we_nato - 2.0 challenges from a system theory point of view

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1 The Network Challenge: Some arguments to evaluate the cost-benefit ratio of open communication and participation via Internet Prof. Dr. Peter Kruse

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Peter Kruse's presentation at an internal NATO workshop .... getting ready for web 2.0!

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Page 1: we_NATO - 2.0 Challenges from a system theory point of view

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The Network Challenge:Some arguments to evaluate the cost-benefit ratio ofopen communication and participation via Internet

Prof. Dr. Peter Kruse

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THE NETWORK CHALLENGE

short introduction

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THE NETWORK CHALLENGE

How can people andcomputers be connectedso that –

collectively –

they act more intelligentlythan any individuals,groups or computershave ever done before?Massachusetts Institute of Technology

established in October 2006

short introduction

For more than 30 years working on network dynamics and collective intelligence:

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Power shift enforced by network architecture

Expectations provoked by network experience

Cultural change necessary for network success

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Power shift enforced by network architecture

Expectations provoked by network experience

Cultural change necessary for network success

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THE NETWORK CHALLENGE

connectivityby hyperlink

access boom1.

spontaneous activity of nodes

self-organisingnetwork

involvement boom 2.

recurrentexcitations

3.

newinformation

medium

Power shift enforced by network architecture

Internet

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THE NETWORK CHALLENGE

200520001995 2010

KILLER APPLIKATIONM

OTIVE FOR ACTION

to get information

for freeto manage

exploding information

to create networks

together

to leave personal

traces80

100

120

140

160

access boom involvement boom

time people spend in the internet

0. 1. 2. 3.

Broadcast Yourself

minutesa day

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THE NETWORK CHALLENGE

3. promotion of many recurrent excitations

2. critical level of spontaneous activity

1.

very high degree of connectivity

high probability of sudden autocatalytic boosts (avalanche effects, hypes) Coca Cola

commercial

Power shift enforced by network architecture

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THE NETWORK CHALLENGE

Homeless guywith a strikingradio voice“detected”incidentallyby a reporterat a streetcorner inColumbus, Ohio.

“The Golden Voice”

Ted Williams in 1 week > 12 million views

Marshall Mc Luhan

“15 minutes of fame”

(Andy Warhol):

012011

Power shift enforced by network architecture

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THE NETWORK CHALLENGE

The Group “Walk of the Earth”

in 2 weeks > 35 million views

Marshall Mc Luhan

“15 minutes of fame”

(Andy Warhol):

012012

Five musiciansfrom Canadacover the hit“Somebody that I usedto know”playingtogether ononly one guitar.

Power shift enforced by network architecture

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THE NETWORK CHALLENGE

newinformation

medium

self-organisingnetwork

Web 1.0 “new medium”more linear dynamics

“s-o

network”

Web 2.0non-linear dynamics

the impact of a contribution is a function of the amountof activity invested by the

providerthe stronger the input the more intense is the effect(presence and attention)

the impact of a contribution is a function of the amount

of activity invested by the

prosumervery small causes may have

surprisingly huge effects(attraction and resonance)

Power shift enforced by network architecture

power shift

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THE NETWORK CHALLENGE

newinformation

medium

self-organisingnetwork

Web 1.0 “new medium”linear dynamics

“s-o

network”

Web 2.0non-linear dynamics

cause = effect cause ≠

effect

Power shift enforced by network architecture

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THE NETWORK CHALLENGE

16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 01.

March 2011February 2011

People have realised the power of resonance effects for political agenda setting:

first article on possible plagiarism ----

demission as German defence minister

Karl-Theodor zu

Guttenberg

hit by an avalanche

Power shift enforced by network architecture

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THE NETWORK CHALLENGE

Power shift enforced by network architecture

Listen to people:Without empatheticunderstanding ofthe mostly hiddenforce fields of a culture or a societyit is impossible topredict emergenceof resonance effects.

Task is to analyse the implicit value systems of cultures and societies.

beatentracks

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THE NETWORK CHALLENGE

connectivityby hyperlink

spontaneous activity of nodes

self-organisingnetwork

newinformation

medium

Power shift enforced by network architecture

Internet

PUSH-PRINCIPLEcommunication strategypresence and attention

PULL-PRINCIPLEempathy for value systems

attraction and resonance

no web 2.0-strategy

legend of viral marketing

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THE NETWORK CHALLENGE

The Force: Volkswagen commercial

49.064.539 views (until 23.01.2012)

32.817 comments190.484 I like it no. 3 top scorercars & vehicles

Power shift enforced by network architecture

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THE NETWORK CHALLENGE

www.vwdarkside.com

Power shift enforced by network architecture

500 thousand instead of 50 millions

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THE NETWORK CHALLENGE

Success principles to deal with the network challenge:

The behaviour of self-organised networks is far too complex to be used as strategic communication tool.Network dynamics can not be predicted or controlled.

