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Slides from my talk for Mercuri Urval in February 2011 in Stockholm, Sweden. More on me at www.knowledgenetworking.org.
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February 2011February 2011www.hhs.sewww.hhs.se
"...when the rate of change "...when the rate of change outside an organization is outside an organization is greater than the rate of greater than the rate of
change inside, the end is change inside, the end is near...." near...."
Jack Welch…Jack Welch…
Did You Know: Shift HappensDid You Know: Shift Happenshttp://www.youtube.com/watch?http://www.youtube.com/watch?
v=cL9Wu2kWwSYv=cL9Wu2kWwSY
How are these trends impacting How are these trends impacting you and your organization?you and your organization?
GrowthGrowth
TimeTime
Information Information and knowledgeand knowledge
Human Human absorptive absorptive capacitycapacity
Human capacity cannot keep up…Human capacity cannot keep up…
Adapted from Cohen & Levinthal 1989Adapted from Cohen & Levinthal 1989
””No one knows everything, No one knows everything,
everyone knows something, everyone knows something, all knowledge resides in all knowledge resides in
humanity.”humanity.”networksnetworks
Adapted from Lévy 1997
Six degrees Six degrees of separationof separation
- Milgram, - Milgram, 19671967
BA
Two individuals/organizations Two individuals/organizations with the same number of contacts…with the same number of contacts…
……but with very different access to resourcesbut with very different access to resources
BA
Network dynamics impact Network dynamics impact creativity and innovationcreativity and innovation
BA
Poor Poor creativity and creativity and
innovative innovative performanceperformance
Highcreativity and
innovative performance
Teigland 2003
Avoid creating insular networksAvoid creating insular networks
http://www.enronexplorer.com/focus/19185#http://www.enronexplorer.com/focus/19185#
A shift from being A shift from being problem solvers to solution finders problem solvers to solution finders
The wisdom of the crowdThe wisdom of the crowd
ClosedClosedExpensiveExpensiveComplexComplexAccurateAccurate
OpenOpenInexpensiveInexpensive
SimpleSimpleClose enoughClose enough
Hinton 2007
AccurateAccurate
History tends to repeat itself….History tends to repeat itself….Innovation, financial crisis, industrial revolution, Innovation, financial crisis, industrial revolution,
… …
Steam Steam engineengine
Internal Internal combustion combustion
engineengine
MicroelectroniMicroelectronicscs
Late 18Late 18thth C C Late 19Late 19thth C C Late 20Late 20thth C C
Schön 2008
Third industrial revolution?
A new workforce is appearing…A new workforce is appearing…
Prensky 2001, Beck and Wade 2004, Mahaley 2008 Prensky 2001, Beck and Wade 2004, Mahaley 2008
““Digital Immigrants”Digital Immigrants”““Digital Natives”Digital Natives”
Company loyaltyCompany loyaltyWork ≠ PersonalWork ≠ Personal
Learning=Behind the deskLearning=Behind the desk
Company loyaltyCompany loyaltyWork ≠ PersonalWork ≠ Personal
Learning=Behind the deskLearning=Behind the desk
Professional loyaltyProfessional loyaltyWork = PersonalWork = Personal
Learning=Fun and gamesLearning=Fun and games
Professional loyaltyProfessional loyaltyWork = PersonalWork = Personal
Learning=Fun and gamesLearning=Fun and games
Adapted from FredCavazza.net
“u r always on….”
Drivers of evolutionDrivers of evolutionIn
crease
dIn
tera
ctivity
DiGangi 2010DiGangi 2010
Building skills in virtual environmentsBuilding skills in virtual environments
My CVMy CV•Leading a virtual team of 30 Leading a virtual team of 30
individuals from across the globeindividuals from across the globe•Creating and successfully Creating and successfully executing strategies under executing strategies under
pressurepressure•Managing cross-cultural conflict Managing cross-cultural conflict
without face-to-face without face-to-face communicationcommunication
Teigland 2010
Our economy changesOur economy changes
Pine Jr. & Gilmore, 1998; 1999; DiGangi 2010DiGangi 2010
Business models
So, what happens to them?
Johnson, Christensen, and Kagermann 2008, DiGangi 2010
They evolve...
