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P L AY
COCHRANE
a s s o c i a t e s
cochrane.org.uk
ca-global.org
Peter Cochrane
Management  Challenge
Simultaneous change on all fronts!
BYOD	

BMOBSustainabilit y
Green
W
orking
Flexible	

Workforce
A d a p t a b i l i t y 	

Speed
of Change
Innovation
Accelerating

Technology
Failing!
Security
Failing
IT Depts
Cost$$
H
o
m
e
M
o
b
ile
W
orkin
g
S o c i a l
Working
Dispersed
T e a m s
CLOUDSNetworks
without
infrastructure
A I
M o d e l l i n g
Decision
Support
!
!
Growing Competition	

Customer Demand	

Market Erosion	

New Channels	

New Entries	

More for less	

Gov Regulation	

New Technology	

Trade Controls	

Skill Shortages	

Market Demands	

Taxation Limits	

Staff Movements	

Management Dwell Times
A P P S
A P I s
Axiomatic  change
Driven by technology answering or creating a need !
T e c h n o l o g y
Only flows in one direction	

Amplifies human abilities	

Creates more technology	

Changes ever ything	

Empowers science	

O n l y a c c e l e ra t e s 	

Suppor ts societies	

Promotes innovation	

Empowers individuals	

Dimensionally entropic	

Builds one layer at a time	

Favours the adaptive & adventurous	

I n n o v a t i o n
M a r k e t s
Business  AND  RAPID  CHANGE
We now have to accept the counterintuitive !
	

An understanding of technology is unnecessary	

A good manager can manage any business	

You can buy all the expertise you need	

The bottom line is all that matters	

Customers know what they want	

The is always a simple solution	

+++	

Social Nets are a waste of time	

Spread sheets are sufficient	

Computer games are toys	

Models are unnecessary	

Managers know best	

Twitter is trivial	

+++
Many established business wisdoms are wrong:
role  reversal
The young are full of tech wisdom and now teach the old !
R&D Defence Consumer
Defence ⇐ Consumer ⇐ R&D
School	

➡	

College	

➡	

University 	

➡	

Computing
Computing	

➡	

School	

➡	

College	

➡	

University 	

➡	

“Specialised”
The  world  is  no  longer  simple
It is connected complex and non-linear !
- Social Networking leads to Social Selling
- One complaint becomes a global tweet
- Knowledge has a shortening half life
- Information cannot be contained
- Chaos is now the norm
complexity
What does it mean ?
‘Not simple or obvious’	

Resists analysis	

Resists modelling	

Denies simplification	

Unexpected outcomes	

Unintended consequences	

No generalised classifications	

No generalised mathematical theory
No generalised description	

Mostly counter intuitive	

Generally confounding	

Conditionally difficult	

No, or, weak axioms	

Non commutative
non-linear
What does it mean ?
Outcome not related to input by scale 	

and may see a different outcome every time
even when starting conditions/inputs are the	

	

 same !
How come??
- Minuscule/imperceptible differences in start conditions
- Minuscule/imperceptible differences in the system state
Small input changes can have a massive 	

impact on the output
non-linear Conditionally Stable !
Take your hands and feet off the
controls and it will continue 	

to be stable and fly !
non-linear Conditionally Unstable !
Take your hands and feet off the
controls and it is immediately 	

out of control and will crash!
non-linear
The likelihood of a Flat Spin (instability)	

increases with efficiency !
Natural  &  man  made
Complexity, Non-Linearity, Chaos are the natural order !
everyone  is  connected
And soon so will everything!
A  connected  world
What does this mean ??
The day of the independent variable is over	

The day of disconnected decisions and effect/s has gone 	

Today unintended consequences rule…and there is no escape	

Managing without models and sufficient data is very dangerous
Change  is  no  longer  slow
It is fast and speeding up !
	

Seemingly 	

insignificant 	

technologies 	

can change 	

everything
Change  is  not  a  constant
It is exponential !
Over 1000 tweets/second
Over 1Bn/month use FaceBook
Over 50Bn Google searches/month
Top 10 jobs of 2010 did not exist in 2004
25% have been in their current job for <1 year
50% have been in their current job for <5 years
School student will have had > 15 jobs by age 35
!
Exponential
What does it mean ??
More data/information will be generated this year	

than in the previous 5000 !
…and the year after that	

…and the year after, after that	

…and the year after, after, after…
Exponential
Why it is a big deal !!
Telephone Network Growth ∝ N2	

!
Internet Network Growth ∝ 2N	

!
Cloud Network Growth ∝ N1/2
Increase nodes 10 fold = Energy Increase
x 100
x 1000
x 3.6
THe  Cloud(s)
Plural not singular because the internet won’t scale!
V a c u o u s 	

