Managing in a Digital World

deep changes in the

economy

CFO of the year

CFO magazine

1998 - Scott Sullivan

WorldCom

1999 - Andrew Fastow

Enron

2000 - Mark Swartz

Tyco

sponsor Arthur Andersen

ethical issue?

shifts in the economy

from industrial economy

to knowledge economy

making the same stuff better and cheaper is not enough

access to capital market is not as important

knowledge economy

things actions

possession experience

single meaning

multiple meanings

OR AND

foreground background

noun verb

2 + 2 = 4

2 x 2 = 4

when rule changes

everything changes

even if they look familiar

Starbucks  vs.  

Dunkin’  Donuts

What are you selling?

All bags are not created equal!

Mon  Blancvs.BicThere is Mont

Blanc

and the rest...

the economy of

scarcity

physical asset

physical products

the economy of

generativity

digital assets

digital products

near zero, if not 0,marginal cost

fungible

new organizing forms

vertically integrated firms

m-form

centralized control

TO

distributed

networked

peer-to-peercoordinated

new forms of organizing

open source movement

democratization of decision making

gateway

privileged access to information

platform

open access

participation in production

weak central control

distributed coordination

collective intelligence

it is NOT aboutTECHNOLOGY

how we organize

yet

technology IS essential

new role for leadership

enablement of coordination

importance of platform

competition of

ideas

revolution

why don’t we see it?

traditional frame and beliefs

obscures the real potentials

existing structures and infrastructure

path dependent behaviors

lack of imaginations

it’s about seeing what’s possible

be a maverick

questions?