Experience the Living Networks in New York!

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Since I wrote Living Networks, I’ve dreamed of creating an event that would literally bring the book to life, to allow people to experience personally the power of the networks and the implications for business. The first of what I hope will be a whole series of events – the BDI Living Networks Forum – will be held in New York City on December 4th, 2003. I have the perfect partner for this – the Business Development Institute, which combines a fantastic network of network-minded individuals and organizations with innovative business development services.

In the agenda you’ll see that the event is focused on creating interaction and what I call “enhanced serendipity” between participants. Using Spoke Software we will show participants their “relationship path strength” with all other attendees, and with any other individual, who they know in common. Litéra collaboration software will be used as a platform for showing participants how to implement collaboration effectively in and across organizations.

We have some great supporters, and there’ll be some awesome people along. Nothing like this has been done before, so I’ll let you know some of what we learn at the event. Or of course would be fantastic to meet you there!

I believe that events that use emerging social network technologies and effective design of participant interaction will over time become the norm. Hopefully “talking-head” conferences will die a natural death very soon. Events that apply living networks ideas will create immense value in bringing the right people together to create and share knowlege, ideas, and relationships. Be there at the birth of something big!

Creating the infrastructure for the trusted networks

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I had lunch earlier this week with Stuart Henshall in San Francisco, and we had a delightful wide-ranging discussion on topics of common interest. We’ve known each other for a good few years through scenario planning, and have a similar vision for the future of personal online networks. Stuart focuses on—among many other very interesting issues including consumer rights—trust in building networks. His vision is of a world in which everyone has their profile online, and shares both their profile and their personal connections selectively with trusted contacts. Sixdegrees.com was the first major online player in this space. I intended to write about it in Living Networks, but it went the way of all things in January 2001. The current top players in this space are Ryze.com and ecademy. However effective trust systems are essential for these public online networks to work. In the first instance we need to be able to create layers around how much of the information about our personal contacts we want to share. Intermediating software can help, for example by identifying in a secure system the contacts we share. For example, Stuart and I estimated we would share 20-30 people in our email address books, but we don’t know who all of those people are. On the next level, if we can create software that enables people to draw on their personal contacts’ perception of others’ trustworthiness, this will enable us to more readily expand our own personal networks in useful ways. These kinds of systems can be implemented either in a global context, or inside or across organisations.

One of the key issues which comes up for me is how we are going to get there. Creating a highly functional system that enables us to see and expand our global personal networks is a fabulous vision, which I dearly hope will come to fruition, but it is likely to take a long time and there is a risk it will never happen. In the first instance, as I write in Living Networks, people need to build evolutionary business models, that can make money in creating the first steps of this vision, and easily morph into new models as the context moves on. The other key issue is standards. As in many domains, whoever “controls” this extraordinarly valuable space of personal connections can create—and extract—enormous value, and thus there will be plenty of competition to be the winner. If there are standard information definitions and interfaces between competing systems, this fragmentation can be avoided. Ultimately, if the vision is realized, it will most likely be driven by an open source initiative, which means there is usually less commercial value to be extracted. There’s a long way to go yet in creating a system that will allow everyone to see exactly how they are connected in the global networks. I’ll try keep you posted along the way.

The changing world of librarians

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I’m at the Information Online conference in Sydney, where I gave a keynote this morning. The conference is primarily populated by librarians. In sitting in on some of the sessions and speaking to attendees, one of the interesting dynamics emerging is how the democratization of information searching – through Google and more – means librarians must shift up in how they add value. Many spend much of their time using specialist databases (with 110 exhibitors pusing their wares here), and clearly can play an important role in finding, filtering, and customising information, but they find it difficult to sell their importance to their senior business or government bosses.

Layoffs are rife in business libraries and information centers, with these kinds of services easy targets in cost-cutting. One of my key messages to this community was how they can and must contribute to creating a global information architecture that enables collaborative filtering. The vast majority of Internet users only look, and don’t contribute. If information professionals and others can make it easy for people to input what they find valuable, and for others to tap into that consolidated input, this will help support the emergence of the “global brain” in which we can draw on each others’ perspectives, rather than face the information jungle alone. Blogs are critical in the creation of this infrastructure. The simple act of providing a link changes the shape of the Internet, influences Google and Blogdex results, and allows others to find more easily what you think is worthwhile. We all must participate, not just observe.

Creating the transparent corporation

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Aaargh! Being on the road means I’m getting stimulated by lots of very interesting stuff, but it’s hard to find a moment free to blog it. I’ll try to get a few things down… Last week I got dragged in at the last moment as a pinch-hitter to speak at the KMWorld (Knowledge Management) conference, the largest in the field in the US, in San Jose. It was in the “ROI and Measuring Value” stream, which is not what I spent most of my time on, so I decided to title my talk “A Financial Markets Perspective on Intellectual Capital”. The KM crowd don’t tend to get exposed to finanial markets thinking much, so it’s worth giving some insight into how investors view non-financial or intangible indicators. The story in a nutshell is that it has become increasingly obvious that non-financial indicators are vital in getting an accurate picture of the value of a company. Employee turnover and changes in customer loyalty are just two examples of a myriad of things that investors would very likely want to know, but don’t get told.

Over the last 10 years many have attempted to build models that take into account these intangible indicators. After spending a lot of time several years ago looking closely at these issues, and talking with the top people in the field, I came to the conclusion that there was no simple answer. The heart of the issue is that investors use different valuation models—that is they assess the value of intangibles differently. That’s what makes a market. Steven Wallman, who was then SEC commissioner and now runs the very interesting customized mutual fund service foliofn, stated it clearly. Currently financial reports aggregate all of the vast amount of information inside a company. What is required is a shift to disaggregation of that information, so it is all available to everyone, who can then choose to aggregate it into the financial models of their choice. We have yet to see whether companies, large investors, or regulators will drive this shift, but 10 years is the sort of timeframe we have to expect for it to happen. What could help accelerate this dramatically is XBRL (eXtensible Business Reporting Language), which is an XML-based standard for financial reporting that I discuss in Living Networks. This makes it very easy for analysts to take financial information into their own models. A recent study showed that analysts accounted for stock options in reports more accurately if they were presented in XBRL format rather than in a PDF. The beauty of XBRL is that it is extensible, so it can easily be used to report on non-financial indicators as well as financial ones. XBRL offers the promise of disaggregating information flows in company reporting. Investors will be far better informed, and be able to make decisions based on what is actually happening in the company. Earlier this week I met the executives at the American Institute of CPAs who are driving XBRL. They believe it will be far harder for the Enrons of this world to get away with what they did in an XBRL world. Companies will be far more transparent. And a little further down the track, we will shift to real-time reporting, when you can see what is happening in a company as it happens rather than two months after the end of the quarter. It’s hard to exaggerate the potential impact on how business is done. I will post my slides from my KMWorld presentation in the next couple of weeks, with a link from this article.