Group 4: The Scenario Logic

From ScenarioThinking
Jump to navigation Jump to search

INTRODUCTION

The future of the Internet in 2015 has been the subject of a group project managed by 28 RSM MBA students during the course of Scenarios and Strategies for the Internet and Organizations from October to December 2004. The process of scenario thinking has been used, where old assumptions related to the Internet were challenged to develop new ones. To come up with four plausible scenarios, various learning stages were covered, from storytelling to systems thinking to web site creation and driving forces. Some of the questions the class addressed included:

  • How could the Internet be a more interactive, creative medium?
  • Are you worried about privacy on the Internet?
  • Do you shop online? What do you think about the E-Commerce?
  • How do you see the Internet shapes the new, knowledge-based economy?
  • Peter Drucker has predicted that information technology will bring about the demise of the university as currently constituted. Do you share this view?
  • What changes will the Internet help bring to education?

We could keep writing many questions about the evolution of the Internet and its impact on our society. The Internet today is a widespread information infrastructure, the initial prototype of what is often called the National (or Global or Galactic) Information Infrastructure. Its history is complex and involves many aspects - technological, organizational, and community. And as it can be seen in the above questions, its influence reaches not only to the technical fields of computer communications but throughout society as we move toward increasing use of online tools to accomplish electronic commerce, information acquisition, and community operations.

The Internet has changed much in the two decades since it came into existence. However, should we conclude that the Internet has now finished changing and impacting our society? Is there a future of the Internet, and if so, what will it be?

These pressing questions are easy to ask but hard to answer. The form of the Internet and its impact will be difficult to guess, given the large number of concerned driving forces and stake-holders. Thinking of its past evolution and present situation from our mindset will lead us to default projections. Added to this, we live in a world increasingly shaken by discontinuities and sudden changes, which makes the activity of constructing the future complex. A new approach is needed to support both very short-term thinking and long-term planning with a ‘‘futures’’ methodology that escapes our mindset and contemplates multiple alternative backdrops.

In the class project, different means of communication, including the information system ‘Wiki’, workshops with speeches, and emails, have also helped to share a common language and ideas about the subject. Additionally, a facilitator, Daniel Erasmus, has guided the students in the design of scenarios while helping with scenario building, especially their principles of construction, and facilitating the live workshops to ensure proper engagement with the process and effective sharing of mental models.

This report will first present the timeline of the whole process by summarising each session of the course. Then, the methodology used to vote for four final plausible scenarios ( ‘More of the same’, ‘Real Net’, ‘Virtual Society’, ‘Separate Directions’) will be described. An analysis of the key uncertainties, which may or may not make these scenarios happen, will follow. Finally, the weak signals, showing which direction the future will take regarding the Internet, will be identified and their implications will be analysed.

TIMELINE OF SCENARIO BUILDING PROCESS

It is commonly recognized that the power of complex statistical models is becoming limited for explaining past behavior, or to predict future trends. Since these models focus only on past ‘events’, they have little to say about the tomorrow’s complexity. Therefore they are reactive.

On the other hand scenario thinking is fundamentally different. It is an explanatory process creating a new language and new and distinct images of the future as a result. In scenario thinking, past events do not dictate future behavior; instead, they are the products or snapshots of behavior. What really causes behavior are interactions between the elements of the system.

Scenario thinking coupled with scenario building, therefore, constitutes a generative rather than adaptive learning process. Once the behavior of a system is understood, the patterns of behaviors are expressed in stories, the relevant research has been done, and the driving forces have been identified, it is possible to talk about a few events or snapshots that will guide further scenario building. All these components of scenario thinking create a common language between participants of the scenario building team and bridge their often divergent thinking. Below, these aspects have been elaborated in detail, in relation to our scenario building efforts for the Future of Internet in 2015.


Storytelling: Cognitive psychologists describe how the human mind, in its attempt to understand and remember, assembles the bits and pieces of experience into a story -- beginning with a personal desire or a life objective -- and then struggles against the forces that block that desire. Stories are the best ways to remember, since we tend to forget lists and bullet points. Stories are also the best ways to imagine the future. You create scenarios in your head about the possible future of the Internet in order to try to anticipate the effects of Internet technology on our future lives.

