SI Introduction to Information Studies, Winter 2009

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1 University of Michigan Deep Blue deepblue.lib.umich.edu SI Introduction to Information Studies, Winter 2009 Frost, Robert Frost, R. (2009, March 1). Introduction to Information Studies. Retrieved from Open.Michigan - Educational Resources Web site: <

Unless otherwise noted, the content of this course material is licensed under a Creative Commons BY-SA 3.0 License. http://creativecommons.org/licenses/by-sa/3.0/ Copyright 2009, Robert Frost.

Copyright holders of content included in this material should contact open.michigan@umich.edu with any questions, corrections, or clarifications regarding the use of content.

2 Unless otherwise noted, the content of this course material is licensed under a Creative Commons BY-SA 3.0 License. Copyright 2009, Robert Frost. You assume all responsibility for use and potential liability associated with any use of the material. Material contains copyrighted content, used in accordance with U.S. law. Copyright holders of content included in this material should contact open.michigan@umich.edu with any questions, corrections, or clarifications regarding the use of content. The Regents of the University of Michigan do not license the use of third party content posted to this site unless such a license is specifically granted in connection with particular content. Users of content are responsible for their compliance with applicable law. Mention of specific products in this material solely represents the opinion of the speaker and does not represent an endorsement by the University of Michigan. For more information about how to cite these materials visit Any medical information in this material is intended to inform and educate and is not a tool for self-diagnosis or a replacement for medical evaluation, advice, diagnosis or treatment by a healthcare professional. You should speak to your physician or make an appointment to be seen if you have questions or concerns about this information or your medical condition. Viewer discretion is advised: Material may contain medical images that may be disturbing to some viewers. 1

Th e B u s in e s s of In form a tion a n d In form a tion in B u s in e s s Not re a lly in form a tion e c on om ic s, b u t h ow in form a tion c on te n t a n d s e rvic e s a re b ou g h t a n d

3 Th e B u s in e s s of In form a tion a n d In form a tion in B u s in e s s Not re a lly in form a tion e c on om ic s, b u t h ow in form a tion c on te n t a n d s e rvic e s a re b ou g h t a n d s old, a s we ll a s h ow b u s in e s s e s h a ve b e e n in form a te d a n d h ow (or n ot!) th e y p a y for d oin g th a t. Two foc i h e re : m ic ro-leve l of th e in d ivid u a l e n te rp ris e, m a c ro-leve l on g lob a liz a tion, ou ts ou rc in g, e tc. Slide # 01 2

4 B u t fir s t, a d is tin c tio n Two typ e s of in form a tion p rod u c t, or c om m od ity: In form a tion th a t is : c on te n t, s u c h a s text, m u s ic, m ovie s, e tc. In form a tion th a t d oe s : u s u a lly s oftwa re, s om e tim e s n e c e s s a rily tie d to kn owle d g e, s kill, a n d s e rvic e s for d ep loym e n t B oth follow th e s a m e g e n e ra l e c on om ic c h a ra c te ris tic s, a n d b oth re q u ire s p e c ific te c h n olog ic a l in fra s tru c tu re s Slide # 3

ie s On c e d ep loye d, m od ific a tion s a re ofte n in exp e n s ive, e n a b lin g a d a p ta tion to s m a ll m a rke ts or n ic h e s De m a n d s id e : n on -riva l d e m a n d s a tis fa c

5 How is in form a tion a s a c o m m o d i t y d iffe re n t from oth e r g ood s, a n d wh a t d oe s th a t m e a n for b u s in e s s m od e ls? S u p p ly s id e : m in im a l m a rg in a l c os ts Cos t of p rod u c tion for a ny c op y a fte r #1 is n ext to z e ro S eve re is s u e s of c ove rin g c os ts a n d with p ric in g s tra te g ie s On c e d ep loye d, m od ific a tion s a re ofte n in exp e n s ive, e n a b lin g a d a p ta tion to s m a ll m a rke ts or n ic h e s De m a n d s id e : n on -riva l d e m a n d s a tis fa c tion Us e b y on e p a rty d oe s n ot p re c lu d e u s e b y a n oth e r Ofte n, a fte r a d op tion, u s e rs a re loc ke d -in, a s th e c os t of c h a n g e ofte n re q u ire s n ew in fra s tru c tu re S h a rin g a n in fo c om m od ity c os ts th e d on or n ext to n oth in g Slide # 4

