Global digital inclusion and debt and corruption

If you haven’t seen it already, it’s worth taking a look at this Maplecroft map of digital inclusion. Just for the fun of it, choose the indebtedness option (choose Debt under Maps Alphabetically on the upper left hand side). Isn’t it amazing that there is so much correlation between “extreme”  indebtedness and high digital inclusion? Then choose the corruption option (choose Corruption and Transparency under Maps Alphabetically). By now you should not be surprised at the high correlation between extreme corruption and low digital inclusion.

Maybe it’s just my perverse way of looking at things.

My thanks to Smart Mobs for the pointer to the article. Always a site worth visiting.

Build versus Buy versus Opensource

There’s a saying in the US that goes “unless you’re lead dog, the view never changes”. For some reason, between flights, my reading material contained that phrase twice, and it’s not something I would naturally come across in Europe. And it set me thinking.

In the old days, the guys who ran Management Services Divisions just had to build everything, there wasn’t a software industry around. Then the guys changed, and they ran Data Processing Departments, and there was a burgeoning software industry. Soon they called themselves IT Directors, and in time there was a well established software industry.

So, in the days before we had high-faluting titles like Chief Information Officer, there were two alternatives. Build. Or Buy. Now, with the advent of opensource, we have three choices: Build, Buy or Opensource.

The question is, how do we decide? And this is where the “unless you’re lead dog…” phrase comes in handy. It’s all about perspective, and the value of having a different perspective on things. When a difference in perspective matters. When different perspectives are more about illusion than about reality, and therefore dangerous. How to figure out which is which.

And the way I think of it is this:

For common problems use Opensource.
For rare problems use Buy.
For unique problems use Build.

An “internal” IT department (or whatever it gets called nowadays) should concentrate the bulk of its resources on solving problems that are unique to the enterprise that pays them. A smaller number of people within the department should concentrate on buying (and thereby paying a premium for) rare solutions to rare problems. And the entire department should work on opensource principles, participating in the community for problems that affect the community.

You see, the primary reason why “proprietary” companies get upset with things like opensource is because they’re fighting a losing battle. They want us to pay a premium for the solutions to our common problems, because that’s their business model. The trouble is, the opensource movement is bigger and more effective in solving common problems, that is what Linus’s Law is obliquely about. And this creates an artificial tension. With only one winner.

Build unique solutions to unique problems. Buy rare solutions to rare problems. And participate in the opensource community to solve communal problems. Esther Dyson used to sign off her e-mails with “Always Make New Mistakes”. And I think that’s the sort of principle that should drive the internal IT department.

So what I’m saying is, figure out where you’re lead dog. Use your unique perspective to solve your unique problems. Don’t waste your time and effort solving problems where you don’t have a unique perspective. Maybe this way we can all stop building solutions that look like the rear of a lead dog….

more FaceBook musings

At the airport with the family, flight delayed by 3 hours. Such is life. Everyone else is either asleep or listening to their iPods, so the lounge is an island of serenity. Which makes a change.

I did something I hadn’t done for a long time…. I picked up a copy of Financial News to peruse at leisure while I had a cup of green tea. And on page 43 I found a story that intrigued me.

It listed a number of investment banks and showed the percentage of staff on FaceBook. The top five looked like this:

Goldmans 5510 employees or 19.7 per cent
Deutsche 7636 employees or 11.3 per cent
Lehmans 2951 employees or 10.4 per cent
UBS 8101 employees or 10.4 per cent
Morgan Stanley 5689 employees or 10.3 per cent.

My thanks to Financial News for the research.

It’s been a long nine months since I left investment banking, and much may have changed since then, it is a volatile industry. But when I left it, people like Goldmans were not known to employ large numbers of unintelligent time-wasters.

When one in five Goldman employees use FaceBook, it makes you sit up and think.

I accept the numbers may be flawed: they may include contractors, duplicate aliases with legitimate mail addresses, whatever.

Even if I discount the figures by 50 per cent, they remain formidable.

I haven’t the time to do the research now, but my gut feel is that the FaceBook usage league table looks remarkably similar to the M&A league tables.

Relationship before conversation before transaction.