Essentially, a story expresses how and why life changes. It begins with a situation in which life is relatively in balance. We expect this balance will go on that way. But then there's a sudden – relevant, plausible, consistent or surprising - event that alters this balance. The story goes on to describe how that change will occur, in an effort to restore balance with subjective expectations. Successful storytelling describes what it is like to deal with the opposing forces, work with scarce resources, make difficult decisions, take action despite risks, and ultimately discover the truth. Like all great storytellers throughout time - from Shakespeare to Bill Clinton – we have dealt with this fundamental conflict between subjective expectation and cruel reality, during our efforts to anticipate the future of the Internet.

One of the biggest advantages of storytelling as a part of scenario thinking, is to understand that we all live in dread. Fear is when you do not know what is going to happen. Dread is when you know what is going to happen and there is nothing you can do to stop it. Ever since human beings sat around the fire in caves, we have told stories to help us deal with the dread of life and the struggle to survive. Scenario thinking is the most modern way of doing that. In the process of building the four scenarios for this project, the group used storytelling extensively to understand and facilitate the process of scenario building. Our efforts resulted in scenario snapshots. System thinking was also heavily employed.


System Thinking: Peter Senge, in his famous work “The Fifth Discipline”, emphasized that “At the heart of system thinking is a shift of mind –from seeing ourselves as separate from the world to connected to the world, from seeing problems as caused by someone or something ‘out there’ to seeing how our own actions create the problem we experience.” The theory of being part of the whole can be fruitfully applied to the future of the Internet, in order to understand related system dynamics. The underlying message is that systems determine behavior, and people can learn to identify what has to be done to deal with the problematic behavior by engaging the system and understanding how it behaves.

At the foundation of systems thinking is the identification of circles of causality and feedback loops. These can be reinforcing or balancing, and they may contain delays. A number of system structures or patterns of relationships can be commonly found in a variety of settings. Some of these are ‘Balancing Process with Delay’, ‘Limits to Growth’, ‘Eroding Goals’ and ‘Growth and Under-Investment’. A practical example for the future of the Internet would be a combination of all these patterns. Think of a situation where Internet service providers suggest that the only way to respond effectively to the increased demand for Internet services would be by increasing technological capacity, i.e.- bandwidth. Although this insight is not particularly dazzling itself, when coupled with an evaluation that in the absence of resources to increase capacity, there would be an erosion of the quality of services.

Regarding our project, we constructed systems diagrams both for the scenario snapshots and for the final scenarios. The diagrams were one of the most helpful instruments that allowed us to see inter-relationships, causalities and conflicts among the driving forces that are shaping the future of the Internet.


Research: Much of what we understand today about new technology and media shapes our society builds on the prescient insights of communications theorist Marshall McLuhan. This is why our scenario thinking for the future of the Internet has been highly benefited by McLuhan's pioneering concepts, such as the “medium is the message" and "the global village”. McLuhan saw the new direction in which civilization was suddenly headed: electronic technology shapes us, and the type of technology we use has more impact on our thinking than does the information it carries.


Driving Forces: The Internet revolution, still in its nascence, is already exerting an enormous impact on culture and the way we live, just as the telegraph -- and later the telephone —impacted society in previous communications revolutions. The phase of growth in the Internet is currently evolving significantly by the ongoing development of information technologies into a coherent whole. Unlike the previous linear and sector-differentiating progression of structural upgrading in which a new independent industry (for example, automobiles) becomes dominant as a leading sector without much affecting and being affected by yesteryear's leading sectors (say, textiles), the Internet industry impacts and is being impacted by all the areas of social, political, technological and economic environment. These are the driving forces that were identified and used to create snapshots by the scenario building teams.


Snapshots: In 1966, McLuhan told an interviewer: "I'm resolutely opposed to all innovation, all change. But I'm determined to understand what's happening because I don't choose just to sit and let the juggernaut roll over me. Many people seem to think that because you talk about something recent you're in favor of it. The exact opposite is true in my case." The intent of McLuhan, as well as of scenario thinking, has been to shake us out of passivity. It is believed that by knowing how technology shapes our environment we can transcend its absolute determining power. McLuhan wanted us to tune in and take charge, and through building snapshots we were just doing just that. Our scenario thinking efforts on the future of the Internet should be credited with teaching us to deconstruct the current communications phenomena and their social, political, economical and technological aspects.