6 As in fo g ood s a re ofte n exp e n s ive in itia lly to p rod u c e, th e re a re u s u a lly p rob le m s c ove rin g c os ts & m a kin g a p rofit. Va riou s Ap p roa c h e s : Adve rtis in g -s u p p orte d, a s with TV Ve rific a tion b y c ou n tin g c lic ks, a s with Goo g le a n d n ote h ow Goog le s u c c e s s fu lly n a rrow-c a s ts : A Google revolution with AdWords and local search? P rob le m s in a c c u ra te c ou n tin g Cros s -m a rke tin g c a n b e e a s y: e a c h p a ys th e oth e r for tra ffic d ire c te d to th e m In c re m e n ta lis m a llows a d -h oc a d ju s tm e n ts in p ric e Va lu e -a d d e d, c om m is s ion m od e ls : tra ve l s ite s Ofte n u s e d in c ros s -m a rke tin g a rra n g e m e n ts Slide # 5

7 More P ric in g S tra te g ie s S u b s c rip tion m od e ls : P roqu e s t, Nexu s /Lexis, e tc. P rob le m s of le a ka g e a n d p ira c y Diffic u lt to d e te rm in e a c orre c t p ric e : wh o p a ys for th e in itia l d eve lop m e n t c os ts? Th is wa s wid e ly trie d (a n d fa ile d ) a fte r P a y-p e r-u s e for in form a tion c on te n t or s e rvic e s For s oftwa re, m a yb e? S u g g e s tion th a t it b e d on e for film s P rob le m s in m on itorin g a n d with ove rh e a d exp e n s e s on m ic rop a ym e n ts Slide # 6

8 Dile m m a s a n d Wh a t Doe s n t Alwa ys Work in E-Com m e rc e S e llin g a tte n tion vs. s e llin g g ood s P rob le m s in d eve lop in g m in d s h a re ofte n c os ts a s m u c h a s th e p rod u c t! E-c om m e rc e u s in g th e Ne t to s e ll old -s tyle g ood s is s till c om m e rc e Th is is in form a tin g : u s in g IT to tra n s form b u s in e s s p roc e s s e s Ma nufa c tu rin g s h ift in s u p p ly c h a in m a n a g e m e n t: J IT Re ta il & nu m b e r revolu tion in fu lfillm e n t Ge n u in e in n ova tion : b roke rin g a n d a u c tion n e tworks e B a y a s ic on ic, b u t p rob le m s of tru s t & d e s c rip tion [invis ib le in fo m a rke ts a g g re g a tors a n d re s e lle rs : Ch oic e Poin t, m a rke t re s e a rc h, a n d d a ta -m in in g work] Slide # 7

e ttin g s, s u c h a s b roa d b a n d s e rvic e, s oftwa re with la rg e loc k-in, s u c h a s Win d ows Ofte n a s ig n th a t re g u la tion or a n

9 Th e Ap p roa c h We All Dis : Inve rs e [d e m a n d ] Ela s tic ity P ric in g P ric e a c c ord in g to c on s u m e r n e e d, n ot d e m a n d or c os ts Not u n iq u e to th e in fo b u s in e s s (n ote p h a rm a c e u tic a ls ) Ea s ily d on e in n a tu ra l-m on op oly, in fra s tru c tu ra l s e ttin g s, s u c h a s b roa d b a n d s e rvic e, s oftwa re with la rg e loc k-in, s u c h a s Win d ows Ofte n a s ig n th a t re g u la tion or a n ti-tru s t a c tion is n e e d e d Als o a p rob le m in a re a s wh e re b u ye rs a re n ot th e orig in of d e m a n d : c olle g e textb ooks Slide # 8

