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  1. 1. Social mediaSocial media marketingmarketing Dr. Robin TeiglandDr. Robin Teigland Stockholm School of EconomicsStockholm School of Economics robin.teigland@hhs.serobin.teigland@hhs.se www.knowledgenetworking.orgwww.knowledgenetworking.org www.slideshare.net/eteiglandwww.slideshare.net/eteigland
  2. 2. History tends to repeat itself….History tends to repeat itself…. Innovation, financial crisis, industrial revolution, …Innovation, financial crisis, industrial revolution, … 2 SteamSteam engineengine InternalInternal combustioncombustion engineengine MicroelectronicsMicroelectronics Late 18Late 18thth CC Late 19Late 19thth CC Late 20Late 20thth CC Schön 2008 ThirdThird industrialindustrial revolution?revolution?
  3. 3. 3 Did You Know: Shift HappensDid You Know: Shift Happens http://www.youtube.com/watch?v=jpEnFwiqdx8http://www.youtube.com/watch?v=jpEnFwiqdx8 How are these trends affecting you andHow are these trends affecting you and your organization?your organization?
  4. 4. GrowthGrowth TimeTime Information andInformation and knowledgeknowledge HumanHuman absorptiveabsorptive capacitycapacity Human capacity cannot keep up…Human capacity cannot keep up… Cohen & Levinthal 1989Cohen & Levinthal 1989 4
  5. 5. 6 degrees of separation Milgram 1967, DesAutelsMilgram 1967, DesAutels
  6. 6. Increasing number of social mediaIncreasing number of social media 6JP Allen 2009www.webguild.org
  7. 7. 7Mahaley 2008, Merrill Lynch 1999, Beck and Wade, Prensky “Digital Immigrants”“Digital Natives” Work ≠ PersonalWork ≠ Personal Loyalty to companyLoyalty to company Learning at the deskLearning at the desk Work = PersonalWork = Personal Loyalty to professionLoyalty to profession Learning through “playing”Learning through “playing” The new generation is huge, 90 million people in the US alone. Already there are more of them around than there are baby boomers. Beck and Wade
  8. 8. Collective Intelligence Networks (CIN)Collective Intelligence Networks (CIN) 8http://www.pmcluster.com/NYC09.htmhttp://www.pmcluster.com/NYC09.htm
  9. 9. Prediction markets with help of CINPrediction markets with help of CIN 9http://compepi.cs.uiowa.edu/~alessio/twitter-monitor-swine-flu/http://compepi.cs.uiowa.edu/~alessio/twitter-monitor-swine-flu/ Monitoring swine flu with TwitterMonitoring swine flu with Twitter
  10. 10. Shifting sources of valueShifting sources of value  Open business modelOpen business model − Competitive advantage through leveragingCompetitive advantage through leveraging external resourcesexternal resources (Chesborough 2003)(Chesborough 2003) − Permeable organizational boundariesPermeable organizational boundaries − Redefinition of acceptable sources of value andRedefinition of acceptable sources of value and knowledgeknowledge  Potential sources of valuePotential sources of value − Users as organizational resourceUsers as organizational resource (von Hippel 1988(von Hippel 1988 2005)2005) − User interactions with organizations creates valueUser interactions with organizations creates value through user-generated contentthrough user-generated content (Di Gangi & Wasko(Di Gangi & Wasko forthcoming)forthcoming) Di Gangi 2008Di Gangi 2008 10
  11. 11. 11 Crowdsourcing:Crowdsourcing: Capturing the wisdom of crowdsCapturing the wisdom of crowds What is it?What is it? − Customer participation in business andCustomer participation in business and business developmentbusiness development  Why the interest?Why the interest? − ExperienceExperience − OwnershipOwnership − EngagementEngagement − LoyaltyLoyalty Brayrie 2007Brayrie 2007
  12. 12. 12 Leveraging external resources to findLeveraging external resources to find solutions and solve unsolved problemssolutions and solve unsolved problems
  13. 13. eZ Systems and the eZ ecosystem:eZ Systems and the eZ ecosystem: An open source business modelAn open source business model 1313 eZeZ PartnersPartners CommunityCommunityCustomersCustomers •#1 open source content management software#1 open source content management software •Enterprise open source – “Grow the cake”Enterprise open source – “Grow the cake” •60 Employees in 8 countries (Europe & Asia)60 Employees in 8 countries (Europe & Asia) •230+ Partners230+ Partners •5000+ Customers5000+ Customers •30,000+ Community members30,000+ Community members www.ez.nowww.ez.no Skien, NorwaySkien, Norway
  14. 14. 1414 Customers ofCustomers of
  15. 15. Reshaping the marketing mixReshaping the marketing mix Jobber 2007Jobber 2007 15
  16. 16. Traditional marketing vs social media marketingTraditional marketing vs social media marketing 16 http://adultaddstrengths.com/2008/11/05/obama-vs-http://adultaddstrengths.com/2008/11/05/obama-vs- mccain-social-media/mccain-social-media/
  17. 17. OBAMA dot GOVOBAMA dot GOV  BarakBarak − Lessig callLessig call DesAutels 2008DesAutels 2008
  18. 18. Content created by a user to be used by a userContent created by a user to be used by a user From organization-generated content (OGC) toFrom organization-generated content (OGC) to user-generated content (UGC)user-generated content (UGC) Content created by an organization to sell to a userContent created by an organization to sell to a user Di Gangi 2008Di Gangi 2008 18
  19. 19. An anthropological intro to YouTubeAn anthropological intro to YouTube 19 60 years by60 years by three US TVthree US TV NetworksNetworks is less than…is less than… YouTubeYouTube Wesch 2008Wesch 2008
