Of original Forbes 100 in 1917 61 companies ceased to exist by 1987 18 of remaining 39 underperformed market by 20% Only 2 beat market index (GE & Eastman Kodak) Only 1 (1%) today! Of companies in original S&P 500 in 1957 426 companies ceased to exist by 1997 Only 12 (2.4%) outperformed S&P 500 index in 1997 Of top 100 companies in Korea in 1955 Only 7 still on list in 2004 1997 crisis destroyed half of 30 largest conglomerates
RT: One of the major results of the internet is that the growth of information and knowledge now exceeds human capacity to absorb this..and while research shows that the part of our brain that deals with processing signals from the environment has indeed grown and is now larger in the younger generation, we are still unable to keep up. So how do we handle this? (Next slide) Cohen, WM och Levinthal, D A, Absorptive Capacity: A new Perspective on Learning and Innovation, Working paper, Carnegie Mellon University and University of Pennsylvania, October 1989
http://newsroom.fb.com/content/default.aspx?NewsAreaId=22 955 million monthly active users at the end of June 2012. Approximately 81% of our monthly active users are outside the U.S. and Canada. 552 million daily active users on average in June 2012. 543 million monthly active users who used Facebook mobile products in June 2012.
RT: Here is a quotation from Pierre Levy, a researcher who studies collective intelligence, or …. He says, ”No one knows……”, but I have adapted this to be that “all knowledge resides in networks”. What good is knowledge if you cannot access it? Knowledge is created and transferred through networks. How many of you have heard of six degrees of separation? (raise hands)…this means that we are collected to all other human beings on the face of the planet through six links, where a link is from me to person x in audience. Thus, each of us actually has access to all knowledge and resources that exist. (Next slide) mobile phone, internet, here could have farmer in Asia, President Obama, Zlatan, http://www.youtube.com/watch?v=MbX_I2fuqJk&feature=PlayList&p=079F3CFE9701D083&index=0 Pierre Lévy, Collective Intelligence: Mankind's Emerging World in Cyberspace , 1997 My example of how this presentation was made. Asked a question on Socnet and received many good answers with people ’s presentations and links to interesting sources
Strong ties – 4-6 on average Weak ties – 150 on average Teamporary ties -
The “Check-in” is the phenomenon that never happened 74% of Americans are unfamiliar with the concept of checking in to a location via mobile device, and only 3% have ever checked in . Even more damning, is that 4% had checked in when surveyed in 2011. This is a 25% decrease in check in behaviors in a single year. It’s not going to rebound, which is why Foursquare’s play is to be the new Yelp.
http://www.huffingtonpost.com/2012/09/13/google-glass-diane-von-furstenburg-video_n_1881484.html http://thecreatorsproject.com/blog/google-glasses-strut-their-stuff-on-the-catwalk-at-new-york-fashion-week When Google’s Project Glass was announced back in April, most people were wowed by the concept but a little unsure about walking around looking like an extra from Star Trek. Sure, they certainly would be fun—if a little overwhelming—to use, but as a fashion statement, it was mainly the techies who’d be keen to show them off as eyewear. This didn’t stop them from making an appearance on Sunday at New York Fashion Week , gracing the catwalk on the faces of supermodels for Diane von Furstenberg ‘s show—even color-coded to match the models’ outfits for her S/S 2013 collection. So is this the moment wearable tech went mainstream? Probably not, because while the glasses were being worn by models at a global fashion mega-event, they were there for practical, rather than aesthetic, reasons: to record behind-the-scenes for a short film DVF through Glass . The images from the show were streamed on von Furstenberg’s Google+ profile , so us normals could glimpse the backstage glam from the world of high-end fashion. More than a fashion statement though, this was a power marketing play by Google—aligning with the fashion elite like DVF is certainly one way to get the public’s buy-in. I mean, if the fashion world could convince people wearing armadillo-inspired shoes that resemble lobster claws is a good idea, why not Google Glasses?
46% of variation in how many friends you have is explained by your genes – some born shy and some gregarious. 47% of variation in whether your friends know each other has to do with your genes. So do people knit networks of those around them or not…. 30% of variation in whether in middle or on edge of network has to do with your genes.