10 Ch a lle n g e s in All P ric in g S tra te g ie s Th e c h oic e : h ig h -volu m e /low-m a rku p vs. lowvolu m e /h ig h -m a rku p ; b ou tiq u e s vs. Wa l-ma rt Fron t-loa d c os t-re c ove ry or ta ke a ris k a tra g ic p rob le m with h ig h -c os t in fra s tru c tu re or g ood s Fa s te r, m ore a c c u ra te fe e d b a c k loop s d o n ow a llow for b e tte r m a rke t-s lic in g & n ic h e s [Th e d e a th of S e a rs a n d th e n ew b im od a l m a rke t] Ris k-a ve rs ion c a n d e s troy a n in d u s try: s a te llite p h on e s La rg e r is s u e of h ow d e m a n d g e ts s ig n a le d b a c k to s u p p ly s id e Th e old la u n c h a n d h op e vs. m a rke t re s e a rc h a n d p ric e a d ju s tm e n ts Diffe re n t im p lic a tion s in in fo c on te n t vs. s e rvic e s & s oftwa re Slide # 9

11 More P ric in g S tra te g y Ch a lle n g e s How d o c on s u m e rs re ve a l p re fe re n c e s? Ma rke ts a re p oor in form a tion -g e n e ra tin g s ys te m s Con s u m e r p re fe re n c e s c a n on ly b e s ig n a le d th rou g h th e m a rke t S h ortc om in g s of u s u a l m a rke tin g m od e ls : tim e la g s a n d in c om e d iffe re n c e s Ma rke t re s e a rc h ofte n p os e s p rob le m s Fixa tion on th e id e a l d e m og ra p h ic p re c lu d e s c on s id e rin g oth e r m a rke ts (c f: C lu e tra in ) As s u m p tion s a b ou t P a re to d is trib u tion (th e 8 0 /2 0 ru le ) ofte n p re c lu d e s m a rke tin g to th e ta ils, wh e re a m a z on.c om a n d Ne tflix p rofit (s e e C. An d e rs on, Th e L o n g Ta il, ) S e lle rs a n d d a ta b a s e firm s : inva s ion s of p riva c y 10

P u b lic g ood s a n d th e fre e -rid e r p rob le m : p a yin g for in form a tion in fra s tru c tu re s Wh e n a re ta xp a ye r s u b s id ie s or c ros s -s u b s id ie s d e s ira b

12 S u p p ly-s id e Dile m m a s : Th e Pe rils of Fa llin g Ma rg in a l Cos ts Ma rg in a l c os ts ve rs u s a ve ra g e c os ts : h ig h fron t- e n d c os ts & lu m p in e s s Ma s s -p rod u c tion p a ra lle ls S h ou ld e a rly-a d op te rs g e t p e n a liz e d? P u b lic g ood s a n d th e fre e -rid e r p rob le m : p a yin g for in form a tion in fra s tru c tu re s Wh e n a re ta xp a ye r s u b s id ie s or c ros s -s u b s id ie s d e s ira b le? (re c a ll ou t d is c u s s ion of wire d p h on e s & e le c tric ity) Ge ttin g b eyon d m ora lis m s : m a yb e th e ric h s h o u ld p a y P rob le m s in d e c lin in g -reve nue p rod u c ts S a tu ra te d m a rke ts : s e ll on c e & th e n? Fe a tu ritis & forc e d u p g ra d e s 11

) m e a n s im p lic it s ta n d a rd s, forc in g p u rc h a s e s & loc k-in a m on g c om m u n ity m e m b e rs, leve ra g in g n e twork e

13 Wa ys to Mitig a te Ris ks in IT P rod u c ts Mic ros oft s a p p roa c h Con trol c h oke -p oin ts (th e OS ), or.net, DRM/ tru s te d c om p u tin g Ma s s ive d iffu s ion (b y wh a teve r m e a n s!) m e a n s im p lic it s ta n d a rd s, forc in g p u rc h a s e s & loc k-in a m on g c om m u n ity m e m b e rs, leve ra g in g n e twork e ffe c ts B ou tiq u e p ric in g, e s p e c ia lly in s oftwa re From Ad ob e to Au tocad a n d CATIA Doe s n t p re c lu d e m om e n tu m from m a s s ive d iffu s ion Con tinu in g -reve nue m od e s : re n tin g s oftwa re (?) 12

