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Leading during 3rd Industrial Revolution: Value creation through networks

by Robin Teigland on May 24, 2012

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An updated version of my slides on value creation through social networks and social media. More info at www.knowledgenetworking.org.

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Vier1997 Like! http://www.youtube.com/watch?v=R4nioJcVXiE 2 months ago
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RT: One of the major results of the internet is that the growth of information and knowledge now exceeds human capacity to absorb this..and while research shows that the part of our brain that deals with processing signals from the environment has indeed grown and is now larger in the younger generation, we are still unable to keep up. So how do we handle this? (Next slide) Cohen, WM och Levinthal, D A, Absorptive Capacity: A new Perspective on Learning and Innovation, Working paper, Carnegie Mellon University and University of Pennsylvania, October 1989
RT: Here is a quotation from Pierre Levy, a researcher who studies collective intelligence, or …. He says, ”No one knows……”, but I have adapted this to be that “all knowledge resides in networks”. What good is knowledge if you cannot access it? Knowledge is created and transferred through networks. How many of you have heard of six degrees of separation? (raise hands)…this means that we are collected to all other human beings on the face of the planet through six links, where a link is from me to person x in audience. Thus, each of us actually has access to all knowledge and resources that exist. (Next slide) mobile phone, internet, here could have farmer in Asia, President Obama, Zlatan, http://www.youtube.com/watch?v=MbX_I2fuqJk&feature=PlayList&p=079F3CFE9701D083&index=0 Pierre Lévy, Collective Intelligence: Mankind's Emerging World in Cyberspace , 1997 My example of how this presentation was made. Asked a question on Socnet and received many good answers with people ’s presentations and links to interesting sources
Refer to social networks here One of first Jacob Levy Moreno in the 1930s in attempt to quantify social relationships. Based on matrix algebra. Advanced statistics… Nodes can be people, departments, or organizations Networks consist of links that form a structure Links between nodes have different purposes , e.g., task or general advice, expertise, strategic information, navigating the organization (procedures, know-who, etc.) Links can be one or two directional Links can be both formal and informal Links can have different strengths
A summary of the progress of social networks and social network analysis has been written by Linton Freeman. [7] Precursors of social networks in the late 1800s include Émile Durkheim and Ferdinand Tönnies . Tönnies argued that social groups can exist as personal and direct social ties that either link individuals who share values and belief ( gemeinschaft ) or impersonal, formal, and instrumental social links ( gesellschaft ). Durkheim gave a non-individualistic explanation of social facts arguing that social phenomena arise when interacting individuals constitute a reality that can no longer be accounted for in terms of the properties of individual actors. He distinguished between a traditional society – "mechanical solidarity" – which prevails if individual differences are minimized, and the modern society – "organic solidarity" – that develops out of cooperation between differentiated individuals with independent roles. Georg Simmel , writing at the turn of the twentieth century, was the first scholar to think directly in social network terms. His essays pointed to the nature of network size on interaction and to the likelihood of interaction in ramified, loosely-knit networks rather than groups (Simmel, 1908/1971). After a hiatus in the first decades of the twentieth century, three main traditions in social networks appeared. In the 1930s, J.L. Moreno pioneered the systematic recording and analysis of social interaction in small groups, especially classrooms and work groups ( sociometry ), while a Harvard group led by W. Lloyd Warner and Elton Mayo explored interpersonal relations at work. In 1940, A.R. Radcliffe-Brown 's presidential address to British anthropologists urged the systematic study of networks. [8] However, it took about 15 years before this call was followed-up systematically. Social network analysis developed with the kinship studies of Elizabeth Bott in England in the 1950s and the 1950s–1960s urbanization studies of the University of Manchester group of anthropologists (centered around Max Gluckman and later J. Clyde Mitchell ) investigating community networks in southern Africa, India and the United Kingdom. Concomitantly, British anthropologist S.F. Nadel codified a theory of social structure that was influential in later network analysis. [9] In the 1960s-1970s, a growing number of scholars worked to combine the different tracks and traditions. One group was centered around Harrison White and his students at the Harvard University Department of Social Relations : Ivan Chase, Bonnie Erickson, Harriet Friedmann, Mark Granovetter , Nancy Howell, Joel Levine, Nicholas Mullins, John Padgett, Michael Schwartz and Barry Wellman . Also independently active in the Harvard Social Relations department at the time were Charles Tilly, who focused on networks in political and community sociology and social movements, and Stanley Milgram, who developed the "six degrees of separation" thesis. [10] Mark Granovetter and Barry Wellman are among the former students of White who have elaborated and popularized social network analysis. [11] Significant independent work was also done by scholars elsewhere: University of California Irvine social scientists interested in mathematical applications, centered around Linton Freeman, including John Boyd, Susan Freeman, Kathryn Faust, A. Kimball Romney and Douglas White ; quantitative analysts at the University of Chicago , including Joseph Galaskiewicz, Wendy Griswold, Edward Laumann, Peter Marsden, Martina Morris, and John Padgett; and communication scholars at Michigan State University , including Nan Lin and Everett Rogers . A substantively-oriented University of Toronto sociology group developed in the 1970s, centered on former students of Harrison White: S.D. Berkowitz, Harriet Friedmann, Nancy Leslie Howard, Nancy Howell, Lorne Tepperman and Barry Wellman , and also including noted modeler and game theorist Anatol Rapoport .In terms of theory, it critiqued methodological individualism and group-based analyses, arguing that seeing the world as social networks offered more analytic leverage. [12]
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.