  20. 20. Rapid growth of UGC Web SitesRapid growth of UGC Web Sites Organizations increasingly introducing UGC websitesOrganizations increasingly introducing UGC websites (e.g., social networking, electronic communities) as(e.g., social networking, electronic communities) as organizational resourcesorganizational resources Deloitte 2008, Di Gangi 2008Deloitte 2008, Di Gangi 2008 20
  21. 21. Why are organizations using UGC websites?Why are organizations using UGC websites? Deloitte 2008Deloitte 2008 21
  22. 22. The Pink Community – Victoria’s Secret DesAutels 2008DesAutels 2008
  23. 23. 23 Examples at DellExamples at Dell Brayrie 2007Brayrie 2007 Self-supportSelf-support ProductProduct developmentdevelopment
  24. 24. Motorola Q – Creating contentMotorola Q – Creating content 24
  25. 25. Twitter at GE HealthcareTwitter at GE Healthcare 25
  26. 26. ““GE Healthcare” on LinkedInGE Healthcare” on LinkedIn 26
  27. 27. GE Healthcare on LinkedInGE Healthcare on LinkedIn 27
  28. 28. 28 Companies are turning to virtual worlds toCompanies are turning to virtual worlds to facilitate creativity and innovationfacilitate creativity and innovation •Public and completely private virtual business worldsPublic and completely private virtual business worlds (immernets) to recruit, train, collaborate, and innovate(immernets) to recruit, train, collaborate, and innovate •Accenture, Cisco, IBM, Intel, Johnson & Johnson,Accenture, Cisco, IBM, Intel, Johnson & Johnson, Motorola, Novartis, Philips, Sun, Unilever, …..Motorola, Novartis, Philips, Sun, Unilever, …..
  29. 29. 2929 Within five years, theWithin five years, the 3-D3-D Internet will be asInternet will be as importantimportant for work as thefor work as the Web is today.Web is today. January 2008January 2008 By the end of 2011,By the end of 2011, 80 percent80 percent of active Internet users (andof active Internet users (and Fortune 500 enterprises)Fortune 500 enterprises) willwill have a “second life”, but nothave a “second life”, but not necessarily in Second Life.necessarily in Second Life.Steve PrenticeSteve Prentice GartnerGartner
  30. 30. No financial crisis in VWs?No financial crisis in VWs? Increasing membersIncreasing members Increasing companiesIncreasing companies Increasing turnoverIncreasing turnover Wonderland 3030
  31. 31. 3131 Co-creating solutions for todayCo-creating solutions for today Philips Design GroupPhilips Design Group Lead-user innovation workshopsLead-user innovation workshops
  32. 32. 32 HSB is creating tomorrow’s solution whileHSB is creating tomorrow’s solution while attracting employees and customers todayattracting employees and customers today Building the house of the futureBuilding the house of the future in a competition with architecture studentsin a competition with architecture students HSB: One of Sweden’s largest realHSB: One of Sweden’s largest real estate management companiesestate management companies
  33. 33. 3D internet3D internet 33 Before the first plate of aluminum is ever bent for production, the pilots and the passengers will have flown the plane and the crew will have serviced the plane. CEO of Boeing supplierCEO of Boeing supplier
  34. 34. 780,000 users USD 400 mln turnover 2007
  35. 35. Entropia Universe by MindArkEntropia Universe by MindArk  Ability to develop skills and sell virtual goodsAbility to develop skills and sell virtual goods − Island sold for USD 26,500 in 2004Island sold for USD 26,500 in 2004 − Asteroid space resort sold for USD 100,000 in 2005Asteroid space resort sold for USD 100,000 in 2005 − Clothes Against Violence – limited edition virtual jackets soldClothes Against Violence – limited edition virtual jackets sold for more than same model of real world jacketsfor more than same model of real world jackets  Virtual universe with real cash economyVirtual universe with real cash economy − Fixed exchange rate to US Dollar, 1 USD = 10 PEDFixed exchange rate to US Dollar, 1 USD = 10 PED − Five banks auctioned for USD 404,000 in 2007Five banks auctioned for USD 404,000 in 2007 − Real life bank license granted by SwedishReal life bank license granted by Swedish Government to MindArk Bank in March 2009Government to MindArk Bank in March 2009  A business model like the real worldA business model like the real world − Raw materials and skills needed to buildRaw materials and skills needed to build − Goods deteriorate and need to be replenishedGoods deteriorate and need to be replenished 35
  36. 36. China is making big efforts in virtual worlds!China is making big efforts in virtual worlds! •““Virtual economy district – aVirtual economy district – a world where millions will work,world where millions will work, communicate, and be in love”communicate, and be in love” •Reaching out to the 150 mlnReaching out to the 150 mln overseas Chineseoverseas Chinese •7 million inworld at same time7 million inworld at same time •Ability to borrow money toAbility to borrow money to finance operations throughfinance operations through Mind BankMind Bank www.crd.gov.cn, www.foreignpolicy.com “The real China is only a piece of land. We believe that there must be a China in the virtual world and the real world.” Robert Lai, Chief Scientist, CRD 3636
  37. 37. 37 What should you do in virtual worlds?What should you do in virtual worlds? Experiment, “play”, and learnExperiment, “play”, and learn Stay on the look-outStay on the look-out Consider creatingConsider creating independent operationsindependent operations Don’t forget otherDon’t forget other emerging mediaemerging media
  38. 38. Stepping into the Internet: A tour of Second Life Interested in a tour?Interested in a tour?
