Looking back on what I wrote about some time ago I found a text I wrote in 2005 about how the European project might crash. The context then was the French riots which sent an echo throughout Europe.

I often find it interesting to read foreigners who observe and comment on your own behavior. In Peter Schwartz’s recent book Inevitable Surprises there is a chapter on the great flood of people who are moving and challenging societal systems everywhere. Among other things he is contrasting United States which is built around immigration with Europe which is not. He notes that Europeans have much more trouble with assimilation of immigrants and suggests that one of the reasons for this is the basic social model which is built around the idea of a small closed society, not unlike a large family, where everybody is involved, via the state, to help the less fortunate members. Immigrants are then shifting the balance and change the gameplan and are consequence not viewed as being part of the society. Most European countries keep immigrants separate from the balance sheet for as long as possible. Maybe hoping that the problem will disappear by itself. This has resulted in large groups of sometimes even well educated people not being able to enter the labour markets, which in turn has created a massive segregation.

Dramatically increased immigration into a society which is regarded as a balanced and closed system is shifting the balance and is therefore predetermined to generate a lot of problems. Schwartz points at the possibility that the immigration problem could be one of the biggest uncertainties when it comes to keeping EU together. A possible sequence of events for an EU collapse could look like this

  1. The tension between immigrant groups and society increases to the point that violence erupts (terrorism or civil unrest)
  2. Quick and firm police action aiming for a quick end to violence
  3. Negative reactions to police brutality increase the violence
  4. The ultranationalist forces gains support and suggests drastic measures against immigrants – which will gain support in many camps
  5. The reactions spread across borders to other groups in similar situation who will react in sympathy
  6. One or two countries will vote for closing their borders to immigration
  7. If one country closes the borders others are soon forced to do the same thing unless they want to have all the immigrants from their neighbor countries – it will cause a chain reaction
  8. When this happens the trust between the countries is damaged to a point where EU negotiations break down

Maybe we could rewrite this with some more details now when the Brexit phenomenon is playing out?

city-1057678_1280The cities of the planet are growing in both numbers and influence. United Nations predicts that in 2050 about 66% of the human population on this planet will not live in rural but in urban areas. Comparing this to 30% in 1950 the global rate by which the cities are growing is amazing. In Sweden, where I live, the urbanized part of the population today is 86% and is predicted to rise to 90% in 2050 i e 9 out of 10 people are soon living in cities in Sweden. For a country which was late into the industrialization and urbanization game this shift is quite extraordinary even if it currently being dwarfed by many fast urbanizing countries outside the West.

...continue reading "The City – the mother of all sharing platforms"

A digitalization strategy is dangerous and mainly wrong approach.

Why?

Because it draws the attention to today’s models, structures and systems and how they can change and become digital.

And why is that wrong?

Just ask yourself these questions:

  • Would the bookstores have survived if they pursued a digitalization strategy?
  • Would the newspaper industry thrive if they succeeded with a digitalization strategy?
  • Would the film developing industry have boomed if they just pursued a digitalization strategy?
  • Would the video rental business kept up with a digitalization strategy?

...continue reading "The folly of digitalization strategy"

Nature can be described as organized in hierarchical systems layers - but that doesn’t mean humans must organize themselves in static hierarchies. There are examples of different ways of organizing people to perform work together.

...continue reading "Is the norm of hierarchic organization just another failed normative logic?"

What is Blockchain and what are the possible consequences for the future?
Blockchain is the key innovation behind the cryptocurrency Bitcoin and have lately come in focus almost everywhere. Blockchain itself can be described as a technology with the ability to displace the need for other (e g human, legal, governmental…) layers of trust between any numbers of globally distributed endnodes. We can compare it to how e-mail and messaging is displacing the need for mailmen and postal services. Or putting it another way: it is a global distributed platform for implementing algorithm based trust relations.

Ok, but what does all this mean for the world in the longer term?

