May 2011May 2011www.hhs.sewww.hhs.se

"...when the rate of change "...when the rate of change outside an organization is outside an organization is greater than the rate of greater than the rate of

change inside, the end is change inside, the end is near...." near...."

Jack Welch…Jack Welch…

Did You Know: Shift HappensDid You Know: Shift Happenshttp://www.youtube.com/watch?http://www.youtube.com/watch?

v=cL9Wu2kWwSYv=cL9Wu2kWwSY

How are these trends impacting How are these trends impacting you and your organization?you and your organization?

GrowthGrowth

TimeTime

Information Information and knowledgeand knowledge

Human Human absorptive absorptive capacitycapacity

Human capacity cannot keep up…Human capacity cannot keep up…

Adapted from Cohen & Levinthal 1989Adapted from Cohen & Levinthal 1989

””No one knows everything, No one knows everything, everyone knows something, everyone knows something,

all knowledge resides in all knowledge resides in humanity.”humanity.”

networksnetworks

Adapted from Lévy 1997

Six degrees Six degrees of separationof separation

- Milgram, - Milgram, 19671967

BA

Two individuals/organizations Two individuals/organizations with the same number of contacts…with the same number of contacts…

……but with very different access to but with very different access to resourcesresources

BA

A

Poor Poor creativity and creativity and

innovative innovative performanceperformance

Highcreativity and

innovative performance

Teigland 2003

B

Avoid creating insular networksAvoid creating insular networks

http://www.enronexplorer.com/focus/19185#http://www.enronexplorer.com/focus/19185#

A shift from being A shift from being problem solvers to solution finders problem solvers to solution finders

The wisdom of the crowdThe wisdom of the crowd

ClosedClosedExpensiveExpensiveComplexComplexAccurateAccurate

OpenOpenInexpensiveInexpensive

SimpleSimpleClose enoughClose enough

Hinton 2007

AccurateAccurate

History tends to repeat itself….History tends to repeat itself….Innovation, financial crisis, industrial revolution, Innovation, financial crisis, industrial revolution,

… …

Steam Steam engineengine

Internal Internal combustion combustion

engineengine

MicroelectroniMicroelectronicscs

Late 18Late 18thth C C Late 19Late 19thth C C Late 20Late 20thth C C

Schön 2008

Third industrial revolution?

A new workforce is appearing…A new workforce is appearing…

Prensky 2001, Beck and Wade 2004, Mahaley 2008 Prensky 2001, Beck and Wade 2004, Mahaley 2008

““Digital ImmigrantsDigital Immigrants””““Digital NativesDigital Natives””

Company loyaltyCompany loyaltyWork ≠ PersonalWork ≠ Personal

Learning=Behind the deskLearning=Behind the desk

Professional loyaltyProfessional loyaltyWork = PersonalWork = Personal

Learning=Fun and gamesLearning=Fun and games

Adapted from FredCavazza.net

“u r always on….”

Drivers of changeDrivers of changeIncreased

Interactivity

DiGangi 2010DiGangi 2010

Future Digital Storytelling

http://www.youtube.com/watch?v=GkHNNPM7pJA

DiGangi 2010DiGangi 2010

Building skills in virtual environmentsBuilding 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

Teigland 2010

http://www.slideshare.net/helgetenno/post-digital-marketing-2009http://www.slideshare.net/helgetenno/post-digital-marketing-2009

Our economy changesOur economy changes

Pine Jr. & Gilmore 1998, 1999; DiGangi 2010DiGangi 2010

Business models

So, what happens to them?

Johnson, Christensen, and Kagermann 2008, DiGangi 2010

They evolve...

