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Culture Matters


 The cultural requirements for
 Web 2.0 powered innovation,
 networking, and collaboration




         February 2008

         Teemu Arina
        CEO, Dicole Ltd.

         tarina.blogging.fi
Who am I?



            Photo: Don J. McCrady
MI6 Equipment
                              Wireless
                              microphone




                               Wireless
                Camcorder      receiver
                with mic in


All for <500$                    Mic out
Social media publishing strategy


                                        Video podcast
Top              Audio podcast          (everything goes
performance   (content needs editing)    unedited to the
                                            internet)



Weary and                               Audio podcast
                    Blog post
unanimated                              (content good,
                  (utter failure)
                                        but I look bad)


                  Boring rambling         Great ideas
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
Head (20%)
                  Long Tail
                                                                      r
                                                                 powe
                                                             g
                 Sign                                 lt erin
                     al v                       ire dfi
                         s. n
                             ois           R equ
                                 e
Sales




                                     Tail (80%)




                                Products


                                                                 Ref: Chris Anderson
“The project would
have been a success
if everything had
gone as we planned”
“Everything would
work out if we had
the right information
                        Myth
at the right time at
the right place”
The integrated pattern of human
knowledge, belief, and behavior that
depends upon the capacity for
                                       Culture
learning and transmitting knowledge
to succeeding generations
– Merriam-Webster Online Dictionary




                                          Photo: Shapeshift
1)
2)
3)
     Anonymous voting
     Open conversation
     Prediction markets
                              Connecting
4)   Internet crowdsourcing
                              Many Minds




                                 Ref: Cass R. Sunstein, Infotopia
Examples
• Kasparov vs. Internet team
• Estimating temperature
                                Anonymous
• “Ask audience” in Who
•
    Wants to be a Millionaire
    Movie ratings in IMDB
                                Voting
•   Youtube video ratings
Why groups can be wise?




Condorcet Jury Theorem
Marquis de Condorcet, 1743 - 1794
1)
2)
3)
     Diversity of opinion
     Independence
     Decentralization
                                         Wise
4)   Aggregation
                                         Crowds




                            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
• Amplification of falsehoods
• Strategic behavior
                                Traps
• Use of heuristics
• From confidence to extremism
• Focus on personal prospects
• Design by committee




                                  Photo: Mike9Alive
Design by Committee
Filters
• Surveillance filter
• Mentality filter
                          Weak
• Power filter
– Dr. Igor Ansoff, 1984
                          Signals




                              Photo: .supernova.
• Group polarization
• Reputational cascades
• Informational cascades
• Hidden profiles
• Social pressures
                                   Biases
• Common knowledge effects
• Algorithmic bias (e.g. Google)
Diversity of Thought is
 Accuracy of Thought
What doesn’t fit in?
1         2        3


Cow     Chicken   Grass

                  Ref: Richard Nisbett
1) Economic incentives
   motivate participation
2) Disclosing information is
   crucial for winning
                               Prediction
3) Those who do not know,
   will step aside
                               Markets
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
innovation                               new ways                     ecosystem
                                      to capture value                innovation
                 What you innovate




                                            Changing
                                            the what




                                        Traditional                     Challenge:
Product &                                                Changing
service innovation                       product         the how    be an innovation
                                       development                  partner of choice


                                            Closed     How you innovate   Open   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
CASE
portrait                                                           details

                                           + Add contact                                           Itämerenkatu 30 A 10
                                                                                 jaiku             FI-00180 Helsinki, Finland
                                           Teemu Arina                                             teemu@dicole.com
                                                                             facebook              Blog: tarina.blogging.fi
                                           “All progress depends
                                           on the unreasonable man”                                Skype: infe00
                                                                                                   Phone: +358 - 50 -555 7636


                                       ‣    Edit details

                                                                                 employer
‣   Upload photo
                                                                                            Professional description
                                                           CEO, founder
                                                           Dicole Oy                        “ I seek to understand the changing
               friends                                                                      nature of organizations as they shift
                                                           Kansakoulukuja 3, 2 krs.
                                                                                            from the industrial era to the knowledge
‣   See all                                                FI-00100 Helsinki, Finland       intensive era. What new methods,
                                                           +358 - 50 - 555 7636             structures, skills and tools will they
                                                                                            need? As an entrepreneur, programmer,
                                            Digitalization
                                            grade                +10                        teacher and designer I design, build and
                                                                                            deliver web-based interaction
                                                                                            technology (or social software) that
                                                                                            enables people to co-create together in
         community stats                                                                    a distributed knowledge intensive
                                       ‣    Edit employer                                   environment.”
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
       e-banking e-invoicing eu idea
                                       ‣   Edit education
Organic Enterprise
    Nervous system                       Brain
Feeds, Search, APIs -             Wikis, tagging -
 Sharing, discovering and       Connecting and remixing
  tapping into reflections            reflectons


           Senses                    Blood system
  Blogs, Microblogs,             Social networking,
Social bookmarking -                  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
Teemu Arina                    Email     teemu@dicole.com
CEO, Dicole Ltd.                Blog     tarina.blogging.fi
                            Company      www.dicole.com



“Imagination is more important than knowledge”
– Albert Einstein

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Culture Matters - The cultural requirements for Web 2.0 powered innovation, networking, and collaboration