  39. 39. Match the tool to the purposeMatch the tool to the purpose ToolTool PurposePurpose ExampleExample Blogs and microblogs Conversation Relationship building Information sharing Getting customer feedback Facebook governance Discussion forums Self-support Problem solving Customer engagement Dell Wikis Collaboration Customer engagement Motorola Q Social networking sites Community development Relationship building Customer loyalty Victoria’s Secret Jeep Virtual worlds Collaboration Innovation Engagement Nokia Philips IBM 39
  40. 40. 40 And ensure an integrated approachAnd ensure an integrated approach •#1 Applications Lifecycle Management (ALM) & business mashup •96 of Fortune 100 as customers •800 employees in 18 countries across globe •Average employee age 4 and 27 year old company •One hour every Friday to Facebook to find fun and connect with co-workers, customers, family, and friends •YouTube, Facebook, Homepage http://video.forbes.com/fvn/cmo/serena-social-network-strategyhttp://video.forbes.com/fvn/cmo/serena-social-network-strategy
  41. 41. Benefits and limitations of digitalBenefits and limitations of digital technologies totechnologies to customerscustomers Benefits Limitations Convenience Delivery times Access to information Information overload Enhanced functionality Access to technology New products and services Security Lower prices Cost implications Jobber 2007Jobber 2007 4141
  42. 42. Assessing digital competenciesAssessing digital competencies Jobber 2007Jobber 2007 4242
  43. 43. 43 Tools for assessing your capabilitiesTools for assessing your capabilities Download from: http://www.davechaffey.com/Internet-Marketing/C4-Strategy/benchmark-your-internet-marketing-strategy Chaffey 2009Chaffey 2009
  44. 44. Marketing auditMarketing audit  Customer connectivityCustomer connectivity  Percent target customers have access to thePercent target customers have access to the relevant digital channelsrelevant digital channels  Customer channel usageCustomer channel usage  How often target customers use the digitalHow often target customers use the digital channelschannels  Results generatedResults generated  Percent of sales transacted through a particularPercent of sales transacted through a particular digital channeldigital channel  Marketplace impactMarketplace impact  How important the particular channel is for theHow important the particular channel is for the target markettarget market Jobber 2007Jobber 2007 4444
  45. 45. 45 There is no one right organizational structureThere is no one right organizational structure Example of team structure forExample of team structure for small-medium retailersmall-medium retailer Chaffey 2009Chaffey 2009
  46. 46. Benefits and limitations of digitalBenefits and limitations of digital technologies totechnologies to organizationsorganizations Benefits Limitations Investment reduction Operational costs Reduced order costs Set-up costs Improved distribution Short-termism Opportunity for reduced selling costs High-cost content Relationship building Connective to transactional relationships Customized promotion Over-specialization New market opportunities Technological deserts Marketing research opportunities Authenticity Jobber 2007Jobber 2007 4646
  47. 47. Are there any benefits from UGC,Are there any benefits from UGC, or is it all hype?or is it all hype? 47 IBM social software benefits acknowledged by %of survey respondents 87% 84% 84% 77% 74% 42% 60% 65% 65% 0% 20% 40% 60% 80% 100% Increased skills Accessed experts quicker Shared know ledge w ith others Reused assets Increased productivity Improved personal reputation Increased sense of belonging Increased sales Improved customer satisfaction Poole 2008: IBM Global Technical Services Knowledge Community of Practice Business Impact Survey 2007, completed by approximately 2,300 respondents
  48. 48. But there are challenges to UGCBut there are challenges to UGC • Around 40% of UGC websites have more than 500 membersAround 40% of UGC websites have more than 500 members • But few engage, i.e., contribute, retrieve, and explore UGCBut few engage, i.e., contribute, retrieve, and explore UGC Deloitte 2008, Di Gangi 2008Deloitte 2008, Di Gangi 2008 4848
  49. 49. Important to rememberImportant to remember 49Friedman 2009
  50. 50. 50Friedman 2009
  51. 51. Users create their own meaningsUsers create their own meanings 51Wesch 2008
  52. 52. 52 There is nowhere to hideThere is nowhere to hide http://www.youtube.com/watch?v=t8XxcOj3SeoFortune, Rey 2008
  53. 53. Monitor social media sites andMonitor social media sites and react in a timely fashionreact in a timely fashion 53Friedman 2009
  54. 54. Turning negative publicity into positive publicityTurning negative publicity into positive publicity 54http://www.youtube.com/watch?v=FZ1st1Vw2kY&feature=relatedhttp://www.youtube.com/watch?v=FZ1st1Vw2kY&feature=related EA GamesEA Games responds onresponds on YouTube to aYouTube to a user’suser’s accusation of aaccusation of a glitch in theirglitch in their game.game.
