Course support for the DIA module "Working in the Digital Age"

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Working in the Digital Age
Introduction
©2016 L. SCHLENKER
Community
January 10 2017
http://Dsign4.biz

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Awake at night Introduction

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Organizational rigidity Organic growth
Clearly defined
functions
Connectivity is the key
Organizational
boundaries
Boundaries are thin
and permeable
Corporate strategy Strategy is in the
network
Product development
cycle
Solution selling
Introduction

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• KLM has sought to differentiate itself
by offering a superior customer
experience
• Strategy of “Circle of Contacts” to
make its customer relationships as
intimate as possible
• Facebook + Twitter = KLM Surprises
and Fly2Miami
• Staff of 16, 230 000+ fans, wide press
coverage
KLM Introduction

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• Finnish maker of fine cutting tools
• Customer communities of crafting
enthusiasts have transformed the way
this 300-year-old company does
business.
• Brings customers into the product
development process
• Fiskars also leverages these groups of
advocates to market to small retailers
• Virtual + Real events – 6000 members
FIskateers
Introduction

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• Peer to peer banking
• Zopa categorizes borrower credit grades; lenders
then make offers, borrowers agree to aggegrate
rate..
• Zopa distributes the money, completies the legal
paperwork, performing identity/credit checks, and
enforces collections.
• Zopa mitigates risk for lenders, optimizes market
offer for borrowers
• Zopa’s repayment rate is currently 99.35 per cent
Zopa Introduction

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Telecommunications
Textiles
Medicine
Leisure
Automobile
Household
appliances…
Separation, alignment, cohesion
Leading the flock Challenges

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• The assumption of order
• The assumption of rational
choice
• The assumption of
intentional capacity
• The assumption of identity
Sources of conflict Challenges

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Blind trust "Seeing is believing"
Trustworthiness Personal or product based
reputation
Contextual trust What works in a special
context
Referred trust Relying on the opinions of
those we admire
Vanessa Hall - The Truth About Trust in Business
Trust in a Virtual World Challenges

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Culture
• Form of individual or collective
representation
• Culture isn’t a thing but a process
• Cultural change is a change in
representations
• By applying the concepts and principles of
complexity thinking we can gain a new
understanding of business culture
Culture Challenges

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• Common objectives – shared
meaning
• Actors and actants
• Innovation closely tied to
organisation
• Possibilities tied to societal
environment
Networks Networks

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Chaos Networks

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How does work
get done? Networks

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How do we think ? Networks

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Network Characteristics
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Characteristic Value
Degree Centrality Number of links
Betweeness
Centrality
Role of brokerage
Closeness
Centrality
Vector of visibility
Network
Centralization
Centralized vs
Decentralized
Network Reach Importance of first 3
levels
Boundary
Spanners
Linked to Innovation
Peripheral Players Potential Gateways
Networks

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• In physics, a power law relationship
between two scalar quantities x and y
is any such that the relationship can
be written as
– <math>y = ax^k,!<math>
• where a (the constant of
proportionality) and k (the exponent
of the power law) are constants.
• in its simplest terms roughly eighty
percent of the work is done by
twenty percent of the network
Power Laws Networks

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• In reality, the market is nothing but a directed network
• No manager or firm can succeed or fail alone, customers, managers
and teams are inherently linked together in social networks.
• The notion of interdependence : managers constitute hubs and
nodes of the network, organization learning will filter down and out
through the network as a whole.
• six degrees of separation : everyone in the world can be reached
through a short chain of acquaintances.
• Change is marked by "phase transitions" from states of disorder to
order: "cascading failure“ and “emergent” threats .
It’s a small world Networks

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Fat Tails Networks

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Social Media
• Social media relies on web-based to
focus communication on interactive
dialogue between organizations,
communities, and individuals
• Social Networking leverages technology to
build and/or elucidate networks of people
who share common interests or activities.
• Social Networking sites often include social
media tools to facilitate the interaction and
conversation
Technology

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What is our organizational
focus?
What are we trying to
improve?
What knowledge do we
need to capture?
What can we leverage to
improve the system?
How will we measure the
results?
What story
are we trying to tell?
Focus Improve Knowledge Leverage Measure
CRM Processes Explicit Transactions Efficiency
Social
CRM
Relationship
s
Implicit Interactions Effectiveness
Social
Networks
Networks Emerging Community Innovation
Quantified
Self
Individual Self-
Knowledge
“Dasein” Self
realization
Technology

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The Conversation Prism v2.0
• You are at the center of the prism
• The first layer of circles displays the
activity of learning and organizing
engagement strategies…
• The second ring maps specific
authorities within an organization to
provide a competent and helpful
response.
• The third ring represents the continual
rotation of listening, responding, and
learning online and in the real world.
The Conversation Prism
Technology

22. ©2013 LHST sarl
©2006 LHST sarl
• Peer to peer banking
• Zopa categorizes borrower credit grades; lenders
then make offers, borrowers agree to aggegrate
rate..
• Zopa distributes the money, completies the legal
paperwork, performing identity/credit checks,
and enforces collections.
• Zopa mitigates risk for lenders, optimizes market
offer for borrowers
• Zopa’s repayment rate is currently 99.35 per
cent
Zopa Case Studies

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©2006 LHST sarl
Pearltrees
The Idea Network
• Pearltrees is an example of social curation
• Users can assemble these pearls into trees
based around a topic
• Pearltrees is using that data to determine
how different topics and bookmarks are
related.
• In the same vein as Google’s PageRank
and Facebook’s EdgeRank, Pearltrees uses
TreeRank to explore the notion of an
“Interest Graph”
Case Studies

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The Expert Network
• InnoCentive is an "open innovation" company
that tackles research an
development problems
• Open Innovation suggests that innovation is
more likely to come from a community than
from an organization
• The model addresses problems in
engineering, computer science, math, the
physical sciences and business.
• Cash awards are given for solving challenge
problems typically from $10,000 to $100,000.
InnoCentive Case Studies

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The Social Network
Linked-in
Linked in Case Studies

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Map Orientation Case Studies