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The Social Life of Networking

The Social Life of Networking. Shigeki Goto APAN-JP Waseda University. Scenario. Arther C. Clark, Blaise Pascal, not Flat Society, Adam Smith Module structure Research and Development General Purpose Technology Tunnel vision, Incentive. Arthur C. Clarke Dec 16, 1917 — Mar 19, 2008. 1.

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The Social Life of Networking

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  1. The Social Life of Networking Shigeki GotoAPAN-JPWaseda University

  2. Scenario • Arther C. Clark, Blaise Pascal,not Flat Society, Adam Smith • Module structureResearch and Development • General Purpose TechnologyTunnel vision, Incentive

  3. Arthur C. ClarkeDec 16, 1917 — Mar 19, 2008 1 • Arthur C. Clarke, Visionary Author of the Space Age, Dies at 90 • Clarke Co-Authored '2001: A Space Odyssey,' Proposed Communications Satellites http://abcnews.go.com/Technology/story?id=4477184&page=1

  4. Feeling ofIntegration through the Internet • The concept of the integration by Pascal gives some motifto Science Fiction novels. • Arthur C. Clarke,Childhood’s End, 1953.

  5. Quick responses to E-mail messages 48 hours 24 hours

  6. Human society as one body French philosopherBlaise Pascal (1623—1662) Penseés (Thoughts) and short essays Preface to the Treatise on the Vacuum “Not only a single person advances in learning and studying, but also the whole human society advances as the universe is aging.” http://www-groups.dcs.st-and.ac.uk/~history/PictDisplay/Pascal.html

  7. NO! All the people share the same information?

  8. The world is not flat. orEquilibrium analysis of the distribution of information inhuman societyby Shigeki Goto and Hisao Nojima

  9. Network society is not flat.

  10. brain 2-layer Network society is not flat. gate keepers 3-layer

  11. When each individual lives alone Mr. A has 10 books Ms. B has 10 books

  12. Concept of division of labor Mr. A has 10 books Ms. B has 10 books Lend andBorrow

  13. Division of labor and others knowledge10 Mr. A Mr. A cost10 knowledge 10 cost 1 10 10 10 10 10 1 1 1 1 1 Total knowledge 60 Total cost 15

  14. Theory of overflow brain brain end users large society

  15. The three-layer structure is economically reasonable.

  16. Characteristics of the structure • It is an informal structure. It does not follow the structure of the company. • Three groups of people • Brains: small number of people who have much knowledge • Gate Keepers: small number of local experts who can cover wide area of topics • End Users: many people who have little knowledge • Each brain recognizes who are other brains. • A brain has his/her specific field of knowledge. • Each gatekeeper does not know who are other gatekeepers. • A gatekeeper does not have any specific area of knowledge. He/she knows general information.

  17. Three-layer structure is found elsewhere • Popular structure in human society

  18. Measurement

  19. Adam Smith and the Industrial Revolution • His famous book:“An inquiry into the nature andcauses of the wealth of nations” • The Industrial Revolution and transportation technology Information and communication

  20. Lesson: division of labor • The concept was well described by Adam Smith.Transportation supports the industrial revolution. • ICT will further promote the division of labor.Many things are based on information. • Network society is not simply flat.Layered structures are stable in a large society. Brain Broker =Gate-keeper End User

  21. References:Equilibrium analysis of the three-layer structure • S. Goto and H. Nojima,Equilibrium analysis of the distribution of information in human society,Artificial Intelligence, 75 (1995), pp.115—130. • H. Nojima,Cognitive Analysis on Roles of Others in Problem Solving,Ph.D Thesis, Waseda University, March, 2003.

  22. Division of Functions 2 • Main frame computers Client and Server P2P, Peer to Peer • Telephone switch Routers and packet or frame swithes

  23. Module Component Made by CompanyB Made by CompanyA Module structure common components Masahiko Aoki, Towards a Comparative Institutional Analysis, MIT Press, 2001.

  24. Module Structure • Bicycle — Module Structure Automobile — not module structure Integrated Structure • An automobile will be assembled from modules.An electric vehicle is similar to a computer. • A motor-cycle is forced to take the module structure. Takahiro Fujimoto, Business Management of Manufacturing, Kohbun-sha Shinsho 293, March, 2007. (in Japanese)

  25. The Internettruly moduled structure multi-vendorOPEN cf. Main-frame computers which are totally integrated.

  26. Should we welcome module structure? • Low barrier for new-comersGood chances for small companiesBig enterprises do not win the game. • Hot competitionBattle in niche markets modules Standard salvation by faithreliance upon others We cannot escape from this game.

  27. Strategy for the module game • Low cost production vs. an innovative product • We need Research and Development.Catching-up is not a good strategy. A pioneer takes all.

  28. R&D and Risk management • Success rate of R&D projects is very low.95% of new projects will fail immediately. • Risk management is an excellent mechanism.Life insurance is meaningless for a single man. • We need a good scheme for encouraging challengers. • It is a kind of division of labor.

  29. An episode in Silicon Valley • I have two US engineers in my group when I worked at NTT Laboratories. • They happened to work at the same start-up company in Silicon Valley. • I was asked to give a short talk to investors.“I do not know their products. However, I do know two talented engineers are working here.” • I noticed that my speech went along a theory in a text book for business management.

  30. Silicon Valley Modelby Prof Masahiko Aoki • It did not work in Japan. Follow-up trials mostly failed even in the US. • A venture capitalist and an entrepreneur do help each other.

  31. Old Japanese modeland the future model • Main bank • Convoy of companies • market finance • contracted officials old US model What is the new model? Most issues are apparent in ICT area. We should solve them to make ICT stronger.