14 Loc a tin g Va lu e a n d Re wa rd in g It: An Alte rn a tive Ap p roa c h B a s ic a p p roa c h (wh ic h p re s e rve s b a s ic log ic of c a p ita lis m ): re wa rd a c c ord in g to c on trib u tion s Wh e re d oe s va lu e g e t a d d e d? Con te n t c re a tors Dis trib u tors & oth e r in te rm e d ia rie s c h oke -p oin t oc c u p a n ts Con s u m e rs (m in d -s h a re is c ru c ia l) (Ob viou s p rob le m in te rm s of a d m in is te rin g th is ) 13

re B oth leve ra g e loc k-in Op e n -s ou rc e : s p re a d in g ris k a n d m in im iz in g exp os u re Th e n e w IB M: h ow c a n /d oe s it work?

15 Old a n d Ne w S oftwa re Mod e ls : P rop rie ta ry vs. Op e n -S ou rc e Ap p le, Mic ros oft a n d p rop rie ta ry s ys te m s /s oftwa re Ap p le : g litz y s oftwa re to s e ll h a rd wa re Mic ros oft: ju s t s e ll s oftwa re B oth leve ra g e loc k-in Op e n -s ou rc e : s p re a d in g ris k a n d m in im iz in g exp os u re Th e n e w IB M: h ow c a n /d oe s it work? S e c u rity is s u e s a n d a d op tion b y fore ig n g ove rn m e n ts P rob le m s : s c a la b ility of th e d eve lop m e n t m od e l, te c h s u p p ort, d iffu s ion, a n d u s e r s kill b a s e Is it s u s ta in a b le on c e th e b u z z we a rs off? A n e w m od e l: Op e n -s ou rc e c on te n t! 14

16 Is Op e n -S ou rc e th e Fu tu re? Ye s, b e c a u s e for b oth c on te n t a n d s oftwa re It h e lp s c re a te s oc ia l c a p ita l b y g e n e ra tin g n ew volu n ta ry c om m u n itie s b a s e d on in te re s t He lp s to d eve lop in d ep e n d e n t s kill a n d kn owle d g e c om m u n itie s It is fa r c h e a p e r u p -fron t, p rob a b ly c h e a p e r ove r tim e a s we ll Cre a tive Com m on s a n d th e P u b lic Lib ra ry of S c ie n c e a re n ow c om m on ly re c og n iz e d p a rts of th e a c a d e m ic c om m u n ity eve n b log s a re op e n -s ou rc e Ma yb e n ot, b e c a u s e Mic ros oft h a s m a s s ive m om e n tu m, in s ta lle d b a s e, a n d loc k-in Ma ny firm s & u n ive rs itie s re g a rd op e n -s ou rc e a s too ra d ic a l a n d a b it fla ky Ma yb e it d ep e n d s on wh a t h a p p e n s in B a n g a lore 15

17 P a rt II: In fo in B u s in e s s & in th e World B u t firs t, a few re m a rks on th e n e w e c on om y 16

18 How Ne w is It? Th e re ve b e e n m a ny p reviou s e c on om ic revolu tion s Com m e rc ia l Revolu tion, s Ra th e r m ore p lu n d e r th a n c om m e rc e S la ve s, ru m, s u g a r a n d th e tria n g u la r tra d e In d u s tria l Revolu tion, s s Role of g lob a lis m, world m a rke ts S la ve ry a s e a rly US c e n te rp ie c e S e c on d In d u s tria l Revolu tion, s Kn owle d g e -b a s e d in d u s try P rod u c tivity revolu tion 17

19 More Effic ie n t Us e of Re s ou rc e s Is n t Ne w, Eith e r a s la ve s h ip, ; c on s id e r a s we ll th e re s ou rc e -u s e m od e ls a t Au s c h witz Source: 3a34658)) 18