  55. 55. Who is responsible for social media?Who is responsible for social media? 55Friedman 2009
  56. 56. Requisite variety is ever increasing There is more turbulence – Socially, economically, environmentally, technologically. DesAutels 2008DesAutels 2008
  57. 57. 5757 PeoplePeople • Net generationNet generation • NeuroplasticityNeuroplasticity •New demandsNew demands TechnologyTechnology • Social software (Web 2.0)Social software (Web 2.0) • Broadband accessBroadband access • Mobile hardwareMobile hardware BusinessBusiness EnvironmentEnvironment • GlobalizationGlobalization • Pace ofPace of changechange • InformationInformation loadload Watch out! Forces converging….Watch out! Forces converging…. Mahaley 2008Mahaley 2008
  58. 58. 58 We digitized audio and video,We digitized audio and video, why can’t we just digitize,why can’t we just digitize, you know, Earth”you know, Earth” Philip RosedalePhilip Rosedale Chairman of the BoardChairman of the Board Linden LabLinden Lab
  59. 59. 59 “I think there’s a world market for maybe five computers.” Thomas Watson, Chairman of IBM, 1943 “There is no reason anyone would want a computer in their home.” Ken Olson, President, Chairman and Founder of Digital Equipment Corporation, 1977 “Heavier-than-air flying machines are impossible.” Lord Kelvin, President, Royal Society, 1895
  60. 60. 60 Thanks andThanks and see you in world!see you in world! Karinda RhodeKarinda Rhode aka Robin Teiglandaka Robin Teigland robin.teigland@hhs.serobin.teigland@hhs.se www.knowledgenetworking.orgwww.knowledgenetworking.org www.slideshare.net/eteiglandwww.slideshare.net/eteigland IIf you love knowledge, set it freef you love knowledge, set it free……
  61. 61. Sources and acknowledgementsSources and acknowledgements − Allen, JP, https://usffiles.usfca.edu:443/FacStaff/jpallen/www/5thingswithcustomersv3.pdfAllen, JP, https://usffiles.usfca.edu:443/FacStaff/jpallen/www/5thingswithcustomersv3.pdf (Accessed 24 April 2009).(Accessed 24 April 2009). − Chaffey, D. 2009.Chaffey, D. 2009. Benchmarking to improve your digital marketing strategy,Benchmarking to improve your digital marketing strategy, www.davechaffey.com/blog/.www.davechaffey.com/blog/. − Deloitte, 2008. 2008Deloitte, 2008. 2008 Tribalization of Business Study.Tribalization of Business Study. − DesAutels, P. 2008. The Multinational’s Nemesis, ICIS 2008.DesAutels, P. 2008. The Multinational’s Nemesis, ICIS 2008. − Di Gangi, P. 2008, The Content Web Sites, Co-Creation of Value: Exploring EngagementDi Gangi, P. 2008, The Content Web Sites, Co-Creation of Value: Exploring Engagement Behaviors in User-generated Content Web Sites, Colloquium at Florida State UniversityBehaviors in User-generated Content Web Sites, Colloquium at Florida State University College of BusinessCollege of Business − Friedman, J. 2009. Social media and MySpace case for Handelshögskolan,Friedman, J. 2009. Social media and MySpace case for Handelshögskolan, http://www.slideshare.net/joakimfriedman/social-media-and-myspace-case-for-http://www.slideshare.net/joakimfriedman/social-media-and-myspace-case-for- handelshgskolan-090428.handelshgskolan-090428. − Gurteen, D. Online Information 2007: KM goes Social,Gurteen, D. Online Information 2007: KM goes Social, http://www.slideshare.net/dgurteen/km-goes-social-194717http://www.slideshare.net/dgurteen/km-goes-social-194717 − Jobber, 2007. Principles & Practices of Marketing, Fifth Edition, McGraw-Hill. − Poole, IBM: Web 2.0 goes to work, http://www.slideshare.net/jward5519/ibm-web-2-0-Poole, IBM: Web 2.0 goes to work, http://www.slideshare.net/jward5519/ibm-web-2-0- goes-to-work-presentationgoes-to-work-presentation − Wesch, M. 2008 Anthropological introduction to YouTube.Wesch, M. 2008 Anthropological introduction to YouTube.  Acknowledgements − Allen, JP, University of San Francisco − Klaar, P., GE Healthcare − Mahaley, S., Duke Corporate Education − Fuller, R., Goh, S., Wasko, M., Florida State University, College of Business 61

Hinweis der Redaktion

  • Speaker notes:
    I always like to start off by putting things into perspective. The theme of today’s Corporate Relations event is that of seeing opportunities in the midst of the financial crisis and 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 18th and 19th 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.
    Next slide
    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 18th C and the internal combustion engine and electric motor in the late 19th 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
  • 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
    Figur 3. Gapet mellan tillväxten av ny kunskap respektive
    tillväxten av människans förmåga att absorbera kunskapen.
    (Fritt efter Robert Junks anförande vid framtidsseminarium i
  • Speaker notes:
    Here on this chart you can see the distribution of the population (US figures). On the right of the red line are the “digital immigrants” or those who did not grow up with digital technology such as the computer and the internet, while on the left of the red line we see the “digital natives” or those who have grown up with the internet always there. I would just like to say that I am not wild about this categorization, especially since I belong to the baby boomers but I see myself more of a digital native – I used to visit the university computer center with my father in the early 1970s, but I think that it works as a generalization to help explain the changes we are seeing.
    The interesting thing is that this new generation of workers is huge and is even larger than the babyboomers and in fact in the US, 56 mln are old enough to be employees with 7 million already managers. Those that are 38 and younger are the gamers and those that are 28 years and younger are the net-generation and we now have a new generation that is entering the workforce that has grown up with mobile phones. These generations have a different outlook on work, learning, and play. On the right hand side, we have individuals with a high degree of company loyalty and in which there was a clear line between work and one’s personal or social life and play was something to be done only in one’s free time. However, in these new generations we have individuals who are more loyal to their peers and their professions – choosing to mix their working life with their personal life while also not seeing such a clear line between work and play. And anyway, who ever said that we cannot combine work and play?
    Next slide
    Other notes
    The new generation is huge - 90 million people in USA alone
    Larger than baby boomers
    81% of US business population ≤ age 34 are gamers
    56 million old enough to be employees
    7 million already managers
    Points: we are looking at a wave of Digital Natives that are already in our workforce.
