The no straight lines of authentic value in the networked society [2]
October 14th, 2009
Industrial society is exhausted by its resistance to the networked society
Carlota Perez in Technological Revolution and Financial Capital : the dynamics of bubbles and golden ages, mourns the fact that as a new economy takes hold, as a consequence of the old one faltering, we go through a period that is painful, violent and wasteful. She also observes that when new separate technologies become interlocking, they unleash a powerful set of forces that, ‘cleave the fabric of the economy’ along faultlines, these are:
1). Between the new industries and the mature ones
2). Between modern organisations – whether new or upgraded by the new methods – and firms that stay attached to the old ways
3). Regionally between the strongholds of the now old industries and the new spaces occupied or favoured by the new industries;
4). In capabilities between those that are trained to participate in the new technologies and those whose skills become increasingly obsolete
5). In the working population, between those that work in modern firms or live in the dynamic regions and those that remain in the stagnant ones and are threatened with unemployment or an uncertain future
6). Structurally between the thriving new industries and the old regulatory system
7). Internationally, between the fortunes of those countries that ride the wave of new technology and those that are left behind
The result is, that for those organisations refusing to yield to a new way of doing things, they increasingly confront exhaustion.
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2 Responses to “The no straight lines of authentic value in the networked society [2]”
By Sander Duivestein on Oct 14, 2009
Hi Alan,
I have been working on the same stuff. I do think however that there is one very big difference with the earlier economic cycles we have experienced. The other cycles (water, steam, steel and oil) were all focused on producing tangible resources. The outcome of the ICT cycle is completely different. We are now producing intangible resources. It is a shift from atoms to bits.
And this paradigm shift (a punctuation point in time, see Penny For Your Thought by Don Tapscott, http://vint.sogeti.nl/?p=1354) is not the transition Carlota Perez means. For her it is just a new economic cycle just like the old cycles. Every 60 years such a cycle occurs. But this cycle – caused by ICT – is different. We say goodbye to the economics defined by the Industrial Revolution. New rules, a new framework is needed.
You can read more of my thoughts on: http://sanderduivestein.posterous.com/
What do you think?
By Alan Moore on Oct 14, 2009
Dear Sander,
Thank you so much for your comments. I went back and looked at Perez’s 7 points – may I suggest your analysis of what Perez means is a little skewed as her research states the following,
‘When our economies are shaken by a powerful set of new opportunities with the emergence of new technological capability, wedded to a profound shift in human needs and values,’ extraordinary things happen. Society, says Perez, ‘is still strongly wedded to the old paradigm and its institutional framework.’ Whereas Perez points out, as do many others that, ‘the world of computers, flexible production and the internet has a different logic and different requirements from those that facilitated the spread of the automobile, synthetic materials, mass production, and the highway network.’
So in fact Perez is talking exactly about a new paradigm, that you point to in mentioning that Tapscott is the architect of. Perez’s book was published in 2002, which means her thesis was developed, well before that in the late 90′s
Thank you for stopping by.
Kind regards
Alan Moore