My presentation at a course on Adaptive Governance at the Stockholm Resilience Center December 2010: http://www.stockholmresilience.org/

1. Innovation through Networks and the Immersive Internet Dr. Robin Teigland, aka Karinda Rhode in SL Stockholm School of Economics www.knowledgenetworking.org www.slideshare.net/eteigland RobinTeigland December 2010 www.hhs.se

3. Leveraging external networks for innovation

4. Innovation through the immersive internet2

5. Whatare the sourcesof organizationalsustainability? Networks of relationships Innovation Organization #1 Brand & Reputation Adapted from Kaye 1993

6. A focus on innovation 4 O’Reilly & Tushman 2004

8. What are the keys for success?5

9. Building an innovative organization 6 Skarzynski & Gibson 2008

10. 7 http://mediax.stanford.edu/docs/seminars/f09/IntuitBrainstorm.pdf

11. Improving internal operations while increasing organizational loyalty (Intuit) http://mediax.stanford.edu/docs/seminars/f09/IntuitBrainstorm.pdf http://billives.typepad.com/portals_and_km/2009/10/intuit-brainstorm-offers-innovation-management.html

12. IBM’s innovation landscape Brainstorm, share ideas Incubate and collaborate Validate and iterate Identify the challenge Implement, go to market BizTech TAP IBM lines of business IBM internal stakeholders ThinkPlace I N S I D E Emerging business opportunities Communities of practice Extreme Blue alphaWorks Jams Global Technology Outlook Clients O U T S I D E Lotus Greenhouse First of a Kind (FOAK) Global Innovation Outlook Partners IBM Corporation, 2009 9

13. Inside IBM, we are all innovators. ThinkPlace ThinkPlace fuels innovation across the ecosystem by being IBM's global idea marketplace. It enables every IBMer to be an innovator by providing a common forum for sharing, refining and recognizing ideas. + = Ideas Collaboration Innovative solutions Open, 24x7 system for submission of ideas Ideas discussed and refined by communities Deliver financial benefits to IBM, and grow a culture of innovation by recognizing innovators Technology Adoption Program TAP is the singular, global destination for pilots and prototypes at IBM. We make it fun and easy to adopt new technology! + = Innovators Early Adopters Successful innovation Create and share innovative technology Try Innovators’ creations and provide feedback to improve them Reduce the time, cost and risk to transfer successful ideas into IBM’s products, services and internal tools IBM Corporation, 2009 10

14. Designing innovation networks 11 Barsh et al 2007, McK Quarterly

16. What are the implications for innovative organizations?12

17. Human capacity cannot keep up… Information and knowledge Growth Human absorptive capacity Time Adapted from Cohen & Levinthal 1989 13

18. ”No one knows everything, everyone knows something, all knowledge resides in humanity.” networks Six degrees of separation - Milgram, 1967 Adapted from Lévy 1997

19. 15 Two individuals/organizations with the same number of contacts… A B

20. …but with very different access to resources B A 16

21. Network dynamics impact creativity and innovation A B Poor creativity and innovative performance High creativity and innovative performance Teigland 2003 17

22. Avoid creating insular networks http://www.enronexplorer.com/focus/19185# 18

23. What are the sources of organizationalsustainability? Networks of relationships Innovation Organization #1 Brand & Reputation Teigland 2010 19

25. Leveraging external networks for innovation

26. Innovation through the immersive internet20

27. Leveraging external resources to find solutions and solve unsolved problems A shift from being problem solvers to solution finders 21

28. Drivers of evolution DiGangi 2010 22

29. Drivers of evolution Increased Interactivity DiGangi 2010

30. Creating value through external conversations 24

31. 25 Product development - www.ideastorm.com Brayrie 2007

32. Building the Dell community 26 Brayrie 2007

33. Organizations as magnets 27 Bohman 2010

34. 28 "E-connection is processed in the brain like an in-person connection." http://slideshare.net/missrogue

36. 96 of Fortune 100 as customers

37. 800 employees in 18 countries across globe

38. Facebook Fridays: One hour every Friday on Facebook to find fun and connect with co-workers, customers, family, and friends

39. Average employee age: 46

40. 29 year old Silicon Valley company

42. Exploitation Improving existing value creation activities Exploration Developing new value creation activities Adapted from March 1991 31

43. Threadless:What came first – the community or the company? 32

44. A new mindset towards value creation Creating a platform for people to interact, collaborate, share ideas, and create

45. Global grassroots fundraising 34

46. Evolution of value creation Closed (Chesborough, 2003) Organizations internalize resources for value creation Open (Chesborough, 2003; 2006; Di Gangi & Wasko, 2009; von Hippel & von Krogh, 2003) Organizations leverage both internal and external resources for value creation Co-created (Prahalad & Ramaswamy, 2000; 2004; Di Gangi & Wasko, 2010; Pine & Gilmore, 1998) Organizations interact with external entities to create experience or common good that creates value for both DiGangi 2010