    That design of learning will in large part be for some portion of these 90 million americans, not to mention the internationals. 38 years old and younger – they are the gamers. 28 years old and younger – these are the net-generation, having grown up with the internet always being there.
    These are people for whom the technology has always been available to provide them with engaging experiences, connections beyond the realm of their home towns to people and information that otherwise would never have been available or accessible.
  • Summer 2009New York City & Silicon Alley
Prediction Markets ClusterPrediction Markets Summit
Leading Collective Intelligence NetworksFriday 24 April  2009
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 Secure, online Check-in required and includes meals, refreshments, materials and Wi-Fi. Your transaction email response is your event registration receipt. Attractive group, non-profit and academic discounts are available. There are no other discounts, press passes or refunds. Unused tuition is 100% transferable and may be used at future events or by another person. No on-site registration. Questions?  Please Contact Sarah V. Jones, sarah.jones@pmclusters.com, Tel: 978-468-0267, Fax: 206-984-2429. PM Summit Reception
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    Prediction Markets Summit
Leading Collective Intelligence NetworksFriday, 24 April  2009
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Please Contact Sarah V. Jones, sarah.jones@pmclusters.com, Tel: 978-468-0267, Fax: 206-984-2429 TimeInteractionSpeaker
    8:00 - 8:15Continental Breakfast and RegistrationStaff
    8:15 - 8:30Introduction, Agenda, LogisticsPrediction Markets Summit
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    8:30 - 9:15Prediction MarketsIowa Electronic Markets:Real-Money Futures MarketsGeorge NeumannGeorge Daly Research Professor of Economics 
    9:15 - 10:00Collective Intelligence Networks Enterprise Prediction Markets:Leading Organizational Collective Intelligence Maurice BalickCo-founder, VP & CTO
    10:00 - 10:30Morning BreakAll
    10:30 - 11:30Prediction Market ResearchPrediction Markets:Combinatorial Prediction MarketsRobin HansonProfessor, Economist, Polymath 
    11:30 - 12:30Keynote PresentationHarnessing Crowds:  Mapping the Genome of Collective IntelligenceThomas W. Malone
Professor of Management
MIT Sloan School of Management

    12:30 -1:30Prediction Markets LuncheonAll
    1:30 - 2:00Prediction MarketsWisdom is Relative:  Future of PMsDaniel Reeves Yahoo Research Scientist
    2:00 - 2:30Enterprise Prediction MarketsCollective Intelligence Solutions:  Developing Enterprise PMsBrad WilsonVP Services
    2:30 - 3:00Collective Intelligence NetworksEnterprise Prediction Markets:Designing Easy, Engaging and Expressive Prediction Markets Leslie Fine, Ph.D. Chief Scientist
    3:00 - 3:30Afternoon Break & RefreshmentsAll
    3:30 - 4:00Research and PracticePrediction Markets Technology PanelFacilitator
    4:00 PM Summit 2009 East Adjournment
    Abstract and BenefitsWhat are Prediction Markets ? 

Also known as information markets (PM), decision markets, idea futures, and virtual markets, prediction markets are speculative markets created for the purpose of making predictions. Assets are created whose final cash value is tied to a particular event, outcome or parameter (e.g., total sales next quarter). The current market prices can then be interpreted as predictions of the probability of the event or the expected value of the parameter. 

People who buy low and sell high are rewarded for improving the market prediction, while those who buy high and sell low are punished for degrading the market prediction. Evidence so far suggests that prediction markets are at least as accurate as other institutions predicting the same events with a similar pool of participants. 
One of the oldest and most famous is the University of Iowa's Iowa Electronic Market. It has been predicting the results of American presidential elections since 1988 with greater accuracy than polling companies. Prediction markets were championed in James Surowiecki's 2004 book The Wisdom of Crowds. Prediction markets are speculated to be useful decision support tools for corporations. (Wikipedia) What are Collective Intelligence Networks?Collective Intelligence Networks (CIN) are an entirely new way to share, trade and aggregate information. They embrace complex social networks, collaboration and market dynamics to achieve fundamental increases in human capacity for learning, reasoning, understanding, aptitude and adaptation. CINs furnish a new capability infrastructure comprised of human relationships, diverse, far reaching information and markets, creating effective, fast-moving, and social information interchanges. This capability propels optimization and mastery of complex information and knowledge ecologies.Collective intelligence Networks are growing rapidly. These networks help companies, schools, governments, and individuals to acquire, to create and lead ever-growing bodies of knowledge. Through a ceaseless flurry of self-organizing value exchanges, wikis, blogs and information markets, these stunning network capabilities achieve mastery of collective intelligence with breathtaking speed, accuracy and continuity.
Collective intelligence networks continuously amass, codify, refine and advance knowledge. Open, value-based networks enable far better decision making about product launches, features, policies and myriad other critical questions facing organizations, businesses, the environment and civil society.
  • Welcome! I am Alessio Signorini, PhD Candidate in Computer Science at the University of Iowa. My advisor is Alberto Maria Segre This is a mashup between Twitter and Google Maps. I created it as proof of concept for my thesis on "Query Logs Analysis: Diseases Surveillance and Detection". Every 25 seconds this page monitors the stream of tweets containing Swine Flu related keywords (e.g. "swine", "Tamiflu", "flu") and plots their locations on the US map. Each colored dot represent a tweet related to a certain keyword. If you click on it, you will be able to see the author and the text of the tweet. Enjoy!
  • Picture from www.archives.gov.on.ca/ENGLISH/exhibits/parad...