Picture courtesy of Richard McDermott, http://www.mcdermottconsulting.com/ Text from Steve Borgatti on social networks, National Academy of Science Presentation, 2005, http://www.analytictech.com/mb874/Slides/Overview.pdf FAS.Research (www.fas.at): The availability of resources (money, knowledge, relationships) is determined by where one stands, which position one assumes. For the costs of -access to these resources (= the costs of a “ link ” ) as well as the yields to be expected are also defined by the position in the network and by the general structure of the network. This is the central economic and business-related message of network analysis. The second message in this context is that the methods of network analysis can be used to measure and depict both dimensions (position and structure) in quantitative terms. Social capital also reveals both of these dimensions which must also be taken into account in a SWOT analysis based on the methods of social network analysis. The possibilities of added value, of innovation, chances for successful search processes for better solutions as well as the costs of adaptation to changes are distributed differently for each actor within one and the same network. This is not just because each actor assumes a different position and thus the costs of access to the limited resources vary, but also because with each position the immediate environment changes. Thus the character of the network (the “ network profile ” ) is a different one from the local perspective of the actor. Each actor in the network finds a different space of possibilities and has better or worse access to the existing resources by virtue of his relationships to the other actors. The network thus creates the social infrastructure of the opportunities offered to an actor. Networks – relationships iwth others, Political, economical social relationship All have relationships with others, we are all embedded in nws, We retrieve information and knowledge to arrange our lives Decide on success of our activities SNA Networks and underlying relationships – network analysis – Talk about unique relationships that make each individual. Here is a network - can be medicament, interlocking directors of companies. Network is system of relationships Look at people and re Have to look beyond your friends, who are their friends and relatinoshsip
http://www.ux-sa.com/2007/09/structural-holes-and-online-social.html But avoid becoming a bottleneck!
Large majority of work done through informal networks, some even say approx 80%.
First, the ONA identified mid-level managers that were critical in terms of information flow within the group. A particular surprise came from the very central role that Cole played in terms of both overall information flow within the group and being the only point of contact between members of the production division and the rest of the network. If he were hired away, the efficiency of this group as a whole would be significantly impacted as people in the informal network re-established important informational relationships. Simply categorizing various informational requests that Cole received and then allocating ownership of these informational or decision domains to other executives served to both unburden Cole and make the overall network more responsive and robust. Second, the ONA helped to identify highly peripheral people that essentially represented untapped expertise and underutilized resources for the group. In particular, it became apparent that many of the senior people had become too removed from the day-to-day operations of this group. For example, the most senior person (Jones) was one of the most peripheral in the informal network. This is a common finding. As people move higher within an organization their work begins to entail more administrative tasks that makes them both less accessible and less knowledgeable about the day-to-day work of their subordinates. However, in this case our debrief session indicated that Jones had become too removed and his lack of responsiveness frequently held the entire network back when important decisions needed to be made. Third, the ONA also demonstrated the extent to which the production division (the sub-group on the top of the diagram) had become separated from the overall network. Several months prior to this analysis these people had been physically moved to a different floor in the building. Upon reviewing the network diagram, many of the executives realized that this physical separation had resulted in loss of a lot of the serendipitous meetings that occurred when they were co-located. Structured meetings were set up to help avoid operational problems the group had been experiencing due to this loss of communication between production and the rest of the network.
A combination where a node has easy access to others, while controlling the access of other nodes in the network, reveals high informal power.
Rob Cross, Nitin Nohria and Andrew Parker, Six Myths About Informal Networks -- and How to Overcome Them, Sloan Management Review, 2002 Most often managers do not know what going on. Moreover, we do not know what going on in our network beyond our first set of contacts.
Interesting now that companies changing from hiring fresh graduates to mid-career professionals Everyone knows that when you hire one talented programmer, you get 20 for free! Anders L.
Higher turnover at companies these days. Not life-time employee, many restructurings, acquisitions, etc. People always thinking about where go next. Inds bells and whistles Don ’ t know if working on your problem or someone else ’ s, including the competition ’ s Also often project managers leading technical specialists and do not understand what working with. Difficult to know whether really should take so much time or not. Individual working on computer, often don ’t know what working on or for whom.
