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You Scratch My Back, We’ll Scratch
                  Yours
                 --------
         Exploring Open Entrepreneurship in
           a Private-collective Community

     Robin Teigland                        Paul M. Di Gangi
  Stockholm School of Economics             Loyola University Maryland


      Zeynep Yetis                        Christina Huitfeldt
  Stockholm School of Economics           Stockholm School of Economics




             Copenhagen Business School, May 2012
    Innovation and Market Creation in and around Virtual Worlds
#opensim #virtualworlds #innovation #entrepreneurship
Overview

Introduction                      Motivation

Theory & Research Questions      Social Capital

Research Methodology & Results   OpenSimulator

Conclusions                      Contributions

                                  Thank You!
Open Source Communities


      Linux MySQL
           Apache




  Private-collective community: A network
  comprising individuals, organizations, and
interested parties contributing resources to
   accomplish a personal and shared goal
“Open source” communities
 expanding beyond software
Models of Knowledge Creation

                E.g., Entrepreneurs
    ~ Driven by personal vision and knowledge
           to realize an idea for a new venture



Private
                               vs                              Collective



                                 E.g., Open Source Software
                                 ~ Built by users and distributed freely
                                 regardless of affiliation
But an Inherent Tension

Profit-based rational behavior of
entrepreneur would lead to
entrepreneurs free-riding on efforts of
others

Private
                            vs                        Collective


                                             Contributes valuable
                                      time, effort, and knowledge
                                   contributing to community and
                                        making it freely available.
Our Primary Research Purpose




  Do entrepreneurs participate in open source
  communities and if so, what benefits do the
 entrepreneurs provide the community and vice
                   versa?
Overview

Introduction                      Motivation

Theory & Research Questions      Social Capital

Research Methodology & Results   OpenSimulator

Conclusions                      Contributions

                                  Thank You!
Social Capital
     Lin, 2001




The resources embedded in a social structure that are
   accessed and/or mobilized in purposive action
Research Questions
Entrepreneurial
success




                          Organizational
                             success


 RQ1. How do entrepreneurs contribute to
 the social capital of an OSS community?

           RQ2. How does an OSS community
        contribute to an entrepreneur’s social
                       capital?  http://www.flickr.com/photos/paulyp13/2600200854/sizes/l/in/photostream/
Social Capital
  Nahapiet & Ghoshal, 1998
   Wasko & Faraj, 2005


   Structural               Cognitive                  Relational
    Capital                  Capital                    Capital
Individual’s position   Ability for individuals     Ability of individual to
within a network that   to develop a shared       identify with subset of
provides access to       language or foster        overarching network
     resources                                       through common
                            collaboration
                                                            attribute
                         through boundary
                          spanning objects
Overview

Introduction                      Motivation

Theory & Research Questions      Social Capital

Research Methodology & Results   OpenSimulator

Conclusions                      Contributions

                                  Thank You!
OpenSimulator Project




   An open source community comprising different
  individuals and organizations developing a multi-
platform, multi-user 3D application enabling creation
            of customized virtual worlds.
Data Collection

 1)   Developer Mailing List
 2)   Ohloh Commit List
 3)   OpenSimulator Wiki
 4)   SNS, blogs, homepages, etc.
 5)   21 Interviews




Conducting an interview
Methodology
                         Mixed methods, explorative case study
                               Qualitative & Quantitative
                        Two Periods: 1) 2007-2009 2) 2009-2011
             Structural Capital         Cognitive Capital           Relational Capital
              Individual’s position   Ability for individuals to   Ability of individual to
Definition
                  within network         develop shared            identify with subset of
               providing him or her    language or foster           overarching network
                 with access to       collaboration through          through a common
                   resources           boundary spanning                   attribute
                                               objects

Method         Network Analysis        Textual Analysis (Word    Heterogeneity of Ties
             (Centrality & Structural    Burst Lists); Code      Analysis (Identification
                Hole Measures);       Analysis (Contributions to     with Groups)
                 Means Testing           Code Repository)
                 (significance)


                               Interviews used to validate findings
Structural
  Capital



   Entrepreneurs play
significant role through
   their highly central
  positions that bridge
across structural holes




   Network Structure of OpenSimulator Developer Mailing List
Structural Capital
Period One                       Period Two




