Internationalizing value creation_Teigland


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My presentation at Internationalization Lab in the masters program at the University of Agder in Krisitansand, Norway, Oct 2012

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  • Fades into center screenRT: Walls are breaking down – value added coming from across boundaries of the firm Kay, J. (1993) Foundations of Corporate Success, Oxford, Oxford University Press.
  • RT: Walls are breaking down – value added coming from across boundaries of the firm .
  • 46% of variation in how many friends you have is explained by your genes – some born shy and some gregarious.47% of variation in whether your friends know each other has to do with your genes. So do people knit networks of those around them or not….30% of variation in whether in middle or on edge of network has to do with your genes.
  • Threadless:What came first – the community or the companyRT: presents Threadless,,530,000 followers on TwitterThe whole business model for Threadless is based on an implicit understanding of how the social web works and gives a great demonstration of how communities can be built and harnessed across an organisation. Identifying online enthusiasts and passion groups and then using social platforms to bring them into the core of a business would appear to be a more powerful way of utilising social opportunities than just running ads on Facebook - but it requires a good deal more commitment. The media aspect of social offers some exciting opportunities for brands, but the potential of the social web can be significantly greater if the power of community is fully realised. In summary, there has to be purpose behind why you use social media. Largest challenge is about changing the mindset though – where create value? Use of social media considerably larger in smaller companies: Inc 100 vs Fortune 100. In these smaller companies, social media being used as a leadership tool as well. Let’s hear from some of you now on your thoughts about social media. (Next Slide)
  • I always like to put things into perspective. I think that what is interesting and relevant here is that several economic historians had actually predicted the crisis that we are experiencing now. I don’t have time to go into all the details, but what we are seeing is a pattern repeating itself. As in the late 18th and 19th Centuries there was a technological innovation that led to a period first of transformation as the innovation began to be diffused, then a period of rationalization leading to an imbalance, and then to a financial crisis coming around 40 years after the innovation. However, in the past, these financial crises have then led to periods of great economic development – industrial revolutions, in which industry profitability has been restored through a redistribution of the value-added between capital and labor. But more importantly, these crises filtered out those organizations that could not adapt and change to stay competitive in the new industrial environment. And one of the most important things that is of interest for today’s discussion is that in one of the factors facilitating these new phases of economic growth following the crisis has been that a generation of people that had never experienced life without the innovation starts to enter the workforce – thus they are not restricted by old ways of thinking.experiencing now some economic historians claim to be due to the innovation of the microprocessor and microelectronics in the 1970s. Similar to what we experienced with the innovation of the steam engine in the late 18th C and the internal combustion engine and electric motor in the late 19th C, there was a subsequent crisis about due to various forces converging. We saw that as these basic innovations were diffused, people stopped investing in the existing industrial structure and instead focused on investing in a new generation of competitive machinery, which then led to an industrial revolution in both cases as the innovations became embedded in society. At the same time, the crisis served to release the negative pressure that had been built up as well as to restore industry profitability through the redistribution of value-added between capital and labor. Other notesNotes from article - Schön, L, Economic Crises and Restructuring in HistoryA crisis is connected with changes in the long term or structural conditions built up during a rather long period of time and effects behavior for a long time to comeTransformation – changes in industrial structure – resources are reallocated between industries and diffusion of basic innovations with industry that provides new bases for such reallocationRationalization – concentration of resources to most productive units within the branches and measures to increase efficiency in different lines of productionShifts between transformation and rationalization have occurred with considerable regularity in structural cycle of 40 years – 25 years on transformation, and 15 years on rationalization. Crises been part of this cycle as wellInternational crisis in 1840s – How go from crisis to expansion quickly – went quite rapidly in 1930s for Sweden – but Sweden in opposite corner in 1970s1850s – upswing of industrial and infrastructural investments was linked to breakthrough of mechanized factories in Sweden, modernization of steel processes and construction of railways1930s and more marked after WWII late 1940s - expansion of electrification and diffusion of automobiles, processing of electrosteel to small motors in handicraft and household – combination with motorcar – new styles in living and consumptionWaves of investments around development of an infrastructure from basic innovation of preceding cycle mid 1970s – microprocessor – knowledge and information in production of goods and servicesIt is not the basic innovation itself – but the diffusion of the innovation that counts!When invented, then expensive to implement, have a narrow range of application – Following generalization – A structural crisis (that has been preceded by an early development of basic innovations) has put an end to old directions of investments mainly in rationalization of existing industrial structure and given rise to investments in ne and devt of new tech that after one decade (the length of the classical Juglar cycle of machinery investments) has created a new generation of economically competitive machineryReallocation of labor occurs approx 15-30 years after the structural crisisDevelopment of markets – distribution of value added between capital and labour is one mirror of these changesDiffusion of innovations leads to expansion of markets and arrival of new competitors – Structural crises – release negative pressure and restored profitability in industry – get rid of those who not competitive
  • RT: the 3D internet characterized by ….(next slide)
  • many definitions of VWs, these are the characteristics that I find relevant to the study of virtual entrepreneurship. Persistent, computer-simulated, immersive environments ranging from 2D "cartoon" imagery to more immersive 3D environmentworld exists regardless of whether users logged inUsers can manipulate and/or alter existing content or even create customized content Shared space or co-presencenumerous users, or ‘avatars’, simultaneously participate, interact, and share experiences through gestures, text chat, and voiceSocialization/community formation of in-world social groups such as teams, guilds, clubs, cliques, housemates, neighborhoods, etc the world allowed and encouraged
  • I can’t find the source for this, it would be great if someone could point this out to me.
  • Internationalizing value creation_Teigland