Here show the multinational ’s networks of programmers. While large office of Stockholm was very well connected, c an see with this that many isolated islands of competence. Even though management spent considerable effort on IT systems to get people to communicate across units, very few doing so. However, we can see few individuals who did act as boundary spanners. These individuals serve as conduits of information between units. Rarely many boundary spanners in an organization. Difficult to become part of network across organization, time consuming, personality traits. Important because bring together different kinds of knowledge. Mgt often does not appreciate these inds. Have to spend considerable time maintaining network. Organizational stress because sitting often between two areas, different demands, etc. Or overload. To our surprise, after interviewing several key people in the community, we found that the boundary spanners, known as global advisors, were more information bottlenecks than connection facilitators. Are they making the right connections? Are they connected to connectors in own and other networks? But what happens if these individuals leave organization? Should reward individuals and acknowledge what doing. One company performed analysis and discovered who these boundary spanners are and helped them further develop their networks, also greater bonuses Can design work processes to bring individuals together. In this example, these inds talked with one another because the two in SF had been rotated from the Stockholm office.
Photo source: http://www.flickr.com/photos/philliecasablanca/3344142642/
Interesting to think that just a few years ago, everyone was saying get people together informally, create venues for them to meet. But research in US has found that need to do more than random interventions. This not enough to align with organizational goals. Yes, this gets inds meeting, but may result in coups or negative spirals if mgt does not understand them.
Source: https://webapp.comm.virginia.edu/NetworkRoundtable/Portals/0/NR04-05/Networks_and_Organizational_Change.pdf There is a structured way of going about ” managing ” informal networks. Today share with you some of the findings from my research and from the gurus in the US. Identify informal network where effective collaboration adn kn sharing has sig impact on organization ’ s operations and strategy. So many networks out there but you don ’ t need to understand all of them. Good for up to 50 individuals, then should look at sub-networks Simple, 10-15 minutes to do, make list of people and ask all to characterize relationship with one another Make sure think through sensitivity of issues, do pretest Uncover networks Identify which networks are important to understand E.g., product development, merger integration Collect network data E.g., observe, interview people, conduct questionnaire Ask appropriate questions, e.g., advice, trust, innovation Analyze the causes of fragmented networks Leadership style, office layout, virtual work, politics, knowledge sharing attitudes, workflow processes, job descriptions Improve connectedness and u nplug bottlenecks Reevaluate formal structure, e.g., team desi gn, roles Rethink work processes Reassign tasks, rotate individuals, s hift responsibilities Are central connectors hoarding info? Is unit too isolated? Are boundary spanners talking with right people? Is unit losing technical expertise? Think about how design teams or redesign jobs, rotating people also. Restaff teams to override hoarding connectors. One organization conducted analysis and restaffed teams combining members of both networks. If overloaded, can implement mailing lists, discussion boards to try to reduce workload on central connector Shift responsibilities, Put in mailing list, discussion boards, socnet example
While research that shows this relationship, thought it would be best to show what I have found in my research. Here have rd operations of three multinationals, Xerox, Ericsson, and HP. Found that HP had highest of three in terms of perf indicators that looked at. Can even talk about regional level – silicon valley vs rte 128 in Boston.
Did some research in which HP one of companies. Found that this company really understood the importance of informal networks both in terms of ” managing ” the informal structure but also in terms of the visionary organization. Interestingly, HP doing network maps based on email communication. Would like to do something similar here.
Speaker notes Because as we see, position has a very important impact on performance. In my research, I was very interested in understanding the relationship between one ’s position in informal networks and performance. Here we find that A’s network is closed and the same knowledge goes round and round. He or She may get better and better at doing what they are doing but no new ideas come into the network – and this hampers creative performance. And as a result, A has a poor degree of creativity and innovative performance. However, if you look at B – we find that B has a high degree of creativity and innovative performance. B has access to several different networks of knowledge and thus can bring in new ideas and combine them with others from other networks, thus B is able to achieve a high degree of innovative and creative performance. This access to several networks is becoming increasingly important as the pace of change, especially technological change – continues to increase. In order for us to be able to continuously innovate as well as to be able to know what is happening in our external environment to make sure we are producing products that the market want, we need to have access to the right networks. So, on the one hand we have A who may be doing all the things right, but not doing the right thing while B can be doing all the right things. Next slide
Kenneth Lay delegated responsibility to those in his old boys network – failed to listen to someone outside the club – Sherron Watkins.
Rob Cross, Nitin Nohria and Andrew Parker, Six Myths About Informal Networks -- and How to Overcome Them, Sloan Management Review, 2002
Leveraging external resources to find solutions and solve unsolved problems GoldCorp ... a mining company, 50 years old. Geologists couldn't tell him where the gold was. The CEO was ready to shut down the company. Heard about Linux ... and embraced the principles. Took his geological data, published it on the Internet, and held a contest on the Internet called the "GoldCorp Challenge". Offered $500K for those who could find the gold. Found $3.4 billion of gold. Value jumped from $90 million to $10 billion. Wikipedia…The Canadian gold mining group Goldcorp made 400 megabytes of geological survey data on its Red Lake, Ontario property available to the public over the internet. They offered a $575,000 prize to anyone who could analyse the data and suggest places where gold could be found. The company claims that the contest produced 110 targets, over 80% of which proved productive; yielding 8 million ounces of gold, worth more than $3 billion.
