Transformation Economy

Engineering is finding its purpose again

“In order to achieve their potentials, spirituality needs digital technology and digital technology needs spirituality. At an essential level, the two traditions complement each other. Humanity’s survival may depend on interaction between them.”
- H.H. Dalai Lama

This quote is the introduction to a discussion paper on Spiritual Computing by Craig Warren Smith. Craig Warren Smith is a former Harvard (Kennedy School) professor, a founder of the global movement to close the Digital Divide, and for 30 years a Buddhist teacher. In the mid-1990s as a consultant to Bill Gates, he led a strategic planning process that helped Microsoft and its founder find the distinct role of philanthropy in its corporate culture.

Craig Warren Smith spent over a decade researching whether technological developments are either harming or beneficial to the future of mankind. The director of the Spiritual Computing Research Group now argues that several trends – Web 2.0 innovations, neuroscience's interactions with the Dalai Lama, and West's new embrace of premodern wisdom traditions – all combine to bring spiritual principles at the doorstep of the world's technological laboratories.

Can the next generation of technologies advance the spiritual development of individuals and communities?

This discussion paper traces the parallel evolution of digital technology as well as Western Buddhism in the past 35 years and suggests why a productive interchange between leaders of both traditions has become both possible and necessary. At the doorstep of an historic convergence between biology and technology, digital researchers may well turn to Buddhism and then to other spiritual traditions to help them find unifying principles to guide the development of a fundamentally new generation of products and services that could fuel the $500 billion a year information industry.

Source: WHERE DO YOU WANT TO GO TODAY? - Buddhism’s role in Bringing Spirituality into the Next Generation of Web Technologies by Craig Warren Smith

According to this discussion paper 83% of US adults consider themselves “spiritual”. Spiritual Computing, once formulated, would meet needs of a growing body of consumers. Examples:

• the next generation of computer games may draw upon spiritual archetypes to provide interactive experiences that simulate spiritual journeys
• gaming as spiritual quest
• online enhancement of Islamic rituals
• locative technologies that use feng shui to create sacred spaces
• biofeedback interfaces that bring mindfulness into cancerous organs
• technological support for 12 step programs that transform addiction into empowerment

And not to forget:
• tomorrow’s online communities may self-organize to allow wisdom, not mere knowledge, to rise to the surface

Nova Spivack’s scheme of the evolving Metaweb (below) illustrates the convergence between digital technology en spirituality clearly. As the web is evolving we can see the ‘human/mind’ aspect evolving parallel to it. In this context Nova Spivack speaks of “Minding the Planet”. 

I used to work at NHTV Imagineering Academy. Imagineering is a new approach to business which takes an experience perspective (rather than a primarily economical or technological perspective) as a focus for innovation. Imagineering, a portmanteau word of imagination and engineering, was sometimes referred to as ‘engineering OF imagination’ but once in a while I also stumbled upon an article that would say ‘engineering FOR imagination’. The words OF and FOR don’t seem to differ that much at first sight, though the difference kept me thinking. While reading the discussion paper on Spiritual Computing I suddenly realised the similarity with Imagineering c.q. Imagination Engineering. They both have an intangible / soft and tangible / hard aspect.

                                     IMAGINATION | ENGINEERING
                                          SPIRITUAL | COMPUTING

What is happening right now is a worldwide convergence of modern technology and ancient spiritual wisdom. We are shifting to a period of engineering FOR imagination, imagination in this case referring to spiritual development of individuals and communities: engineering for psychological emergence.

People are craving satisfaction of their immaterial / psychological needs. Self improvement is a growing focus of consumer identity. People seek psychological self-determination and technology can contribute to this.

Engineering for psychological emergence seems to be in line with the vision Zuboff and Maxmin’s Support Economy as well as with Pine and Gilmore’s vision of the Experience Economy.

May humanity’s survival depend on the engineering of experiences to support psychological / spiritual emergence?

“Beings exchange admiration (rather than money, thoughts or communication)” said Ian Xel Lungold in 'The Mayan Calendar Comes North'. This is i.m.o. the key element what business should be about:
                                  
                                         ADMIRATION EXCHANGE

Admiration
This is the intangible part: providing inspiration to create admirable experiences for individuals and communities.

