Open Innovation
The cultural requirements for
Web 2.0 powered innovation,
networking, and collaboration
Dr. Sam Inkinen
Senior Researcher
Finland Futures Research Centre
www.inkinen.org – www.cid-lab.org

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

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

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

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

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

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

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

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

Wise
Diversity of opinion
1)
Independence
2)
Decentralization
3)
Crowds
Aggregation
4)
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
Traps
• Amplification of falsehoods
• Strategic behavior
• Use of heuristics
• From confidence to extremism
• Focus on personal prospects
• Design by committee
Photo: Mike9Alive

Design by Committee

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

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

Diversity of Thought is
Accuracy of Thought

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

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

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
new ways ecosystem
innovation
to capture value innovation
What you innovate
Changing
the what
Challenge:
Traditional
Product &
be an innovation
Changing
service innovation
product the how
partner of choice
development
Closed Open
How you innovate 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

Winner of World
Summit Award
Finland 2009
in e-business &
category
CASE

portrait details
+ Add contact Itämerenkatu 30 A 10
jaiku FI-00180 Helsinki, Finland
teemu@dicole.com
Teemu Arina facebook Blog: tarina.blogging.fi
“All progress depends
Skype: infe00
on the unreasonable man”
Phone: +358 - 50 -555 7636
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Professional description
CEO, founder “ I seek to understand the changing
friends Dicole Oy nature of organizations as they shift
from the industrial era to the knowledge
Kansakoulukuja 3, 2 krs.
‣ See all intensive era. What new methods,
FI-00100 Helsinki, Finland
structures, skills and tools will they
+358 - 50 - 555 7636
need? As an entrepreneur, programmer,
+10 teacher and designer I design, build and
Digitalization
deliver web-based interaction
grade technology (or social software) that
enables people to co-create together in
community stats a distributed knowledge intensive
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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
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e-banking e-invoicing eu idea

Dicole
Innovation
Work
Environment
CASE

Blogs Networking
Wikis
Tags
Seeds Media Feeds

Organic Enterprise
Nervous system Brain
Feeds, Search, APIs - Wikis, tagging -
Sharing, discovering and Connecting and remixing
tapping into reflections reflectons
Blood system
Senses
Social networking,
Blogs, Media -
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
Dr. Sam Inkinen
Senior Researcher
sam.inkinen@cid-lab.org
www.cid-lab.org
www.inkinen.org
Photo: Markus Koljonen
“Imagination is more important than knowledge.”
– Albert Einstein