> Fred Nickols writes:
> I would love to hear more about how you might engineer some network
> development to enhance the potential for creativity and innovation.
[Host's Note: I think Rich wrote the above words. ...Rick]
Fred, we are seeing a very interesting and important move from
distribution-driven to content-driven organizational forms in
content-oriented industries where creativity is at the heart of the
enterprise (whih business does not fall into this category these days?!).
Content-driven industries are increasingly seeing the replacement of
organized business organizations with their integrated, formal employee
membership and organization structures. Content-driven industries require
content-driven organizations- which is increasingly collapsible
corporations. The distribution-driven model is giving way to the
content-driven organizational form.
Traditionally, organization structures took an integrated approach where
new product and customer requirements were handled by a formally assigned
in-house team, possibly working with integrated formal suppliers such as
consultancies and advertising agencies. Today, the process of creation of
new products is increasingly being carried out by informal alliances of
people working together, often remotely, to deliver the innovation.
Lets look at how some content-driven industries are creating collapsible
corporations:
7 Biotechnology. Small start-up biotechnology companies set up and
specialize either in treatments for a certain type of disease such as
cancer or a particular kind of research methodology such as gene therapy
or computer-assisted modeling. They form strategic alliances with the
existing global pharmaceutical companies to gain access to their
distribution networks. The biotechnology companies basically outsource the
production and distribution of their successful ideas for new drugs to the
distribution-driven pharmaceutical companies. In so doing, a small
start-up gets immediate global reach.
7 Advertising. The organized world had its integrated global advertising
agency with its in-house media buying and content creation where
everything the client wanted was handled in-house. The unorganized world
has small creative shops focused on delivering new ideas for
advertisements and outsourcing the media buying of space on television to
the traditional agencies.
(See, for example, Coca-Cola's move from being using an integrated agency
of record globally- McCann Erickson, to a bouquet of boutiques such as
Mother in London for the advertising for its Lilt brand, and the use of
Creative Artists Agency, a TALENT agency, for creative work on its core
megabrand.
7 Consulting. The age in which a corporate customer goes to a single
management consultancy for strategic or other advice on a long term basis
is over. In the future, consultancies will take the form of corporate
customers subscribing to access a knowledge database that is accessed by
and contributed to by a large number of independent consultants. The idea
is to combine the benefits of self-employment with the scale and support
systems of employment- if constulants want advice or need to find an
assignment in a few months time, they access the consulting clearinghouse
for such services.
(See, for example, the Open Knowledge Network in Norway- a distributed
network of independent IT consultants).
7 Music. Creative artists often prefer to work with independent record
labels. But these independent agencies are small and do not have the
manufacturing and distribution capabilities of the larger record
companies- or the cashflow. Nor do they need it, because they can partner
with the established players. The big companies get access to the upcoming
acts, and the future stars help their cause by gaining the support of the
muscle of the large global players.
(See, for example, Sony Music's strategy of creating a European network of
independent record labels).
7 Mobile phones
The mobile phone industry is rapidly changing. Mobile phone manufacturers
used to design, package, manufacture and distribute new models. Mobile
carriers operating the networks used to design their own services, buy
their phones and so on. Competition has spurred each industry player to
focus on its core business- in the case of mobile phone companies-
designing and perhaps manufacturing handsets, and in the case of network
operators, selling airtime to customers. This has lead to an outsourcing
of handset distribution in particular- networks don't want to hold stocks
and phone manufacturers don't want to distribute them. End customer
innovation is their goal.
(See, for example, Brightpoint's logistics and distribution contracts with
major mobile phone manufacturers on the one hand and mobile networks on
the other).
This ongoing separation between content and distribution is a fundamental
change in the way that companies are organized. Specialization on core
competences and all that. The large companies bring with them their
resources- financial, distribution and so on, and the small companies
generate new ideas. The imperative for every player is to add value- to
justify its existence- and to excel in its chosen specialism. It switches
the focus of the individual from administration to creation- they are
invited to join networks because of the knowledge and unique ideas they
can bring with them.
My book "unorganization: A handbook for individual transformation" at
http://www.unorg.com/indiv.htm describes the nature and form of these
content-driven org forms called collapsible corporations- impermanent,
informal alliances between individuals, the importance of ideas, the
importance of individuals going from rankers in formal organizations to
creative branders in informal networks of people and so on. Worth taking
the time to read I think.
regards sincerely Simon Buckingham http://www.unorg.com/japanjournal.htm
unorganization: business not busyness!
--Simon Buckingham <go57@dial.pipex.com>
Learning-org -- Hosted by Rick Karash <rkarash@karash.com> Public Dialog on Learning Organizations -- <http://www.learning-org.com>