The Third Industrial Revolution?<br />Creating value beyond the firm’s boundaries<br />Dr. Robin Teigland, aka<br />Karind...
"...when the rate of change outside an organization is greater than the rate of change inside, the end is near...." <br />...
Did You Know?  Shift Happens<br />http://www.youtube.com/watch?v=jpEnFwiqdx8&feature=fvst<br />What does this mean for org...
http://www.personalizemedia.com/garys-social-media-count/<br />
Information and knowledge<br />Growth<br />Human absorptive capacity<br />Time<br />Human capacity cannot keep up…<br />Co...
”No one knows everything, <br />everyone knows something, <br />all knowledge resides in  humanity.”<br />networks<br />Ad...
6 degrees of separation<br /><ul><li>Everybody is connected to everybody else by no more than six degrees of separation.
“Small World Phenomenon”  </li></ul> by sociologist Stanley Milgram, 1967<br />
Leveraging external resources to find solutions and solve unsolved problems<br />A shift from being <br />problem solvers ...
The wisdom of the crowd<br />Closed<br />Expensive<br />Complex<br />Accurate<br />Open<br />Inexpensive<br />Simple<br />...
History tends to repeat itself….Innovation, financial crisis, industrial revolution, … <br />Microelectronics<br />Interna...
A new workforce is appearing…<br />“Digital Immigrants”<br />“Digital Natives”<br />Company loyalty<br />Work ≠ Personal<b...
The older generation of leaders<br />As of June 2009, of the Fortune 100 CEOS….<br /><ul><li>2 CEOs have Twitter accounts ...
13 CEOs on LinkedIn but only 3 have >10 connections
19 CEOs on Facebook but <15 friends
75 CEOs on Wikipedia but nearly 33% of these have limited or outdated information
0% have a blog</li></ul>http://www.slideshare.net/shazza/fortune-100-ceos-and-social-media?type=presentation<br />
Facebook: Only for people I have met in real life. Mainly friends but also colleagues and managers<br />Google Reader/Buzz...
Enckel 2010<br />
Building skills in virtual environments<br />My CV<br /><ul><li>Leading a virtual team of 30 individuals from across the g...
Creating and successfully executing strategies under pressure
Managing cross-cultural conflict without face-to-face communication</li></li></ul><li>The last generation to “attend” coll...
Increasing pressure on “traditional” organizations<br />Formal organization/ <br />Hierarchy <br />Social organization /<b...
But management cannot mandate social relationships<br />My company has blocked my computer from accessing most of the soci...
Empower and trust employees<br />Policies written by IBM employees based on IBM’s<br />Business Conduct Guidelines<br />Ap...
While A and B  have the same number of contacts,….<br />A<br />B<br />
…they have very different access to resources, <br />B<br />A<br />
….thus impacting performance <br />A<br />B<br />Poor <br />creativity and <br />innovative <br />performance<br />High<br...
Using the social web to leverage external networks<br />Adapted from FredCavazza.net<br />
My definition of social media<br />Internet-based technologies that ..<br /><ul><li>enable communication & collaboration…
through user-generated content….
from one-to-one to many-to-many people…</li></ul>- across all boundaries<br />Teigland 2010<br />
Companies span the full range of use but….<br />Organizational use<br />No use <br />One-way  “broadcasting”<br />Two-way<...
Organizations primarily use social media for branding…..<br />B2C companies are more active than B2B <br />Teigland 2010<b...
Positive return on social media for INC 500 companies<br />No<br />If you use social media, has it been successful (hits, ...
$6.5 million as of Dec 2009<br />
Where are the sources of sustainablecompetitiveadvantage?<br />#1<br />Brand & <br />Reputation<br />Innovation<br />FIRM<...
Where are the sources of sustainablecompetitiveadvantage?<br />#1<br />Brand & <br />Reputation<br />Innovation<br />FIRM<...
From Brand owners to Brand advocates<br />“Organizations no longer own their brand…rather they should see their brand as a...
Creating value through external conversations<br />
Exploitation<br />Improving existing value creation activities<br />Exploration<br />Developing new value creation activit...
BART strengthens public transit and communities through interactive games using Foursquare<br />http://www.youtube.com/wat...