M a ssify ing P roduction & Consumption Me c h a n ic a l e n g in e e rs tra n s form p rod u c tion, a dve rtis in g tra n s form s m a rke ts, 1 8 9 0-1 9 8 0 S ta n d a rd p rod u c ts, S e a rs,

20 M a ssify ing P roduction & Consumption Me c h a n ic a l e n g in e e rs tra n s form p rod u c tion, a dve rtis in g tra n s form s m a rke ts, S ta n d a rd p rod u c ts, S e a rs, a n d on e s iz e fits a ll; Ivory s oa p Th e m a s s ive m id d le c la s s, ris e of th e P MC Ae s th e tic s of g e n e ric g ood s ; on e s iz e fits a ll Hig h fron t-e n d c os ts m itig a te d b y la rg e m a rke ts Ve ry in flexib le p rod u c tion s ys te m : c h a n g e ove rs exp e n s ive On e -to-m a ny m od e ls, from Ford to NB C to NFL Cu s tom e rs a d a p t to m a rke ts, n ot vic e -ve rs a (c f. C lu e tra in ) S oc ia lis m a n d a lte rn a tive m od e ls S im ila r b e lie fs in m a s s ific a tion, d iffe re n t m e a n s to th a t e n d 19

21 Th e Cris is B e g in s, c a Ma tu re in d u s trie s b e c a m e s e n e s c e n t (a u to, s te e l, a p p lia n c e s, tru c kin g ) In d u s tria l e fflu e n ts b e g a n to e n g u lf u s P rofits fla tte n e d, Wa ll S tre e t wa n te d m ore, forc in g firm s to s q u e e z e la b or a n d s u p p lie rs Ru n a wa y p la n ts, u n ion -b u s tin g Ab a n d on e d c itie s (a n d th e c os t of reb u ild in g in fra s tru c tu re ) En tire c itie s a n d in d u s trie s loc ke d -in to old wa ys c ou ld n ot s h ift p ra c tic e s In s h ort, p rod u c tivity s ta g n a te d in p a rt b e c a u s e a ll p os s ib le g a in s u n d e r th a t m od e l we re a c h ieve d 20

22 Eve ry In d u s try & P rod u c t Ha s a Life c yc le [th in k h a rd on th is ] 21

23 S o, Wha t s Informa ting About? Firs t a n d fore m os t, fin e r-g ra in e d kn owle d g e a n d c on trol ove r p rod u c tion a n d m a rke ts Ch a n g e s in d e g re e Th e c om m od ific a tion of eve ryth in g : la b or, c a p ita l, g ood s Fa s te r, m ore p re c is e d e s ig n, p rod u c e, s e ll c yc le s S u p p ly-c h a in m a n a g e m e n t a n d J IT In te g ra tion of b u s in e s s p roc e s s e s u s in g IT: ERP, CRM, e tc. CATIA (a n d wh y tw o c a r ke ys?) Va s t in c re a s e in th e m ob ility of two fa c tors of p rod u c tion, c a p ita l a n d kn owle d g e, wh ile la b or re m a in s im m ob ile 22

Ch a n g e s in Kin d : Tra n s form a tion s S m a rt a n d flexib le m a n u fa c tu rin g, c u s tom iz e d m a s s p rod u c tion : Flextron ic s Ne w s ta n d a rd iz e d voc a b u la rie s (th

24 Ch a n g e s in Kin d : Tra n s form a tion s S m a rt a n d flexib le m a n u fa c tu rin g, c u s tom iz e d m a s s p rod u c tion : Flextron ic s Ne w s ta n d a rd iz e d voc a b u la rie s (th a n ks in p a rt to IS O ) a llow in form a tion -d rive n d e c e n tra liz e d p rod u c tion B e tte r, c h e a p e r c om m u n ic a tion in fra s tru c tu re s p e rm it p re c is e tra c kin g of p e op le, m on ey, & th in g s Ne o-lib e ra l p olitic a l d om in a tion a llows c orp ora tion s g re a te r fre e d om to p rofit a nywh e re a n d b y a ny m e a n s (a lm os t) n e c e s s a ry 23