Exchange
This is the tangible part: Supporting, hosting, servicing etc. the interaction (of admiration) with a platform of channels/media.

NTHV’s Imagineering Academy defines a process for business transformation which contains both elements very clear. It’s great to see how the people behind fresh corporate strategies - such as Imagineering, Conscious Business and Spiritual Computing – are thinking about a sustainable future for mankind.

A broadly accepted definition of engineering is: 'Engineering is the application of science to the needs of humanity.' Engineering used to have a material purpose as the needs of humanity used to be mainly material. Now they are increasingly becoming immaterial. So the purpose of engineering should change alike.

“People have changed more than the business organizations upon which they depend.”
- Zuboff and Maxmin in The Support Economy

Business organizations will have to catch up with the material->immaterial change. Fortunately we can see large corporations opening up and allowing immaterial/intangible aspects to enter their business. Below is Craig Warren Smith speaking @Google. He also spoke at Nokia, Microsoft and Yahoo! Fred Kofmann, author of Conscious Business: How To Build Value Through Values, also spoke @Google by the way.

Spiritual Computing by Craig Warren Smith [56m:51s]

Engineering is finding its purpose again.

Conscious Business by Fred Kofman

Fred Kofman speaks about his book "Conscious Business: How to Build Value through" as part of the Authors@Google Series. In the video below Kofman shares his experience of working with Google. It reminds me of my previous job at NTHV's Imagineering Academy.

The concept of Conscious Business and the concept of Imagineering are in my opinion quite similar as they both share the main idea of 'building value through values'. Below is a fragment of the video showing Kofman's introduction to Conscious Business. (You might want to skip the first 5 minutes as sound quality is disturbing.)

“So on the one hand there is this principle that if you want to be successful you have to sell out. Don’t hold on to your dreams. Postpone them. Let them go. On the other hand there are the people that share the same mental model – it are just a different sides – and say if you really want to have a life you have to drop out. Just let it go. Commit to yourself and forget about big business because the people who work there have sold their souls. So if you want to keep your soul you can’t work there. You can’t do that. Just go to the Himalayas and start a meditative practice.

So you can go spiritual, or you can go material and the twine shall never meet. They go in different directions. The reason I had to write a book is to absolutely fight against that and to prove that it is totally possible to act in a business in perfect alignment with your values.

In fact the way to build value is to come from your heart and to actually express in your practice - whatever your practice is - what is truly ideal to you, what is most important to you.
That is the fundamental idea: It is possible to integrate. That is a nice idea. The question is how do you do this?”

Conscious Business [50m:07s]

Interesting:

• Foreword to Fred Kofmans' The Spirit of Conscious Business by Ken Wilber
• De Brug naar Business Spiritualiteit: Radicale vernieuwing begint bij de wortels (in Dutch)
• Spiral Dynamics: Mastering Values, Leadership and Change
• Integral Spirituality: A Startling New Role for Religion in the Modern and Postmodern World

Michelin: A Better Way Forward

More and more corporations are finding their true north principle because they do not want to be entitled as a group of 'failing individuals'. Earlier I wrote about the following inspiring corporate strategies...

• Vodafone: Make The Most of Now (Mayfly)
• IKEA: Design Your Own Life
• Apple: Think Different (Crazy Ones)
• FC Barcelona: Facing Even Greater Challenges (Unicef)

Mike Janssen wrote in March that corporations will only be able to survive if they follow the transformation path. He takes the automotive industry as an example. I agree and would like to show it with a new example from this industry, which I found on Marketing-Innovatie Blieb (in Dutch):

• Michelin: A Better Way Forward

It looks like Michelin is getting tired of the devestation of Earth's creatures and biodiversity too. The premier tire manufacturer in the world calls for 'A Better Way Forward'. Their strategy is aiming for a greener world while maintaining dedication to safety and continuing their high standards of performance and engineering. The new website rocks! Here's a glimpse to show why you should check it out.

Everytime I come accross a new transformation-driven corporate strategy I smile, because it shows that change happens.. and these are only the 'innovators' or 'early adapters'. Imagine the majority of corporations discovering their true north and getting inspirational! A matter of time.

Michelin's marketing department succeeds well in bringing its new strategy to the people. Print and online advertising, a stunning new website all accompanied with the commercial below.