48. Customers include Financial Times, Wall Street Journal, UN, Vogue, Hitachi, 3M, MIT

50. Co-created community model

51. Innovation in the eZ ecosystem eZ Software development team

52. Why do people participate in the community? Experts High commitment Contribute more Reputation Contribute less Not committed Enjoy helping Peripheral Core Group Coordinator “Eldsjäl” Active Contribute less Challenge Enjoy helping Ask questions Don’t contribute Not committed Outsiders Wasko & Teigland 2002

53. What makes organizations attractive? 41 Bohman 2010

54. Tangible returns 26% Community interest 50% Intangible returns 24% Why do people participate in a Community? Useful information Specific answer Personal gain Pro-social behavior Reciprocity Advancing the community Enjoyment Learning Reputation Wasko & Faraj 2000 42

55. Understanding the dynamics of the user-organization relationship in co-created business models (Folger et al., 2010) Question How do member perceptions of balance and fairness impact member engagement behaviors? DiGangi et al 2010

56. A Private-Collective Community Model von Hippel & von Krogh (2006) DiGangi et al 2010

57. How to adapt to private-collective model? 45 Skarzynski & Gibson 2008

59. Leveraging external networks for innovation

60. Innovation through the immersive internet46

61. Here comes the Immersive Internet O’Driscoll 2009

62. How many usually think of virtual worlds… Teigland 2010

64. Creating and successfully executing strategies under pressure

65. Managing cross-cultural conflict without face-to-face communicationTeigland 2010

67. Virtual economy and currencyhttp://www.youtube.com/watch?v=Quh2OiPHkm8

68. Sporting activities in Second Life http://secondlife.com/destination/double-b-skydiving-center Ballers City http://www.flickr.com/photos/pcellis/2771357871/ http://www.youtube.com/watch?v=Acgg1ih59GU&list=PL4B22C59B4AA89C0B&index=3&playnext=2

69. Moving out of “Gartner hype cycle” trough Virtual worlds today 52 >1 bln users http://www.gartner.com/it/page.jsp?id=1447613

70. 53

71. 54 Facilitating the virtual workforcethrough virtual worlds Welch et al 2010

72. Developing training & education programs Play2train http://www.slideshare.net/jsclarkfl/environmental-education-in-second-life-presentation

73. Tomorrow’s education & training? Learningvirtualteamingskillsthroughexperience 56 http://www.youtube.com/watch?v=N8XPmp0qGyg

74. Green Idea Quest Developing ideas for a more sustainable future http://www.youtube.com/watch?v=VCMitiaJY44 Kohler 2008

75. Innovation workshops bring together users from across the globe Integrating the users in the development process Teigland et al. 2010 http://www.youtube.com/watch?v=2kMNWBU1Yb8

76. Exploring VW affordances 59 Avatar design Immersion Simulation Archiving Multi-modal communication Co-creation Teigland et al 2010

78. US $222,000 raised at American Cancer Society Relay in Second Life

79. Swedish government granted bank license to Mind Bank in 2009http://www.flickr.com/photos/rodenberger/5085364909/in/pool-popartlab/#/photos/rodenberger/5085364909/in/pool-1240578@N23/

80. 61

81. USD 635,000 for an asteroid! USD 500,000 profit in 5 years -Jon “Neverdie” Jacobs http://blogs.forbes.com/oliverchiang/2010/11/13/meet-the-man-who-just-made-a-cool-half-million-from-the-sale-of-virtual-property/

83. Micropayments

84. MicroemployeesTeigland 2010

85. The OpenSim Project: Exploring the Private-Collective Model in Virtual Worlds Development Communities

86. Increasing pace of VW development! For smart phones and tablet PCs "Create Once, Experience Everywhere” Expanding uses VWs on a stick Focus on seamlessness Browser-based VWs http://www.hypergridbusiness.com/2009/05/hypergrid-101-why-its-good-for-business/ http://mediagrid.org/groups/technology/OFF.TWG/

87. 66

88. 67 “As soon as the Facebook generation wakes up and embraces virtual reality, we are going to see a giant wave of virtual world millionaires” -Jon “Neverdie” Jacobs

89. Which professions and industrieswill not be revolutionized? 68

90. From the mobility of goods to the mobility of financial capital to … ...the “mobility” of labor? Teigland 2010

91. Interested in learning more? 70

92. If you love knowledge, set it free… Karinda Rhode aka Robin Teigland robin.teigland@hhs.se www.knowledgenetworking.org www.slideshare.net/eteigland www.nordicworlds.net RobinTeigland Photo: Lindholm, Metro Photo: Nordenskiöld Photo: Lindqvist