Of original Forbes 100 in 191761 companies ceased to exist by 198718 of remaining 39 underperformed market by 20%Only 2 beat market index (GE & Eastman Kodak)Only 1 (1%) today!Of companies in original S&P 500 in 1957426 companies ceased to exist by 1997Only 12 (2.4%) outperformed S&P 500 index in 1997 Of top 100 companies in Korea in 1955Only 7 still on list in 20041997 crisis destroyed half of 30 largest conglomerates
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
http://ez.no/company/news/ez_systems_wins_the_red_herring_global_100Selected 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.
120,000 tshirts sold each monthThreadless:What came first – the community or the company?RT: presents Threadless, http://www.nickburcher.com/2009/05/threadless-twitter-tees-another-example.html1,530,000 followers on TwitterThe whole business model for Threadless is based on an implicit understanding of how the social web works and gives a great demonstration of how communities can be built and harnessed across an organisation. Identifying online enthusiasts and passion groups and then using social platforms to bring them into the core of a business would appear to be a more powerful way of utilising social opportunities than just running ads on Facebook - but it requires a good deal more commitment. The media aspect of social offers some exciting opportunities for brands, but the potential of the social web can be significantly greater if the power of community is fully realised. In summary, there has to be purpose behind why you use social media. Largest challenge is about changing the mindset though – where create value? Use of social media considerably larger in smaller companies: Inc 100 vs Fortune 100. In these smaller companies, social media being used as a leadership tool as well.
The Forge “The world’s first open-source community of car designers and fabricators.” Crowdsourced design and selection process; option to help build your own car.
Kay, J. (1993) Foundations of Corporate Success, Oxford, Oxford University Press.
(1) Enabling people 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.
Liam Dippenaar couldn't catch a ball with both hands. Holding two objects at once was a feat and, though right-handed, the 5-year-old used his left. Born with Ambiotic Band Syndrome, Liam lacks the instrument critical for most tasks: fingers. Thanks to two strangers halfway around the world and the magic of 3D printing, Liam is now able to color and write to his heart's content. Ivan Owen and Richard Van As created Robohand, an open-sourced device built with customized prosthetic fingers. Owen, of Washington state, and Van As, of South Africa, collaborated via the Internet to create the prosthetic. The duo decided to make the design in the public domain to help others who can benefit from the technology.Their journey started in 2011, when Van As came across a video of Owen's costume piece, a robotic hand built for amusement. Van As lost most of the fingers on his right hand in a woodworking accident and cast a net out for those willing to help build a prosthetic. Owen was the only one who agreed. "I had started with the first prototype prior to meeting Ivan. But yes, there were so many obstacles and one of the main ones was contacting people and them just saying, 'No, it can’t be done,'" Van As tells Mashable. Long nights on Skype and a 10-hour time difference took some getting used to, but the two kept the project going through email and file sharing. Owen and Van As initially used a milling machine and spent hours engineering parts until MakerBot donated two Replicator2 Desktop 3D Printers. The donation exponentially cut production time for prototypes. What used to take up to three days to complete can now be done in only 20 minutes. Using OpenSCAD, a free software application, Owen and Van As can exchange files and make changes in minutes. Jenifer Howard, MakerBot's PR director, says the cross-continent collaboration fits perfectly with the company's mission. "We love to see our printers being used for amazing life-changing and life-validating projects like this," Howard says. The two men document their progress on a blog called "Coming up Short Handed." Liam's mother, Yolandi, saw the site and reached out to Van As for help. Liam, who has no fingers on his right hand, received his own Robohand at no cost after several trials and prototypes. "At first it was quite amazing to see the smile on his face when they made the first prototype and he put it on his hand," Yolandi says. "His expression was, 'Oh wow, it’s copying me.'
