The Big E

This
new economy has three distinguishing characteristics:
It is global. It favors intangible things - ideas,
information, and relationships. And it is intensely
interlinked. These three attributes produce a new
type of marketplace and society, one that is rooted
in ubiquitous electronic networks.
Networks
have existed in every economy. Whats different
now is that networks, enhanced and multiplied by technology,
penetrate our lives so deeply that network
has become the central metaphor around which our thinking
and our economy are organized. Unless we can understand
the distinctive logic of networks, we cant profit
from the economic transformation under way.
Kevin
Kelly - 1998
The
Rules of the New Economy
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The
ENTERPRISE, that we are involved in - what
we call the Big E - is much larger
than the sum of the Taylor organizations or even
the
sum of all the organizations that make it up. It
embraces the entire growing ValueWeb
system associated with iterations, MG Taylor,
AI, knOwhere, SFIA Architects-Master Builders,
TomorrowMakers and
our active investor/customer/user networks. This
web is composed of investors, many companies,
several
employee groups and supply chain members
(traditional label), and a growing, diverse end-user
group. It is still not a fully functioning ValueWeb
in the technical sense. It lacks balance between
the Producer, Investor and Customer Networks. It
also is short of critical mass although it should
grow to that minimum level requirement over the
next 12 months (June 03 to June 04). Also, the
System Integration function has often been
in
conflict with several nodes in the producer Network.
This has been a factor of growth and immaturely
of the idea. It takes a ValueWeb to make
a ValueWeb. We are just coming out of bootstrap
mode after over two decade of activity.
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Business
of Enterprise Model - 1985
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In
all, it is an active network of several hundred
providers and several thousand users representing,
by 2002, more than $75,000,000 a year in direct
economic activity while leveraging and facilitating
many times that amount. Several times a week,
somewhere
in the world, groups go through a Taylor
DesignShop process in an environment, in some combination,
inspired, designed, built, equipped by our web
of
organizations and partners. There are, globally,
over 27 Taylor-AI designed and equipped or inspired
NavCenter (our term) environments. The CGEY ASE
work makes up the biggest piece of this activity,
however, this is being supplemented by a growing
web of other users/producers. CGEY is the only
member
of our ValueWeb, so far, who has taken the a major
part of the system and method to global scale.
This
is a major achievement and a significant step in
the proof of concept process.
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ValueWeb
membership ebbs and flows. It is the nature
of webs
that membership can be more volatile during their
formation than many traditional organizations.
It
is also the nature of webs that they are more stable,
in the long run, than most organizations.
Under
the proper conditions, communities of practice
can flow thorough different ValueWeb enterprises
without
disruption to either. Critical mass is essential
to ValueWeb viability, however. What makes
critical
mass is web-specific. This is a product of mission
and environmental circumstances. The mission
of
our ValueWeb has been very broad and has always
been global in scope. Over a 24 year period
(1979-2003), it
has grown from the vision and efforts of two individuals
to the many facets that exist today.
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I
expect our web will be an order of magnitude
bigger
a year from now (June 2004). Exactly how this
will be so is not known, however, a new energy
and growth stage is clearly emerging. The activities
associated with ValueWeb
creation
are at a far higher level than at any time in
the
past. Growth, however, cannot
be forced it must be both designed
and facilitated - and, in the end,
be heuristic and spontaneous. ValueWebs are the
creatures of
intent and emergence. They come about
differently than do traditional organizations
be they hierarchical or loose networks.
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Growth
to critical mass was, of course, our intention from
the beginning. It was not until 1985, however, that
we had a formal
Model of ValueWebs and their creation process.
And, it was not until 1996 that the size and growth
rate of the Taylor Enterprise was such that this
intrinsic architecture started to emerge as a (potential)
feature of it. It is an interesting thing to be
part of this as it plays out today - in some ways
as predicted and in many, many ways... not. A precise
understanding of critical mass and how it is measured
and accomplished is important to ValueWeb facilitation.
It is just now possible to get an operational sense
of this. So far, it has proven easier to evolve
value-web-ness out of mature organizations than
to build from scratch. This has been, in part, because
of the environment (legal, financial and economic)
around these nascent webs. I may also be that we
have not yet learned how to do it.
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The
two following quotes were great inspiration to me
when I read them in the mid 70s. I used them
in the ReBuilding
the Future course that I taught in Kansas City
while launching the Renascence Project. From these
quotes and the work of Kenneth Boulding and others
I extracted the essence of the network economy which
became the organizational and financial basis of
our Enterprise. Both still cary great power for
me today.
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There
is in the world today an invisible college
of people in many different countries and many different
cultures, who have a vision of the nature of the transition
through which we are passing and who are determined to
devote their lives to contributing towards its successful
fulfillment. Membership in this collage is consistent
with many different philosophical, religious, and political
positions. It is a college without a founder and without
a president, without buildings and without organization.