Ency picture from www.versandantiquariat-schmitz.de/Lexika-Brit... http://s3.amazonaws.com/ppt-download/architectures-for-conversation-ii-what-communities-of-practice-can-mean-for-information-architecture-5733.pdf An essential difference between britannica and wikipedia is >>britannica is a one-way medium, handed down from authorities, >> While wikipedia is conversational. It fulfills more of what human beings want in their daily life. That ’s not to say that wikipedia is better than britannica, or that the old way is evil or irrelevant. It ’s just to say that technology has tapped into a latent need people have to be part of conversations.
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 18 th and 19 th 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 18 th C and the internal combustion engine and electric motor in the late 19 th 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 notes Notes from article - Schön, L, Economic Crises and Restructuring in History A 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 come Transformation – changes in industrial structure – resources are reallocated between industries and diffusion of basic innovations with industry that provides new bases for such reallocation Rationalization – concentration of resources to most productive units within the branches and measures to increase efficiency in different lines of production Shifts 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 well International crisis in 1840s – How go from crisis to expansion quickly – went quite rapidly in 1930s for Sweden – but Sweden in opposite corner in 1970s 1850s – upswing of industrial and infrastructural investments was linked to breakthrough of mechanized factories in Sweden, modernization of steel processes and construction of railways 1930s 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 consumption Waves of investments around development of an infrastructure from basic innovation of preceding cycle mid 1970s – microprocessor – knowledge and information in production of goods and services It 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 machinery Reallocation of labor occurs approx 15-30 years after the structural crisis Development of markets – distribution of value added between capital and labour is one mirror of these changes Diffusion 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
What do these younger people expect? Many people 50 years – high dedication – Mindset – continues to be huge effort to get people to change - http://www.youtube.com/watch?v=MbX_I2fuqJk&feature=PlayList&p=079F3CFE9701D083&index=0 http://www.youtube.com/watch?v=fOfUR1d9Lsw&feature=related Speaker notes: And that is exactly what we are seeing now. Here on this chart you can see the distribution of the population (US figures). On the right of the red line are the “digital immigrants” or those who did not grow up with digital technology such as the computer and the internet, while on the left of the red line we see the “digital natives” or those who have grown up with the internet always there. I would just like to say that I am not wild about this categorization, especially since I belong to the baby boomers but I see myself more of a digital native – I used to visit the university computer center with my father in the early 1970s, but I think that it works as a generalization to help explain the changes we are seeing. The interesting thing is that this new generation of workers is huge and is even larger than the babyboomers and in fact in the US, 56 mln are old enough to be employees with 7 million already managers. Those that are 38 and younger are the gamers and those that are 28 years and younger are the net-generation and we now have a new generation that is entering the workforce that has grown up with mobile phones. These generations have a different outlook on work, learning, and play. On the right hand side, we have individuals with a high degree of company loyalty and in which there was a clear line between work and one ’s personal or social life and play was something to be done only in one’s free time. However, in these new generations we have individuals who are more loyal to their peers and their professions – choosing to mix their working life with their personal life while also not seeing such a clear line between work and play. And anyway, who ever said that we cannot combine work and play? (Next slide) danah boyd: Unlike adults, who are relearning how to behave in public because of networked technologies, teens are simply learning how to behave in public with networked publics in mind. Other notes The new generation is huge - 90 million people in USA alone Larger than baby boomers 81% of US business population ≤ age 34 are gamers 56 million old enough to be employees 7 million already managers CNRS – isabelle berrebi Points: we are looking at a wave of Digital Natives that are already in our workforce. That design of learning will in large part be for some portion of these 90 million americans, not to mention the internationals. 38 years old and younger – they are the gamers. 28 years old and younger – these are the net-generation, having grown up with the internet always being there. These are people for whom the technology has always been available to provide them with engaging experiences, connections beyond the realm of their home towns to people and information that otherwise would never have been available or accessible.
