1.
March 2013
www.hhs.se

2.
"...when the rate of change
outside an organization is
greater than the rate of change
inside, the end is near...."
Jack Welch…

3.
Increasing pace of change
 Of original Forbes 100 in 1917
- 61 companies ceased to exist by 1987
- 18 of remaining 39 underperformed market by 20%
- Only 2 beat market index (GE & Eastman Kodak)
- Only 1 (1%) today!
 Average S&P 500 company lifespan
− 1920s – 67 years
− 2010s – 15 years
 Dr. Richard Foster, Yale, Sept 2012
− Today's rate of change is at faster pace than ever
− By 2020 prediction is > 75% of S&P 500 will be
companies we do not know about today
http://www.fastcompany.com/3001444/what-zara-pg-and-berlitz-know-about-agility

4.
Did You Know: Shift Happens
http://www.youtube.com/watch?v=cL9Wu2kWwSY&feature=search
1. What trends do you recognize?
2. How are these trends affecting you and
your organization?
3. What does this have to do with networks?

5.
Growth
Time
Information
and knowledge
Human
absorptive
capacity
Human capacity cannot keep up…
Adapted from Cohen & Levinthal 1989

6.
A Big Bang in the Information Universe
2.7Bln
daily comments and
”likes” on Facebook
500Mln
daily posts on Twitter
and Weibo combined
200k
videos uploaded to
YouTube daily
http://en.wikipedia.org/wiki/Internet, Tomas Larsson, 2012

7.
Big Data is now big money
Tomas Larsson, Sep 2012
http://hbr.org/2012/10/data-scientist-
the-sexiest-job-of-the-21st-century/ar/1

8.
”No one knows everything,
everyone knows something,
all knowledge resides in humanity.”networks
Adapted from Lévy 1997
Six degrees of
separation
- Milgram, 1967

9.
3.74 degrees of separation!
Source: Facebook
Aug 2012
5 mln active monthly
users in Sweden

10.
Multiple relationships
@padday, www.thinkoutsidein.com/blog

11.
Growing social media landscapes
http://www.resonancechina.com/2012/03/13/updated-2012-china-social-media-landscape/

12.
Social Media – the connected world
Engagement
Commerce
Analytics
Influence
Platforms -
Integrators
Enterprise
Consultants
Social-Local-
Mobile
Gaming
Mahaley 2012

13.
People > 45 years becoming more active
Edison Research, 2012 - US-based study
% age group with personal profile on
any social networking website

14.
Social media gaining in influence
on buying decisions
Which ONE social networking site or service
influences your buying decisions the most?
Edison Research, 2012 - US-based study

15.
67% in USA do not follow a brand in social media
and for those who do, no one brand dominates
Of 332 responses
Edison Research, 2012
Think about the companies, brands, products and services
you enjoy following on social networking sites.
What is the first ONE that comes to mind?

16.
Creation > curation
46% Creators: Create and post photos, videos, etc.
41% Curators: Find and post photos, videos, etc.
http://pewinternet.org/Reports/2012/Online-Pictures.aspx

17.
The wisdom of the crowd
Closed
Expensive
Complex
Accurate
Open
Inexpensive
Simple
Close enough
Hinton 2007
Accurate
Up-to-date

18.
History tends to repeat itself….
Innovation, financial crisis, industrial revolution, …
Steam
engine
Internal
combustion
engine
Microelectronics
Late 18th C Late 19th C Late 20th C
Schön 2008
Third
industrial
revolution?

19.
Where have the traditional sources of
sustainable competitive advantage been?
#1
Innovation
Networks of
relationships
Brand &
Reputation
FIRM
Kaye 1993

20.
#1
Innovation
Networks of
relationships
Brand &
Reputation
FIRM
T
Where are tomorrow’s sources of
sustainable competitive advantage?
Teigland 2010

21.
How Wrapp’s friend-to-friend
marketing platform drives sales
Converting online relationships to offline sales

22.
The “Open Innovation” Opportunity Cloud –
Powered by technologies
Mahaley 2012

23.
Mahaley 2012
Crowdsourcing product and service
innovations from customers

24.
Open innovation in high tech
For 10 years IBM has hosted “ideajams” on specific challenges, i.e., text-based chats
with hundreds, even thousands of contributors from inside and outside IBM. “The 2006
Innovation JamTM brought together >150,000 people from 104 countries and 67
companies. 10 new IBM businesses were launched with seed investment of $100 mln.”
Mahaley 2012

25.
Open innovation in health care
DEMO!
Mahaley 2012

26.
Exploitation
Improving existing
value creation
activities
Exploration
Developing new
value creation
activities
Adapted from March 1991

27.
Into the future….
Who develops it?
Who manufactures it?
Who finances it?

28.
30% profit margin
in commodity
business

29.
sketchstreet

30.
From clothing to home products….

31.
Open innovation in automotive design/production
“Local Motors is the place for people to create
influential vehicles together.”
http://www.youtube.com/watch?v=azCRuwtE_n0

32.
The Firm
The Collectivevs
E.g., Microsoft
~ Built by employees within
organizational boundaries
E.g., Linux
~ Built by users and distributed
freely regardless of affiliation
Models of Knowledge Creation
Teigland, Di Gangi, & Yetis 2012

33.
“Open source” …
not just about software anymore

34.
OpenSimulator: A value-creation ecosystem
Academic
Entrepreneur
Hobbyist
Large Firm
Non-profit
Local Public
Federal Public
Research Inst
SME Employee
Periphery
Teigland, Di Gangi, & Yetis 2012
USD 5.5mln in
development costs