DiGangi 2010DiGangi 2010
Closed model
Organizations internalize resources for value creation; restrict access to
knowledge, and protect intellectual property. DiGangi 2010DiGangi 2010
DiGangi 2010DiGangi 2010
Open model
Organizations leverage both internal and external resources for value
creation; strategically interact with environment DiGangi 2010DiGangi 2010
Access to 24x7 global workforceAccess to 24x7 global workforce
Average wage Average wage approx. USD 1.40 / approx. USD 1.40 /
hourhourhttp://www.people.fas.harvard.edu/http://www.people.fas.harvard.edu/~drand/~drand/
““Distributed groups of individuals Distributed groups of individuals focused on solving general problem focused on solving general problem
and/or developing new solution and/or developing new solution supported by computer-mediated supported by computer-mediated
communication.” communication.” Dahlander & Wallin, 2006 p. 1246Dahlander & Wallin, 2006 p. 1246
User-driven Innovation
DiGangi 2010DiGangi 2010
DiGangi 2010DiGangi 2010
““Distributed groups of individuals Distributed groups of individuals focused on solving general problem focused on solving general problem
and/or developing new solution and/or developing new solution supported by computer-mediated supported by computer-mediated
communication.” communication.” Dahlander & Wallin, 2006 p. 1246Dahlander & Wallin, 2006 p. 1246
User-driven Innovation
Co-created model
Organizations encourage flow of knowledge between internal and external resources; focus on common good where
both parties benefit DiGangi 2010DiGangi 2010
Threadless:Threadless:What came first What came first
– – the community the community
or the or the company?company?
eZeZ 230+230+PartnerPartner
ss
32,000+32,000+CommunityCommunitymembersmembers
5,000+5,000+Customers in Customers in 130 countries130 countries
• #1 open source content management #1 open source content management softwaresoftware
• Customers include UN, Vogue, Hitachi, 3M, Customers include UN, Vogue, Hitachi, 3M, MITMIT
• 75 employees in 9 countries (US, Europe & 75 employees in 9 countries (US, Europe & Asia)Asia)
eZ PhilosophyeZ Philosophy
Connecting people who share a passion for something they do
so that they can collaborate, share ideas,
learn, and create knowledge
eZ provides eZ provides platforms for interaction platforms for interaction throughout its ecosystemthroughout its ecosystem
eZ Software development team
Driven by both parties sharing their experiences and co-creating value of
network.
Private-collective Community
But how to balance needs of community with needs of firm in value co-creation
model?
DiGangi et al 2010DiGangi et al 2010
Transparency, transparency, transparencyTransparency, transparency, transparency
http://twitter.com/#!/zappos
Core Value #6: "Build Open and Honest
Relationships with Communication
Some things do not changeSome things do not change
Innovation Exchange
Exchange Trust
Trust Relationships
Relationships Interaction
"E-connection is processed in the brain like an in-person connection."
http://slideshare.net/missrogue
Just when you thought you got it…..Just when you thought you got it…..
O’Driscoll 2009O’Driscoll 2009
How many usually think of virtual worlds…How many usually think of virtual worlds…
Teigland 2010
But what else can they be?But what else can they be?
•Ability to manipulate/create contentAbility to manipulate/create content•Virtual economy and currencyVirtual economy and currency
http://www.youtube.com/watch?v=Quh2OiPHkm8
Moving out of “Gartner hype cycle” troughMoving out of “Gartner hype cycle” trough
Virtual worlds today
http://www.gartner.com/it/page.jsp?id=1447613http://www.gartner.com/it/page.jsp?id=1447613
>1 bln users
Facilitating the virtual workforce Facilitating the virtual workforce through virtual worldsthrough virtual worlds
Welch et al 2010Welch et al 2010
Tomorrow’s education & training?Tomorrow’s education & training?