While we have always had networks, what has changed dramatically is that now with social media we have the ability to easily and quickly reach out to individuals across the globe whom we have never met before. And another significant change is that previously while we had one to one two-way communication, this did not enable group communication, and while we also had one to many communication, this did not enable two way communication, but now with social media we can have many to many conversations. So for me the definition of social media are online communication channels that enable many to many interactions and conversations. And as no surprise the most active users of social media are younger people, those who have become skilled at using computers and the internet for all kinds of purposes – to build relationships, find information and knowledge, solve problems, and learn. An extensive study that was just completed by one of the gurus in this area, danah boyd, found that the digital world really is changing the way that young adults and youths socialize and learn. These younger generations are using these new media to explore their own interests and experiment with self-expression – while at the same time they are developing both technical skills and a new form of social skills – solving complex problems online in virtual teams. As a result, these individuals are not only used to but expect more freedom and autonomy in their problem-solving activities at work enable communication & collaboration … through user-generated content …. from one-to-one to many-to-many people … - across all boundaries (Next slide) Other notes http://www.youtube.com/watch?v=MbX_I2fuqJk creating new opportunities for youth to grapple with social norms, explore interests, develop technical skills, and experiment with new forms of self-expression. These activities have captured teens' attention because they provide avenues for extending social worlds, self-directed learning, and independence. Extending friendships online while some developing shared interest communities. Change way that youth socialize and learn - Youth engage in peer-based, self-directed learning online. – Youth respect one another's authority online, and they are often more motivated to learn from peers than from adults. Their efforts are also largely self-directed, and the outcome emerges through exploration, in contrast to classroom learning that is oriented by set, predefined goals. Increased degree of freedom and autonomy Not just receivers of knowledge but creators of knowledge as well danah boyd study We are happy to announce the online release of the findings from our three-year Digital Youth project (http://digitalyouth.ischool.berkeley.edu ). All of the researchers who have worked on this project will be writing up individual publications, but this report represents a synthesis of the findings across the 22 different case studies. It has been over three years in the making, and is the result of a truly collaborative effort with 28 researchers and research collaborators. This project is part of the MacArthur Foundation Digital Media and Learning initiative. http://digitallearning.macfound.org. You can find all the details in the documents linked below, and a summary of our report below. Two-page summary of report: http://digitalyouth.ischool.berkeley.edu/files/report/digitalyouth-TwoPageSummary.pdf White paper: http://digitalyouth.ischool.berkeley.edu/files/report/digitalyouth-WhitePaper.pdf Full report: http://digitalyouth.ischool.berkeley.edu/report Press release and video: http://digitallearning.macfound.org/ethnography -------- RESEARCH SUMMARY Over three years, Mimi Ito and her 28-person research team interviewed over 800 youth and young adults and conducted over 5000 hours of online observations as part of the most extensive U.S. study of youth media use to date. They found that social network sites, online games, video-sharing sites, and gadgets such as iPods and mobile phones are now fixtures of youth culture. The research finds today's youth may be coming of age and struggling for autonomy and identity amid new worlds for communication, friendship, play, and self-expression. Many adults worry that children are wasting time online, texting, or playing video games. The researchers explain why youth find these activities compelling and important. The digital world is creating new opportunities for youth to grapple with social norms, explore interests, develop technical skills, and experiment with new forms of self-expression. These activities have captured teens' attention because they provide avenues for extending social worlds, self-directed learning, and independence. MAJOR FINDINGS - Youth use online media to extend friendships and interests. - Most youth use online networks to extend the friendships that they navigate in the familiar contexts of school, religious organizations, sports, and other local activities. They can be always "on," in constant contact with their friends through private communications like instant messaging or mobile phones, as well as in public ways through social network sites such as MySpace and Facebook. With these "friendship-driven" practices, youth are almost always associating with people they already know in their offline lives. The majority of youth use new media to "hang out" and extend existing friendships in these ways. A smaller number of youth also use the online world to explore interests and find information that goes beyond what they have access to at school or in their local community. Online groups enable youth to connect to peers who share specialized and niche interests of various kinds, whether that is online gaming, creative writing, video editing, or other artistic endeavors. In these interest-driven networks, youth may find new peers outside the boundaries of their local community. They can also find opportunities to publicize and distribute their work to online audiences, and to gain new forms of Visibility and reputation. - Youth engage in peer-based, self-directed learning online. - In both friendship-driven and interest-driven online activity, youth create and navigate new forms of expression and rules for social behavior. By exploring new interests, tinkering, and "messing around" with new forms of media, they acquire various forms of technical and media literacy. Through trial and error, youth add new media skills to their repertoire, such as how to create a video or game, or customize their MySpace page. Teens then share their creations and receive feedback from others online. By its immediacy and breadth of information, the digital world lowers barriers to self-directed learning. Some youth "geek out" and dive into a topic or talent. Contrary to popular images, geeking out is highly social and engaged, although usually not driven primarily by local friendships. Youth turn instead to specialized knowledge groups of both teens and adults from around the country or world, with the goal of improving their craft and gaining reputation among expert peers. While adults participate, they are not automatically the resident experts by virtue of their age. Geeking out in many respects erases the traditional markers of status and authority. New media allow for a degree of freedom and autonomy for youth that is less apparent in a classroom setting. Youth respect one another's authority online, and they are often more motivated to learn from peers than from adults. Their efforts are also largely self-directed, and the outcome emerges through exploration, in contrast to classroom learning that is oriented by set, predefined goals. IMPLICATIONS New media forms have altered how youth socialize and learn, and raise a new set of issues that educators, parents, and policymakers should consider. -Adults should facilitate young people's engagement with digital media. Contrary to adult perceptions, while hanging out online, youth are picking up basic social and technical skills they need to fully participate in contemporary society. Erecting barriers to participation deprives teens of access to these forms of learning. Participation in the digital age means more than being able to access serious online information and culture. Youth could benefit from educators being more open to forms of experimentation and social exploration that are generally not characteristic of educational institutions. Because of the diversity of digital media, it is problematic to develop a standardized set of benchmarks against which to measure young people's technical and new media literacy. Friendship-driven and interest-driven online participation have very different kinds of social connotations. For example, whereas friendship-driven activities centers upon peer culture, adult participation is more welcomed in the latter more "geeky" forms of learning. In addition, the content, behavior, and skills that youth value are highly variable depending on what kinds of social groups they associate with. In interest-driven participation, adults have an important role to play. Youth using new media often learn from their peers, not teachers or adults. Yet adults can still have tremendous influence in setting learning goals, particularly on the interest-driven side where adult hobbyists function as role models and more experienced peers. To stay relevant in the 21st century, education institutions need to keep pace with the rapid changes introduced by digital media. Youths' participation in this networked world suggests new ways of thinking about the role of education. What, the authors ask, would it mean to really exploit the potential of the learning opportunities available through online resources and networks? What would it mean to reach beyond traditional education and civic institutions and enlist the help of others in young people's learning? Rather than assuming that education is primarily about preparing for jobs and careers, they question what it would mean to think of it as a process guiding youths' participation in public life more generally.
