Wikinomics - Winning With The Enterprise 2.0

Slide 1: Wikinomics Winning With The Enterprise 2.0 Don Tapscott don@newparadigm.com Enterprise 2.0 June 20, 2007

Slide 2: The New Enterprise Source: Paradigm Shift: The New Promise of Information Technology, 1992 Closed Hierarchy Open Networked Enterprise Structure Hierarchical Networked Scope Internal/closed External/open Resource Focus Capital Human, information State Static, stable Dynamic, changing Personnel/focus Managers Professionals Key drivers Reward and punishment Commitment Direction Management commands Self-management Basis of action Control Empowerment to act Individual motivation Satisfy superiors Achieve team goals Learning Specific skills Broader competencies Basis for compensation Position in hierarchy Accomplishment, competence level Relationships Competitive (my turf) Cooperative (our challenge) Employee attitude Detachment (it’s a job) Identification (its’ my company) Dominant requirements Sound Management Leadership 2 © New Paradigm Learning Corporation 2007

Slide 3: The Rise of the Enterprise 2.0 Strategy Domain Closed Corporation Enterprise 2.0 National Global 1. World View Engine - US, Japan, Europe Engine - China, India, Emergent Protectionist Free Trade Vertically Integrated Focused on Core 2. Corporate Boundaries Business Web Non-porous Context, agency Content + Fasttrack Business Models M&A Closed Innovation + Open Innovation 3. Value Innovation Do it Yourself + Co-Creation Proprietary + Open 4. Intellectual Property Protected + Shared Plan and Push Engage and Collaborate 5. Modus Operandi Hierarchical Self-organizing Power over … Power through … Lumbering Agile Internal (Enterprise Integration) External (+ Inter-enterprise Integration) 6. Business Processes Complex Modular Hardwired Reconfigurable Traditional Demographics + Global N-Generation 7. Human Capital & Containerized Collaboration Knowledge Capital Internal + Across the B-web Opaque + Transparent 8. Information Liquidity Asynchronous processing Real Time Traditional BI Networked Intelligence Transactions + Relationship Capital 9. Relationships Product/Services + Experiences Proprietary + Standards-based 10. Technology Monolithic Service oriented Silos Interoperable Enterprise + Inter-enterprise Dumb Networks Intelligent Networks 3 © New Paradigm Learning Corporation 2007

Slide 4: Winning With The Enterprise 2.0 4 © New Paradigm Learning Corporation 2007

Slide 5: Time’s Person of the Year 5 © New Paradigm Learning Corporation 2007

Slide 6: Four Drivers for Change WEB 2.0 Web 2.0 The Net Generation The Social Revolution The Economic Revolution 6 © New Paradigm Learning Corporation 2007

Slide 7: Web 2.0 IN G TE Web 2.0 IN G TH RA E TI The TH O Net N Generation The Social BROADBAND Web 2.0 Revolution WEB SERVICES MOBILITY The Economic G Revolution SP EO A DI A- TI E E A U TIM LI TR UL TY M 7 © New Paradigm Learning Corporation 2007

Slide 8: Four Drivers for Change WEB 2.0 THE NET GENERATION 8 © New Paradigm Learning Corporation 2007

Slide 9: The Demographic Revolution Web 2.0 The Net Generation The Social Revolution The Economic Revolution 9 © New Paradigm Learning Corporation 2007

Slide 10: Digital Natives – The Net Generation Web 2.0 The Net Generation The Social Revolution The Economic Revolution 10 © New Paradigm Learning Corporation 2007

Slide 11: The Generation Lap Web 2.0 The Net Generation N-Geners Their Parents The Social Revolution The Economic Revolution 11 © New Paradigm Learning Corporation 2007

Slide 12: The Net Generation Web 2.0 The Net Generation The Social Revolution The Economic Revolution Video available for viewing online at www.newparadigm.com 12 © New Paradigm Learning Corporation 2007

Slide 13: Four Drivers for Change WEB 2.0 THE NET GENERATION THE SOCIAL REVOLUTION 13 © New Paradigm Learning Corporation 2007

Slide 14: The Rise of Collaborative Communities Flickr.com beats WebShots.com vs. Web 2.0 The Net Generation The Social Revolution The Economic Revolution 14 © New Paradigm Learning Corporation 2007

Slide 15: The Rise of Collaborative Communities Digg.com beats Slashdot.org vs. Web 2.0 The Net Generation The Social Revolution The Economic Revolution 15 © New Paradigm Learning Corporation 2007

Slide 16: The Rise of Collaborative Communities Craigslist.org beats Monster.com, Match.com vs. Web 2.0 The Net Generation The Social Revolution The Economic Revolution 16 © New Paradigm Learning Corporation 2007