Its founding members might have included a Jesuit like
Pierre Teihard de Chardin, a humanist like Aldous Huxley,
a writer of science fiction like H.G. Wells, and it might
have even given honorary degrees to Adam Smith, Karl Marx,
Pope John XXIII, and even Khrushchev and John F. Kennedy.
Its living representatives are a pretty small group of
people. I think, however, that it is they who hold the
future of the world in their hands or at least in their
minds...
Kenneth
E. Boulding
The Meaning
of the Twentieth Century - 1968
But
beyond formal organizational structures there are invisible
colleges - the loose aggregates of individuals scattered
throughout the nation and the world who periodically communicate
with one another. They are the sociologists, architects,
lawyers, doctors, teachers and others whose avocation
is change and how it might be effected...
Their
communications are via the telephone, the Xerox machine,
and the jet. They meet, exchange information, ideas, theories,
and concepts. Tied neither to time place, nor position,
they operate on many different levels at the same time.
They are the link between industry and government, between
the public and private sectors, between the the federal,
state and city governments, between the government and
neighbor-hoods, between the money givers and the money
receivers, between the theorists and the activists. Their
value lies both in their access to information from many
sources and their rapid dissemination and utilization
of that data.
Leonard
J. Dahl
General Systems
Theory and Psychiatry - 1972
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In
January, 1983, I outlined in my Notebook (pages
504 - 506) the Strategy, costs and architecture
of a network of Centers aimed at facilitating a
network economy. This envisioned a A
global neural net by 1996 - a new political/economic
system. The estimated economic resources to
launch the project through start up: $16,000,000.
This network architecture was conceived as a fractal,
recursive system starting from a Center/Center:
Growth occurs both by intent and organically
in time: the Center disappears. The
expectation:Specific networks form to do specific
projects - then disband. System remains coherent
by means of an operational principle(s) expressed
in a systemic operational modality.
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This
is the seed of the ValueWeb concept and the MG Taylor
patent stance that mind, memory, networks and global
infrastructure can be treated as a single system
of many recursion levels that, in its own architecture,
contains information. There are many
organizing principles employed in memory systems,
however, the major, integrating architecture of
any system beyond minimal complexity ToA,
in an environment beyond minimal complexity, is
a network ToA. The architecture of this network,
itself, contains information. This pattern can be
read from another level of recursion. Activity (of
interactions), and so on, contain and transmit information.
The architecture of memory is specific to the actual
degrees of freedom of Channels ToA, Nodes
ToA, and Thresholds ToA and their
access strategies (rules). Real estate is important.
(Page 268 11/07/01). The metaphor of the global
mind becomes real.
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The
estimate of 16 million was appalling at the
time and
turned out to be quite accurate. The estimates further
indicated a 20 million dollar cost to get to
a full
service capability and $300 million to achieve
true global scale. By 1995 the entire historical
economic activity of our organization was about 8
million and there were three active Centers. In
1996
and 1997, there was 16 million dollars of activity
adding 4 Centers. The goal of a global net by 1996
was not reached - it still is not. However, there
are over 27 Center nodes now with more than 75 million
in economic activity a year. ValueWeb members
plan call for a doubling of Centers and a 4 times
increase in economic activity in less than two years.
Not yet there, however, enough critical mass is
emerging
to get a first view of system behavior
on a global scale. Page 505 of my Notebook addressed
the architecture of investors. This posited that
there
were many forms of wealth that can be seen in a 2
x 4 matrix that has many layers. This matrix shows
a coexisting "individual and Commonwealth
structure that is expressed through physical,
mental and spiritual values,
or motives. Within this matrix, then, there are
many
reasons for different populations to invest: individuals,
organizations, communities affinity networks, governments
and, ultimately, global networks. |
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In
time, this nascent system will grow in to a
true
marketplace. However, it will be a market place
that has value far beyond just the financial
transactions
that take place within it. It is my sense that
the
Network Economy will soon mutate into
something else.
The focus will shift from transactions and income
making to wealth generation and work/lifestyle
quality and sustain-ability. This economy
will run by a new set of social rules. It will be
network based. However, it will be made up of
many
distinct affinity markets with their
own tools
of exchange, rules of engagement and standards
of value. This will be a curious mixture of central
systems and decentralization. The opposing trends,
that we see today, between huge centralized organizations
and a multiplication of small decentralized enterprises
will be resolved.
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The
Big E ValueWeb is formed around a number of specific
premises related to knowledge work, collaboration,
emergent structures and the like. There is a strong
value-set in regards how these tools should be applied.
