Resources: Book of the Month

The World is Flat

I was initially skeptical of the heavy hype that this book received in the maintstream media. Friedman writes a column for the New York Times, and it seemed that the praise for the book was a bit over the top. But I finally picked up a copy, and while I still believe Friedman has over-simplifed some ideas and concepts, the book is worth reading.

Friedman is an excellent writer who is able to identify key trends and write about them clearly. His previous book, The Lexus and the Olive Tree also stretched a good idea a bit too far, but nonetheless had valuable insights. The World is Flat is particularly valuable for Friedman's list of "ten forces that flattened the world." It is this list, and Friedman's cogent explanations, that make the book particularly valuable for economic and community developers. Communities across America, and especially in rural areas, are struggling to adapt their local economies to the shifting power of the global economy. Friedman talks about, and explains lucidly, global marketplace concepts like outsourcing and offshoring. Friedman's analysis of offshoring and how to deal with it should be a must read for community leaders struggling with the loss of local manufacturing jobs.

Perhaps the most important, read between the lines message in the book for communities is that all the change and upheaval brought about by the end of the Manufacturing Economy and the rise of the Knowledge Economy offers incredible opportunities for small and medium-sized businesses that want to grow. A half day workshop for local businesses based on this book should be an essential activity for economic developers to offer to area businesses.

The Hidden Power of Social Networks

In the Manufacturing Economy (1850 to 1950), where you were located mattered because stuff was heavy. Being near an airport, a highway, or a river was a key part of an economic development strategy. In the Information Economy (1950 to 2000), what you had mattered. What kind of technology you had--computers, networking equipment--often created a competitive edge, especially in the last ten years of that era.

In the Knowledge Economy, many goods and services are weightless--software, music, and videos can be delivered over the Internet, among many other services and products. Location is less important, and if you don't already the computers and networking stuff, your business is dead or nearly so. So what counts in the Knowledge Economy?

In the Knowledge Economy, we are awash in an ocean of information. We can't possibly absorb all of it. It flows into our computers in an ever-increasing torrent. It is now impossible to master any field of study; there is simply too much to know. Collaboration is fast becoming not just a nice thing to do, but a business and organizational necessity. To survive and prosper, you have to have a trusted network of associates, peers, and colleagues to whom you can direct questions and get answers.

In the Knowledge Economy, who you know is what matters, not where you are or what kind of technology you have.

Having said that, developing and maintaining a network of reliable colleagues is hard work--but with a big payoff. This book delves into why these networks are effective, how to set them up, and how to maintain them. It is thoughtful and well-written, and mildly academic in style, but the chapters are short and to the point. Reading this book won't put you to sleep. We think it is well worth a read.

Smart Mobs

Don't let the title fool you. Howard Rheingold is one of the most astute observers and commentators on the social impacts of technology around, and the provocative title is just a teaser for the rich insights this book contains.

The book contains a series of essays on new and emerging technologies that already are or soon will change the way we do business, communicate, and use technology. He has one of the best explanations of the sociology behind eBay that we've seen anywhere. Pick a topic--GPS, wearable computers, cellphone messaging, wireless and WiFi, Open Source software--it's all in the book, discussed not in technical terms but how it is affecting us in business, community, and personal relationships.

The book is highly readable, does not require a technical background, and is scrupulously researched and referenced. You are not likely to read it cover to cover, and you don't have to; you can pick it up, open it at random, and get good useful information out of it. We really liked it.

Adventure Capitalist

This book is a must read if you want to understand more about the global economy and where the competitive threats are likely to come from in the next decade or two.

Rogers and his wife spent almost three years driving through almost every country in the world. Rogers is an entrepreneur and investor who wanted to see first hand what is happening in other countries. His business analysis of 116 countries has some real surprises--he is not convinced that India, so much in the news these days, is dealing effectively with the wide class and social disparities.

He talks a lot about "creative destruction" as the real power in democratic countries with free market economies. The outsourcing kerfuffle in the media and presidential politics takes on a different aspect after you read this book. His comment: "Eliminating dead wood enables fresh growth." That's what is happening in the U.S. right now, as Manufacturing Economy businesses are being pruned. But his point is that measuring only jobs losses is incomplete--that you also have to look at new jobs and new business creation taking place simultaneously.

There are some real surprises. His vote for most technologically advanced country in the world is Mongolia, because they have a free market economy and have invested heavily in fiber throughout the country--anywhere he went in Mongolia he was able to easily access the Internet. This is depressing news as we watch government institutions like the FCC continually try to prop up copper-based legacy companies and markets. Singapore also gets his vote as one of the most advanced countries in the world, in part because they have invested heavily in education, and Singapore now has one of the best educated workforces in the world. Here in the U.S., we wring our hands over job losses and try to hold to Manufacturing Economy jobs instead of retraining our workforce to compete.

The Rise of the Creative Class

The subtitle of this book really tells it all: "...and how it's transforming work, leisure,community, and everyday life." Florida's claim may sound a bit far-fetched, but this may be the most important book of 2003-2004 if you are involved in community or economic development.