  • GoldCorp ... a mining company, 50 years old. Geologists couldn't tell him where the gold was. The CEO was ready to shut down the company. Heard about Linux ... and embraced the principles. Took his geological data, published it on the Internet, and held a contest on the Internet called the "GoldCorp Challenge". Offered $500K for those who could find the gold. Found $3.4 billion of gold. Value jumped from $90 million to $10 billion.
    Wikipedia…The Canadian gold mining group Goldcorp made 400 megabytes of geological survey data on its Red Lake, Ontario property available to the public over the internet. They offered a $575,000 prize to anyone who could analyse the data and suggest places where gold could be found. The company claims that the contest produced 110 targets, over 80% of which proved productive; yielding 8 million ounces of gold, worth more than $3 billion.
  • Our competitive advantage is our ability to attract talented people to collaborate and innovate together.
    Aleksander Farstad, eZ Systems
    Særlig innen media:
    - Lagardere, Prisma Presse, Mandadori og Sport24/Group Figaro
    Men også annet som Societe General, Banque Populaire, SNCNF, Orange,
    France Telecom and Ministry of Defence.
    Vi har nå i Frankrike 51 partnere
    Bluechips of enterprise content management
    2005 – 35 people employed – less than 10 mln sek
    open text
    German JDK evalute the ECM market of 2005
    How can relative small Norwegian company – gather more than 700 people from 33 countries in a small town in Norway
    South America, Australia, japan, N America, Mozambique
    Norwegian government doing a lot in open source thinking
    Suez – 14th largest company in world – largest French company
    Univ of Sao Paulo – largest S America company
    Harvard –
    We are not alone – we are not a small company, as a company we are small – but small piece of the ecosystem –
    We are the enablers and together we are one of the largest companies
    300 mln euros together
    We can scale business model of managing risk
  • http://open-government.us/
  • According to Alexa Site Rankings (US-based):
    1.) Google
    3.) Facebook
    4.) YouTube
    5.) MySpace
    8.) Wikipedia
    18.) Flickr
    28.) Apple
    43.) LinkedIn
    57.) Dell
    75.) Twitter
    According to Alexa Site Rankings (World Rankings):
    1.) Google
    3.) YouTube
    5.) Facebook
    7.) Wikipedia
    9.) MySpace
    33.) Flickr
    62.) Apple
    141.) LinkedIn
    157.) Dell
    235.) Twitter
  • http://www.youtube.com/watch?v=TPAO-lZ4_hU&feature=PlayList&p=F3C55BF4FAEC5737&playnext=1&playnext_from=PL&index=22
  • Source: Deloitte (2008) Tribalization Study
  • http://www.protonmedia.com/
    Wikis, blogs
    Social networking
  • Several companies are now taking the ideas related to open innovation into SecondLife. For example, Philips Design has created several open air meeting areas on Second Life with the purpose of testing virtual concepts and allowing SL residents to participate in co-design projects. During one event a group of approximately 20 avatars comprising educators, computer specialists, and marketers, discussed the subjects of packaging, clothing, and future of self-expression in smaller groups led by moderators[1] (Figure x). Recently the company opened the Co-creation Experience[2], which helps the company develop a personal connection with members of its ‘Philips Design Friends Group’, now comprising more than 200 people who proactively offer insights and ideas including ongoing dialogue concerning their habits and behaviors in this virtual space.
    [1] www.lostinthemagicforest.com/blog/?p=28
    [2] http://www.design.philips.com/about/design/designnewscenter/news/article-15083.page
  • http://flickr.com/photos/secondsweden/2110677418/
  • Carl vast – autodesk – ceo – 2005 -2006 before you bend the first plate of steel for a plane, you should be able to fly, service, and pilot virtually
  • Function – e-commerce function – inte bara virtuell, men riktig handel –sälja kläder – real life kläder – tok in ett företag – lite London företag – on edge för detta- clothes against violence – street – urban betonade –kula jackor – vi lanserar virtuella kopior av varje – men bara 100 av varje maximum!!!! 3d modeler av dem som man kan köpa I real life - real kläder tar aldrig slut –men virtuella tar slut – begränsat . Virtuelall pris högre än det verkliga – inte hos kinesarare, kunde inte förstår det..
    Objects with a set lifespan have a repurchase value which falls in relation to wear. Unique objects can have a market value, which is fixed via auctions, which exceeds the repurchase value. Assets that do not wear out, such as land or property, have no repurchase value.
  • Speaker note
    I also like to take this opportunity to show you about how some countries are even leveraging these new internet-based media and networks. One example is China that is putting big efforts into virtual worlds. In May 2007, the Cyber Recreation Department of Beijing signed a partnership agreement with MindArk, a company in Gothenburg, to develop the largest virtual world ever. The idea is to create a virtual world in which 7 mln people can be inworld at the same time – both for entertainment and for business opportunities. MindArk has auctioned off five banking licenses to create real banks where virtual money can be borrowed and invested – there is a real cash economy in which money can be invested and taken out. Why is China doing this??? Think it is very much in the quotation above – the real china….. And through this virtal world, they can reach out to the 150 mln overseas Chinese – build networks to these people to gain access to resources that these people have – financial resources, access to markets, technologies, etc. This world will be launched something in early 2009 and it will be very exciting to see how this develops.
    Next slide
    Other notes
    Discussion with Frank Campbell - MindArk
    The banks were separate from the Chinese deal – they were for entropia universe In general – banking licenses – they are up and working now – 2 years since released now, competitive branch like any others, some banks have gone ahead and some falling behind – market competition like in any other market
    As for China, the partnership deal would allow them to regulate the banks and anything else on their planet – dotman
    As for the project, they are very good in the development along the way…not sure when to be released but well on their way. The press release was for when the agreement was signed in Nov 2007.