Tr a n s i e n t 	

M o b i l e 	

Open	

Closed	

Visible	

Invisible	

P e r s o n a l 	

C o m m e r c i a l 	

G o v e r n m e n t 	

Local,Global
People,Things
Vehicles,Home
Office.Campus	

Town,City	

Region,Country	

ZeroInfrastructureNets
AnonymityWorking
EmbeddedSecurity
Auto-ImmuneSystem
education  through  a  straw
People focussed into a corner leading to unemployment!
Limited to 3 - 7 simultaneous topics/tasks	

Mathematics fails > order 5	

In evolutionary stasis
Physics
ART
LAW
Biology
TECH
Maths
Chemistry
Humanities Religion MediaIT
Professions are now
multidisciplinary
Education  v  ability
Paper achievements will be outgunned by a proven abilty!
(rare)  Multi-talented  &  flexible
Doers and the solvers of problems!
HUmans  are  simple  minded
We cannot cope with or solve the complex!
Limited to 3 - 7 simultaneous topics/tasks	

Mathematics fails > order 5	

In evolutionary stasis
Machines experience	

no such limitations !
Why  do  we  employ  People  ?
Because they are cheaper than robots !
MATERIALS  &  processing
Organic + inorganic, printed,
programmed, autonomous
No  casting,  Pressing,  machining
> 300 parts are now printed
Complex components (eg gearboxes & manifolds) produced
in one pass without assembly using less material whilst
returning a superior performance
Shipping designs and not products/goods….	

!
Open Access Networks Software Apps APIs
Design Printing Product Distribution ++++
FRont  line  production
Shipping designs and not parts
US Military are	

ahead of the game
AI  -  HUMAN  
Conflict or cooperation ?
IBM  WATSON
General knowledge
The half life of knowledge: Physics <13 years	

Medicine < 4 years	

Technology <0.7 year	

Marine Biology < 0.5 year 	

We need 	

HELP!
job  destruction
Sweeping away the old
Testers	

Tasters	

Analysts	

Advisors	

Educators	

Reporters	

Strategists	

Call centres	

Report writers	

Personal bankers	

Personal assistants	

Answering services	

Investment bankers
Agents	

Drivers	

Assistant	

IT support	

Technicians	

Researcher	

Train driver	

Forecasters	

Receptionist	

Stock Trader	

Tech support	

+++++	

Warehouse People
job  CREATION  &  ENHANCEMENT
Bringing in the better and the new
Polymath	

Fabricator	

Geneticist	

Generalist	

Proteomist	

Multi-designer	

Problem solver	

Longevity advisor	

Big Data Analyst	

Cellular programmer	

Material programme	

Complexity analysts
Medics	

Scientists	

Engineers	

Modellers	

Designers	

Detectives	

Architects	

Consultants	

Technologists	

Entrepreneurs	

++++	

Security Experts
BIG/META  DATA  -  BIG  RETURNS
The power of analysis & prediction
Who you know and how and why you communicate	

Who knows you and how and why you communicate	

What, where, when, why, how you search for	

What, where, when, why, how they search for	

What, where, when, why, how you travel	

What, where, when, why, how they travel	

What, where, when, why, how you buy	

What, where, when, why, how they buy	

What, where, when, why, how you do	

What, where, when, why, how they do	

+++ 	

What, where, when, how you live and work	

What, where, when, how they live and work
healthcare  transformed
Sensor technologies available to all
The Star Trek
‘Bones’ Medical
S c a n n e r i s a
f u n c t i o n i n g
prototype and not
a science project
or a dream!
FOOds  production  transformed
Robotic farmers in swarms
A f u n c t i o n i n g
prototype today
a n d a r e a l i t y
tomorrow ?!
future  employment/employees
New modes and different expectations
the  rise  of  the  Connected  
New modes and expectations
Speed	

of 	

Change
Adaptability	

and	

Flexibility
New	

Technology	

Entries	

Competition
Growing	

Global
Market	

Threat	

Ecological	

Humanitarian	

Demands
BYOD	

BMOB	

OPEN	

APPS	

Social	

Mobility	

Clouds	

BIG	

Data
is sufficient
No One
security
technique
The concatenation of multiple	

low cost methods rapidly 	

delivers a very high 	

level of protection
Habits	

Personal	

Protocols	

Locations	

Networks 	

Biometrics	

Knowledge	

++++++++Clouds inherently	

more secure than	

any prior networks
More empowering than
anything we have
had before
THE  future  is  personal
Personal not Corporate Computing
Unacceptable  
Ineffective and unuseful IT Dept’s
Can they cope with the sophistication of
the new threat scenarios ?
Do they have the same ability and resources as
Cisco, IBM, Google,Apple et al working together...
security
Are you protected, is your team up to par ?
- Unsure	