Learning virtual Learning virtual teaming skills teaming skills
through experiencethrough experience
http://www.youtube.com/watch?v=N8XPmp0qGyghttp://www.youtube.com/watch?v=N8XPmp0qGyg
Accelerating innovation to meet global Accelerating innovation to meet global needsneeds
Teigland et al. 2010Teigland et al. 2010
Integrating users in Integrating users in development development
processprocess
http://www.youtube.com/watch?v=2kMNWBU1Yb8http://www.youtube.com/watch?v=2kMNWBU1Yb8
Leveraging VW affordancesLeveraging VW affordances
Teigland et al 2010Teigland et al 2010
Simulation Avatar
design
Multi-modal
communication
Co-creationArchiving
Immersion
““Clearly if social activity migrates to Clearly if social activity migrates to synthetic worlds, economic activity will go synthetic worlds, economic activity will go
there as well.”there as well.” Castranova, 2006Castranova, 2006
http://www.flickr.com/photos/rodenberger/5085364909/in/pool-popartlab/#/photos/rodenberger/5085364909/in/pool-http://www.flickr.com/photos/rodenberger/5085364909/in/pool-popartlab/#/photos/rodenberger/5085364909/in/pool-1240578@N23/1240578@N23/
•US US $3 bln in virtual good sales 3 bln in virtual good sales in 2009 to grow to US in 2009 to grow to US $12 bln in 12 bln in 20122012
•US $222,000 raised at American Cancer Society Relay in Second Life
•Swedish government granted Swedish government granted bbank license to Mind Bank in 2009
•US US $3 bln in virtual good sales 3 bln in virtual good sales in 2009 to grow to US in 2009 to grow to US $12 bln in 12 bln in 20122012
•US $222,000 raised at American Cancer Society Relay in Second Life
•Swedish government granted Swedish government granted bbank license to Mind Bank in 2009
USD 635,000 for an asteroid!USD 635,000 for an asteroid!
http://blogs.forbes.com/oliverchiang/2010/11/13/meet-the-man-who-just-made-a-cool-half-million-from-the-sale-of-virtual-property/
USD 500,000 profit in 5 yearsUSD 500,000 profit in 5 years-Jon “Neverdie” Jacobs-Jon “Neverdie” Jacobs
The rise of Avapreneurs The rise of Avapreneurs (avatar+entrepreneur)?(avatar+entrepreneur)?
Global marketsGlobal marketsMicropaymentsMicropayments
Microemployees Microemployees
Teigland 2010Teigland 2010
OpenSim Project: OpenSim Project: Exploring pivate-collective model in Exploring pivate-collective model in
virtual world development virtual world development communitiescommunities
Increasing pace of VW development!Increasing pace of VW development!
VWs on VWs on stickstick
Browser-Browser-based VWsbased VWs
SeamlessnessSeamlessness
http://www.hypergridbusiness.com/2009/05/hypergrid-101-why-its-good-for-business/http://www.hypergridbusiness.com/2009/05/hypergrid-101-why-its-good-for-business/http://mediagrid.org/groups/technology/OFF.TWG/http://mediagrid.org/groups/technology/OFF.TWG/
"Create Once, "Create Once, Experience Experience
Everywhere”Everywhere” Expanding Expanding usesuses
For smart For smart phones and phones and tablet PCstablet PCs
“As soon as the Facebook generation wakes up and
embraces virtual reality, we are going to see a giant
wave of virtual world millionaires”
-Jon “Neverdie” -Jon “Neverdie” JacobsJacobs
Which professions and industriesWhich professions and industrieswill will notnot be revolutionized? be revolutionized?
53
From the mobility of goods From the mobility of goods to the mobility of financial capital to … to the mobility of financial capital to …
...the “mobility” of labor?...the “mobility” of labor?Teigland 2010Teigland 2010
Interested in learning moreInterested in learning more??
Leadership moving forward……Leadership moving forward……
HierarchyHierarchyLinear, static, process-Linear, static, process-
based organizationbased organization
HierarchyHierarchyLinear, static, process-Linear, static, process-
based organizationbased organization
HeterarchyHeterarchyDynamic, integrated Dynamic, integrated
collaboration networks collaboration networks
HeterarchyHeterarchyDynamic, integrated Dynamic, integrated
collaboration networks collaboration networks
Teigland 2010
What should you think about?What should you think about?
How to let go?How to let go?
How to leverage the power of How to leverage the power of networks to create value inside and networks to create value inside and outside the boundaries of the firm?outside the boundaries of the firm?
How to create a sustainable How to create a sustainable ecosystem?ecosystem?
Karinda RhodeKarinda Rhode
aka Robin Teiglandaka Robin [email protected]@hhs.se
www.knowledgenetworking.owww.knowledgenetworking.orgrg
www.slideshare.net/www.slideshare.net/eteiglandeteigland
www.nordicworlds.net www.nordicworlds.net RobinTeiglandRobinTeigland
Karinda RhodeKarinda Rhode
aka Robin Teiglandaka Robin [email protected]@hhs.se
www.knowledgenetworking.owww.knowledgenetworking.orgrg
www.slideshare.net/www.slideshare.net/eteiglandeteigland
www.nordicworlds.net www.nordicworlds.net RobinTeiglandRobinTeigland
Photo: Lindholm, Metro
Photo: Nordenskiöld
Photo: Lindqvist
If you love knowledge, set it
free…