35.
Into the future….
Who develops it?
Who manufactures it?
Who finances it?

36.
3D printing becoming more commonplace…
http://www.youtube.com/watch?v=rrrF_MVMlZw

37.
…and it’s no longer just for companies
3D scanning apps
Affordable home
3D printers
In stores near you

38.
Open Source + 3d Printing + InternetComm
http://mashable.com/2013/02/13/robohand/
$60,000
$150

39.
Where is all this
happening?
Online

40.
Access to 24x7 global workforce
Matchmakers: USD 1bln industry

41.
Increasing supply of freelance talent globally
https://www.elance.com/trends/talent-available
Global Online
Employment Report
Q2 2012 at Elance

42.
The new market place
A shift by companies from being
“problem solvers” to “solution finders”
Ericsson & Augur 2011

43.
Shifting market logic
Ericsson & Augur 2011

44.
Into the future….
Who develops it?
Who manufactures it?
Who finances it?

45.
New forms of financing
http://blog.intuit.com/trends/crowd-power-what-is-crowdfunding-infographic/

46.
And even new forms of currency
Mahaley 2012

47.
Just when you thought you got it….
Here comes the Immersive Internet….
O’Driscoll 2009

48.
What are Virtual Worlds ?
http://www.youtube.com/watch?v=Quh2OiPHkm8
Platforms for unleashing creativity
and revolutionizing value creation

49.
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
Building skills in virtual environments

50.
The number of virtual worlds and users
continues to rapidly increase
http://www.slideshare.net/nicmitham/kzero-universe-q1-2012
≈1.9 bln accounts
≈100 worlds

51.
≈1.4 bln VW accounts under age 16
http://www.slideshare.net/nicmitham/kzero-universe-q1-2012
225 mln
170 mln
200 mln
265 mln
42 mln (and 8.2 mln bought)

52.
“Clearly, if social activity migrates to
synthetic worlds, economic activity will
go there as well.” Castronova, 2006
$14.8 billion
worldwide market for
virtual goods in 2012E
http://www.superdataresearch.com/monetization-is-a-four-letter-word/

53.
US$ 635,000 for a virtual asteroid!
http://blogs.forbes.com/oliverchiang/2010/11/13/meet-the-man-who-
just-made-a-cool-half-million-from-the-sale-of-virtual-property/
•US$ 500,000 profit in 5 years
by Jon “Neverdie” Jacobs
•Entropia Universe with GDP
>US$ 440 mln

54.
Cloud party on Facebook - In beta
Marketplace app and Cloud Coins
https://www.facebook.com/CloudParty

55.
Education, training…
Learning virtual
teaming skills through
experience
http://www.youtube.com/watch?v=Quh2OiPHkm8

56.
Euroversity Network
 Overview
− EU funded, 3 year multilateral and transversal network (LLP EACEA, KA3 (ICT))
− December 2011 – December 2014
− Project Leader: University of Hull (Darren Mundy, Luisa Panichi)
− 19 partners from Austria, Cyprus, France, Germany, Israel, Italy, Netherlands,
Norway, Portugal, Sweden, UK
 Network Aims
−Collect good practice examples in teaching and learning in virtual worlds from
different subjects and national and local contexts
− Facilitate transfer of core knowledge to new contexts
− Provide framework for creation of pan-European virtual-world university
 Expected Outcomes
− Increased number of experts in virtual world education
− Policy for long-term sustainability of network and its outcomes
− Model for knowledge transfer
− Range of dissemination events
More information: http://www.euroversity.eu/

57.
Training and simulation for
Providers of Healthcare Delivery
In hospital counseling at
Univ of New England
Virtual hallucinations at
UC Davis
Pharmacy training at Umeå U Emergency training w/ SAIC

58.
Accelerating innovation to meet global needs
Teigland et al. 2010
Integrating users in
development process
http://www.youtube.com/watch?v=2kMNWBU1Yb8

59.
Developing international entrepreneurs?

60.
http://www.bbc.co.uk/news/technology-20492908

61.
The future of immersion…
http://www.bbc.com/news/technology-19568451

62.
Increasing pace of VW/3Di development
Browser-based,
hyperlinked 3D
Radical interfaces
Mobile
Short-term Mid-term
Long-term
Adapted from Burden, 2012

63.
Coming soon – by Palgrave Macmillan
Release date
April 19,
2013
http://www.amazon.com/The-Immersive-
Internet-Reflections-Entangling/dp/1137283017

64.
Only a matter of time?
O’Driscoll 2009

65.
From factories to office parks to….

66.
From the mobility of goods
to the mobility of financial capital to …
Teigland, JVWR, 2010
...the “mobility” of labor?

67.
Here today, gone tomorrow?

68.
Some things do not change
Innovation Exchange
Exchange Trust
Trust Relationships
Relationships Interaction

69.
Are you ready?

70.
What should you think about?
How to let go?
How to leverage the power of networks to
create value inside and outside the
boundaries of the firm?
How to create a sustainable ecosystem?

71.
Karinda Rhode
aka Robin Teigland
robin.teigland@hhs.se
www.knowledgenetworking.org
www.slideshare.net/eteigland
www.nordicworlds.net
RobinTeigland
Photo: Lindholm, Metro
Photo:
Nordenskiöld
Photo:
Lindqvist
If you love knowledge,
set it free…

72.
Interested in learning more?