Third Industrial Revolution? Creating value beyond the firm's boundaries


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My presentation at the Network for Organizational Researcher in Norway ( in November 2009 as well as for Ånge County in Sweden March 2010

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  • Everybody is connected to everybody else by no more than six degrees of separation.“Small World Phenomenon” by sociologist Stanley Milgram, 1967Back groundExample who ever you take that average is six step
  • I always like to put things into perspective. The theme of today’s event is that of seeing opportunities in the midst of the financial crisis and I think that what is interesting and relevant here is that several economic historians had actually predicted the crisis that we are experiencing now. I don’t have time to go into all the details, but what we are seeing is a pattern repeating itself. As in the late 18th and 19th Centuries there was a technological innovation that led to a period first of transformation as the innovation began to be diffused, then a period of rationalization leading to an imbalance, and then to a financial crisis coming around 40 years after the innovation. However, in the past, these financial crises have then led to periods of great economic development – industrial revolutions, in which industry profitability has been restored through a redistribution of the value-added between capital and labor. But more importantly, these crises filtered out those organizations that could not adapt and change to stay competitive in the new industrial environment. And one of the most important things that is of interest for today’s discussion is that in one of the factors facilitating these new phases of economic growth following the crisis has been that a generation of people that had never experienced life without the innovation starts to enter the workforce – thus they are not restricted by old ways of thinking.experiencing now some economic historians claim to be due to the innovation of the microprocessor and microelectronics in the 1970s. Similar to what we experienced with the innovation of the steam engine in the late 18th C and the internal combustion engine and electric motor in the late 19th C, there was a subsequent crisis about due to various forces converging. We saw that as these basic innovations were diffused, people stopped investing in the existing industrial structure and instead focused on investing in a new generation of competitive machinery, which then led to an industrial revolution in both cases as the innovations became embedded in society. At the same time, the crisis served to release the negative pressure that had been built up as well as to restore industry profitability through the redistribution of value-added between capital and labor. Other notesNotes from article - Schön, L, Economic Crises and Restructuring in HistoryA crisis is connected with changes in the long term or structural conditions built up during a rather long period of time and effects behavior for a long time to comeTransformation – changes in industrial structure – resources are reallocated between industries and diffusion of basic innovations with industry that provides new bases for such reallocationRationalization – concentration of resources to most productive units within the branches and measures to increase efficiency in different lines of productionShifts between transformation and rationalization have occurred with considerable regularity in structural cycle of 40 years – 25 years on transformation, and 15 years on rationalization. Crises been part of this cycle as wellInternational crisis in 1840s – How go from crisis to expansion quickly – went quite rapidly in 1930s for Sweden – but Sweden in opposite corner in 1970s1850s – upswing of industrial and infrastructural investments was linked to breakthrough of mechanized factories in Sweden, modernization of steel processes and construction of railways1930s and more marked after WWII late 1940s - expansion of electrification and diffusion of automobiles, processing of electrosteel to small motors in handicraft and household – combination with motorcar – new styles in living and consumptionWaves of investments around development of an infrastructure from basic innovation of preceding cycle mid 1970s – microprocessor – knowledge and information in production of goods and servicesIt is not the basic innovation itself – but the diffusion of the innovation that counts!When invented, then expensive to implement, have a narrow range of application – Following generalization – A structural crisis (that has been preceded by an early development of basic innovations) has put an end to old directions of investments mainly in rationalization of existing industrial structure and given rise to investments in ne and devt of new tech that after one decade (the length of the classical Juglar cycle of machinery investments) has created a new generation of economically competitive machineryReallocation of labor occurs approx 15-30 years after the structural crisisDevelopment of markets – distribution of value added between capital and labour is one mirror of these changesDiffusion of innovations leads to expansion of markets and arrival of new competitors – Structural crises – release negative pressure and restored profitability in industry – get rid of those who not competitive