Global collaboratorsPlatforms like ThingiverseInterest-specific groups on, for example, Google +Open Software and Hardware movements – use of SourceForge and GitHubMailing lists – partners not just local
The World Bank's NESAP-ICT program has been trying to help countries with such challenges. The New Economy Skills for Africa Program - ICT was launched in 2008 to support countries in Sub-Sahara Africa (SSA) in building skills for the knowledge economy. It has focused initially on supporting the development of globally benchmarked, employable skills for the Information Technology (IT) and IT Enabled Services (ITES) industry -- sectors that can create thousands of new jobs and catalyze economic and social transformation. (Here's a related World Bank publication on The Global Opportunity in IT-Based Services: Assessing and Enhancing Country Competitiveness[pdf]).In Tanzania, NESAP-ICT is helping to support the development of what are known as SMART Knowledge Hubs, which are hoped to help form a 'backbone' of sorts the development of education in IT and a broader set of 'new economy skills' in the country. The SMART Skills (Software, Mobile Applications, Research and Technology) project began by asking about the type of IT-related skills are being sought by the local IT sector, and about the demands from students to acquire such skills that aren't being met by existing course offerings from Tanzanian institutions. The first related pilot effort is supporting the creation of a 'knowledge hub' in Dar Es Salaam, directed and coordinated by COSTECH, the Tanzania Commission for Science and Technology. It is hoped that this initial SMART Knowledge Hub will serve as a model for how to do similar things in other parts of the country.The project in Tanzania is, together with Coursera, identifying a MOOC IT curriculum aligned with the needs of Tanzanian private sector employment tracks. The first stage of this process includes the design and development of the overall curriculum, informed by input from lecturers in IT and business in Dar Es Salaam, as well as from entrepreneurs and local businesses. The idea is to support students in various ways as they participate in MOOCs as part of their studies, in advance of the traditional recruiting season that kicks off at the start of the summer.[-] How can students identify MOOCs that are relevant complements to their current areas of study -- and improve their future employment opportunities?[-] How might MOOCs be formally incorporated into such formal study, with official credit given for the successful completion of a MOOC?[-] More broadly, how can a higher education system align itself to help meet some of the immediate hiring needs of local industry, especially where local institutions may not currently have the capacity to develop and offer courses that help sufficient numbers of students develop the types of skills demanded by the labor market?
Snabbutveckling, 600% på 3 årMassolution: Four established types of crowdfunding exist: donation-based, reward-based, equity-based, and lending or debt-based. In May 2013, there were around 800 crowdfunding platforms worldwide, and crowdfunding initiatives raised an estimated 2.6 billion USD in 2012, including about 945 million USD in Europe through 470 000 campaigns. Furthermore, Massolution predicts that in 2013 crowdfunding will reach volumes of 5.1 billion USD worldwide, with about 1.3 billion USD in European markets. To date, business and entrepreneurial activity comprises 16.9% of all crowdfunding activity while Information and Communication Technology projects comprise a mere 4.8% of activity. According to 2010 market data, Sweden’s venture capital firms made the highest value of investments relative to GDP in Europe and had the sixth highest investment value in the world (EVCA, 2012).There are no public statistics for crowdfunding for Sweden as a whole but, as of May 2013, and based on the publicly available numbers, we have estimated the amount raised in Sweden to be around USD 4 million, with 1 million of this through reward-based crowdfunding and 3 million through equity-based crowdfunding. The primary platform that deals with entrepreneurs, FundedByMe, raised around USD 3.8 million of that across 744 successful projects. Excluding FundedByMe itself, 25 of these successes were Technology or Internet related (by the platform’s definition), but only three have been entrepreneurial ICT projects as opposed to the more common social projects. Two raised USD 38 000 through reward-based crowdfunding while the third raised USD 150 000 through equity crowdfunding.
Entrepreneurs need funding – we give them the chance to test, iterate and grow. Fast.Everyone wants to be part of the next big thing in business – without having to spend millions. Ownership is the best form of participation. Millions of ordinary citizens are a massive force.
From CrowdCubeEquity < 10% of total crowdfunding Politicians generally positive -> entrepreneurs + job creationBut regulation is lagging in most countriesUSA passed JOBS Acts ”Jumpstart Our Business Startup Act”Title II for accredited investors this fallTitle III for non-accredited investors later in fall9 mln accredited investors in USA3% invested USD 23 bln in 2012 in startups and growth companies8.8 times more than total global crowdfunding marketNon-accredited investors even larger group
Bitcoin holds huge potential here, but must also look at existing methods of payment. Many Kenyans, for example, do not have bank accounts – but they do have cellphones. Cellphone company Safaricom is behind the world-famous m-pesa mobile money, which has been replicated in several countries, including South Africa and Zimbabwe.
Jon Matonis, Forbes, Rhetorically, I posed the question: “In fifty years, would you rather own 100 euros, 100 Amazon Coins, or 100 bitcoins?” http://www.forbes.com/sites/jonmatonis/2013/05/20/bitcoin-comes-to-swift/
http://www.youtube.com/watch?v=0CijdlYOSPcWhile many definitions of VWs, these are the characteristics that I find relevant to the study of virtual entrepreneurship. Persistent, computer-simulated, immersive environments ranging from 2D "cartoon" imagery to more immersive 3D environmentworld exists regardless of whether users logged inUsers can manipulate and/or alter existing content or even create customized content Shared space or co-presencenumerous users, or ‘avatars’, simultaneously participate, interact, and share experiences through gestures, text chat, and voiceSocialization/community formation of in-world social groups such as teams, guilds, clubs, cliques, housemates, neighborhoods, etc the world allowed and encouraged
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
I can’t find the source for this, it would be great if someone could point this out to me.
Third Industrial Revolution_Teigland
Who am I? (LinkedIn Inmaps)
"...when the rate of change
outside an organization is
greater than the rate of change
inside, the end is near...."