- Unaware	

- Uninformed	

- Underpowered	

- Blissfully ignorant
Pre - occupied by:	

Office upgrades	

LAN provision	

Old services	

Operations	

+++
security
Or are they in the little league ?
new  workforce
Tech savvy, fully equipped, no respect for IT Depts!
The see social
networking is a
vital a tool...
...as their choice of
equipment, apps, 	

web sites and	

ways of working...
...they don’t
eMail, theyTXT	

and IM !
...they don’t
conceal or
hide they
share !
new  workforce
No loyalty or allegiances, driven by pure interest !
T h e y s e e I T a s
‘personal’ and not
‘corporate’ - 	

!
Thinking, working & acting
differently...
…creating new
fast,innovative
solutions, groups,
and operations...	

new  workforce
Working on the fly using what they choose!
Management
Rapid change is now the biggest challenge
Management attitudes, working and operational
practices, will have to change if companies are 	

to keep up and compete on 	

the world stage ...
Companies
The death of hierarchy !
unchanging
Old organisational
structures work for
situations where
all is known and
In situations of rapid change where flexibility is
the hallmark of success, then organisational
hierarchies are generally a disaster
Companies The Rise of Autonomy !
Small, specialised,
and skilled teams
highly focused on
creativity problem
solving, getting
results fast, to
then reshape and
reform to meet
the next set of
demands
The Art of War	

Tsun Zu
…is now more applicable to
modern nations than:
The Wealth of Nations	

Adam Smith
case  study:  XYZ  Company  
Security market leader
• Open entry - no airlocks	

• Open plan - no offices	

• 60% seating provision	

• Flexible working	

• Mobile working	

• Home working	

• BYOD	

• BMOB	

• Virtual PBX	

• VOIP PBX Client	

• No wired infrastructure
• Power sockets only	

• Cloud provision	

• App freedom	

• ISP freedom	

• Open access	

• Open Apps	

• Transients	

• Associates	

• Part timers	

• Contractors	

• Multi Continent	

• +++
THE  BIG  CHAllengeS
Over the next 10 years +
• Fewer Full Time and FTE	

• Shorter FT dwell times	

• Shorter project times	

• Changing processes	

• New technologies	

• More competition	

• More contractors	

• More transients	

• More machines	

• Faster change
What we know for sure....
In the next phase the winning companies and countries
will have taken risks, and dared to be different...	

...very different...
DEEP(ER)  DIVE
Supporting material on every aspect covered here !
In Depth Slide Sets: http://www.slideshare.net/PeterCochrane
Published Articles & Papers:http://www.cochrane.org.uk
Thank You
ca-global.org