  • While we have always had networks, what has changed dramatically is that now with social media we have the ability to easily and quickly reach out to individuals across the globe whom we have never met before. And another significant change is that previously while we had one to one two-way communication, this did not enable group communication, and while we also had one to many communication, this did not enable two way communication, but now with social media we can have many to many conversations. So for me the definition of social media are online communication channels that enable many to many interactions and conversations. And as no surprise the most active users of social media are younger people, those who have become skilled at using computers and the internet for all kinds of purposes – to build relationships, find information and knowledge, solve problems, and learn. An extensive study that was just completed by one of the gurus in this area, danah boyd, found that the digital world really is changing the way that young adults and youths socialize and learn. These younger generations are using these new media to explore their own interests and experiment with self-expression – while at the same time they are developing both technical skills and a new form of social skills – solving complex problems online in virtual teams. As a result, these individuals are not only used to but expect more freedom and autonomy in their problem-solving activities at workenable communication & collaboration… through user-generated content….from one-to-one to many-to-many people…- across all boundaries(Next slide)Other notes creating new opportunities for youth to grapple with social norms, explore interests, develop technical skills, and experiment with new forms of self-expression. These activities have captured teens' attention because they provide avenues for extending social worlds, self-directed learning, and independence.Extending friendships online while some developing shared interest communities. Change way that youth socialize and learn - Youth engage in peer-based, self-directed learning online. – Youth respect one another's authority online, and they are often more motivated to learn from peers than from adults. Their efforts are also largely self-directed, and the outcome emerges through exploration, in contrast to classroom learning that is oriented by set, predefined goals.Increased degree of freedom and autonomy Not just receivers of knowledge but creators of knowledge as well danah boyd studyWe are happy to announce the online release of the findings from our three-year Digital Youth project ( ). All of the researchers who have worked on this project will be writing up individual publications, but this report represents a synthesis of the findings across the 22 different case studies. It has been over three years in the making, and is the result of a truly collaborative effort with 28 researchers and research collaborators.This project is part of the MacArthur Foundation Digital Media and Learning initiative. can find all the details in the documents linked below, and a summary of our report below.Two-page summary of report: paper: report: release and video: SUMMARYOver three years, Mimi Ito and her 28-person research team interviewed over 800 youth and young adults and conducted over 5000 hours of online observations as part of the most extensive U.S. study of youth media use to date.They found that social network sites, online games, video-sharing sites, and gadgets such as iPods and mobile phones are now fixtures of youth culture. The research finds today's youth may be coming of age and struggling for autonomy and identity amid new worlds for communication, friendship, play, and self-expression.Many adults worry that children are wasting time online, texting, or playing video games. The researchers explain why youth find these activities compelling and important. The digital world is creating new opportunities for youth to grapple with social norms, explore interests, develop technical skills, and experiment with new forms of self-expression.These activities have captured teens' attention because they provide avenues for extending social worlds, self-directed learning, and independence.MAJOR FINDINGS- Youth use online media to extend friendships and interests. -Most youth use online networks to extend the friendships that they navigate in the familiar contexts of school, religious organizations, sports, and other local activities. They can be always "on," in constant contact with their friends through private communications like instant messaging or mobile phones, as well as in public ways through social network sites such as MySpace and Facebook. With these "friendship-driven" practices, youth are almost always associating with people they already know in their offline lives. The majority of youth use new media to "hang out" and extend existing friendships in these ways.A smaller number of youth also use the online world to explore interests and find information that goes beyond what they have access to at school or in their local community. Online groups enable youth to connect to peers who share specialized and niche interests of various kinds, whether that is online gaming, creative writing, video editing, or other artistic endeavors. In these interest-driven networks, youth may find new peers outside the boundaries of their local community. They can also find opportunities to publicize and distribute their work to online audiences, and to gain new forms of Visibility and reputation.