Informa tion a nd the N ew E conomy In form a tion s p e e d, d ep th, a va ila b ility, a n d q u a lity More d e ta il ofte n yie ld s n e w kn owle d g e a n d c a p a b ilitie s : c om p a re a c

25 Informa tion a nd the N ew E conomy In form a tion s p e e d, d ep th, a va ila b ility, a n d q u a lity More d e ta il ofte n yie ld s n e w kn owle d g e a n d c a p a b ilitie s : c om p a re a c c ou n tin g on p a p e r to Exc e l P rod u c tivity c a lc u la tion s re m a in a m b ig u ou s (th in k of tota l fa c tor p rod u c tivity a n d re tu rn -on -inve s tm e n t m od e ls ), ke ep in g Wa ll S tre e t s h u fflin g Corp ora te in fo flows c a n n ow m ore c los e ly m a tc h org a n iz a tion a l s tru c tu re s th a t a re d e s ig n e d for b e tte r e ffe c tive n e s s : th in k work g rou p s S lig h t in c re a s e in m e ritoc ra tic in tra -firm p olitic s th a n ks to b e tte r s u rve illa n c e a n d eva lu a tion m e th od s b u t th e b u d d y s ys te m s u rvive s (of c ou rs e!) Ris e of in form a tion p rofe s s ion s : wh a t a re th e lim its? 24

26 N ew B usiness M odels? IT a llows m a jor d is in te rm e d ia tio n A ris e or fa ll in in te rm e d ia rie s? Ma nufa c tu rin g, b 2 b : ye s, with c a ve a ts Me d ia : N O is n t th a t wh a t DMCA e tc is a ll a b ou t--a re fu s a l to d eve lop a n ew b u s in e s s m od e l Fin a n c e : N O th in k of En ron Re ta il: m a yb e c on s id e r th e Wa l-ma rt m od e l of d ire c t s u p p lyin g b y m a nu fa c tu re rs ; p a rt of th is is c os t a n d ris k d ive rs ion m a d e p os s ib le b y Wa l-ma rt s m on op s on is t p os ition Dis in te rm e d ia tion is p os s ib le, b u t m ore th a n IT is re q u ire d ; c on s id e r re a l e s ta te s a le s Th e s oftwa re -d rive n b a c k-offic e revolu tion Th e e n d of m id d le m a n a g e rs? 25

Ke ep C lu e tra in Id e a s in Min d Th e old m od e l Hie ra rc h ie s & b u re a u c ra c ie s Dis e m p owe re d a n d u n in form e d m in ion s /worke rs On e -to-m a ny In s titu tion a l m e

27 Ke ep C lu e tra in Id e a s in Min d Th e old m od e l Hie ra rc h ie s & b u re a u c ra c ie s Dis e m p owe re d a n d u n in form e d m in ion s /worke rs On e -to-m a ny In s titu tion a l m e d ia tion P a s s ive c on s u m e rs Th e n e w m od e l fla t org a n iz a tion s Kn owle d g e -e m p owe re d a c tors Ma ny-to-m a ny (a n d p e e r-to-p e e r) Dis in te rm e d ia tion : re n d e rin g old m od e ls irre leva n t Con s u m e rs a c tive ly c re a tin g m in d -s h a re a n d va lu e 26

28 Poin ts of Con te n tion Is m a nu fa c tu rin g d e a d in th e US A? S we a ts h op s a n d Ch in e s e fa c torie s : s im p le th in g s c ou ld b e ou ts ou rc e d in th e s, n ow s oftwa re a n d m e d ic a l s e rvic e s c a n Ca n le a n a n d flexib le m a nufa c tu rin g s a ve u s? Con s tra in t s e e m s to b e p roxim ity of re s ou rc e s Th e old Keyn e s ia n p rob le m : if worke rs d on t m a ke m u c h m on ey, wh o b u ys th e p rod u c ts? Wh e re is re a l va lu e a d d e d? Wh a t, re a lly, is re a l va lu e? P ric in g e ffe c ts a n d s p e c u la tion Th e p rod u c tivity p u z z le In te rm e d ia tion is s u e s a g a in : va lu e a d d e d vs. reve nueh a rve s tin g How to a c c ou n t for th e va lu e of m in d -s h a re? 27

In form a tion -Drive n Glob a liz a tion Two c on tra s tin g m od e ls Kore a a n d In d ia : s ta rt a s s im p le ou ts ou rc e rs, b u t le a rn a n d c om p e te d ire c tly la te r [Ch in a?