Michelin: A Better Way Forward [00m:29s]

However, what could have been much stronger in this concept is Michelins proposition. It does make a clear promise (A Better Way Forward) but it is not action driven towards its stakeholders. It is showcasing the company's activities and is not inspiring me as in individual to participate and co-create this better way forward. An imperative such as 'make' (Vodafone), 'think' (Apple) or 'design' (IKEA) might be missing in their slogan. More inviting would have been someting like:

Michelin: Build a Better Way Forward.. Together!

By facilitating a multimediaplatform with tools allowing you and me to actively participate in building a better way forward, their true north goal would really become in reach. Nevertheless, it's awesome what they are doing. It's certainly not only blabla-marketing. Take for example the hybrid car shown on their website. Michelin shows great commitment to their strategy.

Last but not least. I wonder if people at Michelin got inspired by Jacques Fresco's work. There are great similarities both the vision and the look and feel of Michelin's website and Mr. Fresco's work. To compare you can go to this previous post or visit Future by Design. What do you think?

Living In An Ant Society

Some excerpts from Pine & Gilmore's 'The Experience Economy' (1999) to show why it is definately worth reading (again) the last two chapters 'The Customer Is The Product' and 'Finding Your Role In The World'.

"Once the Experience Economy has run its course, the Transformation Economy will take over. Then the basis of success will be in understanding the aspirations of the individual consumers and businesses and guiding them to fully realize their aspirations."

“Transformations are a distinct economic offering, the fifth and final one in our progression of value. While commodities are fungible, goods tangible, services intangible, experiences memorable, transformations are effectual. All other economic offerings have no lasting value beyond their consumption. Even memories of an experience fad over time. But buyers of transformation seek to be guided toward some specific aim or purpose, and transformations must elicit that intended effect. Such buyers aspire to something different. Without a change in attitude, performance, characteristics, or some other fundamental dimension no transformation occurs. And this change should be not just in degree but kind, not just in function but in structure. The transformation effects the very being of the buyer.”

"As economic activity shifts further and further away from goods and services, those companies which stage experiences alone – without considering the effect these experiences will have on participants and without designing the experiences in such a way as to create the desired change – will eventually see their experiences become commoditized.”

"Finally, whereas commodities are natural, goods standardized, services customized, and experiences inherently personal, transformations are individual. The offering does not exist outside the changed traits each aspirant desires; it is that change itself. People value transformations above all other economic offerings because it addresses the ultimate source of all other needs: why the buyer desires the commodities, goods, services and experiences he or she purchases."

“Transformation elicitors are greatly increasing their share of the total economic pie. Today the only thing better than being in the business of staging experiences is being in the business of eliciting transformations. Both represent not only viable sectors of the economy but the very engines of growth that will create more than enough jobs and outputs to supplant slowdowns in the lower-echelon sectors…. Nothing is more important, more abiding, or more wealth creating than the wisdom required to transform customers. And nothing will command as high a price.”

In the last three pages of their book, Pine & Gilmore talk about what might be beyond transformations. Will transformations eventually be commoditized as well? No. That would involve the creation of the perfect human being, a gift that Pine & Gilmore believe to be reserved to God. According to them ‘Transformation’ is the fifth and ultimate economic offer. Personal change of an individual is the ultimate differentiation.

The only offer that can push transformations aside is a different transformation, based on a different (religious of philosophical) view of life. So they foresee companies to distinguish themselves in the future by their different – competitive - views of life, views on the world.

This would mean that people will be gathering more and more around beliefs and values, as in forces that guide their actions in life. Communities / networks of people with shared aspirations? Working toward a common goal?

What defines a network?

A network can be defined in terms of ‘junctions’ (liaisons) and relations. Via those relations between the junctions a form of interaction takes place. Those junctions can be people as well, and in case the relations are physical or virtual we can speak of a social network. Interactions between people form the network: frequently returning interaction describe the topography of the network, which can be compared to a collective structure. Per subject or issue a network can have a total different form of appearance. The network can grow when interaction around the subject or issue expands to other people. From a mathematical point of view intensive research on the phenomenon ‘network’ shows that the collective intelligence of a network, by diversity of the junctions, is higher than the sum of the intelligence of the specific junctions.

