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1. Natural Learning
2. Network Effects
3. Management
   Innovation
4. Slam-Dunk ROI
2
Learning is natural
austin 1, 2, 3




                 4
5
6
7
Learning
Natural
Social
Spontaneous
Informal
Unbounded
Adaptive
Fun
Self-service


               8
20%




      10
11
Learnscape Architecture
16
NODES
In the beginning...




                      17
NODES CONNECT
Connections create value




                      18
HIERARCHIES
Knowledge is power




                     19
Connections reach out
Connections erode scarcity




                             20
Faster, faster, faster




                         Now
Information Glut


Connections hop the walls
between disciplines. Everyone
is forced to become a
generalist.




                                22
Everyone is forced to become a genera


Volatility
                   Days per Year the S&P 500 Gained or Lost >3% in Value
                  20




                  15




                  10




                   5




                   0
                       1950s    1960s   1970s   1980s    1990s   23   2000s
Value migrates to intangibles

        Stuff      Tangibles
                       (Nodes)

Market Value
 S&P 500

                                                        Relationships



                                 Intangibles
                                 (Connections)
                1982                             1999
Business migrates to services

                                                  Services
               United States GNP
            Personal Consumption


                                          Goods


                                   1947                  2007


                                                             25
                                                             22
Data: Moody’s www.freelunch.com
Value distribution: BEFORE



            Most value here




                              26
                              23
The Post-network Tail
Value distribution:      AFTER



     Shorter




                                             Most value here



                    Longer




                             Source of innovation

                                                          27
The Long Tail
The Post-network Tail



                                                        Folksonomy
                                                        eBay
                                                        Craig’s List
                Peer-to-peer
                Crowd sourcing
                Open software
                User-driven innovation
                Viral marketing




                                 Source of innovation

                                                             28
PHASE CHANGE
Today’s uneasy transition




                        29
At home:




 At work:




            35
Learnscape
38
39
40
41
42
43
44
Don’t think one node at a time.
46
Wiki        T. Rowe Price



          Project History

       recurring tax questions

         set up FAQ & blog

           rapid look-ups
Annual Value

     1,500 temp workers

        2 minutes/call

         $3,000,000

+ better customer service
Intelpedia

    Project History           Annual Value

      3 years old          20,000 active users

     free software       x 30 minutes/week saved

 1,000,000+ page views      200 person-years
Blog + RSS                                     CGI Systems




             Professionals learn more from one another
             than they will ever learn from outsiders.
CGI

      Project History          Annual Value

communities of practice      4,000 active users

 consolidated research    x 30 minutes/week saved

  redundancy slashed      +100,000 billable hours
Community
SAP Developer Network

    Project History             Annual Value

communities of practice    1,000,000+ active users

   answer customer        most queries answered by
       inquiries               non-employees
  network, blogs, tech
                                incalculable
     library, wikis
               + faster, more accurate responses
61
52
62
54
jaycross.com

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Natural Learning Network Effects Drive Management Innovation