Innovation through Networksand the Immersive InternetDr. Robin Teigland, akaKarinda Rhode in SLStockholm School of Economicswww.knowledgenetworking.orgwww.slideshare.net/eteiglandRobinTeiglandDecember 2010www.hhs.se
Today’s discussionBackground
Leveraging external networks for innovation
Innovation through the immersive internet2
Whatare the sourcesof organizationalsustainability?Networks of relationshipsInnovationOrganization #1Brand & ReputationAdapted from Kaye 1993
A focus on innovation4O’Reilly & Tushman 2004
IDEO: The Shopping Cart Projecthttp://www.youtube.com/watch?v=M66ZU2PCIcMWhat happened?
What are the keys for success?5
Building an innovative organization 6Skarzynski & Gibson 2008
7http://mediax.stanford.edu/docs/seminars/f09/IntuitBrainstorm.pdf
Improving internal operations while increasing organizational loyalty (Intuit)http://mediax.stanford.edu/docs/seminars/f09/IntuitBrainstorm.pdfhttp://billives.typepad.com/portals_and_km/2009/10/intuit-brainstorm-offers-innovation-management.html
IBM’s innovation landscapeBrainstorm, share ideasIncubate and collaborateValidate and iterateIdentify the challengeImplement, go to marketBizTechTAPIBM lines of businessIBM internal stakeholdersThinkPlaceI N S I D EEmerging business opportunitiesCommunities of practiceExtreme BluealphaWorksJamsGlobal Technology OutlookClientsO U T S I D ELotus GreenhouseFirst of a Kind(FOAK)Global Innovation OutlookPartners IBM Corporation, 20099
Inside IBM, we are all innovators.ThinkPlaceThinkPlace 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.+=IdeasCollaborationInnovative solutionsOpen, 24x7 system for submission of ideasIdeas discussed and refined by communitiesDeliver financial benefits to IBM,  and grow a culture of innovation by recognizing innovatorsTechnology Adoption ProgramTAP is the singular, global destination for pilots and prototypes at IBM. We make it fun and easy to adopt new technology!+=InnovatorsEarly AdoptersSuccessful innovationCreate and share innovative technologyTry Innovators’ creations and provide feedback to improve themReduce the time, cost and risk to transfer successful ideas into IBM’s products, services and internal toolsIBM Corporation, 200910
Designing innovation networks11Barsh et al 2007, McK Quarterly
Did You Know 3.0: Shift Happenshttp://www.youtube.com/watch?v=cL9Wu2kWwSYWhat are the forces at work here?
What are the implications for innovative organizations?12
Human capacity cannot keep up…Information and knowledgeGrowthHuman absorptive capacityTimeAdapted from Cohen & Levinthal 198913
”No one knows everything, everyone knows something, all knowledge resides in  humanity.”networksSix degrees of separation- Milgram, 1967Adapted from Lévy 1997
15Two individuals/organizations with the same number of contacts…AB
…but with very different access to resourcesBA16
Network dynamics impact creativity and innovationABPoor creativity and innovative performanceHighcreativity and innovative performanceTeigland 200317
Avoid creating insular networkshttp://www.enronexplorer.com/focus/19185#18
What are the sources of organizationalsustainability?Networks of relationshipsInnovationOrganization #1Brand & ReputationTeigland 201019
Today’s discussionBackground
Leveraging external networks for innovation
Innovation through the immersive internet20
Leveraging external resources to find solutions and solve unsolved problemsA shift from being problem solvers to solution finders 21
Drivers of evolutionDiGangi 201022
Drivers of evolutionIncreasedInteractivityDiGangi 2010
Creating value through external conversations24
25Product development - www.ideastorm.comBrayrie 2007
Building the Dell community26Brayrie 2007
Organizations as magnets27Bohman 2010
28"E-connection is processed in the brain like an in-person connection."http://slideshare.net/missrogue
29Use social media to strengthen relationships#1 Applications Lifecycle Management (ALM) & business mashup
96 of Fortune 100 as customers
800 employees in 18 countries across globe
Facebook Fridays: One hour every Friday on Facebook to find fun and connect with co-workers, customers, family, and friends
Average employee age: 46
29 year old Silicon Valley company
 >90% of employees on FBCreating a virtuous cycleInteraction 				Relationships Relationships  				Trust Trust		 			ExchangeExchange  				Innovation Innovation  				Awareness
ExploitationImproving existing value creation activitiesExplorationDeveloping new value creation activitiesAdapted from March 199131
Threadless:What came first – the community or the company?32
A new mindset towards value creationCreating a platform for people to interact, collaborate, share ideas, and create
Global grassroots fundraising34
Evolution of value creationClosed (Chesborough, 2003)Organizations internalize resources for value creationOpen  (Chesborough, 2003; 2006; Di Gangi & Wasko, 2009; von Hippel & von Krogh, 2003)Organizations leverage both internal and external resources for value creationCo-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 bothDiGangi 2010
Skien, NorwayeZ EcosystemeZ37,000+Communitymembers5,000+Customers in 130 countries230+PartnersOpen source content management software
Customers include Financial Times, Wall Street Journal, UN, Vogue, Hitachi, 3M, MIT
70 employees in 9 countries (US, Europe & Asia)eZ PhilosophyConnecting people who share a passion for something they do so that they can collaborate, share ideas, learn, and create knowledge
Co-created community model
Innovation in the eZ ecosystemeZ Software development team
Why do people participate in the community?Experts High commitmentContribute moreReputationContribute lessNot committedEnjoy helpingPeripheralCore GroupCoordinator“Eldsjäl”ActiveContribute lessChallengeEnjoy helpingAsk questionsDon’t contributeNot committedOutsidersWasko & Teigland 2002
What makes organizations attractive?41Bohman 2010
Tangible returns26%Community interest50%Intangible returns24%Why do people participate in a Community?Useful informationSpecific answerPersonal gainPro-social behaviorReciprocityAdvancing the communityEnjoymentLearningReputationWasko & Faraj 200042
Understanding the dynamics of the user-organization relationship in co-created business models(Folger et al., 2010)QuestionHow do member perceptions of balance and fairness impact member engagement behaviors?DiGangi et al 2010
A Private-Collective Community Modelvon Hippel & von Krogh (2006)DiGangi et al 2010
How to adapt to private-collective model?45Skarzynski & Gibson 2008
Today’s discussionBackground
Leveraging external networks for innovation
Innovation through the immersive internet46
Here comes the Immersive InternetO’Driscoll  2009
How many usually think of virtual worlds…Teigland 2010
49Building skills in virtual environmentsMy CVLeading a virtual team of 30 individuals from across the globe
Creating and successfully executing strategies under pressure
Managing cross-cultural conflict without face-to-face communicationTeigland 2010
What else can they be?Ability to manipulate/create content
Virtual economy and currencyhttp://www.youtube.com/watch?v=Quh2OiPHkm8
Sporting activities in Second Lifehttp://secondlife.com/destination/double-b-skydiving-centerBallers Cityhttp://www.flickr.com/photos/pcellis/2771357871/http://www.youtube.com/watch?v=Acgg1ih59GU&list=PL4B22C59B4AA89C0B&index=3&playnext=2
Moving out of “Gartner hype cycle” troughVirtual worlds today52>1 bln usershttp://www.gartner.com/it/page.jsp?id=1447613
53
54Facilitating the virtual workforcethrough virtual worldsWelch et al 2010

Innovation through networks and immersive internet