Day 2: Power, Cyber-Security and Renewables

This is the second list of potential disruptive factors that could influence the Canadian Public Service over the next decade or so.  See the previous blog for the first set of three and Seven Days of Disruption blog for the entire set.  These are in support of November 22, 2017 FMI Conference – Disruptive Writers.

  • Changing Nature of Power (2015)
  • Cyber Insecurity (2015)
  • Dawning of a new urban transportation age and the Canadian City (2017 and editor)

Changing Nature of Power (2015)

Adapted from A.T. Kearney 2015: In today’s world, power is increasingly fleeting and diffuse.  It is disseminated across individuals empowered by new technologies such as search engines and social media; to lower levels of government, including cities; and to start-ups and user-driven networked organizations. The rise of the global middle class is leading to greater individualism and expectations for service from their governments and from businesses, with consumers having never had a broader freedom of choice. Global trust in most institutions reached an all-time low in 2015, with governments continuing to be the least-trusted institution.

Editor note: So What?  The answer is that trust is foundation of a society and an economy.  It profoundly reduces the transaction cost in both.  Public institutions support this trust by enforcing social norms. In a strange twist, public institutions are sometimes powerless at the hands of a small but vocal group of individuals.

For example, an August 2017 discussion on free speech at Ryerson University was cancelled because the University was concerned about safety and security.  Described as domestic terrorism by one of the panelists, this is an example of public institution (Ryerson) self-censuring thought and discussion with a resulting degradation of its own power and trust.  While the individuals involved may congratulate themselves on forcing their view points onto an entire institution, they should also recognize that they are sharing a common heritage with the black, brown or red shirts who dominated politics a century ago.

Cyber Insecurity (2015)

Adapted from A.T. Kearney 2015:While the upside of the Internet is enormous, cyber threats continue to multiply. Estimates put global cyber crime losses at somewhere between $375 billion and $575 billion annually.  All connected devices and systems are vulnerable to attack. Computer systems, for example, are vulnerable to ransomware. The growing IoT also lacks strong security systems and is highly vulnerable to data theft.  To make matters more complex, the cyber arena is a growing domain of warfare between countries, in which businesses can be caught in the crossfire. The “Darknet”—parts of the “Deep Web” that are not discoverable by traditional search engines—remains a serious criminal threat, especially with the rise of crypto-currencies. It is cloaked with encryption software that provides anonymity to users. The Darknet is used as a source of cyber attacks, as well as a place to buy and sell ransomware and other cyber weapons. Another business risk of the Darknet is that it provides a marketplace for stolen data collected through cyber attacks, augmenting hackers’ motivation to continue conducting such attacks.

Editor note: Governments see online services as a way to provide better government for fewer resources.  The Singapore, Scandinavia and the United Kingdom are acknowledged leaders in this effort although the Canada Revenue Agency has also made great strides in allowing for a digital experience.  Nevertheless, governments have a number of challenges including the Facebook-effect, the Shiny-bauble problem and resource asymmetry.

Facebook Effect – You are the Product

The Facebook-effect is the problem of comparing government services to a for profit service such as Facebook.  If Facebook can provide service xyz or make its offerings free, why can’t a government?  There are of course a number of answers to this.  Firstly Facebook is not constrained by the same legal, moral and democratic frameworks.  Facebook has an entirely different revenue model.  For social media, the user is the product.  Thus your likes, shares and contributions builds up a profile of you as a person which can then be monetized.  For governments such monetization of a citizen would be outrageous.  Finally, Facebook can fail while governments are expected to be enduring.  If Facebook ceased to exist tomorrow it would be inconvenient but a new social media product would take its place (anyone still using MySpace?).

The Shiny-Bauble Problem

Governments like to implement new things.  Ribbon cutting and shovel turning is good press and leads to the primary objective of any government – staying in power.  As a result, governments get distracted by the Shiny-Bauble which have a short-term effect or solution that has little enduring value and may cause long-term harm to a society.  The worst thing about Shiny-Baubles is that they may become entrenched in a society by a small group who benefit from the government largess.  In other words, the only thing worst than a Shiny-Bauble is trying to turn one-off.

Resource Asymmetry

Governments often have fewer and less enabled resources to delivery digital services or fight cyber-threats than the legitimate and illegitimate competitors.  The above Facebook discussion is one aspect of this resource asymmetry and consuming valuable government resources pursuing a Shiny-Bauble is another.  A darker example of asymmetry is that the bad guys only need to look for and exploit a single weakness in a government’s cyber environment.  At the same time, a government must fight all threats while trying to provide services.

Dawning of a new urban transportation age and age of renewables (2017 and editor)

Adapted from A.T. Kearney 2015: The global urban population has risen steadily over the past two decades. According to the United Nations (UN), there were about 2.9 billion urbanites in 2000, but that number has increased to 4.1 billion and will hit 4.5 billion in 2022. The number of megacities, defined as cities with 10 million or more inhabitants, rose from just 17 in 2000 to 29 in 2015, and the total is projected to rise to 36 by 2025. Hyper-urbanization is heightening congestion levels in cities around the world. The age of the automobile may be ending as cities adopt innovative new technologies and use more traditional mass and individual transit methods to enable smarter and more sustainable urban transportation and growth.

(Editor) Public transit and electric vehicles are two ways that urbanization will change the face of a city but tele-commuting and promoting walk/bike-able cities are another.  This raises a challenge for Canadians as much of our housing stock has been built since the mid-20th century and the economics and logistics for all of these mitigating solutions will require significant government investment and coordination.  It will also require a change in cultural norms and expectations as owing a home has become central to financial and personal-security well-being.

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