http://pandodaily.com/2012/03/06/meet-generation-c-the-connected-customer/ Here are some interesting points for discovery that get us thinking beyond what we think we know today: 59% update their social status in class. 29% find love through Facebook while 33% are dumped via TXT or Wall posts. Millennials watch TV with two or more electronic devices. Only 11% define having a lot of money as a definition of success Gen-Y will form 75% of the workforce by 2025 and are actively shaping corporate culture and expectations. Only 7% of Gen-Y works for a Fortune 500 company, while startups dominate the workforce for this demographic. Gen-Y expects larger organizations to hear their voice and recognize their contributions, increasing the need for an intrapreneurial culture. Millennials trust strangers over friends and family. They lean on UGC for purchases. They are 3x as likely to follow a brand over a family member in social networks. 66% will look up a store if they see a friend check-in. 73% have earned and used virtual currency. Gen-Y believes that other consumers care more about their opinions than companies do, which is why they share their opinions online. Gen-Y’ers are more connected on Facebook than average users, managing a social graph of 696 Facebook friends versus 140.
Threadless: What came first – the community or the company RT: presents Threadless, http://www.nickburcher.com/2009/05/threadless-twitter-tees-another-example.html 1,530,000 followers on Twitter The 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)
Speaker notes As a result, we are seeing significant pressure being put on traditional forms of organizing. On the left is what we are used to thinking about when we speak about organizations. A formal organization - a hierarchy in which information and knowledge goes up and down through the formal lines of an organization. Work tasks are broken down and coordinated through formal processes. However, research has shown that the large majority of work is actually done through informal networks – some say even 80% in knowledge-intensive organizations which is what we see on the right hand side. Here we have mapped the informal or social organization within one organization we were researching - how many of you have seen one of these sociograms or network diagrams before? This is what my research focuses on – investigating knowledge flows through social networks. In this diagram you can see the dots or nodes are individuals and the lines are the knowledge flows between these individuals. And this is becoming of increasing importance to understand and leverage these informal or social networks as the digital natives continue to enter the workforce – bringing with them their way of solving problems, organizing and learning. (Next slide) Screen shots: revolving social media sites and pictures of digital natives Other notes Org on the left is Built around the expert – put the expert in the box But in this new social organization – Large majority of work done through informal networks, some even say approx 80%. Important to understand both these worlds and how relate to one another… Suggests that as much as 90% of information that people take action on comes from people in their own network – Cross dissertation experts are all over the place and you need to find where the expertise lies in the org and how to connect these individuals
http://ez.no/company/news/ez_systems_wins_the_red_herring_global_100 Selected as a Red Herring 100 winner is a mark of distinction and high honor. Only 200 companies are chosen as finalists out of a pool of thousands. Of those finalists Red Herring selected 100 companies as winners. To decide on these companies the Red Herring editorial team diligently surveys entrepreneurship around the globe. Technology industry executives, investors, and observers regard the Red Herring 100 lists as invaluable instruments to discover and advocate the promising startups that will lead the next wave of disruption and innovation. Past award winners include Google, Yahoo!, Skype, Netscape, Salesforce.com, and YouTube.
http://opensourceecology.org/wiki/Marcin_Jakubowski
https://picasaweb.google.com/lh/photo/cGAPUCiKe6LI6l5fM4rFqA Computer-generated, persistent space Three-dimensional, immersive environment Experienced by many people at once/interactivity
https://picasaweb.google.com/lh/photo/cGAPUCiKe6LI6l5fM4rFqA Computer-generated, persistent space Three-dimensional, immersive environment Experienced by many people at once/interactivity
http://www.youtube.com/watch?v=0CijdlYOSPc While 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 environment world exists regardless of whether users logged in Users can manipulate and/or alter existing content or even create customized content Shared space or co-presence numerous users, or ‘avatars’, simultaneously participate, interact, and share experiences through gestures, text chat, and voice Socialization/community formation of in-world social groups such as teams, guilds, clubs, cliques, housemates, neighborhoods, etc the world allowed and encouraged
RT: traditional leadership further challenged as we move to a world of web 3.0 or the immersive internet… http://www.youtube.com/watch?v=-ahqjBeknT0
http://journals.tdl.org/jvwr/article/view/866
I can ’t find the source for this, it would be great if someone could point this out to me.