To be part of an open network communication is away to improve perception and understanding of thecultural force fields enabling resonance (push to pull).

Power shift enforced by network architecture

1

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Power shift enforced by network architecture

Expectations provoked by network experience

Cultural change necessary for network success

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THE NETWORK CHALLENGE

polarisation byshortage of resources(limits to growth)

exceeding individual capacities

increasing conflicts of interest

sustainability

complexity bynetworking

(globalisation)

Expectations provoked by network experience

Why is collective intelligence a buzz word?

Why put people so much hope in Internet?

balancingsocialfrictions

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THE NETWORK CHALLENGE

CEOs

agree:

Complexityis the biggestchallenge today.

Executives say:

Improving exchangeof information is thenumber one action.

Confronting complexityJanuary 2011

CEOs

and complexityJanuary 2011

Study based on interviews with 1.400 Senior executives in 22 countries

Expectations provoked by network experience

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THE NETWORK CHALLENGE

political partiesgroups of expertslobbyists

stakeholderscitizens’

initiatives

state residents

directdemocracy

politics

representative democracy

complexitytrap

polarisation byshortage of resources(limits to growth)

complexity bynetworking

(globalisation)

Why is collective intelligence a buzz word?

Expectations provoked by network experience

ill-definedbasis fordecisions

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THE NETWORK CHALLENGE

LiquidDemocracy

political partiesgroups of expertslobbyists

stakeholderscitizens’

initiatives

state residents

directdemocracy

representative democracy

polarisation byshortage of resources(limits to growth)

complexity bynetworking

(globalisation)

Why is collective intelligence a buzz word?

hope forcollectiveintelligence

Expectations provoked by network experience

politics

complexitytrap

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THE NETWORK CHALLENGE

Time Magazineperson of the year

December 2006:

collective intelligenceof people in Web 2.0

The end of the“Great Man”

theory

of history.

Expectations provoked by network experience

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THE NETWORK CHALLENGE

decision makermanagementleaders

staffcustomers

cooperation partners

level ofinformation

impact of decisions

ill-definedbasis fordecisions

polarisation byshortage of resources(limits to growth)business

complexity bynetworking

(globalisation)

Why is collective intelligence a buzz word?

Expectations provoked by network experience

complexitytrap

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THE NETWORK CHALLENGE

decision makermanagementleaders

level ofinformation

impact of decisions

polarisation byshortage of resources(limits to growth)business

complexity bynetworking

(globalisation)

hope forcollectiveintelligence

implementingenterprise 2.0

collaborativesoftware

Why is collective intelligence a buzz word?

Expectations provoked by network experience

staffcustomers

cooperation partners

complexitytrap

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THE NETWORK CHALLENGE

Expectations provoked by network experience

McKinsey2011

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THE NETWORK CHALLENGE

evaluation

activation

reticular systemlevel of alertness

decision makinglimbic system

brain as naturesbest example foran intelligentnetwork

complexityreduction by3 interactingsubsystemsHow to create

collective intelligence ?

associationcreative connections

cortical system

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THE NETWORK CHALLENGE

evaluationdecision makinglimbic system

How to createcollective intelligence ?

avalancheeffect, hypes

non-lineardynamics

activation

reticular systemlevel of alertness

associationcreative connections

cortical system

Internet ?

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THE NETWORK CHALLENGE

evaluationdecision makinglimbic system

How to createcollective intelligence ?

hyperlinkarchitecture

non-lineardynamics

avalancheeffect, hypes

activation

reticular systemlevel of alertness

associationcreative connections

cortical systemconnectivity

Internet ?

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THE NETWORK CHALLENGE

evaluationdecision makinglimbic system

How to createcollective intelligence ?

hyperlinkarchitecture

problemof semantics

non-lineardynamics

avalancheeffect, hypes

activation

reticular systemlevel of alertness

associationcreative connections

cortical systemconnectivity

Internet ?

