Innovation and Design Now part I

©Living Enterprise, Inc. 2014. All rights reserved
innovation and
design now
Part I – changing
contexts
Given how the world is changing we must:
• Design new things
• Design and innovate in new ways
• Become ongoing innovators
Image: http://betterthansittingathome.files.wordpress.com/2013/12/coloured-houses-2.jpg

Part I - Describes where we are today and some emerging trends -
conclusions! - We are deeply embedded in systems of systems, some work well
while many do not, which is a deep cause for concern.
Part II – We look at the future in terms of how systems might change going
forward - we could have utopia or dystopia – Do expect an increase in
complexity and systems becoming messier? Will there be acceleration and
shorter time-frames within which to act.
Part III - Analysis of why there is dysfunction and how we might shape the
future. We look at the evolution of systems and try to understand why they
became complex and dysfunctional. Why have we not been able to fix them and
what design principles can we use in future design.
Part IV - This part would talk about the fact that we need these systems to
work and how we can design and innovate better systems.
Image http://www.urbagram.net/v1/show/Microplexes

the world is messier
We live in a world of systems of systems, highly internetworked, and
interdependent at all scales, with intricate feedback loops.
Some of these systems work well, but many are dysfunctional. We see several
radical shifts from past regimes.
New Patterns are emerging on the horizon, needing new frames with which to
know and act in order to impact and shape our collective tomorrows.
Image: http://www.shiftn.com/images/made/media/complexity_800x600_800_600_80_c1_center.jpg

transportation and
mobility
Increased mobility of people and goods at all levels has created a
tremendous amount of growth and prosperity throughout the world.
Image: http://galerie.uckermann3.de/images/20121107200425_chaos.jpg

telecommunications
and networking
Telecommunications is one of the most important drivers of the modern age.
We are globally connected, better informed, and enabled to collaborate
across geographies and time.
Image: http://www.ediweekly.com/wp-content/uploads/2013/10/satellite-communications-global-radar-NASA-COMDEV-telemetry-transponder-microwave-WiFi-EDIWeekly.jpg

finance and capital
Finance has played one of the most significant roles in shaping the global
economy and has brought much innovation and prosperity. It is one of the
prime exemplars of integration and accelerating flows across borders that
characterize the globalized economy.
Image: http://www.oecd.org/media/oecdorg/topics/finance/48608504.jpg

healthcare and life
sciences
Developments in healthcare and the broader life sciences industries have
contributed to increases in longevity and well-being in most parts of the
world. This sector continues to drive innovation and improved quality of
life in many ways.
Image: http://www.martynmcdermott.co.uk/wp-content/uploads/2013/07/digital-change-1-1050x650.jpg

cities and urban
habitats
Cities and Urbanization have been one of the most significant drivers of
change. Centers of global commerce and culture they are crucibles of the
emerging creative economies.
Image: http://static.squarespace.com/static/52fa6d6fe4b0b52f29a9c5c8/t/530cbcb8e4b0ba8fd4ce7586/1393343676977/new-york-central-park-city-night-575058.jpg

the healthcare
ecosystem
Most of the systems we are familiar with are intricately connected and
interdependent. We often experience these interconnections during our
interactions with them.
Image: http://3.bp.blogspot.com/-xQ8pDelExVk/UWG9_NwNVhI/AAAAAAAAArQ/CjgyIRZHJe4/s1600/HC_Ecosystem.png

information
infrastructures
Even if we are presented with a simple interface like the google search
box, there are many cooperating entities that make the whole experience
possible
Image: http://elgarblog.files.wordpress.com/2013/05/googleappsdegreepositivepartition-e1369147673301.png

mobile ecosystem
The ubiquitous smart phone also depends on many service and systems
providers to deliver value

global inter-networks
Going deeper into the value chain of the mobile experience, the
semiconductor chips for example, come together through globally dispersed
but interconnected capabilities and supply chains.

ambitious challenges
Some of these ecosystems are naturally intricate and need many
participating entities in order to make an impact.

systems-of-systems
We clearly live in a world of systems-of-systems, highly complex,
internetworked and interdependent at all scales, with intricate feedback
loops.
Image: http://www.aad.co.uk/services/building-services.html

global & interlinked
These systems are not only interconnected within the traditional national
boundaries but also globally.
Image: http://betterthansittingathome.files.wordpress.com/2013/12/coloured-houses-2.jpg and http://33.media.tumblr.com/tumblr_m6dhv3863f1qza6bio1_500.jpg

indicators of
progress
Taken together the modern world has improved the human condition in many
dimensions.
http://upload.wikimedia.org/wikipedia/commons/thumb/3/34/2014_UN_Human_Development_Report_Quartiles.svg/1280px-
2014_UN_Human_Development_Report_Quartiles.svg.png

on the other hand..
we face
Fragile global economies – instabilities abound – market dynamics shifts – locus of economic power
shifts - income divides widening
Environmental degradation – natural resource depletion - water crisis – pollution - deforestation
Political uncertainties – widespread social inequities and discontent, security and terrorism
Globalization – interdependence, shifts in generations and aspirations, shifts in values
Technological disruptions – concerns over privacy, transparency, security
Image: http://cdn.arstechnica.net/wp-content/uploads/2014/09/chaos-640x431.jpg

pollution
One of the consequences of industrialization has been unsustainable levels
of pollution particularly in rapidly developing economies.
Image: http://4.bp.blogspot.com/_-z5CDZfrG4k/TMl1JvHIvKI/AAAAAAAAAmg/Ox_UpMryMSQ/s1600/factory_pollution.jpg