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Leading during 3rd Industrial Revolution: Value creation through networks Presentation Transcript

May 2012www.hhs.senordicworlds.net
Today’s discussion Background Organizational network analysis Into the future….
"...when the rate of change outside an organization isgreater than the rate of change inside, the end is near...." Jack Welch…
Did You Know: Shift Happens http://www.youtube.com/watch?v=cL9Wu2kWwSY&feature=search 5.What trends do you recognize? 7.How are these trends affecting you and your organization?9.What does this have to do with networks?
Human capacity cannot keep up… Information Growth and knowledge Human absorptive capacity TimeAdapted from Cohen & Levinthal 1989
”No one knows everything, everyone knows something,all knowledge resides in networks ” humanity. Six degrees of separation - Milgram, 1967 Adapted from Lévy 1997
What is a network?Actor •Actors/Nodes Tie −Individuals −Teams, organizations, etc. •Ties/Links −Knowledge, trust, team, sit by, dislike, etc. −Alliance, customer, investment, etc. A set of actors connected by ties
Social network analysis has a long historyand is based on matrix algebra and graph theory http://en.wikipedia.org/wiki/Social_network
Hidden influence of social networks Happy people Christakis & Fowler, 2011 In between people Unhappy peoplehttp://www.ted.com/talks/lang/en/nicholas_christakis_the_hidden_influence_of_social_networks.html
Why else do networks matter? German biotech scientists Casper & Murray 2002 An actor’s position in a social network, i.e., social capital,determines in part the actor’s opportunities and constraints.
Across Europe, people who frequently use Social Tools are ‘more successful’ Very satisfied with job – Very likely to 38% compared to 18% who recommend never use Social Tools 64% workplace – compared to 42% who never use Social Tools 86%recently promoted 72% 60% likely to be promoted Compared to 61% Have more and 39% of those who interesting work – never use Social Tools compared to 42% who never use Social ToolsGoogle Social Media Study, 2012
Bridging unconnected groups brings advantages •More rapid promotions •Greater career mobility •Higher salaries •More adaptable to changing environmentsBrass, Burt, Podolny & Baron, Sparrowe et al, Gargiulo & Benassi
Today’s discussion Background Organizational network analysis Into the future….
Uncovering informal networks Formal organization Informal organizationTeigland et al. 2005
What do you notice about the informal network?Cross, Introduction to organizational network analysis
Network position is related to …..Betweenness •Control over what flows in ce an d uen ower the network •How often are you on the I nfl al P orm shortest path between two individuals? InfCloseness •Access to what flows in the network •How quickly can you reach all others in the network?
Myths about networks  I already know what is going on in my network  We can’t do much to help informal networks  To build networks, you have to communicate moreAdapted from Cross et al. 2002
1) Central connectors within one location Surprise!! Bottleneck  Peripheral playersWhelan & Teigland 2010
With which colleagues do you discuss everyday technical issues/work-related problems at least once a week? Red=Male Blue=Female =Left orgSchenkel & Teigland 2011
With which colleagues do you discuss exciting new ideas and better ways of getting things done? Red=Male Blue=FemaleSchenkel & Teigland 2011 =Left org
2) Peripheral players and 1) Central connectors help manage information overload Peripheral playersWhelan & Teigland 2010
When you hire someone,……..you “hire” his or her network.
Dual loyalties lty Lo ya ya Lo lty Organization Professional networkTeigland 2003
3) Boundary spanners cross divides Brussels Transferred from Stockholm San Francisco Stockholm London Madrid Copenhagen HelsinkiTeigland 1998
What are they doing?
Are more social get-togethers and coffee breaks the solution?
”Birds of a feather flock together” “Lika barn leka bäst” People find similar people attractive and develop relations with people like themselves Our networks tend to be homogeneous and not heterogeneousMarsden 1987, Burt 1990 27
“Managing” networks in your organization Before After 1. Uncover networks 2. Analyze networks 3. Improve connectednessAnklam & Welch 2005
Obtaining benefits of scale and lateral coordination through communities U.K. UK Actions Angola Angola •Identifying overly connected people •Bridging invisible network silos Nigeria Brazil Brazil Nigeria •Creating awareness of expertise Canada Canada distributed in the network Saudi •Identifying and drawing in peripheral U.S. Arabia Gulf of U.S. network members Saudi Arabia Mexico Nigeria UK Business resultsCanada •Lowered customer dissatisfaction by 24% •Reduced cost of poor quality by 66% •Increased new product revenue by 22% •Improved operational productivity by more than 10% BrazilSaudi Gulf of ONA resultsArabia •Cohesion – average # steps for each Mexico Angola person to get to another – improved by 25%Cross 2010
Comparing performance across firmsTeigland et al 2000
Hewlett-Packard  Networking activities recognized and rewarded at individual and unit levels  Management support for informal and formal networking activities across internal and external boundaries  Best practice task group  Personal initiatives  Extensive socialization: personnel rotation, cross- office teams, “open” office layout  A visionary organization − Clearly defined mission: ”To make technical contributions for the advancement and welfare of humanity” − Supporting core values, e.g., teamwork, helpfulness − Company-wide goal of World’s Best LaboratoryTeigland et al 2000
Two individuals/organizationswith the same number of contacts… A B
A B…but with very different access to resources
A B Poor creativity and High innovative creativity and performance innovative performance 2003 Teigland
Avoid creating insular networkshttp://www.enronexplorer.com/focus/19185#
Myths and reality checks I already know what is going on in my network  Those who think they know their network the best are usually the ones who know the least We can’t do much to help informal networks  Informal networks can be “managed” through changing the organizational context To build networks, you have to communicate more  Networks can be strategically developedAdapted from Cross et al. 2002
Today’s discussion Background Organizational network analysis Into the future….
