1. Web 2.0: Creating value through social media and virtual worlds November 2008 Dr. Robin Teigland Stockholm School of Economics [email_address] www.knowledgenetworking.org www.slideshare.net/eteigland 1-

3. Everyone is talking about networks National Innovation Networks Formal Networks Entrepreneurial Networks Ego Networks Regional Networks Infrastructure Networks Social Networks FAS.research Electronic Networks Informal Networks Networks of Practice Networked organization

4. A world of rapidly growing knowledge …. > A person’s lifetime in 18th century One week 2008 Fischbowl 2007

5. … that becomes quickly outdated …. 50% knowledge relevant 50% knowledge outdated First year of technical-based education Third year of education

7. Knowledge is growing exponentially…. Cohen & Levinthal 1989 Growth Time Information and knowledge Human absorptive capacity

8. Yet, the world is “shrinking” family local colleagues friends old colleagues colleagues at other offices Just a click away… virtual communities local networks old classmates avatars business contacts social media contacts referrals

9. The speed of information: The power of social media http://www.youtube.com/watch?v=t8XxcOj3Seo Fortune, Rey 2008

11. … with skills in using social media tools to reach out… Rey 2008 Communication Personal Media Self-expression Collective Intelligence Content Production

12. … to build relationships, find information and knowledge, solve problems, and learn Mahaley 2008

13. As well as to create new knowledge sources… Closed Expensive Complex Accurate Open Inexpensive Simple Close enough Hinton 2007

14. … and to solve unsolved problems

15. ” No one knows everything, everyone knows something, all knowledge resides in...” Mahaley 2008, Adapted from Lévy 1997

17. Swedish hip hop artists Liljeros 2006 ?? Timbuktu

20. Two workers with the same number of contacts… B A

21. … but with very different access to resources B A

22. Performance differs based on one’s network Firm A High creative Low on-time High on-time Low creative Teigland 2003 High creative Virtual community Firm B

23. Two divisions within Sundlink (Öresund Bridge) Section 1 Section 2 Improved efficiency over time Stagnant performance over time Schenkel & Teigland 2008

24. Comparing across firms Teigland et al 2000

26. Avoid creating insular networks http://www.enronexplorer.com/focus/19185#

28. Uncovering networks in an organization Formal organization Teigland et al. 2005 Social organization

29. Boundary spanners between locations Stockholm London Brussels Helsinki Madrid Copenhagen Transferred from Stockholm Teigland 1998 San Francisco

30. Management cannot mandate social relationships John Eva Hans Miguel Paul Jan Lars Pia Anna Nils Bill Erik Mike Al Alex

33. From KM 1.0 to KM 2.0 – Social KM Gurteen 2008 KM 1.0 KM 2.0 KM is extra work KM is part of my everyday work Work is behind closed doors Work is open and transparent People directories provide contact information Social Networking platforms reflect who is doing what with whom Content is centralised, protected and controlled Content is distributed freely and uncontrolled IT chooses the tools I use I have a choice & select my own tools Knowledge sharing is database centric Knowledge sharing is people centric Knowledge is captured just in case Knowledge is naturally captured as part of one’s work Best Practices Stories Efficiency and productivity Improved decision making & innovation

34. Wenger 1998, Hinton 2007 Social media enable communities of practice

35. And awareness of others’ skills Mattsson 2004 < 1 yr 1-5 yrs 5-10 yrs 10-15 yrs > 15 yrs Time at firm

36. Creating an internal “Facebook” Mahaley 2008 www.selectminds.com

37. At IBM, “BlueIQ” facilitates several functions Communities Create, find, join, and work with communities of people who share a common interest, responsibility, or area of expertise Blogs Use a weblog to present your idea and get feedback from others; learn from the expertise and experience of others who blog Dogear Save, organize and share bookmarks; discover bookmarks that have been qualified by others with similar interests & expertise Activities Organize your work, plan next steps, and easily tap your expanding professional network to help execute your everyday deliverables, faster Profiles Quickly find the people you need by searching across your organization using keywords that help identify expertise, current projects and responsibilities Poole 2008

38. Trust & reciprocity are essential for knowledge exchange in networks

39. IBM’s Atlas shows the social network of a topic and how to get to someone Poole 2008

42. When you hire someone,… … ..you “hire” his or her network.

43. Increasing job turnover Time Number of jobs in lifetime Estimated time at one organization in Silicon Valley: ~18 months CNET 2000

