of Paradigms

Networking characteristics: Networking characteristics:

– complexitycomplexity

– dynamicsdynamics

– synthesissynthesis, and “best guesses, and “best guesses””

– connectivityconnectivity rather than competencerather than competence

Global issues binding technology, business and legal innovation Global issues binding technology, business and legal innovation

– ““e- space” for “all”e- space” for “all”

– privacy, IPR, ADR etc….privacy, IPR, ADR etc….

– public-private partnershippublic-private partnership

Digitalization of goods and servicesDigitalization of goods and services

– from cost to value from cost to value

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The response neededThe response needed

InnovationInnovation– Technology driven research meeting demand-driven research in real Technology driven research meeting demand-driven research in real

world settings: Living Labs as melting pointworld settings: Living Labs as melting point

CreativityCreativity– Supporting multidisciplinary, connected work environments for Supporting multidisciplinary, connected work environments for

knowledge intense workknowledge intense work

InclusionInclusion– Creating possibilities for work communities and atypical work Creating possibilities for work communities and atypical work

relations to capture the full participation of all Europeansrelations to capture the full participation of all Europeans

Covering both « old » and « new » sectors by Covering both « old » and « new » sectors by systemic systemic innovationinnovation

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ICT for collaboration fostering competitivenessICT for collaboration fostering competitiveness

EFFECTIVENESS

-do tasks anywhere,

anytime, with anyone

EFFICIENCY

-allocations of resources

-participation to work

CREATIVITY

-new ideas

INNOVATION

-new products and services

PRODUCTIVITY AND GROWTH

COMPETITIVENESS

COLLABORATION

-seamless interaction

HUMAN

BRAINS

ICT for collaborative

working environments

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Workplace innovations and productivityWorkplace innovations and productivity

1995-2000

Labour

Non-IT capitaldeepeningIT capital deepening

MultifactorProductivity

Workplace Innovations account for 89 % of Multifactor Productivity gains*

*Black and Lynch. San francisco federal reserve. 2004

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Diversity – strength of Europe !Diversity – strength of Europe !

@ Lee Fleming, Perfecting gross-pollination. Harvard Business review September 2004.

High low

Low

high

Val

ue

of

inn

ova

tio

n

Breakthrough

average

insignificant

Alignment of team members’ disciplines

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Full Impact Needs Systemic InnovationFull Impact Needs Systemic Innovation

Component innovation Systemic

innovation

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From excellence at the point of production towards excellence in collaborative networks

A. Smith: Chain productionA. Smith: Chain production

D. Ricardo: SpecializationD. Ricardo: Specialization

Working in GroupsWorking in Groups

Collaboration: Seamless work to achieve Collaboration: Seamless work to achieve common goals: cooperation + competitioncommon goals: cooperation + competition

XXI century

XX century

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L

L

L

Competence nodes networkingCompetence nodes networking

Competences

Connectivity

Leadership

Customers

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ThesisThesis

In knowledge economy the trends suggest us to In knowledge economy the trends suggest us to move from move from organisation- to human centric perspective:organisation- to human centric perspective:

– We all have multiple simultaneous roles:We all have multiple simultaneous roles:• private - publicprivate - public• work – privatework – private• often multiple and changing in context with no clear boundariesoften multiple and changing in context with no clear boundaries

– Organisations vs. CommunitiesOrganisations vs. Communities

– Organisations catalyse or inhibit value creationOrganisations catalyse or inhibit value creation

– Incentives for the individuals to value creationIncentives for the individuals to value creation

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Trend visible in the press, or is it actually?Trend visible in the press, or is it actually?