What came first – the community or the company?<br />http://www.youtube.com/watch?v=9VKRbmnqXR4<br />
Ez Ecosystem<br />eZ<br />30,000+<br />Community<br />members<br />5,000+<br />Customers in 130 countries<br />230+<br />P...
Customers include UN, Vogue, Hitachi, 3M, MIT
75 employees in 9 countries (US, Europe & Asia)</li></li></ul><li>The backbone of eZ Systems is supporting networks throug...
Innovation in the eZ ecosystem<br />
Here comes the Immersive Internet<br />O’Driscoll  2009<br />
Around 150 virtual worlds<br />600 mln users<br />
What are Virtual Worlds?<br /><ul><li>Persistent, computer-simulated, immersive environments
Shared space/co-presence with possibility for socialization and community
In some cases, ability to manipulate/create content
In some cases, virtual economy and currency</li></ul>http://www.youtube.com/watch?v=wMOqI3hH9Gs<br />
“Clearly if social activity migrates to synthetic worlds, economic activity will go there as well.”Castranova<br /><ul><li...
Swedish government granted bank license to virtual world Mind Bank in 2009
USD 330,000 for virtual space station in 2010
Growing number of entrepreneurs & millionaires</li></ul>http://www.youtube.com/watch?v=-ahqjBeknT0<br />
Gartner’s hype cycle<br />Virtual Worlds today?<br />
What financial crisis?<br />Increasing members<br />Increasing turnover<br />Increasing companies<br />Wonderland<br />
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Creating Value Beyond the Firm's Boundaries: Networks, Social Media, and Virtual Worlds

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A presentation on networks, social media, and virtual worlds I made for a group of Swedish journalists as well as the Swedish Public Relations Association (Sveriges Informationsförening) in April 2010.

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  • Great Performance and message with thought for the mind! Thanks Robin,
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  • This screen should be live. http://www.personalizemedia.com/garys-social-media-count/
  • Everybody is connected to everybody else by no more than six degrees of separation.“Small World Phenomenon” by sociologist Stanley Milgram, 1967Back groundExample who ever you take that average is six step
  • 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
  • In many ways, education hasn’t changed much since students sat at the feet of Socrates more than two millenniums ago. Learners still gather each autumn at colleges to listen to and be questioned by professors.But the Internet has caused sudden shifts in other industries, from the way people read news to the way they buy music or plan travel. Might higher education be nearing such a jolt?Aside from the massive dent put in their endowments by Wall Street’s woes, colleges and universities mostly have been conducting business as usual. Costs have soared compared with general inflation, but students still flock to classes.Many have theorized that the Internet could give education a rude shock. Recently, an opinion piece by Zephyr Teachout, a law professor at Fordham University in New York who once served as an Internet organizer for presidential candidate Howard Dean, put the possibility in dramatic terms.“Students starting school this year may be part of the last generation for which ‘going to college’ means packing up, getting a dorm room, and listening to tenured professors,” she wrote in The Washington Post. “Undergraduate education is on the verge of a radical reordering. Colleges, like newspapers, will be torn apart by new ways of sharing information enabled by the Internet.”She’s not the first to see newspapers moving from print to online and wonder whether something similar could happen to colleges. Online newspaper readers tend to seek out individual stories, not what papers as a whole have to say. Might finding the right class online become more important than which institution was offering it? What happens if colleges or even specialized online-only education companies provide essentially the same Economics 101 course? Does geography cease to matter and do low-cost providers win out?Some think it could happen, perhaps sooner than expected. “Three years ago nobody thought the newspaper industry was going to collapse,” says Kevin Carey, policy director of Education Sector, an independent education think tank in Washington, D.C.Today, a college education is more than twice as expensive as it was in the early 1990s, even after adjusting for inflation.“It’s getting worse all the time. There’s no end in sight,” Mr. Carey says.Colleges “have set the bar pretty low for competitors” through a lack of competition, he says. At the same time, many potential students are being underserved. “We need more institutions that are good at serving working students, immigrant students, low-income students, students who are basically going to college because they want to get a credential and have a career,” he says.Carey points to the fledgling company Straighterline.com, which offers college courses in subjects from algebra to business statistics, English composition, and accounting. Students can take as many courses as they want for $99 per month, the company’s website says. The price includes 10 hours each month of one-on-one live support and a course adviser. Passing courses results in “real college credit” from one of several colleges affiliated with the program.About 30 percent of the undergraduate credits given each year at US colleges and universities derive from only 20 or 30 introductory classes. It seems logical, then, that these could be turned into “commodities” sold at the lowest price online.