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THE NETWORK CHALLENGE

limbic system

cortical system

pattern formationfast changing

ideas

Berlitz

School

decision makingsustainable

values

turning mask

Expectations provoked by network experience

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THE NETWORK CHALLENGE

Expectations provoked by network experience

Why the Internet has an evaluation problem:

Following the definition of Marshall McLuhanthe Internet is a “cool”

medium which needs

a lot of effort on the part of the users to determine meaning (ill-defined context):hyperlink architecture and lack of consensusin using words (taxonomy, social tagging).

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THE NETWORK CHALLENGE

Expectations provoked by network experience

CARTRIPNATURE

CARTRIPNATURE

CARTRIPNATURE

VACATION TRIP

DRIVING FUN

ECO-BALANCE

dilemma of social tagging

same tags

different concepts

conceptA

conceptB

conceptC

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THE NETWORK CHALLENGE

Expectations provoked by network experience

Why the Internet has an evaluation problem:

Any statistical evaluation procedure like themeasurement on basis of standardisedscales is subject to the jury-theorem postedby Marquis de Condorcet

(1743 -

1794):

to get proper results the mean rating hasto be above chance (distributed knowledge).

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THE NETWORK CHALLENGE

relevance

qualitativeevaluation

limitedexpertnetworks

quantity

mean rating above chance

problem of semantics

distributed knowledgeand shared culture Wisdom of

the Crowd

quantitativeevaluation

Condorcet-Jury-Theorem

Expectations provoked by network experience

discourse

< chance

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THE NETWORK CHALLENGE

Expectations provoked by network experience

Tasks to be solved by an open platform:(realistic expectations)

on national and international level:

agenda setting and agitation•

activation of democratic majorities

synchronisation of protest movements•

understanding social-cultural dynamics

involvement in ordinary decision making

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THE NETWORK CHALLENGE

Expectations provoked by network experience

Tasks not

to be solved by an open platform:(unrealistic expectations)

on national and international level:

production of innovative solutions•

elaboration of sophisticated content

involvement in complex decision making

tasks only possible in limited expert networks

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THE NETWORK CHALLENGE

evaluation associationcreative connections

cortical systemdecision makinglimbic system

How to createcollective intelligence ?

hyperlinkarchitecture

problemof semantics

non-lineardynamics

avalancheeffect, hypes

activation

reticular systemlevel of alertness

connectivity

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THE NETWORK CHALLENGE

Success principles to deal with the network challenge:

In open networks like the Internet the realisation of collective intelligence is strongly limited by loss oforiginal context (semantic problem, “cool”

medium).

To save participation from triviality only topics shouldbe addressed where a sufficient level of distributedknowledge and a minimum cultural fit is guaranteed.

Power shift enforced by network architecture

2

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Power shift enforced by network architecture

Expectations provoked by network experience

Cultural change necessary for network success

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THE NETWORK CHALLENGE

Cultural change necessary for network success

1956An introduction to Cybernetics:

variety absorbs variety

Ashby’s Lawof requisite

variety

William Ross Ashby (1899 –

1992)

Principles of the self-organizingdynamic systems (1947)

to handle networkdynamics it is necessary

to act like a dynamic network

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THE NETWORK CHALLENGE

network

hierarchy

self-organisation

steering andregulation

Culture of organisations has to be flexible enough to change between two modes:

Cultural change necessary for network success

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THE NETWORK CHALLENGE

HIERARCHY NETWORK

centralised organisationcommand and controlsteering, regulationconfidentiality

STRENGTHSclear orientationpowerful realization

SCOPElower complexitymandate to stabilise

decentralised organisationtolerance and trust

self-organisationtransparency

STRENGTHSfast adaptability

creative invention

SCOPEhigher complexity

permission to de-stabilise

cultural change

Cultural change necessary for network success

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THE NETWORK CHALLENGE

entrepreneurshipPULL

PUSHmanagement

COACHING OPTIMISATION

INSPIRATION NETWORKING

organisationpeople/staff

soft facts

soft facts

hard facts

hard facts

next practice

best practice

leadership excellence

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THE NETWORK CHALLENGE

Success principles to deal with the network challenge:

The unrestricted communication in open networks is very fast in detecting and very rigorous in criticising mismatch between published intentions and reality.

Before starting an new platform for participation anyorganisation should reflect on own readiness to adapt to the implicit value system of networks (authenticity).

3

Cultural change necessary for network success

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THE NETWORK CHALLENGE

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