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My presentation at the Network for Organizational Researcher in Norway (http://neonnet.no/Neondagen/index.html) in November 2009 as well as for Ånge County in Sweden March 2010
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The Third Industrial Revolution?Creating value beyond the firm’s boundaries
Dr. Robin Teigland, akaKarinda Rhode in SL
Associate ProfessorStockholm School of Economics
www.knowledgenetworking.orgwww.slideshare.net/eteigland
Photo: Lundholm, Metro
March 2010ww.sse.edu
"...when the rate of change outside an organization is greater than the rate of change inside, the end is near...."
Jack Welch…
A world of rapidly growing knowledge ….
>A person’s lifetime
in 18th centuryOne week
2010
Fischbowl 2007
…that becomes quickly outdated
50%knowledge
relevant
50%knowledgeoutdated
First year of technical-based
education
First year of technical-based
educationThird year
of educationThird year
of education
Did You Know? Shift Happenshttp://www.youtube.com/watch?
v=jpEnFwiqdx8&feature=fvst
What does this mean for organizations?
Growth
Time
Information and knowledge
Human absorptive capacity
Human capacity cannot keep up…
Cohen & Levinthal 1989
”No one knows everything, everyone knows something,
all knowledge resides in humanity.”
networks
Adapted from Lévy 1997
6 degrees of separation Everybody is connected to everybody else
by no more than six degrees of separation.
“Small World Phenomenon” by sociologist Stanley Milgram, 1967
The wisdom of the crowd
ClosedExpensiveComplexAccurate
OpenInexpensive
SimpleClose enough
Hinton 2007
Accurate
History tends to repeat itself….Innovation, financial crisis, industrial revolution,
…
Steam engine
Internal combustion
engine
Microelectronics
Late 18th C Late 19th C Late 20th C
Schön 2008
Third industrial revolution?
A new workforce is appearing…
Prensky 2001, Beck and Wade 2004, Mahaley 2008
“Digital Immigrants”“Digital Natives”
Company loyaltyWork ≠ Personal
Learning=Behind the desk
Professional loyaltyWork = Personal
Learning=Fun and games
..using the social web to build relationships, find information and knowledge, solve problems, and
learn
Adapted from FredCavazza.net
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 last generation to “attend” college?
15http://features.csmonitor.com/innovation/2009/10/15/the-future-of-college-may-be-virtual/
The older generation of leaders
As of June 2009, of the Fortune 100 CEOS….2 CEOs have Twitter accounts but no activity13 CEOs on LinkedIn but only 3 have >10
connections 19 CEOs on Facebook but <15 friends75 CEOs on Wikipedia but nearly 33% of these
have limited or outdated information0% have a blog
http://www.slideshare.net/shazza/fortune-100-ceos-and-social-media?type=presentation
Increasing pressure on “traditional” organizations
Formal organization/ Hierarchy
Social organization /Heterarchy
Teigland 2003
21
BA
Two individuals with the same number of contacts…
…but with very different access to resources
BA
22
Network dynamics impact creativity and innovation
BA
Poor creativity and
innovative performance
Highcreativity and
innovative performance
Teigland 2003
Where are the sources of sustainable competitive advantage?
#1Innovation
Networks of relationships
Brand & Reputation
FIRM
Kay 1993
Where are the sources of sustainable competitive advantage?
#1Innovation
Networks of relationships
Brand & Reputation
FIRM
eZ230+
Partners
30,000+Communitymembers
5,000+Customers in 130 countries
Ez Ecosystem
• #1 open source content management software
• Customers include UN, Vogue, Hitachi, 3M, MIT
• 75 employees in 9 countries (US, Europe & Asia)
The backbone of eZ Systems is social media - throughout the value chain
Innovation in the eZ ecosystem
What came first – the community or the company?
http://www.youtube.com/watch?v=9VKRbmnqXR4
What does tomorrow’s firm look like?
A community of communities?Teigland 2010
Here comes the Immersive Internet
O’Driscoll 2009
What are Virtual Worlds?
• Persistent, computer-simulated, immersive environments
• Shared space/co-presence with possibility for socialization and community
• In some cases, ability to manipulate/create content• In some cases, virtual economy and currencyhttp://www.youtube.com/watch?v=wMOqI3hH9Gs
“Clearly if social activity migrates to synthetic worlds, economic activity will go
there as well.” Castranova
http://www.youtube.com/watch?v=-ahqjBeknT0
• USD 3 bln in virtual goods sales in 2009, to grow to USD 12 bln in 2012
• Swedish government granted bank license to virtual world Mind Bank in 2009
• USD 330,000 for virtual space station in 2010
• Growing number of entrepreneurs & millionaires
What financial crisis?
Increasing members Increasing turnover Increasing companies
Wonderland
Redgrave – A virtual boutique in Second Life
• Numerous stores selling all kinds of wares and services in-world
• International customer base• Easy payment scheme:
Microtransactions • Global work force: Microemployees
Finding and recruiting talent globally
• Amazon.com job fair
• Benelux job fair• Accenture island
• IBM island• Entrepreneurs
• Microemployees
Will the playing field for SMEs be leveled?
Giovacchini et al. 2009
Innovation workshops bring
together users from across the globe
www.NordicWorlds.net
Tomorrow’s education?
Improving virtual teaming cross-cultural skillsDesigned by Duke CE and SSE inworld
Task: To build a bridge in your virtual team
Which professions and industrieswill not be revolutionized?
From the mobility of goods to the mobility of financial capital to …
...the “mobility” of labor?
So, what does all this mean?
Organizations have to ….develop their employees’ network leadership
skills to build their networks globally - both inside and
out
leverage social media− to win the war for talent
− to innovate for continuous competitive advantage
− to build their reputation and brand
− to build their networks across numerous boundaries
cultivate an open, knowledge sharing culture
Leadership moving forward……
If you love knowledge, set it free…
HierarchyLinear, static, process-
based organization
HeterarchyDynamic, integrated
collaboration networks
Teigland 2010
Thanks and see you in world!
Karinda Rhode
aka Robin [email protected]
www.knowledgenetworking.org
www.slideshare.net/eteigland
Photo: Lindholm, Metro