           Collapsed Node Structure
     of OpenSimulator Developer Mailing List
Cognitive Capital

                        August 2007 - September 2009          October 2009 – October 2011
  Stakeholder           Active Core       Ohloh Top 20        Active Core      Ohloh Top 20
   Affiliation          Developers          Committers        Developers        Committers
                     # Inds    % Total   # Inds  % Total   # Inds    % Total # Inds % Total
  1-Academic            2        10%        2      10%        1        8%       1       5%
2-Entrepreneur          8        40%       11      55%        7        58%      9      45%
  3–Hobbyist            4        20%        2      10%        2        17%      6      30%
  4-Large Firm          3        15%        3      15%        2        17%      4      20%
 5–Non-profit           0        0%         0       0%        0        0%       0       0%
 6-Local Public         0        0%         0       0%        0        0%       0       0%
7–Federal Public        0        0%         0       0%        0        0%       0       0%
8-Research Inst         0        0%         0       0%        0        0%       0       0%
     9-SME              3        15%        2      10%        0        0%       0       0%
      Total            20       100%       20     100%       12       100%     20      100%



                   Entrepreneurs are the primary group of
                     contributors to code development.
Cognitive Capital
                               Period One                                                              Period Two
 Academics        Entrepreneur    Hobbyist    Large Firm         SME         Academics     Entrepreneur     Hobbyist      Large Firm       SME
  inventory           state        debug      availabletype   portability        hg             we          bulletsim      updates        admin
     user             join           osg       processing       openid          wifi           state           wiki       sciencesim       item
    really          obscures       saving         file         metadata        master       established        pm            trust      megaregions
    servers           night       succeeded      worlds          asset          info           join        documents       testclient      prims
     think           pages         osgrid         users        userserver      scholar        never           bots          queue         viewer
    server           scene          shape     mathematics inventoryserver      robust          night           part        adaptive      megarion
   millions          region         guest        center       regionserver    timeout         pages         testclient       voice         trees
    region           believe      functions       tree           script      regionstore      scene           next            dsg           add
  addresses         physics        guests        wrote           goods       freeswitch       region           kins       pronounced     linkedin
   different       prerouting       grid          next           class       university       believe         wise           bots         scalable
inventoryserver       core          value       approach       executed       version        obsolete         outfit        viewer        names
   modules          currency        build      computer          assets         line          physics     documentation     simian       inventory
     grid           incoming        sims          rest         assetbase     connector         core         authority     appearance       root
    agent           revision       project    attachments       inform          lgpl         modules          install       packet         robot
    service       opencurrency      allow         asset          cable       migration       currency         users       retransmit     sequence



                             Entrepreneurs focus on real world applications
                             and ensure development activities are relevant
                                         to diverse members
 Non-profit, Local Public, Federal Public, Research Inst left out for presentation purposes
Relational Capital
  Node Size = Heterogeneity
            Score
     Period One                            Period Two




 Entrepreneurs are significantly more effective at maintaining
diverse relationships than other groups while also maintaining
               strong ties to other Entrepreneurs
Summary of Findings

       RQ 1 How do                     RQ 2 How does an OSS
entrepreneurs contribute               community contribute to an
to the social capital of an           entrepreneur’s social capital?
     OSS community?                              ----------
            -------------          • Structural – provides access to
     • Structural – position             diverse set of resources
   themselves as core and bridges     enabling them to identify and
          across community                 realize opportunities
 • Cognitive – ensure focus of • Cognitive – enables building of
      community on real world         high quality relationships, not
      applications and relevance             just big networks
• Relational - create social glue • Relational – enables ability to
    across community members         develop expertise while avoiding
  with diverse interests and goals             learning traps
Overview

Introduction                      Motivation

Theory & Research Questions      Social Capital

Research Methodology & Results   OpenSimulator

Conclusions                      Contributions

                                  Thank You!
Contribution

•OSS literature
  –Entrepreneurs facilitate the community’s development of a
  combinative capability, thus leading to the continuous creation of
  intellectual capital for the community.
•Social capital literature
  –Extend social capital theory to OSS communities to show a
  symbiotic relationship between OSS communities and
  entrepreneurs.
•Entrepreneurship literature
  –Importance of online communities to entrepreneurs as arenas for
  building social capital.
  –Dialectical view of entrepreneurs as individuals who pursue both
  self and collective interests (Van de ven et al., 2007)
“Open Entrepreneurship”




 Entrepreneurs openly engaging in social capital building
 activities through free revealing of intellectual property
  and contribution of other resources with purpose of
pursuing self business-related interests while contributing
                 to pursuit of mutual goals
Questions?




