Social media is a disruptive innovation that impacts business strategy. It enables new forms of communication that substitute for planning and searching that substitute for categorization. This disruption impacts incumbents and allows new entrants to gain market share for disruptive technologies. Specifically, social networks can directly disrupt industries like headhunting by providing a new "database of intentions" and facilitating the evolution of value chains across industries like publishing. Going forward, protocols, curation and semantic tagging of content on social networks will further drive disruption.

1. Norwegian School of ManagementSocial media as a disruptive innovationArkitektur- og designhøgskolen i Oslo20 september 2010Dr. Espen AndersenAssociate ProfessorBI Norwegian School of Managementwww.espen.comself@espen.com@espenandersen#recordseminar

2. My view of the world…Business environmentTechnologychangesenablesimpactsStrategy

3. Technologyevolves, slowlychanginghowwebehave…With loweredcommunicationcost, wesubstitutecommunication for planning*With loweredsearchcost, wesubstitutesearch for categorization*** Andersen, E. (2002) Attendre le Suitcase, ACM Ubiquity, 3 (7)**Andersen, E. (2006) The waning importance of categorization. ACM Ubiquity 7 (19)

4. Searching rather than categorizing is disruptive to categorizers

5. Pace ofTechnological ProgressPerformance that customerscan utilize or absorbDisruptive technologiesDisruptivetechnologiesdisruptcompanies, not technologiesChristensen, Clayton M. (1997). The Innovator's Dilemma: Why New Technologies Cause Great Firms to Fail. Boston: Harvard Business School PressIncumbents nearly always winSustaining innovationsPerformanceEntrants nearly always winTime

6. Low-end vs. non-consumption disruptionPerformance that customerscan utilize or absorbDifferent measureOf PerformanceDisruptive Innovations: Competing againstnon-consumptionNon-consumers or Non-consumingoccasionsTimeIncumbents nearly always win Sustaining innovationsPerformanceTimeEntrants nearly always winChristensen, Clayton M. (1997). The Innovator's Dilemma: Why New Technologies Cause Great Firms to Fail. Boston: Harvard Business School Press

7. Knowledge about search behaviors more valuable than the information itselfhttp://kornet.nu/blindhona/arkiv/001946.html”The database ofintentions”-- John Battelle

8. Directdisruption?Social networks and headhuntersDEFBAGCIHBurt, R. S. (1992). Structural Holes: The Social Structure of Competition. Cambridge, MA, Harvard University Press.

9. Assisteddisruption:Valuechainevolutionfacilitated by socialnetworksPublisherSelectionEditingPhysicalproductionMarketingBook shopSelectionDisplayPhysicalsaleMarketingBook clubSelectionDisplayPhysicaldistributionMarketingAuthorReader

10. Futureevolution:Protocols, curation and seedsgives – semantics!Andersen, E. (2010) Edging towards the semantic web: Protocols, curation, and seeds (forthcoming in ACM Ubiquity)

11. www.espen.comwww.tversover.comwww.appliedabstractions.comThankyou!