““Collaborative solutions will be the next billion-dollar categoryCollaborative solutions will be the next billion-dollar category”. ”. BusinessWeek (2003)BusinessWeek (2003)

““Almost everything is group-oriented. Everything has to do with Almost everything is group-oriented. Everything has to do with the inefficiencies that exist with people working togetherthe inefficiencies that exist with people working together” Bill ” Bill Gates (Oct. 2003)Gates (Oct. 2003)

““Collaboration with colleagues, partners and customers will allow Collaboration with colleagues, partners and customers will allow to find optimal, innovative solutions”to find optimal, innovative solutions”. Japan’s Future office . Japan’s Future office Scenario (April 2004)Scenario (April 2004)

““Global collaboration, customer feedback and personal Global collaboration, customer feedback and personal knowledge management are transforming the workplace todayknowledge management are transforming the workplace today””. . IWPC (2004)IWPC (2004)

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AMI@Work family of communitiesAMI@Work family of communitiesInnovation, Inclusion and Creativity for Empowering, Person-centric New Working EnvironmentsInnovation, Inclusion and Creativity for Empowering, Person-centric New Working Environments

Collaboration@WorkChair : Wolfgang Prinz, Fraunhofer FIT (DE)

EC : Isidro Laso

Mobility@WorkChair : Hans Schaffers, Telematica Inst. (NL)

EC : Michael Ziegler

Knowledge@WorkChair : Anne Jubert, CRSA (FR)

EC : Paul Hearn

‘horizontal’ technology themes & SEEM‘vertical’ challenging verification environments

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SEEM@WorkChair : Flavio Bonfatti, Univ. Modena (IT)

EC : Oluf Nielsen Wel

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www.AMIatWork.com16/12//2004

New Working Environments

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(FI)

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Challenges for Collaborative workChallenges for Collaborative work

Mobility to allow work anywhere at anytime, thereby Mobility to allow work anywhere at anytime, thereby productivityproductivity. . Seamless connectivitySeamless connectivity

Collaboration* to ensure the work with whoever owns the needed Collaboration* to ensure the work with whoever owns the needed knowledge, thereby knowledge, thereby productivity and creativityproductivity and creativity. . Management of Management of complexitycomplexity

Virtualization of the work environment Virtualization of the work environment to allow contextualized to allow contextualized services, therebyservices, thereby creativity. creativity. Virtualization Virtualization

Augmentation of human capabilities with artefacts, thereby Augmentation of human capabilities with artefacts, thereby productivityproductivity..

*. around a 50% of all companies’ activities are related to interaction between individuals and between them with the environment.

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Intelligent Collaborative EnvironmentIntelligent Collaborative Environment

Goal: Goal: inferring the goals and needs of users from multiple inferring the goals and needs of users from multiple sources of information about activity and interests sources of information about activity and interests

Virtualised environment that feels the worker and react to Virtualised environment that feels the worker and react to his situation. Multi-technology and multidisciplinary his situation. Multi-technology and multidisciplinary complex systems that includes:complex systems that includes:– Context awareness,Context awareness,– Location and Identity,Location and Identity,– Human Activity management in an office environment,Human Activity management in an office environment,– Adaptive systems,Adaptive systems,– Multimodal Human Computer InteractionMultimodal Human Computer Interaction– Automated visual surveillance.Automated visual surveillance.

Building upon AMI@work researchBuilding upon AMI@work research

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ConclusionsConclusions

Human Centered Knowledge Society meansHuman Centered Knowledge Society means

– Increased responsibility for the individualIncreased responsibility for the individual

– Increased productivity Increased productivity through innovation and creativitythrough innovation and creativity

– Time gain by collaborative structures and shared environmentsTime gain by collaborative structures and shared environments

– Increased possibilities Increased possibilities for wealth creation by atypical job relations for wealth creation by atypical job relations

NewNew work paradigms work paradigms

New New work environmentswork environments

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Matrix: the machines were only half right….Matrix: the machines were only half right….

Ford saw us as units of productionFord saw us as units of production

Friedman see us as units of consumptionFriedman see us as units of consumption

The matrix saw us as units of powerThe matrix saw us as units of power

We are creators…no longer creaturesWe are creators…no longer creatures

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Contact websitesContact websites

http://europa.eu.int/eeuropehttp://europa.eu.int/eeurope

http://www.cordis.lu/isthttp://www.cordis.lu/ist

http://www.amiatwork.comhttp://www.amiatwork.com

and e-mail: and e-mail: bror.salmelin@cec.eu.intbror.salmelin@cec.eu.int