Platt Perspective on Business and Technology

Technology as the tide that raises all boats 9 – but often unevenly 6

This is my 9th installment to a discussion that I initially began as a single stand-alone posting in April, 2012, but that needs reconsidering. I focused in that posting, on a key issue that enters into a determination of how and when change rises to a level of significance so as to qualify as true innovation (see Outsourcing and Globalization, postings 25 and loosely following for Parts 1-8, and Part 1 of that in particular as the foundational urtext for this narrative.)

I focused in Part 8 of this, on the pace and scale of change and of innovation, considering two related but nevertheless categorically distinct arenas where innovation can take place:

1. Innovation within the business and in how it is structured and organized and in how it functions, operationally, and
2. Innovation in what that business brings to market as products and services offered.

My primary area of focus there was a continued discussion of the relative potential pace of change and of innovative change in particular and in both of these contexts. Then at the end of Part 8, I said that I would continue from it here, with explicit consideration of:

• Globalization and the scale of the marketplace, and its capacity to create and support progressively finer-scale niche markets even as it drives global conformity too, and
• The realities of the technology diffusion and acceptance curve, and of push-back pressures from the marketplace as they would serve to limit and shape the pace of accelerating innovation acceptance and of innovation occurrence as well, where technological factors alone might dictate faster and faster.

I begin this posting and its line of discussion with the first point and by acknowledging what should be obvious to essentially everyone, and everywhere now: a combination of ubiquitous, anywhere to anywhere communications and computer-supported connectivity and information sharing, has effectively limited the barriers that have traditionally divided us, and removed them entirely for many purposes.

• Since the advent of wireless telephony, and certainly since the advent of inexpensive, computationally powerful, readily available smart phones, globalization has meant all of us and everywhere at least significantly starting to come together as a single overall globally connected community.

China has its great firewall: its Golden Shield Project to try to limit and control the global conversation at least as far as it would include their own citizens. And at least some other nations actively seek to control their people, for their being able to join this conversation flow too. As an extreme case in point example of that, consider North Korea where all phone conversations are monitored, no average citizen has access to computers or the internet, and cell phones do not exist – except for a small and carefully monitored minority.

The more restricted the access to this globalization that the citizens of a country are, the more forcefully that country and its citizens are pushed into being de facto late and last adaptors to change taking place around them. The more openly connected a people are, the more visible and the more accessible the change taking place around them can be for them, and the more pressingly intrusive it can become too as new keeps rushing in to supplant current with next and with a still newer next after that. And this can serve to pressure people towards the faster adaptor end of the innovation acceptance diffusion curve.

I am going to return to that set of issues a bit later in this series. But let’s step back from it, at least for the moment to consider a key element to the first of the two topics bullet points offered above: scale in globalization. I wrote of two at least apparently conflicting drives in that bullet point that are emergent to globalization per se, and certainly in a ubiquitously connected context: its capacity to create and support progressively finer-scale niche markets and its drive to create global conformity too (as the dynamics behind the Pareto principle weed out perhaps many possible alternatives, leaving single “best” or at least most accepted alternatives predominating, and wherever change leads to possible diversity.)

When anyone and seemingly everyone who would potentially fit into and support a niche market can do so, it becomes possible to achieve a sufficient available consumer base for it, to make it feasible for businesses to produce and sell to it, in meeting its niche defined needs. And it becomes practical and feasible for businesses to actively pursue and meet the needs, and profitably so, for more finely, narrowly defined niche markets too. This in and of itself means support for diversity and for several and even many alternative product or service possibilities and all at once, each achieving real market success. But the forces behind that empirically observable diversity winnowing mechanism: the Pareto principle, keeps cutting back on at least widely available choice, at the same time with the emergence of market dominating winners too.

• Think of the balance of diversity and its supportive pressures, and of conformity in the form of Pareto principle winners,
• As representing the creative destruction dynamic, that is sometimes offered as a working definition of disruptive change per se. Old is swept away by change, and so are many and even most emerging change options too. And it is not always going to be apparent, and certainly not up-front, which particular new will thrive, or even which new possibilities will even survive as the flow of change advances.

And this brings me to the second of the above two topics bullet points, which I have in fact already begun to address when discussing and analyzing the issues of the first of them:

• The realities of the technology diffusion and acceptance curve, and the pressures of the marketplace that would limit and shape the pace of accelerating innovation acceptance and of innovation occurrence as well.

I am going to more fully discuss this and its implications in a next series installment. Meanwhile, you can find this and related postings and series at Business Strategy and Operations – 4, and also at Page 1, Page 2 and Page 3 of that directory. I also include this in Outsourcing and Globalization – and see that directory for related material. And I include a link to this posting as a supplemental addition to Section VII: Reexamining Business School Fundamentals (reconsidered), of Reexamining the Fundamentals too.

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