CCT 205 The Network Economy

Essence of Network Technology (D.Barney) Mastery of nature Rational instrumentality: efficiency of means over worthiness of ends Standardization Time - space compression (D. Harvey) Deterritorialization Interactivity and customization

Technology and Society Instrumentalism –Technologies are neutral tools – Outcomes depend on how technologies are used Substantivism –Technology embodies specific values & ways of being in the world Social constructivism –Impact of technology determined by the social relations and local conditions that support the technology. Possibility of many different kinds of impacts depending on social interactions

ICTs & Social Transformation Popular view of technology as force for societal transformation (Toffler, 1980) Technological innovation seen as driver of transformation of core economic/social structures characteristic of capitalist societies for past 2 centuries Claim that ICTs are forging new modes of production and shifting economy from industrial to post-industrial model.

Old versus New Economy Industrial –Technology –Products –Leading industries –Labour market –Nature of work Post Industrial –Technology –Products –Leading industries –Labour market –Nature of work

‘Old’ Manufacturing in the Auto Sector

‘New’ Manufacturing in the Auto Sector

Fordism Post Fordism Late 19 th century to mid-20 th century Mass mechanized production Standardized goods Highly segmented process of production (assembly line) Economic restructuring in 1980s to increase flexibility Just in time deliveries of special or small batch orders Flattening of management hierarchy

Changing Technology /Changing Workplaces Industrial –Machines amplified/ replaced physical labour & increased material production power –Mass production of goods & transportation of goods –Factory is production centre –High mass consumption, manufacturing, motorization Post Industrial –Computer/digital technology amplifies mental labour –Expansion of information, information networks & data banks –Global work environments,flexible work arrangments, –High mass knowledge creation

Taylorism and Scientific Management (Robins & Webster, 1999) Application of engineering principles to the industrial system of production Time and motion studies to ensure efficiency Standardization Factory work to be planned, coordinated, & controlled under expert direction. –Information centralized/controlled in planning departments = potential for surveillance + controlling production process

Changing Labour Market Industrial –Jobs available –Job security –Grade 12 –Standard employment –Wages/salaries –Routine production services –In-person services Post Industrial –Work available –Work security –Lifelong learning –Contract, consulting –Performance pay –Symbolic analytic services

The Network Society Castells (1997) An informational economy Global economy Network enterprise Transformation of work: flexi-workers Social polarization/social exclusion Timeless time Space of flows

The New Economy (Castells, 2001) Productivity is derived from the application of knowledge Networking: capacity to assemble information and distribute it in a flexible, adaptable way aided by IT Highly skilled, mobile labour key resource for any company –Generic versus self programmable labour

Innovation (Castells, 2001) Ability to create new products & processes Culture of shared information Organizational learning Territorial concentrations of innovation and production – Silicon Valley

De-massification Industrial economy = mass production, mass consumption economy Traditional mass manufacturing factories put out identical objects by the millions New economy=demassified production short runs; customized products Information & media services=segmented, individualized

The Dual Role of Digital Innovation Digital Innovation plays two important roles in the ‘New Economy’: 1) the labour-saving component of digital innovation refers to the possibility of substituting new digital/robotic technologies for workers; 2) the labour-creating component refers to the direct products and services that are involved in generating these new technologies.

The Labour-saving Role of Digital Innovation Companies are always trying to employ the most effective mix of labour and technology.  In brief, when labour is expensive, it becomes more attractive to employ new technologies in order to substitute for the high-cost of workers (and when labour is cheap, it makes sense to produce goods in a labour-intensive way).

The Labour-creating Role of Digital Innovation While digital technology is being used to replace ‘old’/expensive manufacturing workers, the ‘New Economy’ is centered on knowledge-intensive, R&D services that are needed to design, produce and market these very same digital technologies.

Media Implications:Narrowcasting Niche-fixated, small-audience specialty channels TiVo – digital recorders that search t.v. schedules & save only programs suiting user’s taste Music downloading & iPods with individual play lists Blogs & subscriptions to Web services aligned with own beliefs & biases Possible that TiVo data on what viewers watch can be used by advertisers to hyper-target advertising to individuals

EGOCASTING? C. Rosen, The New Atlantis (2006): “The remote control shifted power to the individual, and the technologies that have embraced this principle in its wake—the Walkman, the Video Cassette Recorder, Digital Video Recorders such as TiVo, and portable music devices like the iPod—have created a world where the individual’s control over the content, style, and timing of what he consumes is nearly absolute… We have created and embraced technologies that enable us to make a fetish of our preferences.” C. Rosen, The New Atlantis (2006)