- Youth engage in peer-based, self-directed learning online. -In both friendship-driven and interest-driven online activity, youth create and navigate new forms of expression and rules for social behavior. By exploring new interests, tinkering, and "messing around" with new forms of media, they acquire various forms of technical and media literacy. Through trial and error, youth add new media skills to their repertoire, such as how to create a video or game, or customize their MySpace page. Teens then share their creations and receive feedback from others online. By its immediacy and breadth of information, the digital world lowers barriers to self-directed learning.Some youth "geek out" and dive into a topic or talent. Contrary to popular images, geeking out is highly social and engaged, although usually not driven primarily by local friendships. Youth turn instead to specialized knowledge groups of both teens and adults from around the country or world, with the goal of improving their craft and gaining reputation among expert peers. While adults participate, they are not automatically the resident experts by virtue of their age. Geeking out in many respects erases the traditional markers of status and authority.New media allow for a degree of freedom and autonomy for youth that is less apparent in a classroom setting. Youth respect one another's authority online, and they are often more motivated to learn from peers than from adults. Their efforts are also largely self-directed, and the outcome emerges through exploration, in contrast to classroom learning that isoriented by set, predefined goals.IMPLICATIONSNew media forms have altered how youth socialize and learn, and raise a new set of issues that educators, parents, and policymakers should consider.-Adults should facilitate young people's engagement with digital media. Contrary to adult perceptions, while hanging out online, youth are picking up basic social and technical skills they need to fully participate in contemporary society. Erecting barriers to participation deprives teens of access to these forms of learning. Participation in the digital age means more than being able to access serious online information and culture. Youth could benefit from educators being more open to forms of experimentation and social exploration that are generally not characteristic of educational institutions.Because of the diversity of digital media, it is problematic to develop a standardized set of benchmarks against which to measure young people's technical and new media literacy. Friendship-driven and interest-driven online participation have very different kinds of social connotations. For example, whereas friendship-driven activities centers upon peer culture, adult participation is more welcomed in the latter more "geeky" forms of learning. In addition, the content, behavior, and skills that youth value are highly variable depending on what kinds of social groups they associate with.In interest-driven participation, adults have an important role to play. Youth using new media often learn from their peers, not teachers or adults. Yet adults can still have tremendous influence in setting learning goals, particularly on the interest-driven side where adult hobbyists function as role models and more experienced peers.To stay relevant in the 21st century, education institutions need to keep pace with the rapid changes introduced by digital media. Youths' participation in this networked world suggests new ways of thinking about the role of education. What, the authors ask, would it mean to really exploit the potential of the learning opportunities available through online resources and networks? What would it mean to reach beyond traditional education and civic institutions and enlist the help of others in young people's learning? Rather than assuming that education is primarily about preparing for jobs and careers, they question what it would mean to think of it as a process guiding youths' participation in public lifemore generally.
  • n many ways, education hasn’t changed much since students sat at the feet of Socrates more than two millenniums ago. Learners still gather each autumn at colleges to listen to and be questioned by professors.But the Internet has caused sudden shifts in other industries, from the way people read news to the way they buy music or plan travel. Might higher education be nearing such a jolt?Aside from the massive dent put in their endowments by Wall Street’s woes, colleges and universities mostly have been conducting business as usual. Costs have soared compared with general inflation, but students still flock to classes.Many have theorized that the Internet could give education a rude shock. Recently, an opinion piece by Zephyr Teachout, a law professor at Fordham University in New York who once served as an Internet organizer for presidential candidate Howard Dean, put the possibility in dramatic terms.“Students starting school this year may be part of the last generation for which ‘going to college’ means packing up, getting a dorm room, and listening to tenured professors,” she wrote in The Washington Post. “Undergraduate education is on the verge of a radical reordering. Colleges, like newspapers, will be torn apart by new ways of sharing information enabled by the Internet.”She’s not the first to see newspapers moving from print to online and wonder whether something similar could happen to colleges. Online newspaper readers tend to seek out individual stories, not what papers as a whole have to say. Might finding the right class online become more important than which institution was offering it? What happens if colleges or even specialized online-only education companies provide essentially the same Economics 101 course? Does geography cease to matter and do low-cost providers win out?Some think it could happen, perhaps sooner than expected. “Three years ago nobody thought the newspaper industry was going to collapse,” says Kevin Carey, policy director of Education Sector, an independent education think tank in Washington, D.C.Today, a college education is more than twice as expensive as it was in the early 1990s, even after adjusting for inflation.