Closed model

Organizations internalize resources for value creation; restrict access to

knowledge, and protect intellectual property. DiGangi 2010DiGangi 2010

DiGangi 2010DiGangi 2010

Open modelOrganizations leverage both internal

and external resources for value creation; strategically interact with

environment DiGangi 2010DiGangi 2010

Access to 24x7 global workforceAccess to 24x7 global workforce

Average wage Average wage approx. USD 1.40 / approx. USD 1.40 /

hourhourhttp://www.people.fas.harvard.edu/http://www.people.fas.harvard.edu/~drand/~drand/

““Distributed groups of individuals Distributed groups of individuals focused on solving general problem focused on solving general problem

and/or developing new solution and/or developing new solution supported by computer-mediated supported by computer-mediated

communication.communication.”” Dahlander & Wallin, 2006 p. 1246Dahlander & Wallin, 2006 p. 1246

User-driven Innovation

DiGangi 2010DiGangi 2010

DiGangi 2010DiGangi 2010

““Distributed groups of individuals Distributed groups of individuals focused on solving general problem focused on solving general problem

and/or developing new solution and/or developing new solution supported by computer-mediated supported by computer-mediated

communication.communication.”” Dahlander & Wallin, 2006 p. 1246Dahlander & Wallin, 2006 p. 1246

User-driven Innovation

27

ExploitationExploitationImproving Improving

existingexisting value value creation creation activitiesactivities

ExplorationExplorationDeveloping Developing newnew value value creation creation activitiesactivities

Adapted from March 1991Adapted from March 1991

Co-created model

Organizations encourage flow of knowledge between internal and external resources; focus on common good where

both parties benefit DiGangi 2010DiGangi 2010

Threadless:Threadless:What came first What came first

– – the community the community

or the or the company?company?

eZeZ 230+230+PartnerPartner

ss

39,000+39,000+CommunityCommunitymembersmembers

5,000+5,000+Customers in Customers in 130 countries130 countries

• Content management software, #1 in media Content management software, #1 in media industryindustry

• Customers: UN, Vogue, Hitachi, 3M, MIT, FT, Customers: UN, Vogue, Hitachi, 3M, MIT, FT, WSJWSJ

• 70 employees in 9 countries (US, Europe & 70 employees in 9 countries (US, Europe & Asia)Asia)

eZ provides eZ provides platforms for interaction platforms for interaction throughout its ecosystemthroughout its ecosystem

eZ Software development team

Driven by both parties sharing their experiences and co-creating value of

network

Private-collective Community

But how to balance needs of community with needs of firm in value co-creation

model?

DiGangi et al 2010DiGangi et al 2010

Just when you thought you got it….Just when you thought you got it….

O’Driscoll 2009O’Driscoll 2009

How many How many usually think usually think

of virtual of virtual worlds…worlds…

But what else can they be?But what else can they be?

•Ability to manipulate/create contentAbility to manipulate/create content•Virtual economy and currencyVirtual economy and currency

http://www.youtube.com/watch?v=Quh2OiPHkm8

VWs moving out of “Gartner hype cycle” VWs moving out of “Gartner hype cycle” troughtrough

Virtual worlds today

http://www.gartner.com/it/page.jsp?id=1447613http://www.gartner.com/it/page.jsp?id=1447613

>1 bln usersMay 2006

July 2007

> 560 mln VW users under age 15> 560 mln VW users under age 15

http://www.slideshare.net/nicmitham/kzero-radar-q1-2011?from=ss_embed

…..we’re all on Facebook 24/7. But if I ask my 10 year old cousin, who

is addicted to Stardoll, she does not see why I like Facebook so

much since I can only read what other people send me. For her it is just natural for all of her friends to

be moving around the Stardoll website.

- Masters Student at - Masters Student at Stockholm School of Stockholm School of

EconomicsEconomics

Practicing international entrepreneurshipPracticing international entrepreneurship

““Clearly if social activity migrates to Clearly if social activity migrates to synthetic worlds, economic activity will go synthetic worlds, economic activity will go

there as well.there as well.”” Castranova, 2006Castranova, 2006

http://www.flickr.com/photos/rodenberger/5085364909/in/pool-popartlab/#/photos/rodenberger/5085364909/in/pool-http://www.flickr.com/photos/rodenberger/5085364909/in/pool-popartlab/#/photos/rodenberger/5085364909/in/pool-1240578@N23/1240578@N23/