“Econ 101 for $99 is online, today. 201 and 301 will come,” Carey writes in an essay, “College for $99 a Month,” in Washington Monthly. “The Internet doesn’t treat middlemen kindly.” He describes an unemployed woman in Chicago who was able to complete four college courses for less than $200 on Straighterline.com. The same courses would have cost $2,700 at a local university.Of course, colleges and universities have discovered online learning themselves. They already offer thousands of online courses to their registered students. According to one recent survey, nearly4 million college students, more than 20 percent of all students, have taken at least one online course.But colleges don’t generally offer a lower price for online courses. The reason is that the courses actually take more work to prepare and teach than similar classroom courses, says Janet Poley, president of the American Distance Education Consortium in Lincoln, Neb. Members of the consortium, made up of public universities and community colleges, find that they often must provide extra resources to faculty who are preparing to teach online for the first time, such as help from a graduate assistant or a lighter teaching load, she says. [Editor’s note: The original version mischaracterized the role of the consortium.]Online learning at these institutions“has been growing very fast,” Dr. Poley says. Students appreciate the flexibility to be able to take courses whenever they want, allowing them to keep their jobs or avoid paying baby sitters or commuting to campus as often.What’s holding back more online courses, she says, is the lack of good broadband Internet options in some places, especially rural areas.What may be evolving, Poley says, is a “home institution model,” in which students take introductory courses online but come on campus for work in their major field and for graduate study.“I don’t really care whether there are students on campus or not,” she says. But “I think there will still be folks who like to be in a community with others while they are learning.” Some students enjoy athletics and other on-campus activities, she says. “I don’t think people are ready to give that up.”Online courses, the latest form of distance learning, have had a reputation for being of lower quality than on-campus work, Carey says – something advertised in the back pages of a magazine. But that may be out of date.Online education is continually improving, he says. “It’s better now than it was 10 years ago.”A study of 12 years of online teaching by SRI International on behalf of the US Department of Education concluded earlier this year that “On average, students in online learning conditions performed better than those receiving face-to-face instruction.”What’s more, this wasn’t true only of lower-level courses. “Online learning appeared to be an effective option for both undergraduates … and for graduate students and professionals … in a wide range of academic and professional studies,” the study said.The Obama administration has talked in general terms about online education as part of a grand plan to give the US the highest proportion of college-educated citizens in the world by 2020. The plan, when announced next year, could include funds to develop more online course materials and make them freely available.If other online education start-ups like Straighterline.com do appear, they won’t be looking for “18-year-olds from suburban high schools who want to go to Harvard,” Carey says. Elite schools will always offer other reasons to attend, such as making social connections. “Exclusivity never goes out of style,” he says.Professor Teachout is reminded of the 19th century, when wealthy Americans sent their children off to Europe to absorb its cultural treasures on a so-called Grand Tour. “I can imagine the off-line, brick-and-mortar, elegant, beautiful MIT experience becoming the Grand Tour” of tomorrow, she says in an interview.Reaction to her article has been strong and varied. Some, including her father, also a law professor, have said, “This is horrible. This is the end of the world,” she says. Those she calls “techno-Utopians” have said, “This is fantastic!”An online learning experience for the self-motivated, organized person could be “extraordinary,” she says. And we’ve only scratched the surface. “The totally free online university that is stitched together from MIT-quality professors is going to happen very soon.”Others remain skeptical.“I do question whether things are really as dire as she says, and whether we’re moving toward a model where the online [courses] will almost completely displace the classroom,” says Dan Colman, associate dean and director of continuing studies at Stanford University in California. He also has founded openculture.com, a website that points visitors to free educational courses online.“I think there could be a day when a lot … could be done online, but I don’t think it’s in 20 years. I think it’s further out.”
