Session 2 The Network Society E Government technology and democracy

1. The Network Society Dr. Juan Luis Manfredi Sánchez Correo-e: juan.manfredi@yahoo.es juan.manfredi@ie.edu Twitter: @juanmanfredi http://ciberdemocracia.blogspot.com

2. 2 Juan Luis Manfredi, Ph.D @juanmanfredi 1. Technology, Society and Historical Change The current transformation is not a question related only to Internet and New Media Castells’ Theory is based on the pre-internet technologies: they prepare the current structure and the forthcoming change Information is the backbone of society, so where’s is the difference? Information society means that the info leads the economy, the politics and the society The new paradigm is equal if not greater in impact to the industrial revolutions that have shaped the development of the modern age The current development changes all the human activity starting with the economy

3. 3 Juan Luis Manfredi, Ph.D @juanmanfredi 1. Technology, Society and Historical Change

4. 4 Juan Luis Manfredi, Ph.D @juanmanfredi 1. Technology, Society and Historical Change The key question is the capacity for change: the ability to develop tech is useful indicator of development “The ability or inability of societies to master technology, and particularly technologies that are strategically decisive in each historical period. Largely shapes their destiny, to the point that we could say that technology per se does not determine historical evolution and social change, technology (or the lack of it) embodies the capacity of societies to transform themselves, as well as the uses to which societies, always in a conflictive process, decide to put their technological potential.” (p.7)

6. The labour and the organizers of production

7. The interaction amongst ourselves

8. The way we consume

9. The primacy of experience over productionTECH

11. Consumers control 5W access to meet wants and needs

12. Branding and marketing push is needed to build awareness and loyalty

13. Crowded, competitive marketplace

16. The challenge to traditional families and patriarchalism

17. The definition of the self

18. The identity: ethnic and religious groups The more globalized and interdependent is the world, the more reduced is the creation of insular identities The government faces the challenge Why? The informationalism is based on the technology of knowledge and it has the potential to impact across several level of society SOCIAL ASPECTS

20. It modifies the nature and the quantity

22. The knowledge itself becomes the commodityECONOMY

24. Access to integrated markets

25. Production costs and prices

27. Networking companies

28. International trade blocs

29. Transnational institutions

30. The decline of the Nation-StateECONOMY

31. 11 Juan Luis Manfredi, Ph.D @juanmanfredi Porter’sFiveForces 1. Technology, Society and Historical Change

32. 12 Juan Luis Manfredi, Ph.D @juanmanfredi Three New Forces 1. Technology, Society and Historical Change Globalisation Global Standards + Transnational Advertising + Privatization + Trade Agreements + Global Products & Customers +… Digitalization Storage, processing and transmission of information impacts processes such as sales and customer service, and in many cases, the product or service itself can be re-packaged or delivered electronically Information is costly to produce but cheap to reproduce in fact the marginal cost may reach zero. Deregulation The opening up of markets that were previously closed by factors such as monopoly, state owned or controlled production or by restrictive legislation or trade practices. Key industries affected by deregulation and which are vital to e-government include telecommunications and broadcasting. As new operators have entered the markets, there have been notable innovations created, as these new entrants have not necessarily had the benefit or burden of legacy systems and processes.

33. 13 Juan Luis Manfredi, Ph.D @juanmanfredi 1. Technology, Society and Historical Change Killer App are “inventions whose impact has extended far beyond the activities for which their creators built them. Ultimately, the havoc they visited on social, political, and economic systems has outweighed the impact of their intended usage” (p. 3) Do you know anyone?

34. 14 Juan Luis Manfredi, Ph.D @juanmanfredi 1. Technology, Society and Historical Change These new principles involve the political development Politics and Policies Are our democracies prepared to such a change? Are we using zombie categories? (Beck) Can we foresee the consequences?

35. 15 Juan Luis Manfredi, Ph.D @juanmanfredi 2. The information technology paradigm a) The information is raw material It demands growing flows of information to maintain the level of activity “These are technologies to act on information, not just information to act on technology” b) The effects of the ICT are pervasiveness It does define how we approach to the society c) Flexibility Organizations and institutions can be modified The material basis of the organization can be reprogrammed and retooled d) The networking logic is a defining characteristic of the information society The creative power of technological interaction and communication Social networks are based on this logic The social cohesion is dependent on these technological issues e) Convergence Specific technologies go into an integrated system Telecommunications has experienced a shift integrating microprocessor and optoelectronic data transmission More and more efficiency

36. 16 Juan Luis Manfredi, Ph.D @juanmanfredi 2. The information technology paradigm Are we facing a disruptive paradigm? Clayton M. Christensen: “process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves ‘up market’, eventually displacing established competitors” Video definition by himself Disruptive technologies are innovations that result in worse product performance, at least in the near term. They are generally cheaper, simpler, smaller, and, frequently, more convenient to use Disruptive technologies occur less frequently, but when they do, they can cause the failure of highly successful companies who are only prepared for sustaining technologies.

37. 17 Juan Luis Manfredi, Ph.D @juanmanfredi 2. The information technology paradigm Some remarks Market progress is separate from technology progress. Customers do not always know what they need. Innovation requires resource allocation which is extraordinarily difficult for disruptive technologies. Disruptive technology needs a new market. Old customers are less relevant. Disruptive technology is a marketing problem, not a technological one. Organizations have narrow capabilities. New markets enabled by disruptive technologies require very different capabilities. Information required to make investment decisions does not exist. Failure and iterative learning are required. It is not wise to always be a leader or always a follower. Disruptive innovations reward leaders. Small entrant firms enjoy protection because they are doing things that do not make sense to the industry leaders.

38. 18 Juan Luis Manfredi, Ph.D @juanmanfredi 3. A New Sputnik Moment? 1957: USSR launches the Sputnik satellite It shocked Americans and prompted a national commitment to education, space and science spending Federal Government supports the innovation through R&D The creation of ARPA Advanced Research Projects Agency Network It is the origin of Internet and the scientific revolution Is any New Sputnik there?

39. 19 Juan Luis Manfredi, Ph.D @juanmanfredi Innovation 2020 (Chinese Academy of Sciences) Goal: Basic Research The plan will place a new emphasis on translating the research into technologies that can power economic growth and address pressing national needs Seven key areas Nuclear fusion and nuclear-waste management Stem cells and regenerative medicine The flux of carbon between land, oceans and atmosphere Materials science, I Information technology Public health Environment 3. A New Sputnik Moment? http://www.nature.com/news/2011/110201/full/470015a.html

40. 20 Juan Luis Manfredi, Ph.D @juanmanfredi 3. A New Sputnik Moment? Obama: “This is our generation’s Sputnik moment” It will mean strong investments in biomedicine, ICT and clean-energy technology The government investment will support basic research, the system based on innovation and free trade

44. Social stratification

45. Diverse messages are all within the communications network

46. All cultural expressions as well as the diversity is invited