How social technologies drive business success EUROPEAN SURVEY RESULTS 15TH MAY 2012
How social technologies drive business success EUROPEAN SURVEY RESULTS 15TH MAY 2012
Fades onto all screens (1) teaching people how to do things we already know how to do and (2) creating collaborative environments that allow people to develop new ideas and concepts to address unanticipated opportunities or challenges. Productive learning focuses mostly on the individual and on helping that individual to adopt a pattern of behavior that improves productivity. Generative learning, by contrast, is a collaborative endeavor. Shared meaning and insights are developed at the group level, and these insights drive enterprise transformation to ensure growth and sustainability. Today, the learning function is focused primarily on productive learning. As a result, it appears that trainers are more likely to want to maintain the status quo, rather than challenge it. Learning is a far more complicated phenomenon than can ever be limited to the classroom context. If we convey knowledge about tasks we already know how to do, we call it productive learning . If we share knowledge about tasks that are new and different, we call it generative learning . Productive learning serves largely to maintain the status quo within an enterprise by conveying what is already known, while generative learning involves not only absorbing existing information but also creating new solutions to unanticipated problems. Information age learning requires that individuals and organizations change the way they think about and act on what is known and what needs to be known in order to innovate, change, and win.
Ency picture from www.versandantiquariat-schmitz.de/Lexika-Brit... http://s3.amazonaws.com/ppt-download/architectures-for-conversation-ii-what-communities-of-practice-can-mean-for-information-architecture-5733.pdf An essential difference between britannica and wikipedia is >>britannica is a one-way medium, handed down from authorities, >> While wikipedia is conversational. It fulfills more of what human beings want in their daily life. That ’s not to say that wikipedia is better than britannica, or that the old way is evil or irrelevant. It ’s just to say that technology has tapped into a latent need people have to be part of conversations.
Speaker notes As a result, we are seeing significant pressure being put on traditional forms of organizing. On the left is what we are used to thinking about when we speak about organizations. A formal organization - a hierarchy in which information and knowledge goes up and down through the formal lines of an organization. Work tasks are broken down and coordinated through formal processes. However, research has shown that the large majority of work is actually done through informal networks – some say even 80% in knowledge-intensive organizations which is what we see on the right hand side. Here we have mapped the informal or social organization within one organization we were researching - how many of you have seen one of these sociograms or network diagrams before? This is what my research focuses on – investigating knowledge flows through social networks. In this diagram you can see the dots or nodes are individuals and the lines are the knowledge flows between these individuals. And this is becoming of increasing importance to understand and leverage these informal or social networks as the digital natives continue to enter the workforce – bringing with them their way of solving problems, organizing and learning. (Next slide) Screen shots: revolving social media sites and pictures of digital natives Other notes Org on the left is Built around the expert – put the expert in the box But in this new social organization – Large majority of work done through informal networks, some even say approx 80%. Important to understand both these worlds and how relate to one another… Suggests that as much as 90% of information that people take action on comes from people in their own network – Cross dissertation experts are all over the place and you need to find where the expertise lies in the org and how to connect these individuals
Q13. What are your general thoughts on using social media and business relevant to your job etc? networking applications for work-related purposes; that is for collaborating with colleagues on specific tasks, keeping in touch with clients or other people
Fades into center screen RT: Walls are breaking down – value added coming from across boundaries of the firm Kay, J. (1993) Foundations of Corporate Success , Oxford, Oxford University Press.
RT: Walls are breaking down – value added coming from across boundaries of the firm .