 Thank you for
your criticisms
and comments!
“If you love knowledge, set it free!”

                                             Robin Teigland

Photo:                                      aka Karinda Rhode
                                          robin.teigland@hhs.se
Nordenskiöld
  Photo: Lindholm, Metro



                                       www.knowledgenetworking.org
                                       www.slideshare.net/eteigland
                                          www.nordicworlds.net
                                              #RobinTeigland
                                                 #NVWN
                              Photo:           #Euroversity
                           Lindqvist

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Open Entrepreneurship_Teigland, Di Gangi, Yetis

  • 1. You Scratch My Back, We’ll Scratch Yours -------- Exploring Open Entrepreneurship in a Private-collective Community Robin Teigland Paul M. Di Gangi Stockholm School of Economics Loyola University Maryland Zeynep Yetis Christina Huitfeldt Stockholm School of Economics Stockholm School of Economics Copenhagen Business School, May 2012 Innovation and Market Creation in and around Virtual Worlds #opensim #virtualworlds #innovation #entrepreneurship
  • 2. Overview Introduction Motivation Theory & Research Questions Social Capital Research Methodology & Results OpenSimulator Conclusions Contributions Thank You!
  • 3. Open Source Communities Linux MySQL Apache Private-collective community: A network comprising individuals, organizations, and interested parties contributing resources to accomplish a personal and shared goal
  • 4. “Open source” communities expanding beyond software
  • 5. Models of Knowledge Creation E.g., Entrepreneurs ~ Driven by personal vision and knowledge to realize an idea for a new venture Private vs Collective E.g., Open Source Software ~ Built by users and distributed freely regardless of affiliation
  • 6. But an Inherent Tension Profit-based rational behavior of entrepreneur would lead to entrepreneurs free-riding on efforts of others Private vs Collective Contributes valuable time, effort, and knowledge contributing to community and making it freely available.
  • 7. Our Primary Research Purpose Do entrepreneurs participate in open source communities and if so, what benefits do the entrepreneurs provide the community and vice versa?
  • 8. Overview Introduction Motivation Theory & Research Questions Social Capital Research Methodology & Results OpenSimulator Conclusions Contributions Thank You!
  • 9. Social Capital Lin, 2001 The resources embedded in a social structure that are accessed and/or mobilized in purposive action
  • 10. Research Questions Entrepreneurial success Organizational success RQ1. How do entrepreneurs contribute to the social capital of an OSS community? RQ2. How does an OSS community contribute to an entrepreneur’s social capital? http://www.flickr.com/photos/paulyp13/2600200854/sizes/l/in/photostream/
  • 11. Social Capital Nahapiet & Ghoshal, 1998 Wasko & Faraj, 2005 Structural Cognitive Relational Capital Capital Capital Individual’s position Ability for individuals Ability of individual to within a network that to develop a shared identify with subset of provides access to language or foster overarching network resources through common collaboration attribute through boundary spanning objects
  • 12. Overview Introduction Motivation Theory & Research Questions Social Capital Research Methodology & Results OpenSimulator Conclusions Contributions Thank You!
  • 13. OpenSimulator Project An open source community comprising different individuals and organizations developing a multi- platform, multi-user 3D application enabling creation of customized virtual worlds.
  • 14.
  • 15. Data Collection 1) Developer Mailing List 2) Ohloh Commit List 3) OpenSimulator Wiki 4) SNS, blogs, homepages, etc. 5) 21 Interviews Conducting an interview
  • 16. Methodology Mixed methods, explorative case study Qualitative & Quantitative Two Periods: 1) 2007-2009 2) 2009-2011 Structural Capital Cognitive Capital Relational Capital Individual’s position Ability for individuals to Ability of individual to Definition within network develop shared identify with subset of providing him or her language or foster overarching network with access to collaboration through through a common resources boundary spanning attribute objects Method Network Analysis Textual Analysis (Word Heterogeneity of Ties (Centrality & Structural Burst Lists); Code Analysis (Identification Hole Measures); Analysis (Contributions to with Groups) Means Testing Code Repository) (significance) Interviews used to validate findings