    As for the 10,000 people hired, they have a large number of people, but not sure if it is of that large volume.
    They chose our platform because they recognize our platform that we have to be of use – combines entertainment with cash economy – provide both business opportunities and entertainment
    We have state of art graphic engines that will keep going for several years - Platform – make an effort to make topnotch Cry engine (now in final round with NASA for educational platform)
    As for financial crisis – people will have less money – will not spend more time at home and look for entertainment – this is a real cash economy so we are feeling it like anyone else –
    Dotman is what it is called – this very Chinese – have dotcoffee, dotman – sign of new era
    Robert Lai is the one who died and now been taken over by others.
    Entropia Universe is an online virtual universe designed by Swedish software company MindArk. It advertises a unique "Real Cash Economy (RCE)" in which Entropia Universe currency (PED - Project Entropia Dollars) can be redeemed back into real world funds at a fixed exchange rate with the US dollar, where 10 PED = $1 USD.[1][2] This means that virtual items acquired inside Entropia Universe have a real cash value, and a participant may, at any time, withdraw their accumulated PEDs back into real world currencies according to the fixed exchange rate.[3]
    On 30 May 2007, it was announced that Entropia Universe had been chosen by the Beijing Municipal People's Government supported online entertainment company Cyber Recreation Development Corp. (CRD) to create a cash-based virtual economy for China, creating the largest virtual world ever.
    Financial Times
    BEIJING, June 06, SinoCast -- China is to build the first homegrown virtual world supported by real currency, reveals Sweden- based Entropia. Millions of people will work, communicate with each other and be in love in the virtual world.
    CRD, under the control of Beijing Municipal People's Government, has been in talks with Entropia and has chosen it as the builder of the virtual world from many competitors including Second Life. Entropia beat down its rivals, owing to its safety, stability and capacity to control a Real Cash Economy, says its spokesman.
    The server to support the virtual world will be located in China Mainland, under the inspection and management of CRD and Sweden- based MindArk.
    Entropia's spokesman remarks the building of the virtual world will create 10,000 jobs for the Chinese market. Upon its completion, 7 million homegrown users and 150 billion overseas users will join to communicate with each other and do business in the virtual world.
    The annual benefit from China's virtual economy will top USD 1 billion, according to evaluation. Entropia's virtual world supports trade of dummy goods and users can meet in reality to make deals.
    Market Wire
    Virtual World Entropia Universe Issues First Ever Virtual Banking Licenses for $400,000
    MindArk Announces the Five Winners of the World's First Virtual Banking License; Real World Banks and Celebrities Among the Buyers
    Highlighted Links Entropia UniverseGOTHENBURG, SWEDEN -- (MARKET WIRE) -- May 8, 2007 -- In yet another first for both the virtual world and the real world, Entropia Universe creators MindArk PE AB today announced the long-awaited results of the very first virtual banking license auction after months of active bidding. The five licenses sold for an astounding total of $404,000 to a mix of real world banks, Entropia celebrities, and entrepreneurs, all seeking to invest in the virtual realm. Up for sale since January, these two-year exclusive licenses will integrate real world banking systems into Entropia Universe.
  • There is significant probability that, over time, market pressures will lead to a merging of current virtual worlds into a smaller number of open-sourced environments that support the free transfer of assets and avatars from one to another with the use of a single, universal client
    Move fast, be light on your feet. Might not be second life…but there is something here…don’t know which way go…
    MS 10-15 år, google 5 år years to reach peak
    Joost – allting går fortare…
    Ahead of herd…
    Technology lifecycle…
    Experiment and “play”
    Find and engage the enthusiasts in your company
    Support, but make aware of “risks”
    Don’t ask your leading customers what they think
    Stay on the look-out
    Follow developments
    See how they affect the path to a future scenario
    Consider creating independent organization for more serious efforts
    Anonymous bank buying virtual banking contract on Entropia Universe
    But don’t forget other emerging media
    Coca-Cola uses combination of all new media channels, e.g., YouTube, MySpace, SL
  • Serena Software Adopts Facebook as Corporate Intranet
    "Facebook Fridays" Foster Fun and Community Spirit at Serena Software
     SAN MATEO, Calif. — November 2, 2007 — Serena Software, Inc. is breaking out of the corporate mold by announcing today that its 800 employees around the globe will participate each week in a company-wide program called “Facebook Fridays,” which encourages employees to find fun and personal connections in the workplace. Each Friday, employees are granted one hour of personal time to spend on their Facebook profiles and connect with co-workers, customers, family and friends. This initiative will start on Friday November 2nd and will be rolled out in 18 countries where the company has offices.
    As Web 2.0 technologies such as instant messaging (IM), wikis, and texting make communication faster and more efficient, the “human” element of communication can feel increasingly removed. How can people bring that sense of personal interaction and community back into the workplace? Surprisingly, through one of the hottest technologies around—Facebook, a social utility that connects people with friends and others who work, study and live around them.
    Fanatic for FacebookSerena President and CEO Jeremy Burton is an avid user of Facebook, using it to keep in touch with employees, friends, and business partners from wherever he is in the world—in Japan visiting customers or racing cars at Laguna Seca. He wants to bring the benefits he gains from using Facebook to his company, and allow employees to have more fun combining their personal and professional lives. He is doing this by making Facebook his company’s intranet—a place where employees can find everything from a list of company holidays to the CEO’s favorite movie. Burton believes that colleagues who get to know one another on a more personal level will work together better. The company already has more than 30% of its global workforce on Facebook prior to the launch of Facebook Fridays.