Threadless: What came first – the community or the company RT: presents Threadless, http://www.nickburcher.com/2009/05/threadless-twitter-tees-another-example.html 1,530,000 followers on Twitter The whole business model for Threadless is based on an implicit understanding of how the social web works and gives a great demonstration of how communities can be built and harnessed across an organisation. Identifying online enthusiasts and passion groups and then using social platforms to bring them into the core of a business would appear to be a more powerful way of utilising social opportunities than just running ads on Facebook - but it requires a good deal more commitment. The media aspect of social offers some exciting opportunities for brands, but the potential of the social web can be significantly greater if the power of community is fully realised. In summary, there has to be purpose behind why you use social media. Largest challenge is about changing the mindset though – where create value? Use of social media considerably larger in smaller companies: Inc 100 vs Fortune 100. In these smaller companies, social media being used as a leadership tool as well. Let ’s hear from some of you now on your thoughts about social media. (Next Slide)
http://www.youtube.com/watch?v=0CijdlYOSPc While many definitions of VWs, these are the characteristics that I find relevant to the study of virtual entrepreneurship. Persistent, computer-simulated, immersive environments ranging from 2D "cartoon" imagery to more immersive 3D environment world exists regardless of whether users logged in Users can manipulate and/or alter existing content or even create customized content Shared space or co-presence numerous users, or ‘avatars’, simultaneously participate, interact, and share experiences through gestures, text chat, and voice Socialization/community formation of in-world social groups such as teams, guilds, clubs, cliques, housemates, neighborhoods, etc the world allowed and encouraged
https://picasaweb.google.com/lh/photo/cGAPUCiKe6LI6l5fM4rFqA Computer-generated, persistent space Three-dimensional, immersive environment Experienced by many people at once/interactivity
RT: traditional leadership further challenged as we move to a world of web 3.0 or the immersive internet… http://www.forbes.com/sites/limyunghui/2012/08/02/1-6-of-facebook-users-spent-over-1-billion-on-virtual-goods/ http://www.informationweek.com/development/mobility/virtual-goods-to-generate-29-billion-in/232602637 http://techcrunch.com/2012/02/29/virtual-good-market-boom/ http://www.youtube.com/watch?v=-ahqjBeknT0
Lecuyer et al, Brain-Computer Interfaces, Virtual Reality, and Videogames Opensimulator 3d printing BCI
I always like to put things into perspective. I think that what is interesting and relevant here is that several economic historians had actually predicted the crisis that we are experiencing now. I don ’t have time to go into all the details, but what we are seeing is a pattern repeating itself. As in the late 18 th and 19 th Centuries there was a technological innovation that led to a period first of transformation as the innovation began to be diffused, then a period of rationalization leading to an imbalance, and then to a financial crisis coming around 40 years after the innovation. However, in the past, these financial crises have then led to periods of great economic development – industrial revolutions, in which industry profitability has been restored through a redistribution of the value-added between capital and labor. But more importantly, these crises filtered out those organizations that could not adapt and change to stay competitive in the new industrial environment. And one of the most important things that is of interest for today ’s discussion is that in one of the factors facilitating these new phases of economic growth following the crisis has been that a generation of people that had never experienced life without the innovation starts to enter the workforce – thus they are not restricted by old ways of thinking. experiencing now some economic historians claim to be due to the innovation of the microprocessor and microelectronics in the 1970s. Similar to what we experienced with the innovation of the steam engine in the late 18 th C and the internal combustion engine and electric motor in the late 19 th C, there was a subsequent crisis about due to various forces converging. We saw that as these basic innovations were diffused, people stopped investing in the existing industrial structure and instead focused on investing in a new generation of competitive machinery, which then led to an industrial revolution in both cases as the innovations became embedded in society. At the same time, the crisis served to release the negative pressure that had been built up as well as to restore industry profitability through the redistribution of value-added between capital and labor. Other notes Notes from article - Schön, L, Economic Crises and Restructuring in History A crisis is connected with changes in the long term or structural conditions built up during a rather long period of time and effects behavior for a long time to come Transformation – changes in industrial structure – resources are reallocated between industries and diffusion of basic innovations with industry that provides new bases for such reallocation Rationalization – concentration of resources to most productive units within the branches and measures to increase efficiency in different lines of production Shifts between transformation and rationalization have occurred with considerable regularity in structural cycle of 40 years – 25 years on transformation, and 15 years on rationalization. Crises been part of this cycle as well International crisis in 1840s – How go from crisis to expansion quickly – went quite rapidly in 1930s for Sweden – but Sweden in opposite corner in 1970s 1850s – upswing of industrial and infrastructural investments was linked to breakthrough of mechanized factories in Sweden, modernization of steel processes and construction of railways 1930s and more marked after WWII late 1940s - expansion of electrification and diffusion of automobiles, processing of electrosteel to small motors in handicraft and household – combination with motorcar – new styles in living and consumption Waves of investments around development of an infrastructure from basic innovation of preceding cycle mid 1970s – microprocessor – knowledge and information in production of goods and services It is not the basic innovation itself – but the diffusion of the innovation that counts! When invented, then expensive to implement, have a narrow range of application – Following generalization – A structural crisis (that has been preceded by an early development of basic innovations) has put an end to old directions of investments mainly in rationalization of existing industrial structure and given rise to investments in ne and devt of new tech that after one decade (the length of the classical Juglar cycle of machinery investments) has created a new generation of economically competitive machinery Reallocation of labor occurs approx 15-30 years after the structural crisis Development of markets – distribution of value added between capital and labour is one mirror of these changes Diffusion of innovations leads to expansion of markets and arrival of new competitors – Structural crises – release negative pressure and restored profitability in industry – get rid of those who not competitive
Abandoned factory in Michigan: http://www.nebraskaweatherphotos.org/july2009photos.html Office building: http://homeasnika.com/office-buildings/
RT: the 3D internet characterized by …. (next slide)
I can ’t find the source for this, it would be great if someone could point this out to me.
