Think Globally, Act Locally:

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• Think Globally, Act Locally
• The Online Path to New Work and New Wealth
• Horace Mitchell, Management Technology Associates
• Programme Director,
• European Telework Development (ETD)

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http//www.eto.org.uk Stand E1 at the EITC
exhibition
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Europes key question?
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Europes key question Jobs?
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Europes key question Jobs? Work
Opportunities
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Europes question
Greater wealth? Attractive work opportunities?
Information Society
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Europes question
Greater wealth? Attractive work opportunities?
Information Society
OR
An underclass? The end of mass employment?
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The Networked Economy

• A socio-economic revolution
• Changing the basis of prosperity

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The Networked Economy

• A socio-economic revolution
• Changing the basis of prosperity

Industrial
Agrarian
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The Networked Economy

• A socio-economic revolution
• Changing the basis of prosperity

Networked
Industrial
Agrarian
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The Networked Economy

• Distance delivery
• High and increasing proportion of all goods and
  services can be delivered at a distance
• Distance delivery is cheaper
• Distance delivery provides wider choice/more
  competition
• Innovation is increasingly associated with
  distance delivery
• Growth opportunities are open to distance delivery

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The Networked Economy

• Distance delivery
• High and increasing proportion of all goods and
  services can be delivered at a distance
• Distance delivery is cheaper
• Distance delivery provides wider choice/more
  competition
• Innovation is increasingly associated with
  distance delivery
• Growth opportunities are open to distance delivery

• Personal presence
• Personal presence means high local labour content
• Reducing proportion of all goods and services
  require personal presence
• Personal presence means higher costs
• Where theres a choice, personal presence becomes
  premium/luxury

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Work and Wealth in a Networked Economy
Global
Growth and Opportunities
?
Local
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Work and Wealth in a Networked Economy
Global
Growth and Opportunities
?
gt50 unemployment (most unemployed people have no
hope of finding work)
lt2 unemployment (over-employment, labour
shortage)
Local
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Work opportunities
Wealth opportunities
The global networked economy
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Local prosperity, jobs and work opportunities
Market-effective workforce
Innovation and entrepreneurship
Work opportunities
Wealth opportunities
The global networked economy
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Local prosperity
relatively high earnings
plentiful work opportunities
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Local prosperity
relatively high earnings
people with money to spend
demand for services (local and global)
plentiful work opportunities
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Local prosperity
relatively high earnings
people with money to spend
strong tax base
demand for services (local and global)
plentiful work opportunities
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Local prosperity
relatively high earnings
good education systems
people with money to spend
strong tax base
demand for services (local and global)
good provision of public services
plentiful work opportunities
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Local prosperity 1
Successful participation in global markets
High local earnings and wealth creation
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Local prosperity 1
Successful participation in global markets
High local earnings and wealth creation
High local demand for personal presence goods
and services
Plentiful local work opportunities
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Local prosperity 2
Global work opportunities
Market-effective workforce
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A Market-Effective Workforce

• Enthusiastic
• Self-motivated
• Creative
• Innovative
• Responsive to change
• Flexible
• Results-oriented
• Educated
• Informed
• Independent minded
• Learning
• Connected . . . .

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A Market-Effective Workforce

• Enthusiastic
• Self-motivated
• Creative
• Innovative
• Responsive to change
• Flexible
• Results-oriented
• Educated
• Informed
• Independent minded
• Learning
• Connected . . . .

These characteristics are needed across the
entire workforce - investors, owners,
directors, managers, employees, self-employed,
unemployed, entrepreneurs, educators, regulators
. . .
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Confidence the key issue for Europe
Mitchells law of the Networked Economy
Knowledge Competence
Confidence
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Characteristics of low unemployment

• High take-up of technologies
• High proportion of newer industries
• High acceptance of flexible work practices
• High incidence of entrepreneurs
• Ready access to risk capital
• Risk-friendly ( failure-friendly!)
• Global outlook

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Characteristics of low unemployment

• High take-up of technologies
• High proportion of newer industries
• High acceptance of flexible work practices
• High incidence of entrepreneurs
• Ready access to risk capital
• Risk-friendly ( failure-friendly!)
• Global outlook

• Low resistance to innovation (ie change)

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European policy tests

• Active, positive pursuit of telecom re-regulation
  to achieve early and pervasive access to cheap
  and plentiful network capacity and services
• Active, positive pursuit of innovation
• in markets
• in work practices
• in policy development
• in public programmes
• Active encouragement of risk (meaning positive
  acceptance of failures!)
• Strategic investment in a market-effective
  workforce
• Accelerated investment in ICTs

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Europe challenge

• Significantly under-invested in the new
  technologies

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Underinvestment
IT investment PCs per 100 GDP
per per person (ECU) white collars
person (PPP) USA 681 104
100.0 Japan 563 (24)
86.4 EU 335 72
65.0 Switzerland 844 111
95.0 Denmark 624 79
80.3 Sweden 526 75
77.1 Netherlands 477 80
74.8 Portugal 82 43
41.5 Greece 47 42
35.0 sources EITO1995, EIU1992
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Europe challenge

• Significantly under-invested in the new
  technologies
• Falling further behind rather than overtaking
• Heading for third world status in the new
  networked economy
• Wasting the opportunities presented by Europes
  history and culture

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• Europe must stop defending the past against
  the future

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• Europe must stop defending the past against
  the future
• Europe must
• accelerate investment in ICTS
• become adventurous and opportunist in our
  approach to the Information Society