“It’s getting worse all the time. There’s no end in sight,” Mr. Carey says.Colleges “have set the bar pretty low for competitors” through a lack of competition, he says. At the same time, many potential students are being underserved. “We need more institutions that are good at serving working students, immigrant students, low-income students, students who are basically going to college because they want to get a credential and have a career,” he says.Carey points to the fledgling company, which offers college courses in subjects from algebra to business statistics, English composition, and accounting. Students can take as many courses as they want for $99 per month, the company’s website says. The price includes 10 hours each month of one-on-one live support and a course adviser. Passing courses results in “real college credit” from one of several colleges affiliated with the program.About 30 percent of the undergraduate credits given each year at US colleges and universities derive from only 20 or 30 introductory classes. It seems logical, then, that these could be turned into “commodities” sold at the lowest price online.“Econ 101 for $99 is online, today. 201 and 301 will come,” Carey writes in an essay, “College for $99 a Month,” in Washington Monthly. “The Internet doesn’t treat middlemen kindly.” He describes an unemployed woman in Chicago who was able to complete four college courses for less than $200 on The same courses would have cost $2,700 at a local university.Of course, colleges and universities have discovered online learning themselves. They already offer thousands of online courses to their registered students. According to one recent survey, nearly4 million college students, more than 20 percent of all students, have taken at least one online course.But colleges don’t generally offer a lower price for online courses. The reason is that the courses actually take more work to prepare and teach than similar classroom courses, says Janet Poley, president of the American Distance Education Consortium in Lincoln, Neb. Members of the consortium, made up of public universities and community colleges, find that they often must provide extra resources to faculty who are preparing to teach online for the first time, such as help from a graduate assistant or a lighter teaching load, she says. [Editor’s note: The original version mischaracterized the role of the consortium.]Online learning at these institutions“has been growing very fast,” Dr. Poley says. Students appreciate the flexibility to be able to take courses whenever they want, allowing them to keep their jobs or avoid paying baby sitters or commuting to campus as often.What’s holding back more online courses, she says, is the lack of good broadband Internet options in some places, especially rural areas.What may be evolving, Poley says, is a “home institution model,” in which students take introductory courses online but come on campus for work in their major field and for graduate study.“I don’t really care whether there are students on campus or not,” she says. But “I think there will still be folks who like to be in a community with others while they are learning.” Some students enjoy athletics and other on-campus activities, she says. “I don’t think people are ready to give that up.”Online courses, the latest form of distance learning, have had a reputation for being of lower quality than on-campus work, Carey says – something advertised in the back pages of a magazine. But that may be out of date.Online education is continually improving, he says. “It’s better now than it was 10 years ago.”A study of 12 years of online teaching by SRI International on behalf of the US Department of Education concluded earlier this year that “On average, students in online learning conditions performed better than those receiving face-to-face instruction.”What’s more, this wasn’t true only of lower-level courses. “Online learning appeared to be an effective option for both undergraduates … and for graduate students and professionals … in a wide range of academic and professional studies,” the study said.The Obama administration has talked in general terms about online education as part of a grand plan to give the US the highest proportion of college-educated citizens in the world by 2020. The plan, when announced next year, could include funds to develop more online course materials and make them freely available.If other online education start-ups like do appear, they won’t be looking for “18-year-olds from suburban high schools who want to go to Harvard,” Carey says. Elite schools will always offer other reasons to attend, such as making social connections. “Exclusivity never goes out of style,” he says.Professor Teachout is reminded of the 19th century, when wealthy Americans sent their children off to Europe to absorb its cultural treasures on a so-called Grand Tour. “I can imagine the off-line, brick-and-mortar, elegant, beautiful MIT experience becoming the Grand Tour” of tomorrow, she says in an interview.Reaction to her article has been strong and varied. Some, including her father, also a law professor, have said, “This is horrible. This is the end of the world,” she says. Those she calls “techno-Utopians” have said, “This is fantastic!”An online learning experience for the self-motivated, organized person could be “extraordinary,” she says. And we’ve only scratched the surface. “The totally free online university that is stitched together from MIT-quality professors is going to happen very soon.”Others remain skeptical.“I do question whether things are really as dire as she says, and whether we’re moving toward a model where the online [courses] will almost completely displace the classroom,” says Dan Colman, associate dean and director of continuing studies at Stanford University in California. He also has founded, a website that points visitors to free educational courses online.“I think there could be a day when a lot … could be done online, but I don’t think it’s in 20 years. I think it’s further out.”
