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Ross Mayfield's Weblog: Distributed Business
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"Ross Mayfield's Weblog
Markets, Technology & Musings
« Open Media 100
Main
Distributed Business Panel »
June 22, 2005
Distributed Business
Notes from the opening session on the second day of Supernova 2005. First, a perspective from John Seely Brown on Innovation Ecologies: long tails, swarms and path dependencies. Curious that the last two days that the ideas discussed will play out in real ecosystems at work. John Hagel, his co-author of The Only Sustainable Edge, was stuck in London.
Four kinds of disruptive process innovations in india: what we drive, buy and wear.
Toyota taps the creativity of thousands of suppliers and their employees through productive friction. Lowest cost is not necessarily the lowest price. Bring us new ideas/innovation. Respect. An ongoing network of conversations and productive friction.
Exception conditions are the action points: when a defect is found the person who finds it stops the entire production line -- freezing the context -- until the source of the problem can be discovered. Context propagates all the way to the supplier lets them do instant problem solving. Contrast the following:
Toyota Way -- Productive friction
lowest cost,
deep dialog and collaboration
bring us new ideas
respect
The Detroit Way (little innovation) -- Destructive friction
Lowest price,
diode, not dialogue
do it exactly as we say,
shop around new ideas from one supplier to others
Motorcycles in China. The Chongquing Mototcycle Ecosystem. One entrepreneur broke out of a top down design system run by the state to make innovation modular. Locally modular architecture (based on a focal model). No detailed drawings from the assembler but rather a bottom up swarm ecosystems with path dependent practices, emergent process networks and tea houses. Now 50% of all global production of motorcycles. Evidence of "
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