(originally posted to Supernova Conversation Hub blog)

I sat down earlier today with Umair Haque, who had been scheduled to present his Manifesto for a Next Industrial Revolution today at Supernova 2008.

Unfortunately his mother is quite ill and so he was not able to travel from London to be here.

He graciously shared with the Supernova attendees a write-up of the Manifesto, and also made himself available for this interview. Thanks, Umair … and I’ll do my best to do justice to his thinking and message.

Over the past seven or eight years the users of the Internet and the architects and developers of web services have created a new infrastructure and architecture for people to interact and create value in a wide range of human activities. Many have spoken for at least a decade about the transformative power of the Internet, and we have seen at least two waves of innovation develop … the initial dot.com boom and bust and the subsequent arrival of the broadly defined Web 2.0 phenomenon of social computing.

Umair suggests, provocatively, that while we are increasingly living and working in these new interconnected conditions, we are still by and large using industrial era assumptions and logic to drive the purpose and, yes, the dynamics of creating economic and social value. We have (collectively) inherited a dominant economic model based on exploiting resources, capital and talent in order to create, grow and make more efficient, a model that increasingly appears ill-suited to the challenges of a world whose population is growing, whose complexity is accelerating and whose ambiguities and pernicious challenges are clearly more threatening than at any time in the past. Haque argues that we need to undergo a fundamental DNA-like change in our dominant concepts about economic purpose and value. We need to organize differently, in order to seek value from new forms of efficiency, more constant innovation, easier and more comprehensive adaptation and more consistent effectiveness.

One of the key issues contained in this major challenge is that of raising the awareness for entrepreneurs, investors, executives, managers and policy-makers everywhere the need for and availability of “flexible centralization / decentralization”. This is the ability to centralize the parts of a business or organizational operations necessary for greatest effectiveness while simultaneously decentralizing other parts of the operations into distributed networks to gain the greatest benefit possible from those dynamics.

Umair said he wrote this manifesto because of his conviction that the necessary “DNA” (see the reasons for the scare quotes below) is coming out of, or being generated by the dynamics of the Web 2.0 environment wherein information is being shared and relevant utility, knowledge and business logic is being constructed during the course of (generally) non-hierarchical social interaction.

However, he believes there is a trap, which he is now calling the Facebook Trap. It’s not clear what Facebook is organizing or what specific purpose of form of economic value it is supporting or creating, other than personal profiles and page views against which to match contextual advertising. This extends into the point noted above, that by and large with current developments on the Web we are still using 1.0-ish economic and business logic. While it’s true that there are more and more conversations searching for conceptual pathways and answers at edge-dwelling gatherings like Supernova, it’s also true that the significant applications and services on the Web to date are still primarily concerned with monetization and economic performance based on existing business logic.

In his opinion, Silicon Valley (as an example) is either ignoring or refusing to confront some simple economic logic … use of the Web to build services and solutions won’t stop, it has become a structural component of our societies and economies, and it’s not about charities or about games. As he noted during the interview, the marginal scarcity of water or food may not be a huge problem for the Valley, but it’s in solving such economic problems that there exists the potential for creating huge, and progressive, economic and social value … for building a better, and interconnected, world.

In his words “the Valley should be the crucible of asymmetric competition“, out of which will emerge new companies using new mental and physical models to solve problems the old companies aren’t equipped to solve,. And when they emerge, they will do so much more quickly than did yesteryear’s examples of creative destruction.

I challenged Umair on a pet peeve of mine … academics, management and organizational theorists and business consultants everywhere often talk about organizational and economic DNA. I suspect that organizations and models don’t actually have DNA … it’s a fundamental component of a coherent organic entity. Rather those who work with and in the concepts and knowledge of given domains or in the structures of a given industry are so immersed in the models and dynamics that they “feel” the fundamental assumptions are natural. Thus, these fundamental assumptions are like DNA in that the core principles drive the thinking, perceptions, analyses and actions.

Haque agreed, and we both agreed to agree that the use of the term DNA is in effect (for our purposes here) a metaphor, a useful mental construct for helping to guide evolutionary processes and growth. And thus back to Umair’s central point … time is short, powerful new conditions are at hand, and the problems we need to solve are important, urgent and present significant new opportunities. But we need to look at them using new attitudes and new logic, or in Umair’s words, new DNA.

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Tags: Umair Haque, Havas Media Lab, Next Industrial Revolution, Supernova 2008

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