  • 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 workenable communication &amp; collaboration… through user-generated content….from one-to-one to many-to-many people…- across all boundaries(Next slide)Other noteshttp://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&apos; 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&apos;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 studyWe 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.pdfWhite paper: http://digitalyouth.ischool.berkeley.edu/files/report/digitalyouth-WhitePaper.pdfFull report: http://digitalyouth.ischool.berkeley.edu/reportPress release and video: http://digitallearning.macfound.org/ethnography--------RESEARCH SUMMARYOver 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&apos;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&apos; 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 &quot;on,&quot; 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 &quot;friendship-driven&quot; practices, youth are almost always associating with people they already know in their offline lives. The majority of youth use new media to &quot;hang out&quot; 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 &quot;messing around&quot; 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 &quot;geek out&quot; 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&apos;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 isoriented by set, predefined goals.IMPLICATIONSNew 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&apos;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&apos;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 &quot;geeky&quot; 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&apos; 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&apos;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&apos; participation in public lifemore generally.
  • INC 500 companies: When asked if the use of social media has been successful for their business, theoverwhelming response is that it has. Twitter users report an 82% success rate whileevery other tool studied enjoys at least an 87% success level. Measuring success wasinvestigated and most respondents report using hits, comments, leads or sales as primaryindicators (see graph below).Fastest growing private US companiesHits, comments, leads or sales as primary ROI indicatorsIncrease in all except wikis since 2007
  • RT: many companies looking at marketing and sales through social media such as twitter and facebook. But I believe that this is only the surface as we are beginning to see some fundamental changes in the way companies create value.
  • Kay, J. (1993) Foundations of Corporate Success, Oxford, Oxford University Press.
  • Pink RibbonFord and its Ford Fiesta
  • (1) teaching people how to do things we already know how to do and (2)creating collaborative environments that allow people to develop new ideasand concepts to address unanticipated opportunities or challenges.Productive learning focuses mostly on the individual and on helpingthat individual to adopt a pattern of behavior that improves productivity.Generative learning, by contrast, is a collaborative endeavor. Shared meaningand insights are developed at the group level, and these insights driveenterprise transformation to ensure growth and sustainability. Today, thelearning function is focused primarily on productive learning. As a result,it appears that trainers are more likely to want to maintain the status quo,rather than challenge it.Learning is a far more complicated phenomenon than can ever be limitedto the classroom context. If we convey knowledge about tasks we alreadyknow how to do, we call it productive learning . If we share knowledge abouttasks that are new and different, we call it generative learning . Productivelearning serves largely to maintain the status quo within an enterprise byconveying what is already known, while generative learning involves notonly absorbing existing information but also creating new solutions to unanticipatedproblems. Information age learning requires that individuals andorganizations change the way they think about and act on what is knownand what needs to be known in order to innovate, change, and win.
  • http://ez.no/company/news/ez_systems_wins_the_red_herring_global_100To be 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.
  • RT: the 3D internet characterized by ….(next slide)
  • 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 &quot;cartoon&quot; 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
  • 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
  • What are the 5 phases of a Hype Cycle?1. &quot;Technology Trigger&quot;The first phase of a Hype Cycle is the &quot;technology trigger&quot; or breakthrough, product launch or other event that generates significant press and interest. 2. &quot;Peak of Inflated Expectations&quot;In the next phase, a frenzy of publicity typically generates over-enthusiasm and unrealistic expectations. There may be some successful applications of a technology, but there are typically more failures. 3. &quot;Trough of Disillusionment&quot;Technologies enter the &quot;trough of disillusionment&quot; because they fail to meet expectations and quickly become unfashionable. Consequently, the press usually abandons the topic and the technology. 4. &quot;Slope of Enlightenment&quot;Although the press may have stopped covering the technology, some businesses continue through the &quot;slope of enlightenment&quot; and experiment to understand the benefits and practical application of the technology. 5. &quot;Plateau of Productivity&quot;A technology reaches the &quot;plateau of productivity&quot; as the benefits of it become widely demonstrated and accepted. The technology becomes increasingly stable and evolves in second and third generations. The final height of the plateau varies according to whether the technology is broadly applicable or benefits only a niche market.