Teigland_Exploring future of value creation
Today’s discussion From 2010 to 2012 Into the future….
"...when the rate of change outside an organization isgreater than the rate of change inside, the end is near...." Jack Welch…
Did You Know: Shift Happens http://www.youtube.com/watch?v=cL9Wu2kWwSY&feature=search 1.What trends do you recognize? 2.How are these trends affecting you and your organization?3.What does this have to do with networks?
Human capacity cannot keep up… Information Growth and knowledge Human absorptive capacity TimeAdapted from Cohen & Levinthal 1989
A Big Bang in the Information Universe 2.7Bln daily comments and ”likes” on Facebook 500Mln daily posts on Twitter and Weibo combined 200k videos uploaded to YouTube dailyhttp://en.wikipedia.org/wiki/Internet, Tomas Larsson, 2012
Big Data is now big moneyTomas Larsson, Sep 2012
Tracking flu outbreaks Source: Google FluTomas Larsson, Sep 2012
”No one knows everything, everyone knows something,all knowledge resides in networks ” humanity. Six degrees of separation - Milgram, 1967 Adapted from Lévy 1997
3.74 degrees of separation! Aug 2012 5 mln active monthly users in SwedenSource: Facebook
Growing social media landscapeshttp://www.resonancechina.com/2012/03/13/updated-2012-china-social-media-landscape/
People > 45 years becoming more active % age group with personal profile on any social networking websiteEdison Research, 2012 - US-based study
Check-ins not taking off… How often do you check in to location services such as Foursquare or Gowalla?Edison Research, 2012 - US-based study
Privacy concerns rising How do you feel about the privacy of your personal information on Facebook?Edison Research, 2012 - US-based study
Creation > curation 46% Creators: Create and post photos, videos, etc. 41% Curators: Find and post photos, videos, etc.http://pewinternet.org/Reports/2012/Online-Pictures.aspx
Organizations span the full range of use but…. 2010 2012 Organizational use No One-way Two-way use “broadcasting” conversations ..the majority ..the majority are here here are Ban Allow Encourage use use use Employee useTeigland 2010
US Inc 500* shift from blogs to Fb and Twitter *Fastest-growing private companieshttp://www.umassd.edu/cmr/socialmedia/2012inc500socialmediaupdate/
US Fortune 500 renews interest in social media Google: 4.8 mln Twitter followers, up from 3.3 mln Coca-Cola: >51 mln Facebook fans, up from 32 mln Pinterest: Dominated by B2C companieshttp://www.umassd.edu/cmr/studiesandresearch/2011fortune500/
Social media gaining in influence on buying decisions Which ONE social networking site or service influences your buying decisions the most?Edison Research, 2012 - US-based study
67% in USA do not follow a brand in social media and for those who do, no one brand dominates Think about the companies, brands, products and services you enjoy following on social networking sites. What is the first ONE that comes to mind?Edison Research, 2012 Of 332 responses
Google Glass and Fashion collaborate in short film about Diane Von Furstenburg shot entirely with Glasses’ Going for the Wow Effecthttp://www.huffingtonpost.com/2012/09/13/google-glass-diane-von-furstenburg-video_n_1881484.html
Hidden influence of your friends’ friends… Happy people Christakis & Fowler, 2011 In between people Unhappy peoplehttp://www.ted.com/talks/lang/en/nicholas_christakis_the_hidden_influence_of_social_networks.html
How Wrapp’s friend-to-friend marketing platform drives salesConverting online relationships to offline sales
Organizations span the full range of use but…. 2012 Organizational use No One-way Two-way use “broadcasting” conversations ..the majority are here Ban Allow Encourage use use use Employee useTeigland 2012
Managementcannot mandate social relationships My company has blocked my computer from accessing most social media sites. But I feel cut off from my network so now I just connect through my phone. Photo: ac360.blogs.cnn.com
Wide adoption of internal use across industriesGoogle, Millward Brown, 2012
Use of social networking tools within organizations Used for Significant impactGoogle, Millward Brown, 2012
Into the future….Who develops it?Who finances it?Who manufactures it?