  • 17. Structural Capital Entrepreneurs play significant role through their highly central positions that bridge across structural holes Network Structure of OpenSimulator Developer Mailing List
  • 18. Structural Capital Period One Period Two Collapsed Node Structure of OpenSimulator Developer Mailing List
  • 19. Cognitive Capital August 2007 - September 2009 October 2009 – October 2011 Stakeholder Active Core Ohloh Top 20 Active Core Ohloh Top 20 Affiliation Developers Committers Developers Committers # Inds % Total # Inds % Total # Inds % Total # Inds % Total 1-Academic 2 10% 2 10% 1 8% 1 5% 2-Entrepreneur 8 40% 11 55% 7 58% 9 45% 3–Hobbyist 4 20% 2 10% 2 17% 6 30% 4-Large Firm 3 15% 3 15% 2 17% 4 20% 5–Non-profit 0 0% 0 0% 0 0% 0 0% 6-Local Public 0 0% 0 0% 0 0% 0 0% 7–Federal Public 0 0% 0 0% 0 0% 0 0% 8-Research Inst 0 0% 0 0% 0 0% 0 0% 9-SME 3 15% 2 10% 0 0% 0 0% Total 20 100% 20 100% 12 100% 20 100% Entrepreneurs are the primary group of contributors to code development.
  • 20. Cognitive Capital Period One Period Two Academics Entrepreneur Hobbyist Large Firm SME Academics Entrepreneur Hobbyist Large Firm SME inventory state debug availabletype portability hg we bulletsim updates admin user join osg processing openid wifi state wiki sciencesim item really obscures saving file metadata master established pm trust megaregions servers night succeeded worlds asset info join documents testclient prims think pages osgrid users userserver scholar never bots queue viewer server scene shape mathematics inventoryserver robust night part adaptive megarion millions region guest center regionserver timeout pages testclient voice trees region believe functions tree script regionstore scene next dsg add addresses physics guests wrote goods freeswitch region kins pronounced linkedin different prerouting grid next class university believe wise bots scalable inventoryserver core value approach executed version obsolete outfit viewer names modules currency build computer assets line physics documentation simian inventory grid incoming sims rest assetbase connector core authority appearance root agent revision project attachments inform lgpl modules install packet robot service opencurrency allow asset cable migration currency users retransmit sequence Entrepreneurs focus on real world applications and ensure development activities are relevant to diverse members Non-profit, Local Public, Federal Public, Research Inst left out for presentation purposes
  • 21. Relational Capital Node Size = Heterogeneity Score Period One Period Two Entrepreneurs are significantly more effective at maintaining diverse relationships than other groups while also maintaining strong ties to other Entrepreneurs
  • 22. Summary of Findings RQ 1 How do RQ 2 How does an OSS entrepreneurs contribute community contribute to an to the social capital of an entrepreneur’s social capital? OSS community? ---------- ------------- • Structural – provides access to • Structural – position diverse set of resources themselves as core and bridges enabling them to identify and across community realize opportunities • Cognitive – ensure focus of • Cognitive – enables building of community on real world high quality relationships, not applications and relevance just big networks • Relational - create social glue • Relational – enables ability to across community members develop expertise while avoiding with diverse interests and goals learning traps
  • 23. Overview Introduction Motivation Theory & Research Questions Social Capital Research Methodology & Results OpenSimulator Conclusions Contributions Thank You!
  • 24. Contribution •OSS literature –Entrepreneurs facilitate the community’s development of a combinative capability, thus leading to the continuous creation of intellectual capital for the community. •Social capital literature –Extend social capital theory to OSS communities to show a symbiotic relationship between OSS communities and entrepreneurs. •Entrepreneurship literature –Importance of online communities to entrepreneurs as arenas for building social capital. –Dialectical view of entrepreneurs as individuals who pursue both self and collective interests (Van de ven et al., 2007)
  • 25. “Open Entrepreneurship” Entrepreneurs openly engaging in social capital building activities through free revealing of intellectual property and contribution of other resources with purpose of pursuing self business-related interests while contributing to pursuit of mutual goals
  • 26. Questions? Thank you for your criticisms and comments!
  • 27. “If you love knowledge, set it free!” Robin Teigland Photo: aka Karinda Rhode robin.teigland@hhs.se Nordenskiöld Photo: Lindholm, Metro www.knowledgenetworking.org www.slideshare.net/eteigland www.nordicworlds.net #RobinTeigland #NVWN Photo: #Euroversity Lindqvist