A shift from being“problem solvers” to “solution finders”
Access to 24x7 global workforce Average wage approx. USD 1.40 / hourhttp://www.people.fas.harvard.edu/~drand/
User-driven Innovation“Distributed groups of individuals focused on solving general problem and/or developing new solution supported by computer-mediated communication.” Dahlander & Wallin, 2006 p. 1246 Di Gangi 2010
The wisdom of the crowd Closed Open Expensive Inexpensive Complex Simple Accurate Close enough Accurate Up-to-dateHinton 2007
History tends to repeat itself…. Innovation, financial crisis, industrial revolution, … Microelectronics Internal combustion engine Steam engine Third industrial revolution? Late 18th C Late 19th C Late 20th CSchön 2008
A new workforce is appearing… “Digital Natives” “Digital Immigrants” Professional loyalty Company loyalty Work = Personal Work ≠ Personal Learning=Fun and games Learning=Behind the deskPrensky 2001, Beck and Wade 2004, Mahaley 2008
“u r always on….” Adapted from FredCavazza.net
Drivers of change Interactivity Increased Di Gangi 2010
Our economy changes Pine Jr. & Gilmore 1998, 1999; DiGangi 2010
30% profit margin in commodity business
Hierarchy HeterarchyLinear, static, process- Dynamic, integrated based organization collaboration networks
5,000+ 41,000+ 230+ Customers in Community 70 empl Partners 130 countries members• Content management software, #1 in media industry• Customers: UN, Vogue, Hitachi, 3M, MIT, FT, WSJ• 70 employees in 9 countries (US, Europe & Asia)
eZ Philosophy Connecting people who share a passion for something they do so that they can collaborate, share ideas, learn, and create knowledge
eZ provides platforms for interaction throughout its ecosystem eZ Software development team
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
“Open source” …not just about software anymore
3D printing becoming more commonplace
Here comes the Immersive Internet….O’Driscoll 2009
How manyusually think ofvirtual worlds…
Building skills in virtual environments My CV •Leading a virtual team of 30 individuals from across the globe•Creating and successfully executing strategies under pressure •Managing cross-cultural conflictwithout face-to-face communication
What can Virtual Worlds be? Platforms for unleashing creativity and revolutionizing value creationhttp://www.youtube.com/watch?v=Quh2OiPHkm8
Developing international entrepreneurs?
“Clearly, if social activity migrates tosynthetic worlds, economic activity will go there as well.” Castronova, 2006
US$ 635,000 for a virtual asteroid!•US$ 500,000 profit in 5 years by Jon “Neverdie” Jacobs •Entropia Universe with GDP >US$ 440 mln http://blogs.forbes.com/oliverchiang/2010/11/13/meet-the-man-who- just-made-a-cool-half-million-from-the-sale-of-virtual-property/
From the mobility of goods to the mobility of financial capital to …...the “mobility” of labor? Teigland, JVWR, 2010
Some things do not changeInnovation ExchangeExchange TrustTrustRelationshipsRelationships Interaction
What should you think about? How to let go? How to leverage the power of networks to create value inside and outside the boundaries of the firm? How to create a sustainable ecosystem?
Develop three forms of networking Operational Personal Strategic Purpose Getting work done Enhancing personal Developing and efficiently and professional achieving future development priorities Members Mostly internal Mostly external Both internal and contacts and contacts and external contacts focused on current focused on current and focused on demands and future interests future Network Depth through Breadth through Leverage through attributes building strong reaching out to creating inside- working contacts who can outside links relationships refer you to othersIbarra & Hunter, HBR Jan 2007
How do you stay in command ……while letting go of control?
Open Leadership Having confidence and humility to give up need to be in control, while inspiring commitment from people to accomplish goals
If you love knowledge, set it free… Karinda Rhode Photo: Lindholm, Metro aka Robin Teigland robin.teigland@hhs.sePhoto:Nordenskiöld www.knowledgenetworking.org www.slideshare.net/eteigland www.nordicworlds.net RobinTeigland Photo: Lindqvist
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Leading during 3rd Industrial Revolution: Value creation through networks

by Robin Teigland on May 24, 2012

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Leading during 3rd Industrial Revolution: Value creation through networks Presentation Transcript