  32. ICT and Global Economy 3 • IT revolution is one of major historical transformations in human society. • Kazuo Mizuno, Why people misunderstand the essence of global economy,Nikkei Press, 2007. 1517 Martin Lutherposted famous 95 theses.1498 Vasco da Gama discovered the direct route from Europe to India. Terminated Middle Ages, opened Modern Ages

  33. The Internet as an economic General Purpose Technology (GPT) • “ECONOMIC TRANSFORMATIONS:General Purpose Technologies and Long Term Economic Growth". • The Internet is not just a "product“ like automobiles or vacuum cleaners.The Internet is a transformative general purpose technology (GPT) whose impact touches all aspects of society. http://www.oup.co.uk/isbn/0-19-929089-X

  34. Economic TransformationsGeneral Purpose Technologies and Long-Term Economic Growth • The authors of the book list the Internet as number 20 of the 24 General Purpose Technologies throughout human history. • Authors: Richard G. Lipsey, Kenneth I. Carlaw, and Clifford T. Bekarhttp://www.sfu.ca/~rlipsey/res.html Richard G. Lipsey, Emeritus Professor of Economics, Simon Fraser University, Kenneth I. Carlaw, Senior Lecturer, University of Canterbury, and Clifford T. Bekar, Assoc Professor of Economics, Lewis and Clark College

  35. 24 Technologies Chapter 5: A Survey of GPTs in Western History: Part I 10,000 BC to 1450 AD     Domestication of plants 9000—8000 BC Process     Domestication of animals 8500—7500 BC Process     Smelting of ore 8000—7000 BC Process     Wheel 4000—3000 BC Product Writing 3400—3200 BC Process     Bronze 2800 BC Product     Iron 1200 BC Product     Waterwheel Early medieval period Product

  36. 24 Technologies Chapter 6: A Survey Of GPTs in Western History: Part II 1450 to 2010The Three-Masted Sailing Ship 15th century ProductPrinting 16th century ProcessThe Steam Engine Late 18th to early 19th century ProductFactory system Late 18th to early 19th century OrganizationalRailway Mid 19th century ProductIron steamship Mid 19th century Product Internal combustion engine Late 19th century ProductElectricity Late 19th century Product

  37. 24 Technologies Chapter 6: A Survey Of GPTs in Western History: Part II 1450 to 2010Electricity Late 19th century ProductMotor vehicle 20th century Product Airplane 20th century ProductMass production, 20th century Organizationalcontinuous process, factory Computer 20th century ProductLean production 20th century OrganizationalInternet 20th century ProductBiotechnology 20th century ProcessNanotechnology Sometime in the 21st century Process

  38. Bill St. Arnaud CAnet – news, CANARIE, CA • If the Internet is just a product then the role of government is pretty minimal. • However if the Internet is a transformative general purpose technology then the public sector role is more important. • GPTs begin as crude technologies with a limited number of uses, but they evolve into much more complex technologies with dramatic increases in the range of their use across the economy and in the range of economic outputs.

  39. Waterwheel-driven cam • making beer (987); • treating hemp (1040); • fulling cloth (1086); • tanning leather (1138); • Sawing logs (1204); • Making paper (1238); • Grinding mustard (1251); • Drawing wire (1351); • Grinding pigments (1348); and • Cutting metal (1443);

  40. UUCP is used between Japan and the US Old episode in 1986 • The first IP packet was sent in 1987. • In 1986, the author worked at NTT Lab.The total expenses for international phone call and telex was 2,000 USD for the whole Lab. UUCP to the US spent more than 2,000 USD. • My boss called me. Answer）It is cheaper than an international trip. • The boss called me a couple of months later. Reality）Both of phone bill and travel support increased.

  41. Global Economy Social Transformation • 2nd Prize, Best Economics Book in 2007 Q1Q2. • Kazuo MizunoChief Economist, Mitsubishi UFJ Securities • Why people misunderstand the essence of global economy • Nikkei Press, March, 2007. • His lecture at Nanzan University, Japan http://www.sc.mufg.jp/inv_info/ii_report/m_report/pdf/mr20070713.pdf

  42. Major changes in social structure • Emerging Empires, losing nation-states= Imperialism • Real economy is overwhelmed by Financial economy = Financialization • Diminishing uniformity, enlarged gapor difference = Class-structured society Big gap IT revolution and Globalization

  43. Social Impact from/to ICT • ICT, e.g. the Internet, brings Globalization. • Globalization changed the structure of world economy, politics and society. • This social movement returns to ICT, or it is already affecting ICT.

  44. Why IT does not change the societyThe Social Life of Information ２０００ ２００２ We are living with over-designed digital apparatuses. Simplified design does not reflect the real world. Tunnel design does not allow evolution. Agents do not learn. Paper is superior to text files. By Kazuyo Katsuma： (in Japanese)http://kazuyomugi.cocolog-nifty.com/point_of_view/2004/11/it_the_social_l.html

  45. Seeking a new design Amazon.co.jp Review brave new world, 2008/2/7 By recluse depth of shallowness http://www.amazon.co.jp/%E9%80%B1%E5%88%8A-%E3%83%80%E3%82%A4%E3%83%A4%E3%83%A2%E3%83%B3%E3%83%89-2008%E5%B9%B4-9%E5%8F%B7-%E9%9B%91%E8%AA%8C/dp/B0012Z6ZSI   Feb 9, 2008 ２００７ It is possible to make oneself Google?

  46. Controlled or ControllingIncentive to Good Design • Responsive societyBefore Web, we had Gopher, Before Gopher, we had Avenue.When we used UUCP, modem connection,we had a network programming language. • Early adopterCISCO, SUN, Imagen: Stanford UniversityWeb and browser NCSA Mosaic: US gov.

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