Slide 17: The Rise of Collaborative Communities Myspace.com beats MTV.com vs. Web 2.0 The Net Generation The Social Revolution The Economic Revolution 17 © New Paradigm Learning Corporation 2007

Slide 18: The Rise of Collaborative Communities Wikipedia.org beats Britannica.com vs. Web 2.0 The Net Generation The Social Revolution The Economic Revolution 18 © New Paradigm Learning Corporation 2007

Slide 19: The Rise of Collaborative Communities Blogger.com beat CNN.com vs. Web 2.0 The Net Generation The Social Revolution The Economic Revolution 19 © New Paradigm Learning Corporation 2007

Slide 20: The Rise of Collaborative Communities Epinions.com vs ConsumerReports.org vs. Web 2.0 The Net Generation The Social Revolution The Economic Revolution 20 © New Paradigm Learning Corporation 2007

Slide 21: Alex Tapscott’s Wikinomicists Community Web 2.0 The Net Generation The Social Revolution The Economic Revolution 21 © New Paradigm Learning Corporation 2007

Slide 22: Four Drivers for Change WEB 2.0 THE THE ECONOMIC NET REVOLUTION GENERATION THE SOCIAL REVOLUTION 22 © New Paradigm Learning Corporation 2007

Slide 23: Digital Conglomerates Web 2.0 The Net Generation The Social Revolution The Economic Revolution 23 © New Paradigm Learning Corporation 2007

Slide 24: The Economics of Collaboration Self- Organization Web 2.0 The Net Generation Value Creation The Social Revolution The Economic Revolution Industrial Age Traditional Hierarchy Corporation Knowledge Physical Critical Resources Financial 24 © New Paradigm Learning Corporation 2007

Slide 25: The Economics of Collaboration Self- Organization Web 2.0 The Net Generation Value Creation The Social Revolution Extended The Economic Enterprise Revolution Industrial Age Traditional Hierarchy Corporation Knowledge Physical Critical Resources Financial 25 © New Paradigm Learning Corporation 2007

Slide 26: The Economics of Collaboration Self- Organization Web 2.0 The Net Generation Business Value Webs Creation The Social Revolution Extended The Economic Enterprise Revolution Industrial Age Traditional Hierarchy Corporation Knowledge Physical Critical Resources Financial 26 © New Paradigm Learning Corporation 2007

Slide 27: The Economics of Collaboration Mass Self- Organization Collaboration Web 2.0 The Net Generation Business Value Webs Creation The Social Revolution Extended The Economic Enterprise Revolution Industrial Age Traditional Hierarchy Corporation Knowledge Physical Critical Resources Financial 27 © New Paradigm Learning Corporation 2007

Slide 28: The Enterprise 2.0 and the Rise of Mass Collaboration Peering 1. Web 2.0 Being Open 2. The Net Generation Sharing 3. The Social Acting Global 4. Revolution The Economic Revolution 28 © New Paradigm Learning Corporation 2007

Slide 29: Enterprise 2.0 – New Business Models A 50 year old mining company peers, opens, shares its proprietary data and acts globally in a bid to transform itself and explore the extent of a rich new find. 29 © New Paradigm Learning Corporation 2007

Slide 30: Four Drivers for Change WEB 2.0 THE THE ECONOMIC NET REVOLUTION GENERATION THE SOCIAL REVOLUTION 30 © New Paradigm Learning Corporation 2007

Slide 31: The Perfect Storm 31 © New Paradigm Learning Corporation 2007

Slide 32: Enterprise 2.0 – New Business Models Peer Pioneers 1. Ideagoras 2. Prosumers 3. The New Alexandrians 4. Open Platforms 5. The Global Plant Floor 6. The Wiki Workplace 7. 32 © New Paradigm Learning Corporation 2007

Slide 33: Enterprise 2.0 – New Business Models 1. Peer Pioneers 33 © New Paradigm Learning Corporation 2007

Slide 34: Enterprise 2.0 – New Business Models 1. Peer Pioneers 34 © New Paradigm Learning Corporation 2007

Slide 35: Enterprise 2.0 – New Business Models 1. Peer Pioneers – Financial Services Marketocracy.com Investment Management 35 © New Paradigm Learning Corporation 2007

Slide 36: Enterprise 2.0 – New Business Models 1. Peer Pioneers – Financial Services Zopa.com peer lending 36 © New Paradigm Learning Corporation 2007

Slide 37: Enterprise 2.0 – New Business Models 2. Ideagoras Creating an eBay for innovation How do you create a vibrant marketplace where you  leverage other people's talents, ideas and assets quickly and move on? P&G’s Larry Huston: “Alliances and joint ventures  don't open up the spirit of capitalism within the company. They're vestiges of the central planning approach when instead you need free market mechanisms.” How InnoCentive works: 37 © New Paradigm Learning Corporation 2007