Hinweis der Redaktion

  1. Image Source: http://www.flickr.com/photos/alkronos/3658274204/
  2. Background Image Attribution: http://www.flickr.com/photos/atranman/5016786784/sizes/l/
  3. Adapted from: http://www.flickr.com/photos/intersectionconsulting/3598356119/Similarly, entrepreneurship research has pointed to the importance of social capital, or the ability to access and/or mobilize resources through relationship networks (Lin, 2001), for entrepreneurial success (e.g., Stam & Elfring, 2008). Researchers have suggested that social capital benefits cooperative behavior and thus the development of new forms for innovative value creation by increasing the efficiency of action and building trust to facilitate collaboration and minimize coordination costs (Nahapiet & Ghoshal, 1998, Putnam, 1993). As a result, social capital influences the conditions for resource sharing and facilitates the development of intellectual capital, or the “knowledge and knowing capability of a social collectivity, such as an organization, intellectual community, or professional practice” (Nahapiet & Ghoshal, 1998:245).
  4. Image Source: http://www.flickr.com/photos/paulyp13/2600200854/sizes/l/in/photostream/
  5. Within a social network, the position of an individual or group of individuals (structural), shared language used to share information (cognitive), and shared identity with likeminded individuals (relational) creates an opportunity for individuals and/or groups to accrue advantages that can be used for both personal and collective benefits.
  6. Image Source: http://www.flickr.com/photos/pathfinderlinden/6667539611/sizes/o/in/photostream/
  7. SNS – social networking sites, eglinkedin, twitter,
  8. Entrepreneurs, on average, possessed the highest number of direct ties (degree), were the best positioned to quickly obtain information as it traversed the network (closeness), required the least number of connections to receive information from the opposite side of the network (betweenness), and were the most strategically positioned near important individuals (eigenvector) in both periods. In both periods, Entrepreneurs acted as key bridges across structural holes. Taken collectively, the results strongly suggest that entrepreneurs play a significant role in building structural capital within the OpenSimulator community at the individual and potentially group level.
  9. The size of the nodes is based on the group heterogeneity scores calculated through aggregating individual member heterogeneity scores. As seen in the graphs below, Entrepreneurs as a collective are centrally located within the community and thus play a vital role in managing communications and facilitating information flow within the developer mailing list, suggesting a strong level of structural capital at the group level as well.
  10. Cognitive capital supports the production of intellectual assets that can be shared and used by the community. Within open source software communities, a key intellectual asset is code contribution to the repository. Table 3 below highlights the distribution of contributions made by each group within the community. As can be seen, Entrepreneurs contribute a significant proportion of code to the OpenSimulator repository. When comparing them to the demographics in Tables 1a and 1b, Entrepreneurs contribute more than an equitable amount of code to the repository.
  11. We created a word burst analysis of the content of the messages posted during the two time periods (Tables 4a and 4b) that identified the words that were most overrepresented in the messages posted by the respective groups compared to the sum of all messages by all groups during each time period. This analysis gives an indication of the type of issues each group is discussing and can be seen as an indication of how it is contributing to the development of the community’s cognitive capital. Entrepreneurs play the crucial role of maintaining the focus of OpenSimulator on real world applications and ensuring the development activities of the community stay relevant to current needs and interests of both businesses and users.During the second period, we found that Entrepreneurs remain relatively stable with a more pronounced tendency towards the monetization of the OpenSimulator virtual world (e.g., opencurrency, currency) and application development (e.g., modules, fields, revision). Combined with the structural capital findings, Entrepreneurs appear to capitalize on the information flowing through the community (in particular through their network positions) to share ideas on how to apply the OpenSimulator project to real world applications and more specifically business opportunities. Furthermore, Entrepreneurs are able to leverage these positions to support revisions and future modules needed to realize current trends within the virtual world industry. In order to achieve this, Entrepreneurs communicate using a shared language or set of terms to describe key areas of the OpenSimulator project (e.g., opencurrency) and contribute code to support the continued success of the community (via Ohloh). Thus, Entrepreneurs possess significant cognitive capital that facilitates their ability to contribute to the community and obtain a personal benefit via the development of business opportunities and experience within the OpenSimulator environment. 