  • RT: We are already beginning to see dramatic changes in several professions such as architecture and fashion. Side screens – second life film from conference or collage of different activies in virtual worlds
  • Creating Value Beyond the Firm's Boundaries: Networks, Social Media, and Virtual Worlds

    1. 1. The Third Industrial Revolution?<br />Creating value beyond the firm’s boundaries<br />Dr. Robin Teigland, aka<br />Karinda Rhode in SL<br />Associate Professor<br />Stockholm School of Economics<br />www.knowledgenetworking.org<br />www.slideshare.net/eteigland<br />Photo: Lundholm, Metro <br />April 2010<br />ww.sse.edu<br />
    2. 2. "...when the rate of change outside an organization is greater than the rate of change inside, the end is near...." <br />Jack Welch…<br />
    3. 3. Did You Know? Shift Happens<br />http://www.youtube.com/watch?v=jpEnFwiqdx8&feature=fvst<br />What does this mean for organizations?<br />
    4. 4. http://www.personalizemedia.com/garys-social-media-count/<br />
    5. 5. Information and knowledge<br />Growth<br />Human absorptive capacity<br />Time<br />Human capacity cannot keep up…<br />Cohen & Levinthal 1989<br />
    6. 6. ”No one knows everything, <br />everyone knows something, <br />all knowledge resides in humanity.”<br />networks<br />Adapted from Lévy 1997<br />
    7. 7. 6 degrees of separation<br /><ul><li>Everybody is connected to everybody else by no more than six degrees of separation.
    8. 8. “Small World Phenomenon” </li></ul> by sociologist Stanley Milgram, 1967<br />
    9. 9. Leveraging external resources to find solutions and solve unsolved problems<br />A shift from being <br />problem solvers to solution finders <br />
    10. 10. The wisdom of the crowd<br />Closed<br />Expensive<br />Complex<br />Accurate<br />Open<br />Inexpensive<br />Simple<br />Close enough<br />Accurate<br />Hinton 2007<br />
    11. 11. History tends to repeat itself….Innovation, financial crisis, industrial revolution, … <br />Microelectronics<br />Internal combustion engine<br />Steam engine<br />Third <br />industrial <br />revolution?<br />Late 18th C<br />Late 19th C<br />Late 20th C<br />Schön 2008<br />
    12. 12. A new workforce is appearing…<br />“Digital Immigrants”<br />“Digital Natives”<br />Company loyalty<br />Work ≠ Personal<br />Learning=Behind the desk<br />Professional loyalty<br />Work = Personal<br />Learning=Fun and games<br />Prensky 2001, Beck and Wade 2004, Mahaley 2008 <br />
    13. 13. The older generation of leaders<br />As of June 2009, of the Fortune 100 CEOS….<br /><ul><li>2 CEOs have Twitter accounts but no activity
    14. 14. 13 CEOs on LinkedIn but only 3 have >10 connections
    15. 15. 19 CEOs on Facebook but <15 friends
    16. 16. 75 CEOs on Wikipedia but nearly 33% of these have limited or outdated information
    17. 17. 0% have a blog</li></ul>http://www.slideshare.net/shazza/fortune-100-ceos-and-social-media?type=presentation<br />
    18. 18. Facebook: Only for people I have met in real life. Mainly friends but also colleagues and managers<br />Google Reader/Buzz: All blogs that I read as well as alerts on specific words. A lot of sharing among friends<br />LinkedIn: My resume online, one of the first links you see in Google<br />My Blog: Interaction with other bloggers, allow me to write down my own thoughts, makes me pay more attention. A good way of showing who I am<br />Twitter: I learn new things everyday, people share links to interesting posts, articles etc. Good place to network and get to know people in your field<br />Enckel 2010<br />
    19. 19. Enckel 2010<br />
    20. 20. Building skills in virtual environments<br />My CV<br /><ul><li>Leading a virtual team of 30 individuals from across the globe
    21. 21. Creating and successfully executing strategies under pressure
    22. 22. Managing cross-cultural conflict without face-to-face communication</li></li></ul><li>The last generation to “attend” college?<br />http://features.csmonitor.com/innovation/2009/10/15/the-future-of-college-may-be-virtual/<br />