...continue reading "The possible long term potential of Blockchain"

We are drowning in news about new technologies every day. Technologies that are solving difficult problems as well as opening new possibilities. It is easy to see them as the most powerful forces transforming our world. But we forget one important aspect. We perceive these technologies through the stories of our time. These stories are much more important factors shaping our future than any technology. It is the stories by which we explain ourselves, our situation, our role in the world and our future that determine our thinking decisions.

...continue reading "It is our stories, not technologies, that shape our future"

Skärmklipp 2015-10-08 10.47.30

I agree in principle with the analysis that BCG have done and which they conclude in what they call the Digital Imperative. They have also developed a nice animated presentation that explain it visually.

It is when I reach the end of their animation I suddenly see all five fundamental changes that a company needs to address I start to laugh and shake my head. I suddenly visualize something like a Larson cartoon where a bunch of dinosaurs are sitting in a conference listening to a presenter that shows PPT-slides which tells them to evolve into mammals.

...continue reading "Is following BCG – Digital Imperative possible for anyone???"

4

Rising from the grave

If you still are having this blog in your RSS-stream or elsewhere I think I owe you an explanation of the disappearance of this blog. It did NOT mean that I stopped working with future related things. This blog, and the whole of my site was unfortunately hacked, and I had to remove everything and start all over. I fixed my Swedish counterpart of this site which was the most important for as most of my work is taking place in Sweden. Anf this have been dragging ever since...

But now I am back!

If somebody is still here, why don't you throw me a comment?

How does the digital transformation of your organization go? According to the global study DIGITAL TRANSFORMATION: A ROADMAP FOR BILLION-DOLLAR ORGANIZATIONS from CapGemini just 50 of 157 executives say that they have an effective approach. Not an easy task it seems...

But why is this so hard? The report states that

Successful digital transformation comes not from implementing new technologies but from transforming your organization to take advantage of the possibilities that new technologies provide. Major digital transformation initiatives are centered on re-envisioning customer experience, operational processes and business models. Companies are changing how functions work, redefining how functions interact, and even evolving the boundaries of the firm.

I couldn't agree more. But isn't this difficult? Yes, really! What makes it even more difficult is further described in another conclusion:

Successful DT comes not from creating a new organization, but from reshaping the organization to take advantage of valuable existing strategic assets in new ways.

This means that in order to succeed you have to understand what your valuable existing strategic assets really are and transform your business to leverage them in a digital approach.

I think these statements are correct, are really important and points in the right direction. But judging from my 10+ year experience in working with intelligence, strategy and change in a global company, I see is that this is incredibly difficult to do in practice. Is it really so that as much as 1 in 3 are successful in this process? And to what extent are they successful?

From a historical perspective from other technology driven transformations, there are extremely few companies that have been successful in transforming themselves across societal and technological shifts. How many companies are e g older than 100 years? 100 years ago there was another, albeit a magnitude smaller, technological and societal shift that also required transformation and how many organizations survived that?

We must correlate these insight with other findings e g John Hagel's analysis of the performance of today's companies:

Firms in the Standard & Poor's 500 in 1937 had an average life expectancy of 75 years; a more recent analysis of the S&P 500 showed that the number had dropped to just 15 years.

I think it is time that people reread the former Shell executive Arie de Geus' book The Living Company, Clayton Christensen's The Innovator's Dilemma: The Revolutionary Book That Will Change the Way You Do Business and Alan Deutchman's Change or Die: The Three Keys to Change at Work and in Life.

In the end of the executive summary the CapGemini reports correctly states that:

Despite the hype around innovative digital technologies, most companies still have a long way to go in their digital transformation journeys. Leadership is essential. Whether using new or traditional technologies, the key to digital transformation is re-envisioning and driving change in how the company operates. That’s a management and people challenge, not just a technology one.

From my view from the outside I still wonder if change really is happening to the extent that people think it does. Because if it does it is against all historical odds. Or are we creating an illusion of change, when in fact organizations are failing more dramatically than ever?

The good thing with this report is that they are starting to formulating the difficulties in a much more realistic way than I have seen before from IT-consultants. And that is a good thing... If they show the correct picture of the reality, I am not at all sure.