Culture Matters - The cultural requirements for Web 2.0 powered innovation, networking, and collaboration

Culture Matters The cultural requirements for Web 2.0 powered innovation, networking, and collaboration February 2008 Teemu Arina CEO, Dicole Ltd. tarina.blogging.ﬁ

Who am I? Photo: Don J. McCrady

MI6 Equipment Wireless microphone Wireless Camcorder receiver with mic in All for <500$ Mic out

Social media publishing strategy Video podcast Top Audio podcast (everything goes performance (content needs editing) unedited to the internet) Weary and Audio podcast Blog post unanimated (content good, (utter failure) but I look bad) Boring rambling Great ideas

Artist: Lotta Viitaniemi, Story: Kim Forsman & Teemu Arina Dicole Ltd.

Changes on the web WEB X.O

Web as a platform Photo: Christopher Chan

Software above a single device Photo: *One*

Data as the new Intel inside Photo: _fabrizio_

Harnessing collective intelligence Photo: Donna Cymek

Rich Internet Applications (RIA, AJAX)

Lightweight business models, e.g. SaaS (Software as a Service) Photo: ulterior epicure

Head (20%) Long Tail r powe g Sign lt erin al v ire dﬁ s. n ois R equ e Sales Tail (80%) Products Ref: Chris Anderson

“The project would have been a success if everything had gone as we planned”

“Everything would work out if we had the right information Myth at the right time at the right place”

The integrated pattern of human knowledge, belief, and behavior that depends upon the capacity for Culture learning and transmitting knowledge to succeeding generations – Merriam-Webster Online Dictionary Photo: Shapeshift

1) 2) 3) Anonymous voting Open conversation Prediction markets Connecting 4) Internet crowdsourcing Many Minds Ref: Cass R. Sunstein, Infotopia

Examples • Kasparov vs. Internet team • Estimating temperature Anonymous • “Ask audience” in Who • Wants to be a Millionaire Movie ratings in IMDB Voting • Youtube video ratings

Why groups can be wise? Condorcet Jury Theorem Marquis de Condorcet, 1743 - 1794

1) 2) 3) Diversity of opinion Independence Decentralization Wise 4) Aggregation Crowds Ref: James Surowiecki, Wisdom of the Crowds

Conversation Each of them by himself may not be of good quality; but when they all come together it is possible that they may surpass – collectively and as a body, although not individually – the quality of the few best. – Aristotle on Collective Intelligence, Politics, circa 334-23 BC. 

• Groupthink and unthinking • Ampliﬁcation of falsehoods • Strategic behavior Traps • Use of heuristics • From conﬁdence to extremism • Focus on personal prospects • Design by committee Photo: Mike9Alive

Design by Committee

Filters • Surveillance filter • Mentality filter Weak • Power filter – Dr. Igor Ansoff, 1984 Signals Photo: .supernova.

• Group polarization • Reputational cascades • Informational cascades • Hidden proﬁles • Social pressures Biases • Common knowledge effects • Algorithmic bias (e.g. Google)

Diversity of Thought is Accuracy of Thought

What doesn’t ﬁt in? 1 2 3 Cow Chicken Grass Ref: Richard Nisbett

1) Economic incentives motivate participation 2) Disclosing information is crucial for winning Prediction 3) Those who do not know, will step aside Markets

Ecosystem way: Internet Crowdsourcing Photo: Hugo*

What is Innovation? ■ An idea becomes an innovation only through wide adoption, either through: ■ centralized resources (traditional innovation) ■ decentralized resources (open innovation) commons-based peer-production

How’s your innovation pipeline? Photo: Pavlos Pavlidis

Traditional Innovation

Open & Organic Innovation Photo: ippei + janine

What kind of innovation? Challenge: Challenge: Business model innovation new ways ecosystem to capture value innovation What you innovate Changing the what Traditional Challenge: Product & Changing service innovation product the how be an innovation development partner of choice Closed How you innovate Open Source: Henry Chesbrough, 2007

Future Challenge In the future, organizations will compete on: Who is able to create a rich user community improving their products where users want to belong Image: Felippe Torres

“There’s something fundamental about organizations and leadership that makes it almost impossible for people inside a business to change their own industry. Industries are based on formats that are basically legacies of military hierarchies” Ricardo Semler Semco Kuva: GustavoG

“Virtually everything new seems to come from the 20 percent of their time engineers here are expected to spend on side projects. They certainly don't come out of the management team” Eric Schmidt Google CEO Kuva: GustavoG

Participation Inequality 1% creators 10% synthesizers 100% consumers Ref: Bradley Horowitz, Jacob Nielsen

Participation Power Law Ownership High Moderating Engagement Collaborating Reﬂecting Recommending Linking Commenting Tagging Rating Subscribing Low Reading Threshold Collective Collaborative Intelligence Intelligence (implicit creation) (explicit creation) Ref: Teemu Arina, based on Ross Mayfield

portrait details + Add contact Itämerenkatu 30 A 10 jaiku FI-00180 Helsinki, Finland Teemu Arina teemu@dicole.com facebook Blog: tarina.blogging.fi “All progress depends on the unreasonable man” Skype: infe00 Phone: +358 - 50 -555 7636 ‣ Edit details employer ‣ Upload photo Professional description CEO, founder Dicole Oy “ I seek to understand the changing friends nature of organizations as they shift Kansakoulukuja 3, 2 krs. from the industrial era to the knowledge ‣ See all FI-00100 Helsinki, Finland intensive era. What new methods, +358 - 50 - 555 7636 structures, skills and tools will they need? As an entrepreneur, programmer, Digitalization grade +10 teacher and designer I design, build and deliver web-based interaction technology (or social software) that enables people to co-create together in community stats a distributed knowledge intensive ‣ Edit employer environment.” Last online 6 minutes ago Submitted ideas 32 Comments 40 education Points received 54201 Ranking position 4. School HSE Skill profile Degree Bachelor “Technology is my sixth sense.” Other degree Knowledge kung-fu tags of interest Target degree Evil priest case Challenge Digitalization e-banking e-invoicing eu idea ‣ Edit education

Organic Enterprise Nervous system Brain Feeds, Search, APIs - Wikis, tagging - Sharing, discovering and Connecting and remixing tapping into reflections reﬂectons Senses Blood system Blogs, Microblogs, Social networking, Social bookmarking - Real-time Reflection in and on action communications, Network analysis - Optimizing interaction flow Skeleton Automation, Real- time processes, Operative technologies - Back- bone for business processes Ref: Teemu Arina, Illustration: Lotta Viitaniemi

Command & Control should become Collaboration and Communication Photo: tashland

Contact Teemu Arina Email teemu@dicole.com CEO, Dicole Ltd. Blog tarina.blogging.ﬁ Company www.dicole.com “Imagination is more important than knowledge” – Albert Einstein

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Culture Matters - The cultural requirements for Web 2.0 powered innovation, networking, and collaboration

by Teemu Arina on Feb 27, 2008

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