cochrane.org.uk
COCHRANE
a s s o c i a t e s

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Work or Play

  • 1. Work                  or   P L AY COCHRANE a s s o c i a t e s cochrane.org.uk ca-global.org Peter Cochrane
  • 2. Management  Challenge Simultaneous change on all fronts! BYOD BMOBSustainabilit y Green W orking Flexible Workforce A d a p t a b i l i t y Speed of Change Innovation Accelerating Technology Failing! Security Failing IT Depts Cost$$ H o m e M o b ile W orkin g S o c i a l Working Dispersed T e a m s CLOUDSNetworks without infrastructure A I M o d e l l i n g Decision Support ! ! Growing Competition Customer Demand Market Erosion New Channels New Entries More for less Gov Regulation New Technology Trade Controls Skill Shortages Market Demands Taxation Limits Staff Movements Management Dwell Times A P P S A P I s
  • 3. Axiomatic  change Driven by technology answering or creating a need ! T e c h n o l o g y Only flows in one direction Amplifies human abilities Creates more technology Changes ever ything Empowers science O n l y a c c e l e ra t e s Suppor ts societies Promotes innovation Empowers individuals Dimensionally entropic Builds one layer at a time Favours the adaptive & adventurous I n n o v a t i o n M a r k e t s
  • 4. Business  AND  RAPID  CHANGE We now have to accept the counterintuitive ! An understanding of technology is unnecessary A good manager can manage any business You can buy all the expertise you need The bottom line is all that matters Customers know what they want The is always a simple solution +++ Social Nets are a waste of time Spread sheets are sufficient Computer games are toys Models are unnecessary Managers know best Twitter is trivial +++ Many established business wisdoms are wrong:
  • 5. role  reversal The young are full of tech wisdom and now teach the old ! R&D Defence Consumer Defence ⇐ Consumer ⇐ R&D School ➡ College ➡ University ➡ Computing Computing ➡ School ➡ College ➡ University ➡ “Specialised”
  • 6. The  world  is  no  longer  simple It is connected complex and non-linear ! - Social Networking leads to Social Selling - One complaint becomes a global tweet - Knowledge has a shortening half life - Information cannot be contained - Chaos is now the norm
  • 7. complexity What does it mean ? ‘Not simple or obvious’ Resists analysis Resists modelling Denies simplification Unexpected outcomes Unintended consequences No generalised classifications No generalised mathematical theory No generalised description Mostly counter intuitive Generally confounding Conditionally difficult No, or, weak axioms Non commutative
  • 8. non-linear What does it mean ? Outcome not related to input by scale and may see a different outcome every time even when starting conditions/inputs are the same ! How come?? - Minuscule/imperceptible differences in start conditions - Minuscule/imperceptible differences in the system state Small input changes can have a massive impact on the output
  • 9. non-linear Conditionally Stable ! Take your hands and feet off the controls and it will continue to be stable and fly !
  • 10. non-linear Conditionally Unstable ! Take your hands and feet off the controls and it is immediately out of control and will crash!
  • 11. non-linear The likelihood of a Flat Spin (instability) increases with efficiency !
  • 12. Natural  &  man  made Complexity, Non-Linearity, Chaos are the natural order !
  • 13. everyone  is  connected And soon so will everything!
  • 14. A  connected  world What does this mean ?? The day of the independent variable is over The day of disconnected decisions and effect/s has gone Today unintended consequences rule…and there is no escape Managing without models and sufficient data is very dangerous
  • 15. Change  is  no  longer  slow It is fast and speeding up ! Seemingly insignificant technologies can change everything
  • 16. Change  is  not  a  constant It is exponential ! Over 1000 tweets/second Over 1Bn/month use FaceBook Over 50Bn Google searches/month Top 10 jobs of 2010 did not exist in 2004 25% have been in their current job for <1 year 50% have been in their current job for <5 years School student will have had > 15 jobs by age 35 !
  • 17. Exponential What does it mean ?? More data/information will be generated this year than in the previous 5000 ! …and the year after that …and the year after, after that …and the year after, after, after…
  • 18. Exponential Why it is a big deal !! Telephone Network Growth ∝ N2 ! Internet Network Growth ∝ 2N ! Cloud Network Growth ∝ N1/2 Increase nodes 10 fold = Energy Increase x 100 x 1000 x 3.6
  • 19. THe  Cloud(s) Plural not singular because the internet won’t scale! V a c u o u s Tr a n s i e n t M o b i l e Open Closed Visible Invisible P e r s o n a l C o m m e r c i a l G o v e r n m e n t Local,Global People,Things Vehicles,Home Office.Campus Town,City Region,Country ZeroInfrastructureNets AnonymityWorking EmbeddedSecurity Auto-ImmuneSystem
  • 20. education  through  a  straw People focussed into a corner leading to unemployment! Limited to 3 - 7 simultaneous topics/tasks Mathematics fails > order 5 In evolutionary stasis Physics ART LAW Biology TECH Maths Chemistry Humanities Religion MediaIT Professions are now multidisciplinary
  • 21. Education  v  ability Paper achievements will be outgunned by a proven abilty!
  • 22. (rare)  Multi-talented  &  flexible Doers and the solvers of problems!
  • 23. HUmans  are  simple  minded We cannot cope with or solve the complex! Limited to 3 - 7 simultaneous topics/tasks Mathematics fails > order 5 In evolutionary stasis Machines experience no such limitations !
  • 24. Why  do  we  employ  People  ? Because they are cheaper than robots !
  • 25. MATERIALS  &  processing Organic + inorganic, printed, programmed, autonomous