Slide 38: Enterprise 2.0 – New Business Models 2. Ideagoras 38 © New Paradigm Learning Corporation 2007

Slide 42: Enterprise 2.0 – New Business Models 3. Prosumers – Case: “Music Industry–The Remix” 42 © New Paradigm Learning Corporation 2007

Slide 43: Enterprise 2.0 – New Business Models 3. Prosumers – Help Us Write the Final Chapter! 43 © New Paradigm Learning Corporation 2007

Slide 44: Enterprise 2.0 – New Business Models 3. Prosumers – Physical Goods Peer Produced T-Shirts 44 © New Paradigm Learning Corporation 2007

Slide 45: Enterprise 2.0 – New Business Models 4. The New Alexandrians: The Sharing of Science SNP Consortium: APBiotech, AstraZeneca Group PLC, Aventis, Bayer Group AG, Bristol-Myers Squibb Co., F. Hoffmann-La Roche, Glaxo SmithKline, Wellcome Trust, IBM, Motorola, Novartis AG, Pfizer Inc., and Searle 45 © New Paradigm Learning Corporation 2007

Slide 46: Enterprise 2.0 – New Business Models 4. The New Alexandrians: Nature’s Google Earth Avian Flu Mashup Source: Howard Ratner, CTO, Nature Publishing Group 46 © New Paradigm Learning Corporation 2007

Slide 47: Enterprise 2.0 – New Business Models 4. The New Alexandrians: Nature’s Google Earth Avian Flu Mashup Source: Howard Ratner, CTO, Nature Publishing Group 47 © New Paradigm Learning Corporation 2007

Slide 48: Enterprise 2.0 – New Business Models 5. Open Platforms – Amazon API < Pay listing fee and commission to list goods on Amazon < Ship merchandise (including that sold by associates) Provide Customer Service Provide hosting and Browse Amazon and Purchase merchandise > transaction services > < List merchandise, provide a range of products Direct Traffic and Possible Sales to Amazon > Customers Amazon.com < Pay commission on traffic Provide Data resulting in sales From sales > Facilitates listing and payments for sellers > Marketplace Associates Surf Websites follow links to Amazon.com > Browse Amazon products Via websites and other online media > Host shopping experience and direct sales to Amazon.com for processing > Retailers Historical < Receive commission on sales via associate accounts Pricing Free Access to Amazon data and capability via API > E-Commerce Services < Time, Knowledge, Innovation, Promote and Sell Amazon < Pay fee for access to information merchandise Provide Pricing and Sales Data > Pay Developers for posting acceptable Pay for Queries > Developers/ answers > Entrepreneurs < Developers pay to have questions < Access to A9.com search index answered Legend: Green – Web Services Provide platform for questions Light Blue – Groups to be outsourced >,> Pay for storage & data transfer > Dark Blue – Other services Alexa Services < Provide answers to questions < Provide online data storage (Top Sties, WIS NOTE: Missing connector and WSP) from Associates to Developers. Should read Mechanical “Pay developer S3 Turk commissions fro sales (Simple Storage generated through ECS” Service) 48 © New Paradigm Learning Corporation 2007

Slide 49: Enterprise 2.0 – New Business Models 5. Open Platforms – Pikspot 49 © New Paradigm Learning Corporation 2007

Slide 50: Enterprise 2.0 – New Business Models 6. The Global Plant Floor The Peer Produced Airplane In the past, Boeing wrote  detailed specifications for each part and asked suppliers to build to plan Today, suppliers co-design  airplanes from scratch and deliver complete sub-assemblies to Boeing’s factory, where a single plane can be snapped together like Lego blocks, in as little as 3 days 50 © New Paradigm Learning Corporation 2007

Slide 51: Enterprise 2.0 – New Business Models 6. The Global Plant Floor – Chinese Motorcycle Industry 51 © New Paradigm Learning Corporation 2007

Slide 54: Enterprise 2.0 – New Business Models Peer Pioneers 1. Ideagoras 2. Prosumers 3. The New Alexandrians 4. Open Platforms 5. The Global Plant Floor 6. The Wiki Workplace 7. 54 © New Paradigm Learning Corporation 2007

Slide 55: Crisis of Leadership Paradigm shifts involve dislocation, conflict, confusion, uncertainty. New paradigms are nearly always received with coolness, even mockery or hostility. Those with vested interests fight the change. The shift demands such a different view of things that established leaders are often last to be won over, if at all. Marilyn Ferguson 55 © New Paradigm Learning Corporation 2007

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