The next few weeks

I’m on vacation and will not be blogging as often as I might have otherwise. Depends on what the family wants to do and how lazy I feel. And I suppose partially on the weather as well.

I have not quite finished the Facebook meets Four Pillars post, I know I wanted to complete it yesterday, but it was not to be. I will do so soon.

Normal service will be resumed in a few weeks time.

Musing about a Behind-The-Firewall Facebook

Declan made a recent comment about the need for a Behind-The-Firewall version of Facebook, perhaps even appliance-based, a sort-of Facebook-in-a-Box. In my reply, I indicated that he echoed my thoughts precisely…. but with one small proviso…. that was the way I thought a few years ago. That I had since changed my mind.

What Declan wants is what any self-respecting CIO wants: control and predictability over the content, its access and even its behaviour. In fact, there’s a growing body of regulation that demands such services from CIOs; so much so that a CIO can actually go to jail in some jurisdictions if some of the content isn’t appropriately cared for. And, as I said, it’s what I would have wanted. So I would have done exactly what Declan asked for, and lived happily ever after.

Now I wonder whether it’s the right thing to do. Let me try and explain why.

Let us assume I have a Behind-The-Firewall version of Facebook, delivered as an appliance. [The appliance bit doesn’t really matter, it isn’t really germane to the discussion.] Let us further assume that many other institutions do exactly the same thing. What have we achieved?

We’ve managed to pave the cowpats. We’ve managed to lay concrete over crap, as it were. What we have done is replicated our traditional e-mail system approaches. Walled gardens carefully designed to keep people out, with some sort of selective process to let people in. Walled gardens that we had to tunnel holes into so as to allow the customers and partners and supply chain in. Walled gardens that started letting in mice through the holes, so that we made an industry out of building bigger and better mousetraps. Spam filters that regularly managed to keep people out and not just mice.

These walled gardens, these islands of information, also led to a pile of other industries, not all of which were necessary. Because we had these islands of information, we had to replicate information about our customers and supply chain in each of the islands. These pesky customers would refuse to deal with just one island, so information about them had to be captured and stored in every island.

Then it got worse, the pesky customers insisted on changing their information, so every island had to change its copy. Another industry was born. And it didn’t work too well.

And because it didn’t work too well, because changes were not synchronised between islands, something else happened. Transactions between islands broke down because of mismatches in the customer information. So we needed another industry, one that reconciled these broken-down transactions.

You see, that’s what happens when we build “vendor-centric” approaches, where we try and visualise customers and partners and supply chain participants as almost-unwelcome invaders into our fortresses and fiefdoms. The model only works when a customer is enslaved by a specific vendor, which is what the extreme version of a lock-in looks like.

Those days are gone. In most markets, customers deal with more than one vendor; there are many models emerging where multi-vendor is the norm rather than the exception. This inversion, from a vendor-centric approach to a customer-centric one, is, as far as I can make out, precisely what drives Vendor Relationship Management.

What’s all this to do with Facebook? Everything. Facebook is really a collection of customers all dressed up with nowhere to go. Since it’s an open multisided platform (OK OK, I hear you, it’s not as open as you want, but humour me just this once) it means that vendors can set up shop, but they can’t lock the customers in. Facebook is about enabling conversation. Connecting islands together by using a complex array of firewalls is tantamount to having firewalls on telephone lines or in coffee shops.

In Facebook, I can make sure I only “talk” to people I want to “talk” to. I can make sure that only the people I choose see the things I choose to show them. So why do I need further protection?

In Facebook, personal information is managed by the person whose information it is. Which seems reasonable. Who else can keep it up to date? Who else is interested in keeping it up to date? Furthermore, the information is only held once and in one place, so there’s no need for synchronisation and replication, there’s no need for transaction breakdown, repair and reconciliation as a result of “static” mismatches.

You’re right, this post is really not about Facebook. And yet it is. I find it a useful example to try and think through some of the things I face, so forgive me for rambling. Incidentally, I don’t expect Facebook to release a BTF version or appliance. It’s not the business they’re in, or indicate their intention to be in. They are not a product company, they’re an open multisided marketplace.