  12. Using the heterogeneity score from our network analysis (see Tables 2a and 2b), we were able to determine that all groups were relatively homogenous in their interactions in OpenSimulator. However, Entrepreneurs possessed slightly more heterogeneity in their ties than other groups with the exception of the periphery, that is a loosely associated group of individuals on the outskirts of the network structure. Entrepreneurs were significantly more effective at maintaining diverse relationships than other groups (F = 27.721; p < 0.001) while also maintaining strong ties to other Entrepreneurs (i.e., identifying and communicating with similar members within the community). Figure 3 visually demonstrates these differences using the size of the node as an indicator of heterogeneity at the group level.
  13. influential role, symbiotic relationshipdiverse sets of tiesbridges between disparate network groupscentrally located within the network across both time periodssocial glue keeping the network togetherfacilitates the exchange and combination of resources necessary for the continuous creation of intellectual capital > sustainabilityof communityRQ2Community arena for the individual entrepreneur to build his or her social capitalEmbeddedness in a diverse network of tiesLearning about potential opportunities and co-creation of the ability to realize these opportunities through resource mobilization. Dialectical view of entrepreneurs (Van de ven et al., 2007) as individuals who pursue both self and collective interests. Entrepreneursare the social gluekeeping the networktogether:Individuallevel: Clear presenceofentrepreneurs as a primaryinfluencerwithin the networkStructuralcapitalpositioning as bothcore and bridges in the network.while the entirecommunitypossesses a distincthomogeneoustendency (i.e., lowheterogeneity props), entrepreneurspossess the mostheterogeneoustiesas well as continuetoworkwitheachotherCognitive and Relationalcapitalalsohighlights the appliedpurposebehindentrepreneursGroup level; (?) dynamicbetweenhobbyists and entrepreneursCollectiveentrepreneurship
  14. Key Discussion PointsClear presence of entrepreneurs as a primary influencer within the networkStructural capital positioning as both core and bridges in the network.Interesting finding that while the entire community possesses a distinct homogeneous tendency (i.e., low heterogeneity props), entrepreneurs possess the most heterogeneous ties as well as continue to work with each other (the majority of the time). This combined with the cognitive capital component shows that entrepeneurs possibly maintain diverse ties for idea generation, but potentially collaborate with other entrepreneurs in order to complete work (this could also be the opposite though). Future research is needed to determine the work activities.The findings for the Cognitive and Relational capital also highlights the applied purpose behind entrepreneurs. Perhaps this is the where we discuss the exploratory (period one) and exploitive (period two) roles of entrepreneurs? Strictly from a management perspective, the value of keeping up to date on current trends/needs means the community and the software stays relevant and attractive to potential businesses (perhaps explaining why large firms do not completely disappear in period two and only move to the periphery because OpenSimulator is still seen as important to keep an eye on).Putting everything together: entrepreneurs are the social glue keeping the network together. Central hub for information flowing through the network (early alerts to new information), connected to diverse ties meaning they are best able to identify strengths and weaknesses in software, perhaps also leading to why they are the largest contributors of code (cognitive capital). Does this mean that there are causal relationships hidden within these findings? Perhaps relational capital and structural capital impact cognitive capital? Group level findings?Interesting dynamic between hobbyists and entrepreneurs being central. One would think these are competing interests and yet they seem to work well with each other. It’s almost like the hobbyists are the users providing market research (beta testers with technical know how) and the entrepreneurs are the organizations fulfilling their needs. Is this why they work well together? How is it that entrepreneurs could end up playing such a central role in an open source community? Does man on the inside (Dahlander and Wallin article) also apply to entrepreneurs?Entrepreneurs and the community have a symbiotic relationship that facilitates the production of social capital at both the community level as well as at the entrepreneur levelEntrepreneurs connect themselves to diverse sets of ties, position themselves as bridges between disparate network groups, and are centrally located within the network across both time periods, making them an integral part of the success of the community
  15. Sharing their way to success through leveraging their social capital to identify and realize opportunities
  16. Image Source: http://www.flickr.com/photos/jordyn-tacozombie/5555279358/sizes/l/in/photostream/