Increasing pace of change
From 1920s to 2010s
− Average lifespan of S&P 500 company fell from 67
years to 15 years
From 2000 to 2010
− 40% of companies on Fortune 500 list replaced
− In next few years, 70% of Fortune 1000 companies
− By 2020, >75% of S&P 500 companies we do not know
− By 2025, >45% of Fortune 500 from emerging markets
Fast Company, McKinsey & Inc
Did You Know: Shift Happens
1. What trends do you recognize?
2. How are these trends affecting you and
3. What does this have to do with networks?
• “Net generation”
• 24x7 “mobile” workforce
• Social entrepreneurship
• Digital, non-fiat currencies
Human capacity cannot keep up…
Adapted from Cohen & Levinthal 1989
”No one knows everything,
everyone knows something,
all knowledge resides in networks
Six degrees of
- Milgram, 1967
Image: Krebs, http://orgnet.com/email.gif
Adapted from Lévy 1997
Leveraging external resources to find
solutions and solve unsolved problems
From problem solvers to solution finders
The wisdom of the crowd
History tends to repeat itself….
Innovation, financial crisis, industrial revolution, …
Late 18th C
Late 19th C
Late 20th C
105 emp Partners
• Content management software, #1 in media industry
• 250,000 sites in 170 countries
• Customers: UN, FT, WSJ, Vogue, Hitachi, 3M, BMW
• 105 employees in 9 countries (US, Europe & Asia)
A platform for global community collaboration
Est. $30 mln sales
30% profit margin in
20 employees but a
24x7 global “workforce” of
No internal R&D or
sales & marketing
OpenSimulator: A value-creation ecosystem
USD 5.5mln in
Teigland, Di Gangi, & Yetis 2012
Enabling knowledge through MOOCs (massively
open online courses)
SMART (Software, Mobil Apps, Research & Technology)
Knowledge Hubs in Tanzania
New Economy Skills for Africa Program- ICT (Tanzania)
Access to 24x7 global workforce
Matchmakers: USD 1bln industry
Financing through crowdfunding 2012
2.7 bln for 470k
SEK 37 mln
What is Crowdfunding?
Accumulation of small investments in individual
projects by large number of individuals (the
“crowd”) via or with help of Internet and social
networks (De Buysere et al., 2012)
“It’s not just about the money.”
685 people talking
about product on
Australia’s “Major Disaster Department”
World’s largest telecom
From crowdfunding to crowd equity
Billions of dollars
• Equity < 10% of
• Politicians generally
• US, Italy, Denmark
Increasing focus on Crowd Equity in Sweden
Started in Sweden 2011
Started in UK 2010
Started in Finland 2011
Equity: 27,8 mln SEK
To Sweden 2013
To Sweden 2013
Reward: 6,8 mln SEK
“Made in Africa” 3D printer (Togo)
crowdfunded through Ulele
Winner of International
Space Apps Challenge
Venture capitalists are the
travel agents of yesterday
– here today, gone
in Silicon Valley –
Endless possibilities for developing countries
The maker movement in Africa
iHub – Kenya
House4Hack – RSA
Woelab – Togo
Here comes the Immersive Internet….
What are Virtual Worlds?
Platforms for unleashing creativity
and revolutionizing value creation
• Browser-based, multiuser, voice-enabled simulated medical spaces
• Medical interactive narrative requires learner action
Learn through practice and debrief: fail early and learn through failure
Protonsphere by Protonmedia integrated with MS Office
EU funded, 3 year multilateral and transversal network (LLP EACEA, KA3 (ICT))
December 2011 – December 2014
Project Leader: University of Hull (Darren Mundy, Luisa Panichi)
19 partners from Austria, Cyprus, France, Germany, Israel, Italy, Netherlands,
Norway, Portugal, Sweden, UK
−Collect good practice examples in teaching and learning in virtual worlds
from different subjects and national and local contexts
− Facilitate transfer of core knowledge to new contexts
− Provide framework for creation of pan-European virtual-world university
− Increased number of experts in virtual world education
− Policy for long-term sustainability of network and its outcomes
− Model for knowledge transfer
− Range of dissemination events
More information: http://www.euroversity.eu/
“Clearly, if social activity migrates to
synthetic worlds, economic activity will
go there as well.” Castronova, 2006
Viachka, Giovacchini, Teigland, Lindqvist 2011
Charities bridging RL/VW boundary
Teigland, JVWR, 2010
≈1.4 bln VW accounts under age 16
42 mln (and 12 mln bought)
Exploring the link between
VWs and 3D printing
From the mobility of goods
to the mobility of financial capital to …
...the “mobility” of labor?
Teigland, JVWR, 2010
Just published – by Palgrave Macmillan
Models of Knowledge Creation
~ Built by employees within
~ Built by users and distributed
freely regardless of affiliation
Teigland, Di Gangi, & Yetis 2012
Some things do not change
If you love
knowledge, set it free…
aka Robin Teigland
Photo: Lindholm, Metro
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.