    23. 23. Increasing pressure on “traditional” organizations<br />Formal organization/ <br />Hierarchy <br />Social organization /<br />Heterarchy<br />Teigland 2003<br />
    24. 24. But management cannot mandate social relationships<br />My company has blocked my computer from accessing most of the social media sites. But I feel so cut off from my network. So, now I just connect through my phone. <br />Teigland & Hustad 2009<br />
    25. 25. Empower and trust employees<br />Policies written by IBM employees based on IBM’s<br />Business Conduct Guidelines<br />Apply internally and externally<br />Available on ibm.com<br />“blogging guidelines”<br />Adapted from Poole 2008<br />
    26. 26. While A and B have the same number of contacts,….<br />A<br />B<br />
    27. 27. …they have very different access to resources, <br />B<br />A<br />
    28. 28. ….thus impacting performance <br />A<br />B<br />Poor <br />creativity and <br />innovative <br />performance<br />High<br />creativity and <br />innovative <br />performance<br />Teigland 2003<br />
    29. 29. Using the social web to leverage external networks<br />Adapted from FredCavazza.net<br />
    30. 30. My definition of social media<br />Internet-based technologies that ..<br /><ul><li>enable communication & collaboration…
    31. 31. through user-generated content….
    32. 32. from one-to-one to many-to-many people…</li></ul>- across all boundaries<br />Teigland 2010<br />
    33. 33. Companies span the full range of use but….<br />Organizational use<br />No use <br />One-way “broadcasting”<br />Two-way<br />conversations<br />..the majority are here<br />Allow use<br />Ban use<br />Encourage use<br />Employee use<br />Teigland 2010<br />
    34. 34.
    35. 35. Organizations primarily use social media for branding…..<br />B2C companies are more active than B2B <br />Teigland 2010<br />
    36. 36. Positive return on social media for INC 500 companies<br />No<br />If you use social media, has it been successful (hits, comments, leads, sales)?<br />12%<br />88%<br />Yes<br />Barnes & Mattsson 2009<br />
    37. 37. $6.5 million as of Dec 2009<br />
    38. 38. Where are the sources of sustainablecompetitiveadvantage?<br />#1<br />Brand & <br />Reputation<br />Innovation<br />FIRM<br />Networks of <br />relationships<br />Kay 1993<br />
    39. 39. Where are the sources of sustainablecompetitiveadvantage?<br />#1<br />Brand & <br />Reputation<br />Innovation<br />FIRM<br />Networks of <br />relationships<br />
    40. 40. From Brand owners to Brand advocates<br />“Organizations no longer own their brand…rather they should see their brand as a relay race baton that people should pick up and pass on to others.”<br />Berlin, CEO Silver, 2009<br />
    41. 41. Creating value through external conversations<br />
    42. 42. Exploitation<br />Improving existing value creation activities<br />Exploration<br />Developing new value creation activities<br />Adapted from March 1991<br />
    43. 43. BART strengthens public transit and communities through interactive games using Foursquare<br />http://www.youtube.com/watch?v=Ryne05wiQ_c<br />http://www.bart.gov/news/articles/2009/news20091022.aspx<br />
    44. 44. What came first – the community or the company?<br />http://www.youtube.com/watch?v=9VKRbmnqXR4<br />
    45. 45. Ez Ecosystem<br />eZ<br />30,000+<br />Community<br />members<br />5,000+<br />Customers in 130 countries<br />230+<br />Partners<br /><ul><li>#1 open source content management software
    46. 46. Customers include UN, Vogue, Hitachi, 3M, MIT
    47. 47. 75 employees in 9 countries (US, Europe & Asia)</li></li></ul><li>The backbone of eZ Systems is supporting networks through social media - throughout the value chain<br />
    48. 48. Innovation in the eZ ecosystem<br />
    49. 49. Here comes the Immersive Internet<br />O’Driscoll 2009<br />
    50. 50. Around 150 virtual worlds<br />600 mln users<br />
    51. 51. What are Virtual Worlds?<br /><ul><li>Persistent, computer-simulated, immersive environments
    52. 52. Shared space/co-presence with possibility for socialization and community