•US US $3 bln in virtual good sales 3 bln in virtual good sales in 2009 to grow to US in 2009 to grow to US $12 bln in 12 bln in

20122012•US $222,000 raised at

American Cancer Society Relay in Second Life

•Swedish government granted Swedish government granted bbank license to Mind Bank in

2009

Pay through PayPal Pay through PayPal and have delivered to any virtual world and have delivered to any virtual world

http://www.totalavatarshop.com

US$ 635,000 for an asteroid!US$ 635,000 for an asteroid!

http://blogs.forbes.com/oliverchiang/2010/11/13/meet-the-http://blogs.forbes.com/oliverchiang/2010/11/13/meet-the-man-who-just-made-a-cool-half-million-from-the-sale-of-man-who-just-made-a-cool-half-million-from-the-sale-of-virtual-property/virtual-property/

•US$ 500,000 profit in 5 US$ 500,000 profit in 5 years by Jon “Neverdie” years by Jon “Neverdie”

JacobsJacobs•Entropia Universe with GDP Entropia Universe with GDP

>US$ 440 mln>US$ 440 mln

HP rolls out virtual banking HP rolls out virtual banking with Avaya’s Web.alivewith Avaya’s Web.alive

http://www.hypergridbusiness.com/2011/04/hp-rolls-out-virtual-banking-with-avayas-web-alive/

Welch et al 2010Welch et al 2010

Merck’s Global R&D

NVWN Monthly Project Meeting

http://freshtakes.typepad.com/http://freshtakes.typepad.com/sl_communicators/2006/09/sl_communicators/2006/09/

ibms_second_lif.htmlibms_second_lif.html

Virtual collaborationVirtual collaboration

ProViWo: Professional Collaboration ProViWo: Professional Collaboration and Productivity in Virtual Worlds, and Productivity in Virtual Worlds,

http://vmwork.net/proviwo/http://vmwork.net/proviwo/

TomorrowTomorrow’’s education & training?s education & training?

Learning virtual Learning virtual teaming skills teaming skills

through experiencethrough experience

http://www.youtube.com/watch?v=N8XPmp0qGyghttp://www.youtube.com/watch?v=N8XPmp0qGyg

Increasing pace of VW/3Di development!Increasing pace of VW/3Di development!

VWs on VWs on stickstick

Browser-based Browser-based VWs/hyperlinked VWs/hyperlinked

3D3D

Seamlessness Seamlessness between VWsbetween VWs

http://www.hypergridbusiness.com/2009/05/hypergrid-101-why-its-good-for-business/http://www.hypergridbusiness.com/2009/05/hypergrid-101-why-its-good-for-business/http://mediagrid.org/groups/technology/OFF.TWG/http://mediagrid.org/groups/technology/OFF.TWG/

"Create Once, "Create Once, Experience Experience

Everywhere”Everywhere” Expanding Expanding usesuses

For smart For smart phones and phones and tablet PCstablet PCs

Open source VW platformsOpen source VW platforms

Virtual Worlds on DemandVirtual Worlds on Demand

www.kitely.com

Easy to….Easy to…. Set up your own virtual world with own web Set up your own virtual world with own web

presence (each world has World Page with presence (each world has World Page with own URL and sharing buttons own URL and sharing buttons

Manage who can access each world via Manage who can access each world via Facebook integration (LinkedIn, Twitter, and Facebook integration (LinkedIn, Twitter, and other login options are coming) and track thisother login options are coming) and track this

Run multiple worlds so can host hundreds of Run multiple worlds so can host hundreds of simultaneous events while still paying just simultaneous events while still paying just $0.20 per user per hour $0.20 per user per hour

Finance since charged by minute so actual Finance since charged by minute so actual visitor costs for partial hours are lowervisitor costs for partial hours are lower

http://getsatisfaction.com/kitely/topics/how_to_change_default_viwer_on_a_mac#reply_5484936

The rise of social shoppingThe rise of social shopping

http://www.interactivecity.com/

3D interactive marketing3D interactive marketing

Hooker 2010Hooker 2010

State of flow -> greater purchase intent State of flow -> greater purchase intent and positive brand attitudesand positive brand attitudes

Armed with new connective tools, consumers want to interact and co-create value...