29 In form a tion -Drive n Glob a liz a tion Two c on tra s tin g m od e ls Kore a a n d In d ia : s ta rt a s s im p le ou ts ou rc e rs, b u t le a rn a n d c om p e te d ire c tly la te r [Ch in a?] Mexic o, Ma la ys ia, a n d Moroc c o: s im p ly offe r c h e a p (a n d we ll-p olic e d ) la b or, a n a b ility to p ollu te fre e ly, a n d le a rn n oth in g A ra c e to th e b ottom a n d th e n e w b ru ta lis m a re a lwa ys p os s ib le Th e p la yin g fie ld will a lwa ys b e u n leve l: in a n a g e of m ob ility, la b or is le a s t m ob ile Wh o p a ys for in fra s tru c tu re : th e s ta te, th e c om p a n ie s, or g u llib le inve s tors? 28

Th e Fu tu re of P rod u c tion 1 0 0 % d e c e n te re d m a nu fa c tu rin g?

30 Th e Fu tu re of P rod u c tion % d e c e n te re d m a nu fa c tu rin g? Mitig a tin g fa c tors : p h ys ic a l b a rrie rs re m a in P h ys ic a l p re s e n c e re m a in s im p orta n t Re g ion a l tip p in g p oin ts of p re s e n c e : S ilic on Va lley; Gre n ob le ; Hig h Poin t, NC Move m e n t of e m p loye e s a m on g firm s s p re a d s q u a s i-p rop rie ta ry kn owle d g e Tu rn -a rou n d tim e s a n d s h ip p in g c os ts s kyroc ke t with too m u c h ou ts ou rc in g s h iftin g s ite s of g a rm e n t m a kin g, Gu a m or S ou th -Ce n tra l? h ow m u c h is GM willin g to s p e n d s h ip p in g p a rts from Mexic o? Wh a t d oe s Ma d e in Am e ric a m e a n, a nywa y? Is a Lu m in a m ore Am e ric a n th a n a n Ac c ord? 29

T hriving or Dying in the N ew E conomy Wh o p a ys, a n d wh o s h o u ld p a y for exte rn a litie s s u c h a s b rown fie ld s, a b a n d on e d c itie s, a n d a b a n d on e d workforc e s?

31 T hriving or Dying in the N ew E conomy Wh o p a ys, a n d wh o s h o u ld p a y for exte rn a litie s s u c h a s b rown fie ld s, a b a n d on e d c itie s, a n d a b a n d on e d workforc e s? Will we eve r b e a b le to kn ow h ow c orp ora te d e c is ion s a re in fle c te d b y c os t-s h iftin g? How d o ta x p olic ie s a ffe c t th os e? Ed u c a tion & c u ltu ra l/s oc ia l c a p ita l: wh o s h ou ld p a y for th os e? Are th e re s e c on d a c ts for firm s a n d c itie s? Portla n d, Ore g on from lu m b e r to IT, b u t P itts b u rg h from s te e l to fin a n c e, b u t a re th e re n o lim its to fin a n c ia l in te rm e d ia tion?? IB M from p rop rie ta ry m a in fra m e s to linux & s e rvic e s ; c om p a re to We s te rn Un ion or AOL Wh ith e r Mic h ig a n? 30

LU N C H IN C LU D E D

LU N C H IN C LU D E D Week 1 M o n d a y J a n u a ry 7 - C o lo u rs o f th e R a in b o w W e w ill b e k ic k in g o ff th e h o lid a y s w ith a d a y fu ll o f c o lo u r! J o in u s fo r a ra n g e o f a rt, s p o rt