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Bertrand Duperrin's Library tagged constraints   View Popular, Search in Google

May
14
2011

"The modern business enterprise is easily defined. It has two particular characteristics: it contains many separate operating units and a hierarchy of executives. As a social innovation the modern enterprise was born when the volume of economic activities reached a level that made administrative coordination more efficient and more lucrative than market coordination.

Before the rise of the modern firm, the activities of small, often personally owned enterprises were enabled and constrained by market and price mechanisms."

socialmedia change organization internalization costs networking constraints coordination valuecreation ecosystem

  • The important innovation of the modern firm was to “internalize” activities by bringing many discrete components under one roof and under a system of coordination
  • The big idea behind industrial management was to purchase or set up units that were fit enough to operate as independent entities, but instead integrate them into one system.
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Feb
3
2009

I offered seven rules that appear to help explain how (some) developing world innovation proceeds:

1. Innovation (often) comes from constraint. If you've got very few resources, you're forced to be very creative in using and reusing them.
2. Don't fight culture. If people cook by stirring their stews, they're not going to use a solar oven, no matter what you do to market it. Make them a better stove instead.
3. Embrace market mechanisms. Giving stuff away rarely works as well as selling it.
4. Innovate on existing platforms. We've got bicycles and mobile phones in Africa, plus lots of metal to weld. Innovate using that stuff, rather than bringing in completely new tech.
5. Problems are not always obvious from afar. You really have to live for a while in a society where no one has currency larger than a $1 bill to understand the importance of money via mobile phones.
6. What you have matters more than what you lack. If you've got a bicycle, consider what you can build based on that, rather than worrying about not having a car, a truck, a metal shop.
7. Infrastructure can beget infrastructure. By building mobile phone infrastructure, we may be building power infrastructure for Africa -- see my writings on incremental infrastructure.)

innovation constraints culture developingworld

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