This means that for a social network we can conclude that together we can achieve more than alone. Related to the term network is communities. A community is a (fysical or virtual) place for people to meet. The quality of the community is determined by the commitment and input of the people within the community. A community can bring people together based on a specific issue, but also based on a specific geographical fact.

A network is about :

• people and relations
• returning interactions around a specific subject
• networkgrowth through interaction
• synergy through cooperation (1 + 1 = 3, Wisdom of Crowds)
• critical success factors:
  - commitment
  - personal input of network members (contribution?)
• shaping of the community based on:
  - specific subject (belief?)
  - communal geographic data (physical, virtual)

Can we expect a future rise of communities (networks) and an interaction around beliefs between numerous communities? A diversity of networks contributing to realising eachothers worldviews?

Maybe we can learn something from ants. The individual ant makes a sacrifice within a group with a specific function, for instance cutting leaves or washing and carrying the leaves. The groups share their labor. Distributed labor. No hierarchy among the ants. Co-creation for a single purpose: Maintaing ant society.

Check out Sacred Balance for a vision of humanity's place in nature.

Tony's Chocolonely

Food for thought:

1. What is Teun van der Keuken selling?
2. Why is that different from what other chocolate manufacturers are selling?
3. Which of both, do you think, will people prefer on the long-term?
4. What could be the consequences?

I'll buy and send you a Tony's Chocolonely chocolatebar if you are the 1st to answer the 1st question right ('What is he selling?') before the 1st of April. No joke.

Hint: 3 words

Facing Even Greater Challenges

Mike Janssen wrote an interesting post about corporations following the transformation path. “It (‘the transformation economy’) is driven by consumer awareness and their understanding that it is actually possible to influence the quality of the world they live in.” His personal conviction is that players in, for instance, the automotive industry are only able to survive when they follow the transformation path. As an example of 'following the transformation path' he links to this commercial from FC Barcelona.

FC Barcelona – More Than a Club

“This year we face even greater challenges”, says FC Barcelona in its commercial. This refers to Barça’s partnership with Unicef. On their website FC Barcelona explains why it is more than a club. For instance because people see Barça as a 'taunch defender of democratic rights and freedom'. The cooperation with Unicef goes accompanied by the presence of the Unicef logo on the FC Barcelona shirts. This makes a triplet of Unicef-Barça-Nike.

On YouTube someone responds to the commercial by saying:

"Ok, so the next step should be give up wearing Nike equipment, am I wrong? The incompatibility made T-Shirt. Nike vs Unicef in the same place. Nike is the king of children exploitation."

The comment above shows how people can experience contradiction in the image that comes into existance with the cooperation. The figure below reflects the relation between corporate identity and corporate image. (Birkigt & Stadler, 1986)

 

A corporate image is formed upon the diverse expressions (by means of communication, behaviour, design) of the corporate personality. A discrepancy between different corporate expressions might result in an implausible perceived corporate image .

‘Following the transformation path’ means, in my opinion, both talking (communication) and walking (behaviour) the path. Otherwise trust and credibility among stakeholders might decline. Stated simply:  “If you (corporation) don’t do as you say you will do, I (stakeholder, e.g. consumer) will not believe you and rather not get involved with you.”

New people, with the Internet as a driving force, are informing themselves about corporations' actings more and more. They are connecting, sharing and even organising, as can be seen in the documentary ‘The Corporation’. This puts more and more pressure on corporations to practice what they preach. The future belongs to those corporations – and those only -  that really make a contribution to society. No hollow promises. Integrity is key. “Change or deep trouble”, as Mike says in his post. A matter of time.

What could this mean for the Unicef-Barça-Nike trio? Well, if Unicef and Barça both stand for children’s rights then, for example, they could act by supporting Nike in transforming into a ‘child-labour-free’ business. (Please note that for example is underlined, because I have not enough information about what Nike is or is not doing on the subject of child-labour). With the expertise and experience growing during this process the trio (Yes, Nike included) could inspire and help other businesses transform too. The triplet’s true north principle c.q. broad thought, could be banishing exploitative child-labour worldwide. In a business-to-business context, they could charge other corporations for the received benefits as a result of the time spend supporting them to transform to child-labour-free businesses as well.

