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

CASE

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
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employer
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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