  • Kay, J. (1993) Foundations of Corporate Success, Oxford, Oxford University Press.
  • Kay, J. (1993) Foundations of Corporate Success, Oxford, Oxford University Press.
  • be selected as a Red Herring 100 winner is a mark of distinction and high honor. Only 200 companies are chosen as finalists out of a pool of thousands. Of those finalists Red Herring selected 100 companies as winners. To decide on these companies the Red Herring editorial team diligently surveys entrepreneurship around the globe. Technology industry executives, investors, and observers regard the Red Herring 100 lists as invaluable instruments to discover and advocate the promising startups that will lead the next wave of disruption and innovation. Past award winners include Google, Yahoo!, Skype, Netscape,, and YouTube.
  • Pink RibbonFord and its Ford Fiesta
  • RT: the 3D internet characterized by ….(next slide)
  • While many definitions of VWs, these are the characteristics that I find relevant to the study of virtual entrepreneurship. Persistent, computer-simulated, immersive environments ranging from 2D "cartoon" imagery to more immersive 3D environmentworld exists regardless of whether users logged inUsers can manipulate and/or alter existing content or even create customized content Shared space or co-presencenumerous users, or ‘avatars’, simultaneously participate, interact, and share experiences through gestures, text chat, and voiceSocialization/community formation of in-world social groups such as teams, guilds, clubs, cliques, housemates, neighborhoods, etc the world allowed and encouraged
  • RT: traditional leadership further challenged as we move to a world of web 3.0 or the immersive internet…
  • A USD Millioner in Entropia Universe.  Night Club Owner at Entropia Universe: Club NEVERDIE   Hepaid US$90,000 to get Banking Licence in Entropia (2007)  Owner of NEVERDIE Mega Championship Stadium--virtual arena for sports events and life concerts.Interview with him. (3mins)
  • RT: We are already beginning to see dramatic changes in several professions such as architecture and fashion. Side screens – second life film from conference or collage of different activies in virtual worlds
  • Third Industrial Revolution? Creating value beyond the firm's boundaries

    1. 1. The Third Industrial Revolution?<br />Creating value beyond the firm’s boundaries<br />Dr. Robin Teigland, aka<br />Karinda Rhode in SL<br />Associate Professor<br />Stockholm School of Economics<br /><br /><br />Photo: Lundholm, Metro <br />March 2010<br /><br />
    2. 2. "...when the rate of change outside an organization is greater than the rate of change inside, the end is near...." <br />Jack Welch…<br />
    3. 3. A world of rapidly growing knowledge ….<br />><br />A person’s lifetime<br />in 18th century<br />One week<br />2010<br />Fischbowl 2007<br />
    4. 4. …that becomes quickly outdated<br />50%<br />knowledge<br />outdated<br />50%<br />knowledge<br />relevant<br />First year of technical-based education<br />Third year<br />of education<br />
    5. 5. Did You Know? Shift Happens<br /><br />What does this mean for organizations?<br />
    6. 6. Information and knowledge<br />Growth<br />Human absorptive capacity<br />Time<br />Human capacity cannot keep up…<br />Cohen & Levinthal 1989<br />
    7. 7. ”No one knows everything, <br />everyone knows something, <br />all knowledge resides in humanity.”<br />networks<br />Adapted from Lévy 1997<br />
    8. 8. 6 degrees of separation<br /><ul><li>Everybody is connected to everybody else by no more than six degrees of separation.