    “As our business continues to grow, the workplace becomes more and more distributed, which can make us feel disconnected from one another,” said Burton. “Social networking tools like Facebook can bring us back together, help us get to know each other as people, help us understand our business and our products, and help us better serve our customers—on demand. A corporate culture that fosters a sense of community and fun will ultimately help us get more done. Companies that do not embrace social networking are making a huge mistake.”
    Recent studies indicate there are roughly 70 million Gen Y’ers (born between the years 1980-2000), and Burton believes it’s critical to understand and embrace “their world,” including on-demand Internet applications and an “innovation without permission” mentality. Serena is using new methods of recruiting, like Facebook, to tune into this next generation of workers who are, ultimately, the corporate leaders of tomorrow.
    About Serena Software, Inc. Serena Software, Inc. is the leading global independent software company focused on Business Mashups and Application Lifecycle Management (ALM). More than 15,000 organizations around the world, including 96 of the Fortune 100, rely on Serena solutions to automate the application development process and effectively manage their IT portfolio. Serena is headquartered in San Mateo, California, and has offices throughout the U.S., Europe, and Asia Pacific. For more information on Serena solutions and services, visit www.serena.com.
    Serena is a registered trademarks of Serena Software, Inc. All other product or company names may be trademarks of their respective owners, and their use is intended for identification purposes only and not in association with or as sponsorship or endorsement by such owners Copyright © 2007 Serena Software, Inc. All Rights Reserved.
  • In order to maximize the opportunities created by digital technologies to meet and exceed customer expectations, an organization should assess the benefits and limitations of such technologies and their likely impact on organizational success. By posing questions such as ‘Does technology change the target or scope of the market?’, ‘Does new technology help satisfy customer needs better than existing offers?’ and ‘To what extent will customers use new digital over the long term?’, a company can begin to plan how it should proceed. Table 18.2 shows some of the key considerations from a consumer perspective and Table 18.3 from an organizational perspective.
    (Jobber, David. Principles and Practice of Marketing, 5th Edition. McGraw-Hill International (UK) Ltd, 12/2006. 18.7).
  • Strategic competence: the ability to identify new market trends and to determine how the internal capabilities of the organization can be used to exploit emerging opportunities.
    Financial competence: the required level of resources to fund the necessary investment.
    Innovation: the ability to innovate in order to stay ahead of the competition.
    Workforce: human resource management practices need to be employed to recruit, retain, train, motivate and develop staff with the necessary skills to deliver speedy and accurate service, and to sustain high levels of online technical reliability.
    Quality: using prevention-quality systems to minimize error and fulfil customer expectations.
    Productivity: two key areas are customer interface productivity and logistics productivity. Employing the latest computer technology and highly trained staff helps to achieve high levels of productivity.
    Information systems: data flows need to be integrated, and the upgrading of the company's information system is required to stay ahead of the competition.
    (Jobber, David. Principles and Practice of Marketing, 5th Edition. McGraw-Hill International (UK) Ltd, 12/2006. 18.9).
  • 1Customer connectivity: the proportion of the target markets that has access to relevant technologies.
    2Customer channel usage: how often target market participants use online channels and how they use the particular digital channel/platform (e.g. purchase or research?). For instance, for each customer segment and digital channel (e.g. Internet, interactive digital TV or mobile), a company should know the proportion of the target market that:
    makes use of and has access to a particular channel
    browses and, as a result, is influenced by using the channel for pre-purchase research and evaluation
    buys through the particular channel.
    An alternative method is to assess media consumption: how many hours each week are spent using the Internet in comparison with traditional media such as watching TV, reading newspapers or magazines, or listening to the radio?
    Other potential useful information is as follows.
    1Results generated online: in this approach, the company determines, say, the percentage of sales that are transacted through a particular platform.
    2Marketplace impact: involves assessment of how important the channel is for a particular market, assessed on the number of sales influenced and transacted via digital channels.
    (Jobber, David. Principles and Practice of Marketing, 5th Edition. McGraw-Hill International (UK) Ltd, 12/2006.
  • There is more turbulence
    Socially, economically, environmentally, technologically
    Traditional mechanistic/heir approach to organizations is not able to cope.
    Governments –
    Social Enterprises
    Training Inc YMCA
  • Growing number of cellphones…and other devices
    Larger user base
    Declining prices
    Internet access without a PC
    Greater bandwidth
    Growth of EC!
    Work through this build.
    Points to make:
    - The perfect storm for new approaches to developing your next generation leaders:
    There are three forces at play –
    Changes in the learning profiles of the next generations – sometimes referred to as Gen y or the V-Gen. (points related to how these younger people communicate, connect, think about solving problems, use networks, etc.) They are NOT satisfied with having a passive role in the learning process: they want choice, they want to be a contributor, they want to be able to influence the direction of their careers.
    Changes in the technology landscape – points related to web 2.0, 3-D web, changes allowed related to role in the ‘internet’, moving from consumers of information to creators, editors of information, the move from web as single-player space, to the web as multiplayer environment, the networking tools, the broadband access, and the development of mobile platforms to be in constant communication and collaboration anywhere, anytime.
    Changes in the business landscape – points related to the global nature of business today, extended reach with offices around the world, managing suppliers and clients around the globe, dealing with the rate of change and volume of information available, and how business today needs the agility and intelligence (people) to move deftly through this reality.
  • This ‘telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is of no value to us.”Western Union internal memo, 1876.