    53. 53. In some cases, ability to manipulate/create content
    54. 54. In some cases, virtual economy and currency</li></ul>http://www.youtube.com/watch?v=wMOqI3hH9Gs<br />
    55. 55. “Clearly if social activity migrates to synthetic worlds, economic activity will go there as well.”Castranova<br /><ul><li>USD 3 bln in virtual goods sales in 2009, to grow to USD 12 bln in 2012
    56. 56. Swedish government granted bank license to virtual world Mind Bank in 2009
    57. 57. USD 330,000 for virtual space station in 2010
    58. 58. Growing number of entrepreneurs & millionaires</li></ul>http://www.youtube.com/watch?v=-ahqjBeknT0<br />
    59. 59. Gartner’s hype cycle<br />Virtual Worlds today?<br />
    60. 60. What financial crisis?<br />Increasing members<br />Increasing turnover<br />Increasing companies<br />Wonderland<br />
    61. 61. Virtual world revenues<br />USD 330,000<br />for space resort<br />USD 3bln in 2009 <br />US spending on virtual goods passes USD 1 bln in 2009 <br />
    62. 62. Facilitating the virtual workforce through virtual worlds<br /><ul><li>Completely private virtual business worlds offering tools to conduct business and collaborate
    63. 63. Fortune 500: IBM, Intel, Johnson & Johnson, Motorola, Novartis, Sun Microsystems, Unilever </li></li></ul><li>Improving training and education<br />Improving virtual teaming and cross-cultural skills<br />Designed by Duke CE and SSE inworld<br />Task: To build a bridge in your virtual team<br />http://www.youtube.com/watch?v=N8XPmp0qGyg<br />
    64. 64. Finding and recruiting talent globally<br /><ul><li>Amazon.com job fair
    65. 65. Benelux job fair
    66. 66. Accenture island
    67. 67. IBM island
    68. 68. Entrepreneurs
    69. 69. Microemployees
    70. 70. Pro-Ams</li></li></ul><li>New possibilities for marketing<br />Project led by Florida State University<br />New brands designed and showcased during annual Miss Calypso on Planet Calypso<br />Results reveal that VWs enable engaging brand experiences that go far beyond 2D webpages<br />Hooker et al. 2009<br />
    71. 71. Redgrave – A virtual boutique in Second Life<br /><ul><li>Numerous stores selling all kinds of wares and services in-world
    72. 72. International customer base
    73. 73. Easy payment scheme: Microtransactions
    74. 74. Global work force: Microemployees</li></li></ul><li>Will the playing field for SMEs be leveled?<br />Innovation workshops bring together users from across the globe<br />Giovacchini et al. 2009<br />
    75. 75. The University of Texas goes inworld<br />https://blogs.secondlife.com/community/learninginworld/blog/2009/09/15/the-first-statewide-rollout-of-a-virtual-world-learning-environment-the-university-of-texas-system-in-second-life<br />53<br />
    76. 76. Which professions and industrieswill not be revolutionized?<br />
    77. 77. From the mobility of goods to the mobility of financial capital to … <br />...the “mobility” of labor?<br />
    78. 78. Interested in learning more about Virtual Worlds?<br />
    79. 79. So, what does all this mean?<br />Organizations have to ….<br />develop their employees’ network leadership skills<br /><ul><li> to build their networks globally - both inside and out</li></ul>leverage social media<br />to win the war for talent <br /> to innovate for continuous competitive advantage<br /> to build their reputation and brand<br /> to build their networks across numerous boundaries<br />cultivate an open, knowledge sharing culture<br />
    80. 80. Leadership moving forward……<br />Hierarchy<br />Linear, static, process-based organization<br />Heterarchy<br />Dynamic, integrated collaboration networks <br />If you love knowledge, set it free…<br />Teigland 2010<br />
    81. 81. DN<br />Aug 20, 1996<br />
    82. 82. Thanks and <br />see you in world!<br />Karinda Rhode<br />aka Robin Teigland<br />robin.teigland@hhs.se<br />www.knowledgenetworking.org<br />www.slideshare.net/eteigland<br />Photo: Lindholm, Metro<br />

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