"In a Transformation Economy, business will charge not just for experiences but for the demonstrated outcomes of those experiences."
- James H. Gilmore in Frontiers of the Experience Economy (2003)

Unicef-Barça-Nike co-creating for a child-labour-free world?
A great challenge. Great as in considerable. Great as in fantastic.
Just do it?

I would like to finish with an article from 2002. The title speaks for itself :
Corporate Social Responsibility and Management Behavior : Actions Speak Louder Than Words.

Why Corporations are Failing Individuals

"Today's individuals seek psychological self-determination. They are the origins of their own meanings, not a passive mass audience."
- Zuboff and Maxmin, 'The Support Economy' 

In their visionairy work 'The Support Economy : Why Corporations are Failing Individuals and The Next Episode of Capitalism' Zuboff and Maxmin explore the chasm between 'new' people and 'old' corporations. They explain that people have changed more than the corporations upon which their well-being depends and that the chasm between those new people and old corporations also contains the seeds of the next economic revolution.

The Corporation (2003) - a film by Mark Achbar, Jenniffer Abbott & Joel Bakan - shows us why corporations are failing individuals. This award-winning documentary was broadcasted on television in The Netherlands by Llink on Wednesday the 21st of December 2005 from 23:55h to 00:52h. Luckily I zapped through some tv-channels before I wanted to go to bed and suddenly found myself stuck to the screen. Some things that were shown felt as a cold shower (as I was keeping in mind that people like Naomi Klein and her NoLogo movement might perceive me as a 'brand bullie'). Interesting for sure. Food for thought at least. The next day someone asked me: "Did you see Lllink last night? WOW. They should broadcast more stuff like that!" He also saw the documentary in the middle of the night, passing by it accidentally, and had a sort of the same experience. Here's a quote that stuck on my mind:

"Do I know you well enough to call you fellow plunderers? There is not an industrial company on Earth, not an institution of any kind, not mine, not yours, not anyone's, that is sustainable. By our civilization's definition, I'm a captain of industry — in the eyes of many a kind of modern day hero. But really, really, the first industrial revolution is flawed, it is not working. It is unsustainable. It is a mistake, and we must move on to another and better industrial revolution. And get it right this time."
- Ray C. Anderson, CEO of Atlanta-based Interface, world's largest commercial carpet manufacturer.

I would like to recommend this documentary to all of you who want to learn more about 'the chasm' Zuboff and Maxmin describe in their book. It comes in 23 parts on YouTube, with a total runtime of approximately 145 minutes.

The Corporation - Trailer [01m:53s]
The Corporation - [1/23] What is a Corporation? [07m:14s]
The Corporation - [2/23] Birth [04m:55s]
The Corporation - [3/23] A Legal "Person" [05m:47s]
The Corporation - [4/23] Externalities [02m:12s]
The Corporation - [5/23] Case Histories [22m:53s]
The Corporation - [6/23] The Pathology of Commerce [00m:46s]
The Corporation - [7/23] Monstrous Obligations [06m:14s]
The Corporation - [8/23] Mindset [08m:05s]
The Corporation - [9/23] Trading on 9/11 [02m:10s]
The Corporation - [10/23] Boundary Issues [07m:21s]
The Corporation - [11/23] Basic Training [09m:56s]
The Corporation - [12/23] Perception Management [03m:00s]
The Corporation - [13/23] Like a Good Neighbour [03m:35s]
The Corporation - [14/23] A Private Celebration [04m:24s]
The Corporation - [15/23] Triumph of the Shill [03m:09s]
The Corporation - [16/23] Advancing the Front [05m:48s]
The Corporation - [17/23] Unsettling Accounts [11m:28s]
The Corporation - [18/23] Expansion Plan [04m:46s]
The Corporation - [19/23] Taking the Right Side [06m:55s]
The Corporation - [20/23] Hostile Takeover [03m:24s]
The Corporation - [21/23] Democracy Ltd. [08m:57s]
The Corporation - [22/23] Psycho Therapies [17m:17s]
The Corporation - [23/23] Prognosis [05m:06s]

If you would like to use The Corporation for educational purposes click here to go to the specific section on the website. It contains some links to websites from institutions with ready-made cases.