This, then, is an intentional network. Like
all cultures, this web will grow and change. Its
core will most likely stay intact. Since
this core is related to - and has been from the
beginning - a set of new economic assumptions, it
will be interesting to see what effects growth and
economic success has on the idea, operations and
meme of the web itself and its various
component organizations and nodes.
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The
Big E ValueWeb is a concrete application of
the
Earth Library concept from the Renascense
Project. It is one form in which the Renascense
Project agenda will be recreated and carried
out. From my own personal viewpoint, the creation
of this ValueWeb is the most complex project I
have ever taken on. Its creation is directly
related to the vision
I experienced on New Years 1958. Creating this Community
of Work has consumed my attention more than,
perhaps, any other idea. My goal is to become a
member of this ValueWeb, and within it, pursue
the
creation of true ARCHITECTURE. In my
definition of architecture, the practice of
it includes design, building and using-operating
the environments. By 1958,
just two years into my architectural practice
activities,
I knew that I would fail in the practice of architecture
in the conventional sense of practice.
By
1974,
I had failed.
My challenge was to find a way to bring my vision
into reality. This required, although I did not
know it at the time, building a place
to work - a network and number of physical nodes
within which to build a practice.
In doing this for me, of course, I
am doing it for everyone who will understand and
use the tool.
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While
this is my personal purpose, there is much
that goes beyond it. In the first place, for my
purpose to be accomplished, a social space with
a much richer composition than architecture itself
has to be created. When getting down
to why architecture is so rare, the issues
related to social values and transformation predominate.
Architecture is outer development.
It is the true expression of its builders
values. It is a social art form. To build
is to reveal who you are. Personal transformation
and social transformation are co-emergent. Individual
wealth and commonwealth are codependent. Node and
Network are coexistent. Either/or is a tool of logic
- not a description of reality. True architecture
expresses, as a context for living, this integration.
True architecture will require a new practice and
that
practice will be ValueWeb based.
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Every
individual that becomes part of this ValueWeb will
have their own individual and community related
reasons for taking part. Each will have to balance
between contribution and use, between putting in
and taking out, between investing and consuming.
The ValueWeb will be robust when thousands are making
such judgments on a daily basis based on a systemic
and ecological view of the Enterprise. Failing this,
there will be a tragedy of the commons
and the resource will be spoiled. This issue is
one that humankind faces on a planetary scale. The
same condition is manifested, on many levels of
recursion, time and time again. If our Enterprise
is to be a 21st Century organization,
we will accomplish this stewardship principle. In
doing this, we will be accomplishing far more than
just the value of the Enterprise itself - we will
be learning how to bring ValueWebs into existence.
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In
1998, the Taylor operating
companies experienced a great financial setback.
This caused tremendous stress to many members of
the ValueWeb Enterprise. The spirit of the Big E
was shocked. A few took great short term
and unethical advantage of the situation - most
did not. Almost no one, however, had a way of dealing
with the circumstances. This was a true test of
the viability of the system. Over the year, even
as it was crashing and reforming, the ENTERPRISE
continued to grow. It passed this first test of
sustainability. If there were ever any doubts in
my mind if this Enterprise was recognized as having
value and if it had the inherent adaptability to
sustain a well-directed death blow,
1998 put them to rest. Economically, three years
were lost for the Taylor core operating companies.
Strategically,
the major objectives have been achieved dispite
this circumstance.
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There
remains, as of 2002, some repair work to return
some web members to full engagement. This will be
accomplished in time and only by action.
Each in their own way.
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The
basic rule-of-participation of a ValueWeb is simple:
make sure that the web is self-correcting and efficacious
- and then, make sure that the organization (or
business of one) that you operate is
fit to function within that web.
In 1998, the Taylor parts of this ValueWeb failed
this test and we rapidly descended our fitness
peak. This did not feel good. In 1999 we started
climbing a new one. We were still climbing until
the 2001 recession and September 11. These events
have accelerated our process to a place with much
greater inherent opportunity and value than the
landscape we occupied in 1998. We stayed between
two economic plateaus - 25% smaller or larger would
have been profitable - for almost 18 months. The
ValueWeb, as a whole, doubled within this period.
It continues to grow at a rapid rate. The MG Taylor
core Business Units shrunk, from 1998 to 2000 by
about 24 percent. And, shrunk again by 25% in 2001.
However, during the same period they diversified
greatly. The variety of our User Network
has expanded greatly. Scale and scope of operations
are important to any enterprise - from a household
to a nation to a world economy. The makeup of the
economy is also important. In Jane Jacobs terms,
in 1998 we were a supply economy - now
we are becoming a replacement economy
(See: Cities and the Wealth of Nations) -
a long stated goal.
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My
sense is that our ValueWeb is still (Spring, 2002)
critically short of the scope necessary for fulfilling
its long term mission. A close order of magnitude
of growth is required - and in a short period of
time. Most of the components, including MG Taylor,
can stay in business at the present scale of their
operations with perhaps 15% growth. However, sufficient
capital for innovation may not be available at this
mass. The diversity of the players might be inadequate.