    9. 9. “Small World Phenomenon” </li></ul> by sociologist Stanley Milgram, 1967<br />
    10. 10. The wisdom of the crowd<br />Closed<br />Expensive<br />Complex<br />Accurate<br />Open<br />Inexpensive<br />Simple<br />Close enough<br />Accurate<br />Hinton 2007<br />
    11. 11. History tends to repeat itself….Innovation, financial crisis, industrial revolution, … <br />Microelectronics<br />Internal combustion engine<br />Steam engine<br />Third <br />industrial <br />revolution?<br />Late 18th C<br />Late 19th C<br />Late 20th C<br />Schön 2008<br />
    12. 12. A new workforce is appearing…<br />“Digital Immigrants”<br />“Digital Natives”<br />Company loyalty<br />Work ≠ Personal<br />Learning=Behind the desk<br />Professional loyalty<br />Work = Personal<br />Learning=Fun and games<br />Prensky 2001, Beck and Wade 2004, Mahaley 2008 <br />
    13. 13. ..using the social web to build relationships, find information and knowledge, solve problems, and learn<br />Adapted from<br />
    14. 14. Enckel 2010<br />
    15. 15. Building skills in virtual environments<br />My CV<br /><ul><li>Leading a virtual team of 30 individuals from across the globe
    16. 16. Creating and successfully executing strategies under pressure
    17. 17. Managing cross-cultural conflict without face-to-face communication</li></li></ul><li>The last generation to “attend” college?<br /><br />15<br />
    18. 18. The older generation of leaders<br />As of June 2009, of the Fortune 100 CEOS….<br /><ul><li>2 CEOs have Twitter accounts but no activity
    19. 19. 13 CEOs on LinkedIn but only 3 have >10 connections
    20. 20. 19 CEOs on Facebook but <15 friends
    21. 21. 75 CEOs on Wikipedia but nearly 33% of these have limited or outdated information
    22. 22. 0% have a blog</li></ul><br />
    23. 23. Increasing pressure on “traditional” organizations<br />Formal organization/ <br />Hierarchy <br />Social organization /<br />Heterarchy<br />Teigland 2003<br />
    24. 24. But management cannot mandate social relationships<br />My company has blocked my computer from accessing most of the social media sites. But I feel so cut off from my network. So, now I just connect through my phone. <br />Teigland & Hustad 2009<br />
    25. 25. Top management “fears” ….<br /><ul><li>What about leakage of company secrets outside the firm?
    26. 26. What about social overload and role conflict?
    27. 27. Will employees conduct good organizational stewardship?
    28. 28. How do we measure and validate the value of web 2.0?</li></ul>Web 2.0 is of a more grassroots nature – implementation in traditional hierarchical organizations results in tension between employees and management<br />Hustad & Teigland 2009<br />
    29. 29. Social media enable<br />boundaryless communities of practice<br />Wenger 1998, Hinton 2007<br />
    30. 30. Two individuals with the same number of contacts…<br />A<br />B<br />21<br />
    31. 31. …but with very different access to resources<br />B<br />A<br />22<br />
    32. 32. Network dynamics impact creativity and innovation<br />A<br />B<br />Poor <br />creativity and <br />innovative <br />performance<br />High<br />creativity and <br />innovative <br />performance<br />Teigland 2003<br />
    33. 33. Network dynamics impact creativity and innovation….<br />Firm B<br />High<br />on-time<br />Low <br />creative <br />Firm A<br />High<br />creative<br />Virtual<br />community<br />High<br />Creative <br />Low<br />on-time<br />Teigland 2003<br />
    34. 34. Where are the sources of sustainablecompetitiveadvantage?<br />#1<br />Brand & <br />Reputation<br />Innovation<br />FIRM<br />Networks of <br />relationships<br />Kay 1993<br />
    35. 35. Where are the sources of sustainablecompetitiveadvantage?<br />#1<br />Brand & <br />Reputation<br />Innovation<br />FIRM<br />Networks of <br />relationships<br />
    36. 36. Creating value through external conversations<br />
    37. 37. Leveraging external resources to find solutions and solve unsolved problems<br />A shift from being <br />problem solvers to solution finders <br />
    38. 38. Ez Ecosystem<br />eZ<br />30,000+<br />Community<br />members<br />5,000+<br />Customers in 130 countries<br />230+<br />Partners<br /><ul><li>#1 open source content management software
    39. 39. Customers include UN, Vogue, Hitachi, 3M, MIT