If we had the chance to ask McLuhan react to the sudden onslaught of the newest electronic media, he would probably urge us to pay attention and start developing our scenarios right now because the situation is becoming urgent.


- Choosing (voting) the four main scenarios

DEVELOPING THE SCENARIO STRUCTURE

Pierre Wack wrote in 1985 that we could forecast the future only when its elements are predetermined that is, based on events that have already occurred, but whose consequences are yet to be unveiled to us. Other experts have reached the conclusion that forecasting is different from scenario building. While a group needs consensus to forecast future trends by making use of predetermined factors, the same group would need to explore the richness of uncertain elements to construct different scenarios about the future. The method is however not easy to employ given that people are, by nature, less tolerant to uncertainty.

Some techniques of scenario building start with selecting predetermined elements and uncertainties, analyzing each category and element, grouping them, and then constructing matrices and/or systems of variables (deductive approach). Our class turned out to have used a different approach of identifying uncertainties, called the inductive method. Since the project’s sponsor encouraged us to try storytelling and conversations, the deductive method was not appropriate.

After the scenario voting process ended, our team (“the project office”, as we called it) went back to researching: we analyzed again the driving forces, the scenario snapshots (“the stories”) of the class, and the voting process. We had to discover the patterns, the embedded key uncertainties that made our colleagues voting as they did. Finally, we identified two major variables: 1) the evolution of technologies for the chosen time span; and 2) the reaction of society (individuals and groups) to this evolution. Each of the final four scenarios is a story built around these two variables.

The scenario diagram below shows the key uncertainties as three nodes, each of them being a result of intertwining the two variables, each having both a social element and a technological one.

The first key uncertainty is called “Does the Internet continue to transform society?” Looking back at the Internet’s evolutionary path for the past ten years we could say that extraordinary things have happened and at a quite fast pace. If we go further with our analysis, we could reach two conclusions, based on McLuhan theory (the maelstrom) and, to some extent, on the fractals theory in the natural world. On the one hand, we might be right now on the edge of the maelstrom and the society might have come to the point when it’s time to rest aside and take time to adapt to the changes that have already occurred in technology. If this is the case, S1 is the scenario that might come to be true for the next ten years. Are people tired of so many divergent technologies and their continuous evolution? Is the huge technology access gap between North and South a major stumble block towards worldwide Internet adoption?

On the other hand, if society has still room to take more of the changes in technology, we go further and try to answer our second key uncertainty, “Is this transformation integrated into the physical space?” Individuals and groups (communities, business entities, governments, etc) might be now at the point where they value the convenience of using the Internet, wait for more technologies to be discovered, while incorporating those that have already occurred in the day-to-day life. In this case, S2 is a possible outcome for our time span. Are there many causality relationships between numerous driving forces to predict this scenario? Is the implication of governments and NGOs a sign that we will favor a virtual society? Is the driver of the business world – cost reduction and efficiency – a crucial determinant of such society?

Going further with our third key uncertainty: “Does the Internet remain as a unified standard?” there are two possible answers. If Yes, the outcome would be our S3 scenario, where real becomes more like the net.

We conclude that the future of the Internet depends on both how the technology will change, and how the process of change and evolution itself will be managed and accepted by society. With the success of the Internet has come a proliferation of stakeholders with an economic as well as an intellectual investment in the network. Who will control the domain name space and the form of the next generation IP addresses? What will be the next social structure that will guide the Internet in the future? What is the role of policy makers and of national interests (security purposes) in setting standards? These are all uncertainties about the future of the Internet, and the answer not always lies in the technology domain. As the one of the Internet Society’s paper mentions, “If the Internet stumbles, it will not be because we lack for technology, vision, or motivation. It will be because we cannot set a direction and march collectively into the future.”

FOLLOWUP: UNDERSTANDING THE SIGNS

- Detecting signals post scenario building

- How is techology evolution going to change the world? Which of our scenarios are the best outcomes considering different paths of technology evolution?