A lot of "big idea" books often really only have one fairly small idea (who moved my cheese?) that sometimes gets stretched a bit in the effort to wrap a whole book around the concept. Florida's book does not do that. It's packed with data, insights, and thoughtful discussion that is eminently readable. The Creative Class is changing and redefining our towns and communities. They expect a different level of services and amenities in communities, and Creative Class members moving to smaller towns in search of a better quality of life give some of our out the way small towns new hope for prosperity and lively small town life-if.... If we recognize the importance of this growing group. If we realize how they are reshaping and redefining work life. If we recognize the criteria they are using to make relocation decisions. If we recognize what they look for in a small town. Every small town in America should form a study group to read and discuss this book, and every town leader should get a copy for Christmas this year. And don't forget your economic developers; most of all, they need to read this book.

Empires of Light

We will cheerfully admit that some of the books we recommend are not ones you might curl up with in front of a crackling fire on a crisp fall night, but this book you might. We could not put it down--intrigue, mystery, monstrous egos, untested technologies, unethical behavior, unscrupulous business practices, and huge fortunes at stake. You might think this book is about the last ten years of the telecom and Internet revolution. Instead, it chronicles the race to make electricity a commodity available to every home, and the furious war between Edison and the Tesla/Westinghouse partnership. Edison wanted to use the safer but problematic DC electric power, while Tesla and Westinghouse were pushing the easier to deploy AC power. Who was right? Ironically, if Edison had won, we would not be having massive blackouts today, and the electrical industry probably would not be the regulated mess it is (but there would have been many other problems--in the end, it's fun to think about a DC world, but not much point in it). This book is worth reading to provide perspective on the current machinations and upheaval in the telecom industry. There we have the copper-based companies (cable modems/DSL) fighting the community-managed fiber projects. Our elected leaders, unfortunately, all act like this is something new--it's not, as this book clearly illustrates. We have all been here before.

Introducing Chaos

Chaos and complexity theory are widely misunderstood, too often referenced out of context, and too infrequently applied when the concepts are most needed. Part of the problem has been a lack of books that provide a gentle introduction. Many of the most cited texts are fairly dense academic works that don't take a "general science" approach. Fortunately, this book does.

Perhaps the misunderstood thing about chaos theory is that chaotic systems (like the global economy) are disorderly. Indeed, the book laments that the study of complex systems has been hurt by the label "chaotic," which most people understand in a way different from the way it is used in the study of complex systems. A key feature of complex systems is that they are unpredictable, which is different from disordered. Many complex systems have a very simple, very orderly structure that is often based on simple mathematical formulas, but these systems are very hard to predict, nonetheless.

Why is any of this important? SARS is a perfect example of how a small incident (an infection caused by a wild animal in southwestern China) can bring chaos to a city (Toronto) on the other side of the globe, in just a few weeks. Our businesses and our communities must plan differently--maximizing flexibility in planning--to account for the complexity in our systems. Economic development planning, even in rural areas, must take this into account.

You will probably have to order this book, but it is an inexpensive paperback (about $12 US) that can be read easily in a couple of sittings. In fact, we predict you will have a hard time putting it down. You may want to read this before you read Linked, which

Linked

This is a small book with a lot of big ideas. Barabasi and his graduates students have been studying the World Wide Web and have discovered that there are mathematical principles governing the growth and linking of the Web. What does this mean? It means that there are some very simple rules that actually govern how much traffic your Web site can potentially develop. If you know these rules, you can use them to help build traffic and readership.

But that's not the only thing the book discusses. There is also an extensive study of human networks; it turns out that there are simple mathematical rules that also guide the development of your own personal network of friends and business associates. Why is all this important? In the emerging Web Economy, who you are linked to will become more important than what you know. This little book lives up to the subtitle: "How Everything Is Connected to Everything Else and What It Means for Business, Science, and Everyday Life." It is written for a general audience, and is not a "hard" read. We found it hard to put down.

Birth of the Chaordic Age

This book is now almost four years old, but still fresh and relevant as we try to discern what our communities and our organizations are about in the Knowledge Economy.

Hock makes a compelling case for what he calls "chaordic alliances." A chaordic alliance, reduced to its essence, is simply a group of people or organizations that come together for some common purpose and agree to do only those things for which there is unanimous consent. There's much more to the concept than that, and Hock outlines the governance, social, and political issues very well. Almost everywhere I go in the country, I find an increasing awareness of the need for collaboration among organizational and political entities, with an accompanying realization that "stovepipe" planning and thinking is hurting communities, businesses, and nonprofits.

What Hock does is outline an organizational structure and a process to overcome those 19th century problems and move to a new way of thinking and working together.

The book starts off a bit slowly, but it's worth sticking with it. Hock also tells the story of his experiences starting the VISA credit card company, which is fascinating reading in itself.

For more information, visit the Chaordic Alliance Web site.