Models of Knowledge Creation E.g., Microsoft ~ Built by employees within organizational boundariesThe Firm vs The Collective E.g., Linux ~ Built by users and distributed freely regardless of affiliation Teigland, Di Gangi, & Yetis 2012
“Open source” …not just about software anymore
New forms of financinghttp://blog.intuit.com/trends/crowd-power-what-is-crowdfunding-infographic/
Factors contributing to happinesshttp://www.bostonglobe.com/lifestyle/health-wellness/2012/09/20/despite-their-cities-similarities-boston-and-san-francisco-residents-find-happiness-different-ways-study-suggests/Psuxo8L4Zjq8C16SKLxeGL/story.html
Access to 24x7 global workforce USD 1bln industry
Global Online Employment Report Q2 2012 at Elance https://www.elance.com/trends/talent-available
Majority of GDP growth in small to medium citieshttp://www.mckinsey.com/Insights/MGI/Research/Urbanization/Urban_world
OpenSimulator: A value-creation ecosystem Academic Entrepreneur Hobbyist Large Firm Non-profit Local Public Federal Public Research Inst SME Employee Periphery Teigland, Di Gangi, & Yetis 2012
Here comes the Immersive Internet….O’Driscoll 2009
What are Virtual Worlds ? Platforms for unleashing creativity and revolutionizing value creationhttp://www.youtube.com/watch?v=Quh2OiPHkm8
Building skills in virtual environments My CV •Leading 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 communication
The number of virtual worlds and users continues to rapidly increase ≈1.9 bln accounts ≈100 worldshttp://www.slideshare.net/nicmitham/kzero-universe-q1-2012
Education, training… Learning virtual teaming skills through experiencehttp://www.youtube.com/watch?v=Quh2OiPHkm8
Training and simulation for Providers of Healthcare DeliveryVirtual hallucinations at In hospital counseling atUC Davis Univ of New EnglandPharmacy training at Umeå U Emergency training w/ SAIC
Accelerating innovation to meet global needs Integrating users in development processTeigland et al. 2010 http://www.youtube.com/watch?v=2kMNWBU1Yb8
Cloud party on Facebook - In betaMarketplace app and Cloud Coins https://www.facebook.com/CloudParty
≈1.4 bln VW accounts under age 16225 mln 170 mln 200 mln 42 mln 265 mln http://www.slideshare.net/nicmitham/kzero-universe-q1-2012
“Clearly, if social activity migrates to synthetic worlds, economic activity will go there as well.” Castronova, 2006 $14.8 billion worldwide market for virtual goods in 2012Ehttp://www.superdataresearch.com/monetization-is-a-four-letter-word/
US$ 635,000 for a virtual asteroid!•US$ 500,000 profit in 5 years by Jon “Neverdie” Jacobs •Entropia Universe with GDP >US$ 440 mln http://blogs.forbes.com/oliverchiang/2010/11/13/meet-the-man-who- just-made-a-cool-half-million-from-the-sale-of-virtual-property/
The future of immersion…http://www.bbc.com/news/technology-19568451
Increasing pace of VW/3Di development Short-term Mid-termBrowser-based,hyperlinked 3D Mobile Long-term Radical interfaces Adapted from Burden, 2012
History tends to repeat itself…. Innovation, financial crisis, industrial revolution, … Microelectronics Internal combustion engine Steam engine Third industrial revolution? Late 18th C Late 19th C Late 20th CSchön 2008
From the mobility of goods to the mobility of financial capital to …...the “mobility” of labor? Teigland, JVWR, 2010
Differing views…. Sherry Turkle – Alone Together − The feeling that ‘no one is listening to me’ make us want to spend time with machines that seem to care about us. Barry Wellman – Networked Individualism − It is the move from densely-knit and tightly-bounded groups to sparsely-knit and loosely-bounded networks. … People remain connected, but as individuals, rather than being rooted in the home bases of work unit and household.
"E-connection isprocessed in the brain likean in-person connection." http://slideshare.net/missrogue
Some things do not changeInnovation ExchangeExchange TrustTrustRelationshipsRelationships Interaction
How do you stay in command …… while letting go of control?
Open Leadership Having confidence and humility to give up need to be in control, while inspiring commitment from people to accomplish goals
What should you think about? How to let go? How to leverage the power of networks to create value inside and outside the boundaries of the firm? How to create a sustainable ecosystem?
If you love knowledge, set it free… Karinda Rhode Photo: Lindholm, Metro aka Robin TeiglandPhoto:Nordenskiöld email@example.com www.knowledgenetworking.org www.slideshare.net/eteigland www.nordicworlds.net RobinTeigland Photo: Lindqvist