2 Degrees of Separation - Digital Marketing Show 2013 - Roland Harwood, 100%Open
1. 27 November 2013
2 Degrees of Separation
Digital Marketing Show 28/11/13
100%Open 2013
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2. The Birthday Paradox
27 November 2013
100%Open 2013
What are the chances that
two people in this room
share the same birthday?
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3. The Birthday Paradox
27 November 2013
The probability of 2 people
sharing the same birthday is more
likely than it is unlikely (i.e. over
50% probability) with just 23
people in a group, and virtually
guaranteed (i.e. 99% probability)
in a group of just 57 people.
100%Open 2013
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4. 2 degrees of Separation
27 November 2013
100%Open 2013
“No matter who you
are, most of the smartest
people work for
someone else.”
Bill Joy, Sun Microsystems
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8. 100%Open 2013
3 Minute Joint Venture
1. Find somebody you don‟t know
2. Explain what you do.
3. Find out what your partner does.
4. Agree what you could do together.
5. Give your joint venture a name.
11. Open Innovation
27 November 2013
100%Open 2013
Innovating with partners
by sharing the risks
and the rewards.
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12. 100%Open 2013
Open Business Models
Joint
Ventures
Revenue
Share
IP
Acquisition
Strategic
Alliances
Collaborative
Open
Ecosystem
Strategic
In-sourcing
Co-Creative
CrowdSourcing
Peer
to Peer
Cooperative
CoBranding
Closed
Open
Source
13. Case Study – The LEGO Group
27 November 2013
100%Open 2013
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The LEGO Cuusoo community (280,000+) is a design competition where qualifying
ideas that attract 10,000 votes get produced, and 1% revenue shared with originators
14. LEGO Cuusoo Value/Model
27 November 2013
Superior Information Flow
•
•
•
Rather than relying on only obvious and famous
sources of IP, the question
„will anyone want this‟ is answered in advance of
development investment
Takes Lego into previously unknown niches in a
low-risk manner, helps
prevent the „gravitational pull‟ of past hits
dominating the future.
Additional barrier to entry to competitors– flow
of “best” ideas coming to Lego
Trust = Power to Influence
•
•
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Customers/
Fans
Design
Ideas
LEGO
Promotion &
Marketing
Pre-formed community, grateful to Lego for
producing set (potentially even
accepting of design compromises) and
evangelising for it
Fitness
100%Open 2013
Cuusoo
Community
Platform
10,000 Votes
1% Revenue
Share
Superior cycle time
New
Product
15. Case Study 2 – P&G
27 November 2013
100%Open 2013
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P&G have a target to source 50% of their new products and services from outside and
to systematically gather needs and push out through networks and partners.
16. Superior Information Flow
•
•
Internal
R&D
Helps avoid the „limits to inter-organisational
knowledge acquisition‟
(Dushnitsky & Shaver 2009)
In-house and existing designer relationships are
based on past product successes– more diversity
should result in more „appropriate‟ fit and
knowledge from other cutting edge projects
Product designers who know that their P&G
relationship is ongoing will make choices about
other projects to pursue partly based on
prospective partnership opportunity. More
transparency from P&G = better chance of
designers making accurate investment choices
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P&G
Unmet Business
Needs
Units
Insights
IP
Connect
&
Develop
Trust = Power to Influence
•
100%Open 2013
27 November 2013
P&G C&D Value/Model
JV
Brokers
Unis
Customers
Fitness
• Avoiding path dependence, building more flexible
„docking points‟ for outside techs
• Speeding „search‟ and creating a beacon
Product
Acquisition
Brands
SMEs
18. 27 November 2013
ARM Holdings Value/Model
Superior Information Flow
•
•
100%Open 2013
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Design Collaboration with Customers
Creating flows of information up and down the
supply chain, including end user information and
client technology trajectories
Being more aware of information than anyone else
in the market and even more than divisions of their
clients aware of each other
Revenues
Unmet Needs
Trust = Power to Influence
•
•
ARM philosophy– „we would never disadvantage a
client‟
Focus on the non-core, „foundation‟ level of their
customers‟ technology offerings allows trustful
relationship/alliances, with clients giving up some
autonomy
ARM
Product
Ideas
Partner A
Partner B
PR
Data
Fitness
•
•
Synthesising multiple clients‟ requirements
provides the best possible defence against
competition-- appropriate product for market, with
low cycle time
Relationship management is superior to all others–
“engineers with client-facing skills”
Fast cycle speed with Suppliers = Smoother transitions
19. 100%Open 2013
Open Business Models
Joint
Ventures
Revenue
Share
IP
Acquisition
Strategic
Alliances
Collaborative
Open
Ecosystem
Strategic
In-sourcing
Co-Creative
CrowdSourcing
Peer
to Peer
Cooperative
CoBranding
Closed
Open
Source
20. The Net Works
27 November 2013
100%Open 2013
“Innovation is a by-product
of engaged networks.”
Verna Allee
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23. 2 Degrees of Separation
27 November 2013
100%Open 2013
“The future reveals itself
through the peripheral.”
J.G. Ballard
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24. 27 November 2013
Project contacts
Roland Harwood
Co-Founder & Networks Partner
100%Open | Somerset House | South Building | London | WC2R 1LA
Phone: +44 (0)20 7759 1050| +44 (0)7811 761 435
Email: roland@100Open.com
Web: www.100Open.com
Twitter: @100Open
100%Open 2013
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Editor's Notes
The probability of 2 people sharing the same birthday is more likely than it is unlikely (i.e. over 50% probability) with just 23 people in a group, and virtually guaranteed (i.e. 99% probability) in a group of just 57 people.
As you triple the size of a company, profit per person is on average halved. Conversely when you double the size of an urban region the per capita productivity goes up by 130%.Bettencourt & West, Santa Fe InstituteNature MagazineInnovation thrives in cities due to the number of people a resident will interact with in person (social tie density) i.e. it's all about face-to-face.So Wei PanMIT Media Lab Human Dynamics Lab