  • 1. Culture Matters The cultural requirements for Web 2.0 powered innovation, networking, and collaboration February 2008 Teemu Arina CEO, Dicole Ltd. tarina.blogging.fi
  • 2. Who am I? Photo: Don J. McCrady
  • 3. MI6 Equipment Wireless microphone Wireless Camcorder receiver with mic in All for <500$ Mic out
  • 4. Social media publishing strategy Video podcast Top Audio podcast (everything goes performance (content needs editing) unedited to the internet) Weary and Audio podcast Blog post unanimated (content good, (utter failure) but I look bad) Boring rambling Great ideas
  • 5. Artist: Lotta Viitaniemi, Story: Kim Forsman & Teemu Arina Dicole Ltd.
  • 6. Changes on the web WEB X.O
  • 7. Web as a platform Photo: Christopher Chan
  • 8. Software above a single device Photo: *One*
  • 9. Data as the new Intel inside Photo: _fabrizio_
  • 10. Harnessing collective intelligence Photo: Donna Cymek
  • 12. Lightweight business models, e.g. SaaS (Software as a Service) Photo: ulterior epicure
  • 13. Head (20%) Long Tail r powe g Sign lt erin al v ire dfi s. n ois R equ e Sales Tail (80%) Products Ref: Chris Anderson
  • 14. “The project would have been a success if everything had gone as we planned”
  • 15. “Everything would work out if we had the right information Myth at the right time at the right place”
  • 16. The integrated pattern of human knowledge, belief, and behavior that depends upon the capacity for Culture learning and transmitting knowledge to succeeding generations – Merriam-Webster Online Dictionary Photo: Shapeshift
  • 17. 1) 2) 3) Anonymous voting Open conversation Prediction markets Connecting 4) Internet crowdsourcing Many Minds Ref: Cass R. Sunstein, Infotopia
  • 18. Examples • Kasparov vs. Internet team • Estimating temperature Anonymous • “Ask audience” in Who • Wants to be a Millionaire Movie ratings in IMDB Voting • Youtube video ratings
  • 19. Why groups can be wise? Condorcet Jury Theorem Marquis de Condorcet, 1743 - 1794
  • 20. 1) 2) 3) Diversity of opinion Independence Decentralization Wise 4) Aggregation Crowds Ref: James Surowiecki, Wisdom of the Crowds
  • 21. 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.

  • 22. • Groupthink and unthinking • Amplification of falsehoods • Strategic behavior Traps • Use of heuristics • From confidence to extremism • Focus on personal prospects • Design by committee Photo: Mike9Alive
  • 24. Filters • Surveillance filter • Mentality filter Weak • Power filter – Dr. Igor Ansoff, 1984 Signals Photo: .supernova.
  • 25. • Group polarization • Reputational cascades • Informational cascades • Hidden profiles • Social pressures Biases • Common knowledge effects • Algorithmic bias (e.g. Google)
  • 26. Diversity of Thought is Accuracy of Thought
  • 27. What doesn’t fit in? 1 2 3 Cow Chicken Grass Ref: Richard Nisbett
  • 28. 1) Economic incentives motivate participation 2) Disclosing information is crucial for winning Prediction 3) Those who do not know, will step aside Markets
  • 29. Ecosystem way: Internet Crowdsourcing Photo: Hugo*
  • 30. 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
  • 31. How’s your innovation pipeline? Photo: Pavlos Pavlidis
  • 33. Open & Organic Innovation Photo: ippei + janine
  • 34. What kind of innovation? Challenge: Challenge: Business model innovation new ways ecosystem to capture value innovation What you innovate Changing the what Traditional Challenge: Product & Changing service innovation product the how be an innovation development partner of choice Closed How you innovate Open Source: Henry Chesbrough, 2007
  • 35. 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
  • 36. “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
  • 37. “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
  • 38. Participation Inequality 1% creators 10% synthesizers 100% consumers Ref: Bradley Horowitz, Jacob Nielsen
  • 39. 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
  • 40. CASE
  • 41. portrait details + Add contact Itämerenkatu 30 A 10 jaiku FI-00180 Helsinki, Finland Teemu Arina teemu@dicole.com facebook Blog: tarina.blogging.fi “All progress depends on the unreasonable man” Skype: infe00 Phone: +358 - 50 -555 7636 ‣ Edit details employer ‣ Upload photo Professional description CEO, founder Dicole Oy “ I seek to understand the changing friends nature of organizations as they shift Kansakoulukuja 3, 2 krs. from the industrial era to the knowledge ‣ See all FI-00100 Helsinki, Finland intensive era. What new methods, +358 - 50 - 555 7636 structures, skills and tools will they need? As an entrepreneur, programmer, Digitalization grade +10 teacher and designer I design, build and deliver web-based interaction technology (or social software) that enables people to co-create together in community stats a distributed knowledge intensive ‣ Edit employer environment.” 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 e-banking e-invoicing eu idea ‣ Edit education
  • 42.
  • 43. Organic Enterprise Nervous system Brain Feeds, Search, APIs - Wikis, tagging - Sharing, discovering and Connecting and remixing tapping into reflections reflectons Senses Blood system Blogs, Microblogs, Social networking, Social bookmarking - 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
  • 44. Command & Control should become Collaboration and Communication Photo: tashland
  • 45. Contact Teemu Arina Email teemu@dicole.com CEO, Dicole Ltd. Blog tarina.blogging.fi Company www.dicole.com “Imagination is more important than knowledge” – Albert Einstein