European Commission, New Working Environments Technologies driving systemic innovation- Creative destruction of boundaries Shaping your Future in Knowledge Society, Amsterdam Jan 2005

2 Starting point: The Lisbon agenda Lisbon council …. Lisbon council …. “To become the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion.” with more and better jobs and greater social cohesion.” Knowledge & Skills determines the success of individuals and companies in the global economy Knowledge & Skills determines the success of individuals and companies in the global economy Organisations inhibit or catalyse value creation in knowledge economy, add no value themselves! Organisations inhibit or catalyse value creation in knowledge economy, add no value themselves! Harnessing the creativity and innovation of 450 M Europeans for the knowledge economy ---- the target BEYOND CONSUMERS,WORKERS OR DEPENDENTS: A EUROPE OF CREATORS Harnessing the creativity and innovation of 450 M Europeans for the knowledge economy ---- the target BEYOND CONSUMERS,WORKERS OR DEPENDENTS: A EUROPE OF CREATORS

3 Globality: challenges and opportunities Challenges… Productivity gap? Productivity gap? Relocation of low quality standardized jobs and, high skilled work to countries outside the EU Relocation of low quality standardized jobs and, high skilled work to countries outside the EU Job losses Job losses Inclusion (regional, rural, skills) Inclusion (regional, rural, skills)Opportunities… Strengthening the European Research Area – the IST is a priority Strengthening the European Research Area – the IST is a priority Investing in human capital – expand the base of qualified ICT practitioners in strategic areas, emerging technologies, skills of ICT users of innovative systems… Investing in human capital – expand the base of qualified ICT practitioners in strategic areas, emerging technologies, skills of ICT users of innovative systems…

4 Value Creation in Knowledge Economy intangible economy intangible economy –extended products including embedded services, covering entire life cycles knowledge based economy knowledge based economy –digital content and services networking networking –simultaneous, complex and multidisciplinary

5 Productivity gap? World Competitiveness ranking 2004 ( : World Competitiveness ranking 2004 ( : – Finland, USA, Sweden, Taiwan, Denmark, Norway, Singapore,…..- > different models, very holistic! ILO statistics ( ILO statistics ( –Productivity growth per hour not higher in US than in Europe! (US 3,4% p.a, e.g. Fi 5,6, UK 3,8%, F 3,9% in years ) –We work far less hours –-> societal model and societal values

6 Change of Paradigms Networking characteristics: Networking characteristics: –complexity –dynamics –synthesis, and “best guesses” –connectivity rather than competence Global issues binding technology, business and legal innovation Global issues binding technology, business and legal innovation –“e- space” for “all” –privacy, IPR, ADR etc…. –public-private partnership Digitalization of goods and services Digitalization of goods and services –from cost to value

7 The response needed Innovation Innovation –Technology driven research meeting demand-driven research in real world settings: Living Labs as melting point Creativity Creativity –Supporting multidisciplinary, connected work environments for knowledge intense work Inclusion Inclusion –Creating possibilities for work communities and atypical work relations to capture the full participation of all Europeans Covering both « old » and « new » sectors by systemic innovation Covering both « old » and « new » sectors by systemic innovation

8 ICT for collaboration fostering competitiveness EFFECTIVENESS -do tasks anywhere, anytime, with anyone EFFICIENCY -allocations of resources -participation to work CREATIVITY -new ideas INNOVATION -new products and services PRODUCTIVITY AND GROWTH COMPETITIVENESS COLLABORATION -seamless interaction HUMAN BRAINS ICT for collaborative working environments

9 Workplace innovations and productivity Workplace Innovations account for 89 % of Multifactor Productivity gains* *Black and Lynch. San francisco federal reserve. 2004

10 Diversity – strength of Europe Lee Fleming, Perfecting gross-pollination. Harvard Business review September High low Low high Value of innovation Breakthrough average insignificant Alignment of team members’ disciplines

11 Single European Electronic Market (SEEM)

12 Full Impact Needs Systemic Innovation Component innovation Systemic innovation

13 From excellence at the point of production towards excellence in collaborative networks A. Smith: Chain production A. Smith: Chain production D. Ricardo: Specialization D. Ricardo: Specialization Working in Groups Working in Groups Collaboration: Seamless work to achieve common goals: cooperation + competition Collaboration: Seamless work to achieve common goals: cooperation + competition XXI century XX century