Prahalad and Ramaswamy, 2003

„“

Slide from Kohler 2011Slide from Kohler 2011

Interacting with customers Interacting with customers in the development processin the development process

Helms, Giovacchini, Teigland, Kohler, JVWR 2010Helms, Giovacchini, Teigland, Kohler, JVWR 2010http://www.youtube.com/watch?http://www.youtube.com/watch?

v=2kMNWBU1Yb8v=2kMNWBU1Yb8

57

Interested in joining a workshop?

Please register at tiny.cc/t4c or email me at tkohler@hpu.edu

Kohler, Teigland, Giovacchini 2010Kohler, Teigland, Giovacchini 2010

“ They could use their virtual-world sensibility to design products with real-world potential.. (Hemp, 2006)

„

User-generated content

Native creativityPlayful environmentFreedom to experiment

Slide from Kohler 2011Slide from Kohler 2011

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” -Jon “Neverdie” JacobsJacobs

Purchase with credit card, PayPal, mobile phone or Purchase with credit card, PayPal, mobile phone or in physical stores (such as Walmart), in physical stores (such as Walmart),

Facebook takes 30% of revenueFacebook takes 30% of revenue In study with 3000 respondents: Will you be buying In study with 3000 respondents: Will you be buying

and spending Facebook Credits? and spending Facebook Credits? – 17 % Yes, absolutely 17 % Yes, absolutely – 58 % No, absolutely not58 % No, absolutely not– 25 % I have to learn more25 % I have to learn more

Predictions by Social Times Pro, May 2011Predictions by Social Times Pro, May 2011− Facebook Credits will likely have nearly 25 million users in Facebook Credits will likely have nearly 25 million users in

next 12 mos.next 12 mos.− By 2016 Facebook Credits will probably have 100 million By 2016 Facebook Credits will probably have 100 million

usersusers

Group 8b , Course 2304, Media Management 2011Group 8b , Course 2304, Media Management 2011

Facebook Credits – A new economy?Facebook Credits – A new economy?

From the mobility of goods From the mobility of goods to the mobility of financial capital to … to the mobility of financial capital to …

Teigland, JVWR, 2010Teigland, JVWR, 2010...the “mobility” of ...the “mobility” of

labor?labor?

Leadership moving forward……Leadership moving forward……

HierarchyHierarchyLinear, static, process-Linear, static, process-

based organizationbased organization

HeterarchyHeterarchyDynamic, integrated Dynamic, integrated

collaboration networks collaboration networks

Teigland 2010

Transparency, transparency, transparencyTransparency, transparency, transparency

http://twitter.com/#!/zappos

Core Value #6: "Build Open and Honest

Relationships with Communication

Some things do not changeSome things do not change

Innovation Exchange

Exchange Trust

Trust RelationshipsRelationships Interaction

"E-connection is processed in the brain like an in-person connection."

http://slideshare.net/missrogue

What should you think about?What should you think about?

How to let go?How to let go?

How to leverage the power of How to leverage the power of networks to create value inside and networks to create value inside and outside the boundaries of the firm?outside the boundaries of the firm?

How to create a sustainable How to create a sustainable ecosystem?ecosystem?

Interested in learning moreInterested in learning more??

Karinda RhodeKarinda Rhode

aka Robin Teiglandaka Robin Teiglandrobin.teigland@hhs.serobin.teigland@hhs.se

www.knowledgenetworking.owww.knowledgenetworking.orgrg

www.slideshare.net/www.slideshare.net/eteiglandeteigland

www.nordicworlds.net www.nordicworlds.net RobinTeiglandRobinTeigland

Photo: Lindholm, Metro

Photo: Nordenskiöld

Photo: Lindqvist

If you love knowledge, set it

free…