digital innovation, reversed semiotics and generative economics
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1 digital innovation, reversed semiotics and generative economics Youngjin Yoo Harry A. Cochran Professor in MIS Temple University WBS Distinguished Research Environment Professor Warwick Business School cd+i center for design + innovation
2 Uber, the world s largest taxi company, owns no vehicles. Facebook, the world s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world s largest accommodation provider, owns no real estate. Something interesting is happening. (Tech Crunch, March 3, 2015)
3 cd+i center for design + innovation
4 2.0 cd+i center for design + innovation copyright, youngjin yoo
5 what does a firm do?
6 cd+i Center for Design and Innovation Transforming ideas into actions
7 cd+i Center for Design and Innovation Transforming ideas into actions
8 Center for Design cd+i and Innovation Transforming ideas into actions
9 domestication of materials
10 marriage of form and function
11 to render service
12 designer s struggle with material
13 value is always co-created
14 goods are carriers of resources
15 all goods are service delivery platforms
16 three logics of economics cd+i center for design + innovation
17 2.1 cd+i center for design + innovation copyright, youngjin yoo
18 industrial economics cd+i center for design + innovation
19 the age of physical machine
20 cd+i center for design + innovation automation
21 capital intensive asset cd+i center for design + innovation
22 managerial challenge maximizing asset utilization cd+i center for design + innovation
23 vertical integration diversification cd+i center for design + innovation
24 managerial logic economy of size and scale cd+i center for design + innovation
25 organizational forms m-form hierarchy cd+i center for design + innovation
26 management tools scientific management cd+i center for design + innovation
27 2.2 cd+i center for design + innovation copyright, youngjin yoo
28 information economics
29 the age of smart machine
30 information as by-product (production, distribution, and use)
31 managerial challenge complexity information overload cd+i center for design + innovation
32 management logic modularization (design rules) horizontal coordination cd+i center for design + innovation
33 organizational forms network of distributed org. cd+i center for design + innovation
34 management tools outsourcing virtualization cd+i center for design + innovation
35 2.3 cd+i center for design + innovation copyright, youngjin yoo
36 generative economics
37 the age of generative machine cd+i center for design + innovation copyright, youngjin yoo
38 cd+i center for design + innovation digital technology
39 separation of form & function (universal machine of von Neumann computing architecture) cd+i center for design + innovation
40 separation of contents & media (universal network of Claude Shannon) cd+i center for design + innovation
41 walled garden of products TV phone book music contents contents contents contents network - distribu1on network - distribu1on network - distribu1on network - distribu1on so3ware so3ware so3ware so3ware hardware hardware hardware hardware cd+i center for design + innovation
42 re-configuration of new products contents contents contents contents network - distribution network - distribution network - distribution network - distribution software software software software hardware hardware hardware hardware cd+i center for design + innovation
43 highly evolutionary products that produce user-generated trace data
44 technology constantly evolves beyond the original design cd+i center for design + innovation
45 managerial challenge deconstruction of products reconfiguration of value system convergence cd+i center for design + innovation
46 managerial logic mutation recombination open innovation cd+i center for design + innovation
47 organizational forms ecosystem of open platform cd+i center for design + innovation
48 3.0
49 reversed semiotics
50 reference vs referent
51 information as representation of the real
52 information as the genetic materials of the real cd+i center for design + innovation
53 4 types of reversed semiotics
54 cd+i center for design + innovation which one is real?
55 cd+i center for design + innovation which one is real?
56 cd+i center for design + innovation which one is real?
57 cd+i center for design + innovation which one is real?
58 physical goods as avatar of real digital products cd+i center for design + innovation
59 flipping the value economic proposition
60 Simulation is no long that of a territory, a referential being or a substance. It is the generation by models of a real without origin or reality the age of simulation thus begins with a liquidation of all referential It is no longer a question of imitation, nor of reduplication, nor even of parody. It is rather a question of substituting signs of the real for the real itself. (Jean Baudrillard, 1983)
61 information economics: dissimulate immaterial representation non-rivalry of consumption
62 generative economics: simulate metabolism of information generative recombination
63 strategic use of information as by product strategic use of information as simulacra industrial economics information economics generative economics products things noun creativity craftsmanship deconstruction of traditional organizations deconstruction of traditional industrial systems platform experiences verb generativity procrastinated binding cd+i center for design + innovation
64 3.1
65 what is a firm?
66 what is a product?
67 a firm: a classic model raw materials products & services cd+i center for design + innovation activities technology knowledge
68 product vs. service
69 product as a fossil of activities frozen in time and space through production value chain
70 product as a performative enactment of a network of activities at the point of consumption
71 liquidation of product product as a delivery platform of contents and service activities
72 procrastinated binding value is created after the product was purchased cd+i center for design + innovation
73 resolution of transactions creating Moor s law in physical world to reduce frictions in economic transactions cd+i center for design + innovation
74 power shift
75 musicians are poorer than ever before!
76 3.2
77 Quad Core of Computed Experience B2B Internet of things Big Data Analytics place things experiences people time B2C Mobile Internet Cloud Service atoms bits (c) Youngjin Yoo, 2014 cd+i center for design + innovation
78 characteristics of hybrid sociomaterial world digitally enabled complex socio-technical phenomena no central governing body or design rules evolve beyond the original designers non-linear emergent behaviors leaves large-scale digital trace data
79 design decision live algorithmic disposable permanent
80 big data with an evolutionary ontology
81 evolutionary computation social science
82 holy trinity of social science (and their evolutions) activities algorithms? structures artifacts
83 the rise of algorithmic reality
84 forget about B2B and BC2
85 think about A2C and A2A Inspired by Karl Baruch College
86 6.0
87 concluding thoughts
88 what should IS discipline do?
89 the tables have turned
90 seeking new theories on [sociomaterial, computed, algorithmic, generative, or digital, but definitely not just social or technical] reality
91 beginning with a hybrid agency actors matter data algorithms
92 thank you
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