44. Improving recruiting efforts Job Fairs Accenture recruits in Second Life since 2006 – this recruiting has since paid for itself A manager at a high-tech multinational recruits senior level employees through Orkut, resulting in reduced turnover and headhunter fees Virtualworldnews.com 2008, Hustad & Teigland 2008

47. And to promote an open innovation attitude Not all the smart people work for us. We need to work with smart people inside and outside the company. The smart people in our field work for us. If you create the most and the best ideas in the industry, you will win. If you make the best use of internal and external ideas, you will win. Closed attitude Open attitude Chesborough 2003

48. HSB is creating tomorrow’s solutions in SL Building the house of the future in a competition with architecture students

49. Are there any b enefits from social media, or is it all hype? Poole 2008: IBM Global Technical Services Knowledge Community of Practice Business Impact Survey 2007, completed by approximately 2,300 respondents

50. Dual loyalties Loyalty Loyalty Organization Professional network Teigland 2003

54. Is knowledge trading good or bad for a firm? We pass over the nondisclosure agreements of different companies and trade company secrets all the time. Teigland 2003

55. Who owns the knowledge? Organizational information vs. Personal expertise Teigland 2003

56. Social overload and role conflict Loyalty Loyalty Organization Professional network Teigland 2003

57. Why use these new social media tools? Melcrum 10/07

58. Do employees know how to represent the company when using external social media? Statoil-Hydro Love at 150 m below sea level! Hustad & Teigland 2008

59. IBM’s blogging policy & guidance, created by the employees Policies based on IBM’s Business Conduct Guidelines Apply internally and externally Available on ibm.com “ blogging guidelines” Adapted from Poole 2008

62. Within five years, the 3-D Internet will be as important for work as the Web is today. January 2008 By the end of 2011, 80 percent of active Internet users (and Fortune 500 enterprises) will have a “second life”, but not necessarily in Second Life. Steve Prentice Gartner

63. Towards 3-D Internet Level of Interaction Time Hamilton 2008 Individual - Web 1.0 Thinking Mosaic, Prodigy, Compuserve, AOL, Netscape Connected Web 2.0 Thinking Facebook, Friendster, Yahoo, Blogger, Wikipedia, eBay, Typepad, LinkedIn. Amazon, MySpace, Textamerica, Delicious, HubPages SENSORY 3D Internet Thinking SecondLife, Active Worlds, There, SimsOnline, Club Penguin, World of Warcraft, 3D planets, ToonTown, Habbo, VSlide, Protosphere

64. The number of virtual worlds is growing Wonderland

68. “ We think it has potential as a way of doing business. We’re just experimenting with it ourselves but we see massive potential in the human interaction you can bring. It’s a big browsing environment in many ways.” - IBM Director

69. Recruiting Job Fairs

70. Improving internal effectiveness Unilever is running an extensive pilot in SL

71. In-house training and education IFL at SSE and Duke Corporate Education Co-developing and running virtual team building exercise

73. Increasing effectiveness in traditional industries “ Soon all fashion designers will be originating their designs and managing the production in virtual worlds ….Why such a dramatic change? Economics, pure and simple .” Shenlei Winkler, Director Fashion Research Institute

75. The opportunities are endless……. http://static.flickr.com/47/110109290_2189217cee.jpg

77. What should you do in virtual worlds? Experiment, “play”, and learn Stay on the look-out Consider creating independent operations Don’t forget other emerging media

78. “ 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

79. We digitized audio and video, why can’t we just digitize, you know, Earth” Philip Rosedale, CEO Linden Lab

83. What one listener emailed me after…. When I got home last night, my 17 year old son was doing what he usually does – sitting at the computer online with his friends…But after hearing this presentation, I couldn’t help but be interested in what he really was doing. So, when I looked more closely, I saw that he was involved in three separate conversations - all at the same time, and not only that, he was also following the discussions on one of the school’s forums. Then he said, “Mom, you grown-ups are sooooo behind…..think how much you could get done if you worked like this!”

86. Thanks and see you in world! Karinda Rhode aka Robin Teigland [email_address] www.knowledgenetworking.org www.slideshare.net/eteigland