Dr. Sam InkinenSenior Researcher

Finland Futures Research Centre

www.inkinen.org – www.cid-lab.org

Open Innovation

The cultural requirements forWeb 2.0 powered innovation, networking, and collaboration

Artist: Lotta Viitaniemi, Story: Kim Forsman & Teemu Arina Ⓒ Dicole Ltd.

Changes on the web

WEB X.O

Web as a platform

Photo: Christopher Chan

Software above a single device

Photo: *One*

Data as the new Intel inside

Photo: _fabrizio_

Photo: Donna Cymek

Harnessing collective intelligence

Rich Internet Applications (RIA, AJAX)

Photo: ulterior epicure

Lightweight business models, e.g. SaaS

(Software as a Service)

Sale

s

Products

Head (20%)

Tail (80%)

Signal vs. noise Required filtering power

Ref: Chris Anderson

Long Tail

“The project wouldhave been a successif everything hadgone as we planned.”

“Everything would work out if we had the right information at the right time at the right place.”

Myth

Photo: Shapeshift

The integrated pattern of human knowledge, belief, and behavior that depends upon the capacity for learning and transmitting knowledge to succeeding generations.– Merriam-Webster Online Dictionary

Culture

1) Anonymous voting2) Open conversation3) Prediction markets4) Internet crowdsourcing

Ref: Cass R. Sunstein, Infotopia

Connecting Many Minds

Anonymous Voting

Examples• Kasparov vs. Internet team• Estimating temperature• “Ask audience” in Who

Wants to be a Millionaire• Movie ratings in IMDB• Youtube video ratings

Condorcet Jury Theorem

Why groups can be wise?

Marquis de Condorcet, 1743 - 1794

1) Diversity of opinion2) Independence3) Decentralization4) Aggregation

Ref: James Surowiecki, Wisdom of the Crowds

WiseCrowds

Each of them by himself may not be of good quality; but when they all come together it is possible that they may surpass – collectively and as a body, although not individually – the quality of the few best.

– Aristotle on Collective Intelligence, Politics, circa 334-23 BC.

Conversation

• Groupthink and unthinking• Amplification of falsehoods• Strategic behavior• Use of heuristics• From confidence to extremism• Focus on personal prospects• Design by committee

Photo: Mike9Alive

Traps

Design by Committee

Photo: .supernova.

WeakSignals

Filters• Surveillance filter• Mentality filter• Power filter– Dr. Igor Ansoff, 1984

• Group polarization• Reputational cascades• Informational cascades• Hidden profiles• Social pressures• Common knowledge effects• Algorithmic bias (e.g. Google)

Biases

Diversity of Thought is Accuracy of Thought

1

Cow

2

Chicken

3

Grass

Ref: Richard Nisbett

What doesn’t fit in?

PredictionMarkets

1) Economic incentivesmotivate participation

2) Disclosing information iscrucial for winning

3) Those who do not know,will step aside

Ecosystem way: Internet

Crowdsourcing

Photo: Hugo*

■ An idea becomes an innovation only through wide adoption,either through:

■ centralized resources (traditional innovation)

■decentralized resources(open innovation)commons-based peer-production

What is Innovation?

How’s your innovation pipeline?

Photo: Pavlos Pavlidis

Traditional Innovation

Photo: ippei + janine

Open & OrganicInnovation

What kind of innovation?

Source: Henry Chesbrough, 2007

Business modelinnovation

Product &service innovation

Closed OpenHow you innovate

Wha

t yo

u in

nova

te

Changingthe how

Cha

ngin

gth

e w

hat

Traditionalproduct

development

Challenge:ecosysteminnovation

Challenge:new ways

to capture value

Challenge:be an innovation partner of choice

Image: Felippe Torres

In the future, organizations will compete on:

Who is able to create a rich user community improving their products where users want to belong

Future Challenge

“There’s something fundamental about organizations and leadership that

makes it almost impossible for people inside a business to change their own

industry. Industries are based on formats that are basically legacies of

military hierarchies”

Ricardo SemlerSemco

Kuva: GustavoG

“Virtually everything new seems to come from the 20 percent of their time

engineers here are expected to spend on side projects. They certainly don't come

out of the management team”

Eric SchmidtGoogle CEO

Kuva: GustavoG

Ref: Bradley Horowitz, Jacob Nielsen

1% creators

100% consumers

10% synthesizers

Participation Inequality

LowThreshold

HighEngagement

Reading

Rating Tagging

Commenting

Subscribing

LinkingRecommending

ReflectingCollaborating

Moderating

Ownership

CollaborativeIntelligence

(explicit creation)

CollectiveIntelligence

(implicit creation)

Ref: Teemu Arina, based on Ross Mayfield

Participation Power Law

CASE

Winner of WorldSummit AwardFinland 2009in e-business &category

‣ See all

f r i e n d s

d e t a i l sp o r t r a i t

Teemu Arina

e m p l o y e r

‣ Edit employer

Itämerenkatu 30 A 10FI-00180 Helsinki, Finlandteemu@dicole.comBlog: tarina.blogging.fiSkype: infe00Phone: +358 - 50 -555 7636

facebook

jaiku+ Add contact

CEO, founderDicole OyKansakoulukuja 3, 2 krs.FI-00100 Helsinki, Finland+358 - 50 - 555 7636

“All progress dependson the unreasonable man”

‣ Edit details

“ I seek to understand the changing nature of organizations as they shift from the industrial era to the knowledge intensive era. What new methods, structures, skills and tools will they need? As an entrepreneur, programmer, teacher and designer I design, build and deliver web-based interaction technology (or social software) that enables people to co-create together in a distributed knowledge intensive environment.”

Digitalizationgrade +10

e d u c a t i o n

‣ Edit education

SchoolDegreeOther degreeTarget degree

Skill profileHSEBachelorKnowledge kung-fuEvil priest

“Technology is my sixth sense.”

c o m m u n i t y s t a t s

Last onlineSubmitted ideasCommentsPoints receivedRanking position

6 minutes ago3240542014.

‣ Upload photo

case Challenge Digitalizatione-banking e-invoicing eu idea

t a g s o f i n t e r e s t

Professional description

CASE

Dicole Innovation Work Environment

Blogs Wikis Networking

Seeds Media Feeds

Tags

SkeletonAutomation, Real-

time processes, Operative

technologies - Back-bone for business processes

Ref: Teemu Arina, Illustration: Lotta Viitaniemi

SensesBlogs, Media -

Reflection in and on action

Nervous systemFeeds, Search, APIs -

Sharing, discovering and tapping into reflections

BrainWikis, tagging -

Connecting and remixing reflectons

Blood systemSocial networking,

Real-time communications,

Network analysis - Optimizing interaction flow

Organic Enterprise

Photo: tashland

Command & Control

should become

Collaboration and Communication

ContactDr. Sam InkinenSenior Researcher

sam.inkinen@cid-lab.orgwww.cid-lab.orgwww.inkinen.org

“Imagination is more important than knowledge.”– Albert Einstein

Photo: Markus Koljonen