Resource depletion &
deforestation
The global drive for growth has a huge appetite for natural resources
leading to widespread degradation of natural systems.
Image: http://3.bp.blogspot.com/-EXg1_4lSZBQ/UCkPjmjubpI/AAAAAAAACFQ/BRBDeSrwtYQ/s1600/deforestation_collapse.jpeg.492x0_q85_crop-smart.jpg

urbanization and
crowding
Cities, an important human innovation and engine of the creative economies,
cannot meaningfully accommodate and integrate all they attract to them.

poverty and income
gaps
Around the world there are growing income disparities and widening gaps,
with faster growth in populations of the underprivileged and poor.
Image: http://m.c.lnkd.licdn.com/mpr/mpr/p/2/005/039/2a5/18d9c73.jpg

climate change
Human enterprise, population growth, and industrialization have had a
negative impact on the climate and other planetary natural systems.
Image: http://m.c.lnkd.licdn.com/mpr/mpr/p/2/005/039/2a5/18d9c73.jpg

peace and security
We have many political challenges to in achieving peace and security that
cross national and international borders.
http://s.telegraph.co.uk/graphics/Lightbox/published/247/images/THUMB.jpg

global challenges
The global risks are interlinked. (source: World Economic Forum)
Image: http://arabiangazette.com/wp-content/uploads/2013/01/Global-Risks-Interconnection-map2013-Infographic1.jpg

We are now a part of an intricately interlinked and interdependent world of
systems of significant scale and complexity.
Source: Jim Spohrer and David Ing, IBM

new patterns emerging
New Patterns are emerging, or on the horizon, needing new frames and new
ways of making meaning.
Image: http://www.forumforthefuture.org/sites/default/files/images/134198291.jpg

the newspaper world
One of the most dramatic changes in recent times have occurred in the
traditional media industry
Image: http://www.identitywoman.net/wp-content/uploads/2011/08/NSTIC-NOI-Kaliya_page31_image1.jpg

new alternatives
emerge
Due to a co-evolution of changing user habits and what technologies enable,
a whole new configuration of the ecosystem has emerged.
Image: http://www.identitywoman.net/wp-content/uploads/2011/08/NSTIC-NOI-Kaliya_page32_image1.jpg

interconnected people
People are increasingly connected, releasing pent-up energies and social
capital, creating new applications for social technologies such as
communication, collaboration and forming community.
Image: http://cdn1.tnwcdn.com/wp-content/blogs.dir/1/files/2013/11/social-network-links.jpg

sharing behaviors
Sharing behaviors open up new possibilities for leveraging underutilized
resources and assets – the world of interconnected resources and people
grows exponentially.
Image:http://www.ideatoappster.com/wp-content/uploads/2013/02/sharing-economy.jpg

new business models
New business models are upending established paradigms and disrupting
business ecosystems – often causing surprise!
Image http://cdn1.bostonmagazine.com/wp-content/uploads/2013/04/sharing-economy-2.jpg

interconnectivity
keeps growing
The possibilities for what can now be included in the interconnected world
keeps expanding by the day.
Image: http://telematicswire.net/wp-content/uploads/2014/05/Smart_Ecosystem_DeepBiz.png

Source: Jim Spohrer, IBM

digital economies
Digital and Information technologies have created an accelerating universe
of new value and associated economies
Image: http://graphics8.nytimes.com/images/2013/06/09/sunday-review/09LANIER/09LANIER-articleLarge.jpg

the service economy
In a more macro sense – the locus of value in the economies has shifted and
we are now increasingly involved in a service economy.
Source: Jim Spohrer, IBM

systems are messy
Some of these systems we live in now are indeed appropriately terms
‘wicked’ messes, where it is no longer possible to find simple intervention
paths.
Image: http://www.strategykinetics.com/2007/10/what-are-mess-m.html

As much as they have delivered value and contributed to progress, there is
also much dysfunction which brings with it a huge opportunity.

we need new frames to
make sense
The emerging shifts are radical and we need new ways of looking – These are
not extrapolations, but discontinuities from earlier ways of organizing.
Image: http://worldartsfilmfestival.org/wp-content/uploads/2013/05/koji-yamamoto_interior-kaleidoscope-image.jpg

we are all deeply
embedded!
We are an integral part of these systems-of-systems and everything we do
impacts other parts and outcomes. We must consider such consequences for
they touch us all – there is a system-of-system in your neighborhood!
Image: http://siteresources.worldbank.org/INTSDNET/Images/crowdedlagos.jpg, http://i.bnet.com/blogs/640px-hall_stockholm_central_station.jpg

dynamic systems
evolve
Economies are shifting to service dominant, new business models emerge and
the creative industries take off – shifts we could often not anticipate.
Systems are socio-technical, dynamic and nested, many-layered, each moving
at its own speed.
Life-cycles of human-made entities are shortening. Locus of power and
influence shifts away from traditional regimes with increasing autonomy and
empowerment.
We move from components to systems-orientation, from stand-alone to
networked, and from products and services to experiences.
Image: http://cdn.phys.org/newman/gfx/news/hires/2012/42-researchersd.jpg

thank you!
Sudhir Desai: Principal
www.livingenterprise.net
Image:
http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=jREuqE8tdtCbRM&tbnid=lbK3PQovuVeQ9M:&ved=0CAcQjRw&url=http%3A%2F%2Fweb.utk.e
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Innovation and Design Now part I

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