  • 26. No  casting,  Pressing,  machining > 300 parts are now printed Complex components (eg gearboxes & manifolds) produced in one pass without assembly using less material whilst returning a superior performance Shipping designs and not products/goods…. ! Open Access Networks Software Apps APIs Design Printing Product Distribution ++++
  • 27. FRont  line  production Shipping designs and not parts US Military are ahead of the game
  • 28. AI  -  HUMAN   Conflict or cooperation ?
  • 29. IBM  WATSON General knowledge The half life of knowledge: Physics <13 years Medicine < 4 years Technology <0.7 year Marine Biology < 0.5 year We need HELP!
  • 30. job  destruction Sweeping away the old Testers Tasters Analysts Advisors Educators Reporters Strategists Call centres Report writers Personal bankers Personal assistants Answering services Investment bankers Agents Drivers Assistant IT support Technicians Researcher Train driver Forecasters Receptionist Stock Trader Tech support +++++ Warehouse People
  • 31. job  CREATION  &  ENHANCEMENT Bringing in the better and the new Polymath Fabricator Geneticist Generalist Proteomist Multi-designer Problem solver Longevity advisor Big Data Analyst Cellular programmer Material programme Complexity analysts Medics Scientists Engineers Modellers Designers Detectives Architects Consultants Technologists Entrepreneurs ++++ Security Experts
  • 32. BIG/META  DATA  -  BIG  RETURNS The power of analysis & prediction Who you know and how and why you communicate Who knows you and how and why you communicate What, where, when, why, how you search for What, where, when, why, how they search for What, where, when, why, how you travel What, where, when, why, how they travel What, where, when, why, how you buy What, where, when, why, how they buy What, where, when, why, how you do What, where, when, why, how they do +++ What, where, when, how you live and work What, where, when, how they live and work
  • 33. healthcare  transformed Sensor technologies available to all The Star Trek ‘Bones’ Medical S c a n n e r i s a f u n c t i o n i n g prototype and not a science project or a dream!
  • 34. FOOds  production  transformed Robotic farmers in swarms A f u n c t i o n i n g prototype today a n d a r e a l i t y tomorrow ?!
  • 35. future  employment/employees New modes and different expectations
  • 36. the  rise  of  the  Connected   New modes and expectations Speed of Change Adaptability and Flexibility New Technology Entries Competition Growing Global Market Threat Ecological Humanitarian Demands BYOD BMOB OPEN APPS Social Mobility Clouds BIG Data
  • 37. is sufficient No One security technique The concatenation of multiple low cost methods rapidly delivers a very high level of protection Habits Personal Protocols Locations Networks Biometrics Knowledge ++++++++Clouds inherently more secure than any prior networks
  • 38. More empowering than anything we have had before THE  future  is  personal Personal not Corporate Computing
  • 39. Unacceptable   Ineffective and unuseful IT Dept’s
  • 40. Can they cope with the sophistication of the new threat scenarios ? Do they have the same ability and resources as Cisco, IBM, Google,Apple et al working together... security Are you protected, is your team up to par ?
  • 41. - Unsure - Unaware - Uninformed - Underpowered - Blissfully ignorant Pre - occupied by: Office upgrades LAN provision Old services Operations +++ security Or are they in the little league ?
  • 42. new  workforce Tech savvy, fully equipped, no respect for IT Depts!
  • 43. The see social networking is a vital a tool... ...as their choice of equipment, apps, web sites and ways of working... ...they don’t eMail, theyTXT and IM ! ...they don’t conceal or hide they share ! new  workforce No loyalty or allegiances, driven by pure interest !
  • 44. T h e y s e e I T a s ‘personal’ and not ‘corporate’ - ! Thinking, working & acting differently... …creating new fast,innovative solutions, groups, and operations... new  workforce Working on the fly using what they choose!
  • 45. Management Rapid change is now the biggest challenge Management attitudes, working and operational practices, will have to change if companies are to keep up and compete on the world stage ...
  • 46. Companies The death of hierarchy ! unchanging Old organisational structures work for situations where all is known and In situations of rapid change where flexibility is the hallmark of success, then organisational hierarchies are generally a disaster
  • 47. Companies The Rise of Autonomy ! Small, specialised, and skilled teams highly focused on creativity problem solving, getting results fast, to then reshape and reform to meet the next set of demands The Art of War Tsun Zu …is now more applicable to modern nations than: The Wealth of Nations Adam Smith
  • 48. case  study:  XYZ  Company   Security market leader • Open entry - no airlocks • Open plan - no offices • 60% seating provision • Flexible working • Mobile working • Home working • BYOD • BMOB • Virtual PBX • VOIP PBX Client • No wired infrastructure • Power sockets only • Cloud provision • App freedom • ISP freedom • Open access • Open Apps • Transients • Associates • Part timers • Contractors • Multi Continent • +++
  • 49. THE  BIG  CHAllengeS Over the next 10 years + • Fewer Full Time and FTE • Shorter FT dwell times • Shorter project times • Changing processes • New technologies • More competition • More contractors • More transients • More machines • Faster change
  • 50. What we know for sure.... In the next phase the winning companies and countries will have taken risks, and dared to be different... ...very different...
  • 51. DEEP(ER)  DIVE Supporting material on every aspect covered here ! In Depth Slide Sets: http://www.slideshare.net/PeterCochrane Published Articles & Papers:http://www.cochrane.org.uk