Critical mass could be lacking and therefore not
constitute enough force to get the job done.
In time, the Enterprise would risk fading into the
background noise of our society and become increasingly
irrelevant. A great deal of our strategic thinking
of the last year has gone into developing countermeasures
to these risks. Finding the right Investor and Client/Customer
partner-members is the key.
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There
are two caveats here. First it may be that
a first level clam shell economic metabolism of
about 100 million will prove sufficient to drive
an overall ValueWeb of several hundred million (the
amount - acting as a web - I believe this is necessary
for long term viability). Second, even if this is
not sufficient, the Enterprise, at a hundred million
core level can advance its work, sustain indefinitely
and transfer (or mutate) to whatever enterprise
can carry the work to the next level. It also can
pay those who created it in the first place a reasonable
financial return for the effort put out and the
value that was created.
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The
nature of this Enterprise, from its inception,
has been determined by an ambition too great for
any single organization to accomplish or for any
one group of leaders to facilitate alone. Gail and
I knew from the beginning that it was beyond us
to accomplish. I have always stressed that what
we invented was a social invention. It involves
new technologies, new work processes, new forms
of environments, new organizational principles -
and, a new concept of wealth
and enterprise. The nature of this effort
is such that it takes the tool, itself, to
create the tool. The tool is a creation engine.
This engine is made up of people, tools,
organizations and idea-to-reality throughput. It
is designed to replace the way-of-working now accepted
as the norm, the given. This method
is such that only a ValueWeb can make and sustain
it, only a ValueWeb can afford it and only a ValueWeb
can truly use it.
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To
bring this about we had to start early - long before
the need was commonly recognized. We built capacity,
through a series of bootstrap level
changes - multiple iterations over time.
We built a conceptual model of social transformation
and the network economy in the mid-70s and
asked What opportunities would this create?
What barriers exist that can block its successful
implementation? Want is the problem?
What tool-set is, therefore, required?
Our first facility
was called The Anticipatory Management
Center to emphasize this look-ahead
necessity. Today, much of what is happening is what
we anticipated 25
years ago. And today, we are just starting to
employ
this tool kit to the social/economic problems we
foresaw.
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If
this Enterprise is to flourish and stay viable,
however, it must once again look out to the future
- not just execute, as dictated by present circumstances,
that we anticipated long ago. To be a replacement
economy means to have the inherent critical mass
and character to recreate oneself. To do this, one
has to be future driven. Just when great energy
is going into expanding and scaling past demonstrations
for present success, it is time to start the process
of re-birthing the enterprise (Stages of An Enterprise
Model).
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This
next cycle of anticipatory design will
require greater imagination than the last. There
is little about the human experience that is not
up for grabs in the next quarter of a Century. We
did not design this Enterprise just for now
- we designed it for, at least, the next cycle of
change. Will it be capable of an appropriate
response?
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It
is time to re-conceive and recreate even as we bring
the present era of work to closure. In 2003, MG
Taylor will sponsor a number of new (and some old)
activities:
TANSTAAFL DesignShop events, FutureViews newsletter,
ReBuilding
the Future seminars and the Master
Planning Process. These will do many things.
First off, focus the web on many issues that were
the reason why this Enterprise was created in the
first place. Second, rebuild the Model, now 25 years
old, that the Enterprise was conceived and built
on. Third, these activities will create a new level
of interest,
in our Enterprise,
from a new generation of people and organizations.
With a new generation KnetWeb
in place, an accelerated level of organic growth
will be possible.
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The
nanoPATCH
exercises that we did for the Foresight Senior Associates,
in 1999 and 2000, are one example of what this future
work might be and illustrative of what kind
of future took kit that is required. A PatchWorks
exercise is, by definition, a ValueWeb scale
exercise.
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importantly than these forming exercises
that come from the Systems Integration (SI) core of
the web is that a number of members are beginning
to create web-scale activities. This reflects a true
market need and are the first examples
of spontaneous life in the Enterprise
as the result of pull rather than push.
This to me is a measure of growing maturity. In addition,
we are now attracting new client members who will
use the technology to build full-scale ValueWebs of
their own. A mature
ValueWeb has many recursion levels, many nodes
that are in other webs and the web is always incubating
and spinning of other ValueWebs. And, attracting other
webs in. It is this aspect of working
that makes ValueWebs work. |
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Matt
Taylor
Hilton Head
January 5, 1999

SolutionBox
voice of this document:
VISION STRATEGY DESIGN
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posted:
March 2 , 1999
revised:
March 10, 2002
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(note:
this document is about 95% finished)
Copyright©
1999, 2000, 2001, 2002 Matt Taylor
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