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

GrowthGrowth

TimeTime

Information Information and knowledgeand knowledge

Human Human absorptive absorptive capacitycapacity

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

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

””No one knows everything, No one knows everything,

everyone knows something, everyone knows something, all knowledge resides in all knowledge resides in

humanity.”humanity.”networksnetworks

Adapted from Lévy 1997

Six degrees Six degrees of separationof separation

- Milgram, - Milgram, 19671967

BA

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

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

BA

A

Poor Poor creativity and creativity and

innovative innovative performanceperformance

Highcreativity and

innovative performance

Teigland 2003

B

Avoid creating insular networksAvoid creating insular networks

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

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

The wisdom of the crowdThe wisdom of the crowd

ClosedClosedExpensiveExpensiveComplexComplexAccurateAccurate

OpenOpenInexpensiveInexpensive

SimpleSimpleClose enoughClose enough

Hinton 2007

AccurateAccurate

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

… …

Steam Steam engineengine

Internal Internal combustion combustion

engineengine

MicroelectroniMicroelectronicscs

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

Schön 2008

Third industrial revolution?

Adapted from FredCavazza.net

“u r always on….”

Drivers of changeDrivers of changeIn

crease

dIn

tera

ctivity

DiGangi 2010DiGangi 2010

Social

Mobile Location

http://www.relenet.com/

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

Our economy changesOur economy changes

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

Business models

So, what happens to them?

Johnson, Christensen, and Kagermann 2008, DiGangi 2010

They evolve...

Closed model

Organizations internalize resources for value creation; restrict access to

knowledge, and protect intellectual property. DiGangi 2010DiGangi 2010

DiGangi 2010DiGangi 2010

Open model

Organizations leverage both internal and external resources for value

creation; strategically interact with environment DiGangi 2010DiGangi 2010

Access to 24x7 global workforceAccess to 24x7 global workforce

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

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

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

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

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

User-driven Innovation

DiGangi 2010DiGangi 2010

DiGangi 2010DiGangi 2010

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

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

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

User-driven Innovation

Co-created model

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

both parties benefit DiGangi 2010DiGangi 2010

Social media enable communitiesSocial media enable communities

Threadless:Threadless:What came first What came first

– – the community the community

or the or the company?company?

eZeZ 230+230+PartnerPartner

ss

39,000+39,000+CommunityCommunitymembersmembers

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

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

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

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

eZ PhilosophyeZ Philosophy

Connecting people who share a passion for something they do

so that they can collaborate, share ideas,

learn, and create knowledge

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

eZ Software development team

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

network

Private-collective Community

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

model?

DiGangi et al 2010DiGangi et al 2010

Transparency, transparency, transparencyTransparency, transparency, transparency

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

Core Value #6: "Build Open and Honest

Relationships with Communication

Some things do not changeSome things do not change

Innovation Exchange

Exchange Trust

Trust RelationshipsRelationships Interaction

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

http://slideshare.net/missrogue

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

O’Driscoll 2009O’Driscoll 2009

How many How many usually think usually think

of virtual of virtual worlds…worlds…

Building skills in virtual environmentsBuilding skills in virtual environments

My CV•Leading a virtual team of 30

individuals from across the globe•Creating and successfully executing strategies under

pressure•Managing cross-cultural conflict

without face-to-face communication

Teigland 2010

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

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

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

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

Virtual worlds today

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

>1 bln usersMay 2006

July 2007

Facilitating the virtual workforce Facilitating the virtual workforce through virtual worldsthrough virtual worlds

Welch et al 2010Welch et al 2010

The rise of Avapreneurs The rise of Avapreneurs (avatar+entrepreneur)?(avatar+entrepreneur)?

Global marketsGlobal marketsMicropaymentsMicropayments

Microemployees Microemployees

Teigland 2010Teigland 2010

Accelerating innovation to meet global Accelerating innovation to meet global needsneeds

Teigland et al. 2010Teigland et al. 2010

Integrating users in Integrating users in development development

processprocess

http://www.youtube.com/watch?v=2kMNWBU1Yb8http://www.youtube.com/watch?v=2kMNWBU1Yb8

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

VWs on VWs on stickstick

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

3D3D

Seamlessness Seamlessness between VWsbetween VWs

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

"Create Once, "Create Once, Experience Experience

Everywhere”Everywhere” Expanding Expanding usesuses

For smart For smart phones and phones and tablet PCstablet PCs

Open source VW platformsOpen source VW platforms

Virtual Worlds on DemandVirtual Worlds on Demand

www.kitely.com

As soon as the Facebook generation wakes up and

embraces virtual reality, we are going to see a giant wave of virtual world millionaires.

-Jon “Neverdie” -Jon “Neverdie” JacobsJacobs

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

...the ...the ““mobilitymobility”” of labor? of labor?Teigland 2010Teigland 2010

Leadership moving forward……Leadership moving forward……

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

based organizationbased organization

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

based organizationbased organization

HeterarchyHeterarchyDynamic, integrated Dynamic, integrated

collaboration networks collaboration networks

HeterarchyHeterarchyDynamic, integrated Dynamic, integrated

collaboration networks collaboration networks

Teigland 2010

Interested in learning moreInterested in learning more??

Karinda RhodeKarinda Rhode

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

www.knowledgenetworking.owww.knowledgenetworking.orgrg

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

www.nordicworlds.net www.nordicworlds.net RobinTeiglandRobinTeigland

Karinda RhodeKarinda Rhode

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

www.knowledgenetworking.owww.knowledgenetworking.orgrg

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

www.nordicworlds.net www.nordicworlds.net RobinTeiglandRobinTeigland

Photo: Lindholm, Metro

Photo: Nordenskiöld

Photo: Lindqvist

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