    40. 40. 75 employees in 9 countries (US, Europe & Asia)</li></li></ul><li>The backbone of eZ Systems is social media - throughout the value chain<br />
    41. 41. Innovation in the eZ ecosystem<br />
    42. 42. From Brand owners to Brand advocates<br />“Organizations no longer own their brand…rather they should see their brand as a relay race baton that people should pick up and pass on to others.”<br />Berlin, CEO Silver, 2009<br />
    43. 43. What came first – the community or the company?<br /><br />
    44. 44. What does tomorrow’s firm look like?<br />A community of communities?<br />Teigland 2010<br />
    45. 45. Here comes the Immersive Internet<br />O’Driscoll 2009<br />
    46. 46. Around 150 virtual worlds<br /><ul><li>Q1 2009:
    47. 47. $68 mln invested in 13 virtual world companies</li></ul>600 mln users<br />
    48. 48. What are Virtual Worlds?<br /><ul><li>Persistent, computer-simulated, immersive environments
    49. 49. Shared space/co-presence with possibility for socialization and community
    50. 50. In some cases, ability to manipulate/create content
    51. 51. In some cases, virtual economy and currency</li></ul><br />
    52. 52. “Clearly if social activity migrates to synthetic worlds, economic activity will go there as well.”Castranova<br /><ul><li>USD 3 bln in virtual goods sales in 2009, to grow to USD 12 bln in 2012
    53. 53. Swedish government granted bank license to virtual world Mind Bank in 2009
    54. 54. USD 330,000 for virtual space station in 2010
    55. 55. Growing number of entrepreneurs & millionaires</li></ul><br />
    56. 56. What financial crisis?<br />Increasing members<br />Increasing turnover<br />Increasing companies<br />Wonderland<br />
    57. 57. Self-made millionaires<br /><ul><li>Jon “Neverdie” Jacobs
    58. 58. Paid USD 100,000 for asteroid space resort
    59. 59. Bank owner in Entropia
    60. 60. Anshe Chung
    61. 61. Started with < USD 10
    62. 62. Community developer
    63. 63. Bank owner in Entropia</li></ul><br />
    64. 64. Buying and selling Linden Dollars<br /><br /><br />
    65. 65. Virtual credit<br /><br />
    66. 66. Redgrave – A virtual boutique in Second Life<br /><ul><li>Numerous stores selling all kinds of wares and services in-world
    67. 67. International customer base
    68. 68. Easy payment scheme: Microtransactions
    69. 69. Global work force: Microemployees</li></li></ul><li>Finding and recruiting talent globally<br /><ul><li> job fair
    70. 70. Benelux job fair
    71. 71. Accenture island
    72. 72. IBM island
    73. 73. Entrepreneurs
    74. 74. Microemployees</li></li></ul><li>Creating a new fashion brand<br />Investigating brand attraction<br />With Florida State University fashion design<br />New brands designed and showcased during annual Miss Calypso on Planet Calypso<br />Users / players vote on designs <br />Clothing potentially produced in real life<br />Hooker et al. 2009<br />
    75. 75. Will the playing field for SMEs be leveled?<br />Innovation workshops bring together users from across the globe<br /><br />Giovacchini et al. 2009<br />
    76. 76. Tomorrow’s education?<br />Improving virtual teaming cross-cultural skills<br />Designed by Duke CE and SSE inworld<br />Task: To build a bridge in your virtual team<br />
    77. 77. The University of Texas goes inworld<br /><br />48<br />
    78. 78. Which professions and industrieswill not be revolutionized?<br />
    79. 79. From the mobility of goods to the mobility of financial capital to … <br />...the “mobility” of labor?<br />
    80. 80. So, what does all this mean?<br />Organizations have to ….<br />develop their employees’ network leadership skills<br /><ul><li> to build their networks globally - both inside and out</li></ul>leverage social media<br />to win the war for talent <br /> to innovate for continuous competitive advantage<br /> to build their reputation and brand<br /> to build their networks across numerous boundaries<br />cultivate an open, knowledge sharing culture<br />
    81. 81. Leadership moving forward……<br />Hierarchy<br />Linear, static, process-based organization<br />Heterarchy<br />Dynamic, integrated collaboration networks <br />Ifyou love knowledge, set it free…<br />Teigland 2010<br />
    82. 82. DN<br />Aug 20, 1996<br />
    83. 83. Thanks and <br />see you in world!<br />Karinda Rhode<br />aka Robin Teigland<br /><br /><br /><br />Photo: Lindholm, Metro<br />