    1. 1. Today‟s discussion Background Using social media for internationalization Into the future
    2. 2. What is globalization? The extent to which networks ofindividuals and organizations, markets, and technologies are interconnected across geographic and cultural boundaries. −Beech and Chadwick 2004, −Friedman 2002
    3. 3. Why globalization? The information age in which we liveallows both large and small businesses tothrive on a global scale. Technologies like the internet, mobile phones, etc. have made our shrinking world even smaller. Kingsley 2005
    4. 4. Did You Know: Shift Happens Which forces for internationalization are presented?
    5. 5. Forces for worldwide innovation and learning Increasing pace of technology development Shortening product life-cycles Rising R&D costs Increasing number of multinationals with capability to develop and diffuse innovation globally Increasing need to develop worldwide organization as a learning system. Innovative capability as emerging source of competitive advantage.
    6. 6. ”No one knows everything, everyone knows something,all knowledge resides in networks humanity.” Six degrees of separation - Milgram, 1967 Adapted from Lévy 1997
    7. 7. 3.74 degrees of separation! Aug 2012 5 mln active monthly users in SwedenSource: Facebook
    8. 8. Growing social media landscapes
    9. 9. What are social media?Media that..- enable communication & collaboration…- through user-generated content….- from one-to-one to many-to-many people…- across all boundaries
    10. 10. People > 45 years becoming more active % age group with personal profile on any social networking websiteEdison Research, 2012 - US-based study
    11. 11. Driver of change: Creation > curation 46% Creators: Create and post photos, videos, etc. 41% Curators: Find and post photos, videos, etc.
    12. 12. US Inc 500* shift from blogs to Fb and Twitter 100% 90% 80% 74% 71% 70% 64% 61% 59% 60% 52% 50% 2009 50% 45% 45% 2010 40% 37% 2011 30% 20% 10% 0 0 0% Twitter Facebook Public blogs YouTube *Fastest-growing private companies
    13. 13. Today‟s discussion Background Using social media for internationalization Into the future
    14. 14. Social media help overcome internationalization challengesChallenges How overcomePsychological, e.g., local Use networking sites and forums to buildmindset, risk, fear global mindset and confidenceOrganizational, e.g., limited Use SM for marketing andresources, lack of foreign knowledge communications, e-learning, networkingand experience, problems in findingright agents/distributorsOperational, e.g., export Use open source software and hosteddocumentation; management of export applications to improve operationaloperations; language problems; efficiency and reduce costs.payment delays/risk „Crowdsource‟ help through networking sites and online virtual communitiesProduct/market, e.g., identification Use networking sites to createof most attractive markets, tailoring of understanding/awareness of trade barriersproduct/service to local market Use SM for export market research; direct to customer
    15. 15. Get active and create awareness!
    16. 16. Access to 24x7 global workforce Matchmakers: USD 1bln industry
    17. 17. Increasing supply of freelance talent globally Global Online Employment Report Q2 2012 at Elance
    18. 18. Where are the sources of sustainable competitive advantage? Networks of Innovation relationships FIRM #1 Brand & ReputationKaye 1993
    19. 19. Where are the sources of sustainable competitive advantage? Networks of relationships Innovation FIRM #1 Brand & ReputationTeigland 2010
    20. 20. Building community though relationships Core Value #6: "Build Open and Honest Relationships with Communication!/zappos
    21. 21. 30% profit margin in commodity business
    22. 22. From clothing to home products….
    23. 23. OpenSimulator: A value-creation ecosystem Academic Entrepreneur Hobbyist Large Firm Non-profit Local Public Federal Public Research Inst SME Employee Periphery Teigland, Di Gangi, & Yetis 2012
    24. 24. “Open source” …not just about software anymore
    25. 25. New forms of financing
    26. 26. But…. Not every firm is ready to internationalize − Prematurely venturing outside borders may harm overall firm performance, especially for smaller firms with small margin for error • Long-term investment • High ambitions - risk • Commitment - exit barriers Adapted from Sölvell
    27. 27. Today‟s discussion Background Using social media for internationalization Into the future
    28. 28. The new market place A shift by companies from being “problem solvers” to “solution finders”Ericsson & Augur 2011
    29. 29. Shifting market logicEricsson & Augur 2011
    30. 30. Only a matter of time?O’Driscoll 2009
    31. 31. From the mobility of goods to the mobility of financial capital to …...the “mobility” of labor? Teigland, JVWR, 2010
    32. 32. Some things do not changeInnovation ExchangeExchange TrustTrust RelationshipsRelationships Interaction
    33. 33. If you love knowledge, set it free… Karinda Rhode Photo: Lindholm, Metro aka Robin Teigland robin.teigland@hhs.sePhoto:Nordenskiöld RobinTeigland Photo: Lindqvist
    34. 34. Interested in learning more?