14 L L L Competence nodes networking Competences Connectivity Leadership Customers

15 Thesis In knowledge economy the trends suggest us to move from organisation- to human centric perspective: In knowledge economy the trends suggest us to move from organisation- to human centric perspective: –We all have multiple simultaneous roles: private - publicprivate - public work – privatework – private often multiple and changing in context with no clear boundariesoften multiple and changing in context with no clear boundaries –Organisations vs. Communities –Organisations catalyse or inhibit value creation –Incentives for the individuals to value creation

16 Trend visible in the press, or is it actually? “Collaborative solutions will be the next billion-dollar category”. BusinessWeek (2003) “Collaborative solutions will be the next billion-dollar category”. BusinessWeek (2003) “Almost everything is group-oriented. Everything has to do with the inefficiencies that exist with people working together” Bill Gates (Oct. 2003) “Almost everything is group-oriented. Everything has to do with the inefficiencies that exist with people working together” Bill Gates (Oct. 2003) “Collaboration with colleagues, partners and customers will allow to find optimal, innovative solutions”. Japan’s Future office Scenario (April 2004) “Collaboration with colleagues, partners and customers will allow to find optimal, innovative solutions”. Japan’s Future office Scenario (April 2004) “Global collaboration, customer feedback and personal knowledge management are transforming the workplace today”. IWPC (2004) “Global collaboration, customer feedback and personal knowledge management are transforming the workplace today”. IWPC (2004)

17 family of communities Innovation, Inclusion and Creativity for Empowering, Person-centric New Working Environments Chair : Wolfgang Prinz, Fraunhofer FIT (DE) EC : Isidro Laso Chair : Hans Schaffers, Telematica Inst. (NL) EC : Michael Ziegler Chair : Anne Jubert, CRSA (FR) EC : Paul Hearn ‘horizontal’ technology themes & SEEM ‘vertical’ challenging verification environments Chair : Nuria De Lama, Moviquity (ES) EC facilitator : John Nolan Chair : Roberto Santoro, ESoCE-NET (IT) EC facilitator : Teresa De Martino Chair : Flavio Bonfatti, Univ. Modena (IT) EC : Oluf Nielsen Well-being Chair : Niilo Saranummi, VTT (FI) EC facilitator : Olavi Luotonen 16/12//2004 New Working Environments Chair : Timo Saari, CKIR, HIIT (FI) EC facilitator : Leonie Schaefer Chair : Kulwant Pawar, Univ. Nottingham (UK) EC facilitator : Florent Frederix

18 Challenges for Collaborative work Mobility to allow work anywhere at anytime, thereby productivity. Seamless connectivity Mobility to allow work anywhere at anytime, thereby productivity. Seamless connectivity Collaboration* to ensure the work with whoever owns the needed knowledge, thereby productivity and creativity. Management of complexity Collaboration* to ensure the work with whoever owns the needed knowledge, thereby productivity and creativity. Management of complexity Virtualization of the work environment to allow contextualized services, thereby creativity. Virtualization Virtualization of the work environment to allow contextualized services, thereby creativity. Virtualization Augmentation of human capabilities with artefacts, thereby productivity. Augmentation of human capabilities with artefacts, thereby productivity. *. around a 50% of all companies’ activities are related to interaction between individuals and between them with the environment.

19 Where IT trends meet RTD challenges

20 Collaborative Mobile work Multitechnology, multidisciplinary integration - complex systems for work New Working Environments Mobile technologies Collaborative technologies Intelligent environment (Virtualization): context sentitivity, identity, ad hoc groups Assistive environment (Robotics): Augmentying human capabilities

21 Intelligent Collaborative Environment Goal: inferring the goals and needs of users from multiple sources of information about activity and interests Goal: inferring the goals and needs of users from multiple sources of information about activity and interests Virtualised environment that feels the worker and react to his situation. Multi-technology and multidisciplinary complex systems that includes: Virtualised environment that feels the worker and react to his situation. Multi-technology and multidisciplinary complex systems that includes: –Context awareness, –Location and Identity, –Human Activity management in an office environment, –Adaptive systems, –Multimodal Human Computer Interaction –Automated visual surveillance. Building upon research Building upon research

22 Conclusions Human Centered Knowledge Society means Human Centered Knowledge Society means –Increased responsibility for the individual –Increased productivity through innovation and creativity –Time gain by collaborative structures and shared environments –Increased possibilities for wealth creation by atypical job relations New work paradigms New work paradigms New work environments New work environments

23 Matrix: the machines were only half right…. Ford saw us as units of production Ford saw us as units of production Friedman see us as units of consumption Friedman see us as units of consumption The matrix saw us as units of power The matrix saw us as units of power We are creators…no longer creatures

24 Contact websites and and