Leveraging Networks Teigland Aug 2011 GEM64

August 2011August 2011www.hhs.sewww.hhs.se

"...when the rate of change "...when the rate of change outside an organization is outside an organization is greater than the rate of greater than the rate of

change inside, the end is change inside, the end is near...." near...."

Jack Welch…Jack Welch…

Did You Know: Shift HappensDid You Know: Shift Happenshttp://www.youtube.com/watch?http://www.youtube.com/watch?

v=cL9Wu2kWwSYv=cL9Wu2kWwSY

How are these trends impacting How are these trends impacting you and your organization?you and your organization?

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

What is a network?What is a network?

A set of actors connected by tiesA set of actors connected by ties

•Ties/LinksTies/Links−Knowledge, trust, Knowledge, trust, team, sit by, dislike, team, sit by, dislike, etc.etc.−Alliance, customer, Alliance, customer, investment, etc.investment, etc.

TieTie

•Actors/NodesActors/Nodes−IndividualsIndividuals−Teams, Teams, organizations, etc.organizations, etc.

ActorActor

Social network analysis has a long Social network analysis has a long history history

and is based on matrix algebraand is based on matrix algebra

http://en.wikipedia.org/wiki/Social_network

Uncovering informal networksUncovering informal networks

Formal organization Informal organization

Teigland et al. 2005

What do you notice about the informal What do you notice about the informal network? network?

Cross, Introduction to organizational network analysisCross, Introduction to organizational network analysis

Why do networks matter?

An actor’s position in a social network, i.e., social capital, determines in part the actor’s opportunities and constraints.

Casper & Murray 2002Casper & Murray 2002

German biotech scientist

s

Betweenness•Control over what flows in the network•How often are you on the shortest path between two individuals?

Closeness•Access to what flows in the network•How quickly can you reach all others in the network?

Network position is related to ….. Network position is related to …..

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

What are they doing?What are they doing?

Adapted from FredCavazza.net

“u r always on….”

Is knowledge trading good or bad for a Is knowledge trading good or bad for a firm?firm?

We pass over the We pass over the nondisclosure nondisclosure

agreements of different agreements of different companies and trade companies and trade company secrets all company secrets all

the time. the time.

My company has blocked my computer from accessing

most social media sites. But I feel cut off from my network so now I just connect through

my phone.

Management Management cannotcannot mandate mandate social relationships social relationships

Photo: ac360.blogs.cnn.com

…..you “hire” his or her network.

When you hire someone,… When you hire someone,…

Raise awareness of how to use social Raise awareness of how to use social mediamedia

Empower employees to make right Empower employees to make right decisionsdecisions

Trust your employees and enable social media use

Discuss social media use and guidelines Use wikis to enable employees to create

company guidelinesProvide examples of good use and poor useCheck out others’ guidelines

http://socialmediagovernance.com/policies.php

When trusted, employees feel When trusted, employees feel empowered to do the right thing!empowered to do the right thing!

IBMIBM’’s blogging policy & guidance, s blogging policy & guidance, created by the employeescreated by the employees

Policies based on IBM’sBusiness Conduct

Guidelines

Apply internally and externally

Available on ibm.com“blogging guidelines”

Adapted from Poole 2008

Communicate competitive landscapeCommunicate competitive landscape

What is our strategy?1. Who are our customerscustomers?

2. What products do we sell?3. How do we create value?4. Who are our competitors?

https://www.securestate.com/PublishingImages/Competition-(BIG).gifhttps://www.securestate.com/PublishingImages/Competition-(BIG).gif

Transparency, transparency, transparencyTransparency, transparency, transparency

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

Core Value #6: "Build Open and Honest

Relationships with Communication

Develop three forms of networkingDevelop three forms of networking

OperationalOperational PersonalPersonal StrategicStrategic

Purpose Getting work done efficiently

Enhancing personal and professional development

Developing and achieving future priorities

Members Mostly internal contacts and focused on current demands

Mostly external contacts and focused on current and future interests

Both internal and external contacts and focused on future

Network attributes

Depth through building strong working relationships

Breadth through reaching out to contacts who can refer you to others

Leverage through creating inside-outside links

Ibarra & Hunter, HBR Jan 2007Ibarra & Hunter, HBR Jan 2007

Analyze your networksAnalyze your networks

http://inmaps.linkedinlabs.com/network

Avoid creating insular networksAvoid creating insular networks

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

””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

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?

A new workforce is appearing…A new workforce is appearing…

Prensky 2001, Beck and Wade 2004, Mahaley 2008 Prensky 2001, Beck and Wade 2004, Mahaley 2008

““Digital ImmigrantsDigital Immigrants””““Digital NativesDigital Natives””

Company loyaltyCompany loyaltyWork ≠ PersonalWork ≠ Personal

Learning=Behind the deskLearning=Behind the desk

Company loyaltyCompany loyaltyWork ≠ PersonalWork ≠ Personal

Learning=Behind the deskLearning=Behind the desk

Professional loyaltyProfessional loyaltyWork = PersonalWork = Personal

Learning=Fun and gamesLearning=Fun and games

Professional loyaltyProfessional loyaltyWork = PersonalWork = Personal

Learning=Fun and gamesLearning=Fun and games

Breaking free from Breaking free from ““industrial chainsindustrial chains””??

Work and private life are separateWork and private life are separateWork should be seriousWork should be seriousRoles and responsibilities are appointedRoles and responsibilities are appointedLearning occurs behind the deskLearning occurs behind the deskValue is created by firmValue is created by firm’’s employeess employeesFirms are primary source of value Firms are primary source of value

creationcreationCompetition is a zero-sum gameCompetition is a zero-sum gameEtc…..Etc…..

Building skills in virtual environmentsBuilding skills in virtual environments

My CVMy CV•Leading a virtual team of 30 Leading a virtual team of 30

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

pressurepressure•Managing cross-cultural conflict Managing cross-cultural conflict

without face-to-face without face-to-face communicationcommunication

Teigland 2010

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

Drivers of changeDrivers of changeIn

crease

dIn

tera

ctivity

DiGangi 2010DiGangi 2010

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

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


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

Co-created model

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

both parties benefit DiGangi 2010DiGangi 2010

70 empl70 empl230+230+

PartnerPartnerss

41,000+41,000+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

• 75 employees in 9 countries (US, Europe & 75 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

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…..

OO ’’Driscoll 2009Driscoll 2009

How many usually think of virtual worlds…How many usually think of virtual worlds…

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

Moving out of Moving out of ““Gartner hype cycleGartner hype cycle”” trough trough

Virtual worlds today

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

>1 bln users

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

Welch et al 2010Welch et al 2010

TomorrowTomorrow’’s education & training?s education & training?

Learning virtual Learning virtual teaming skills teaming skills

through experiencethrough experience

http://www.youtube.com/watch?v=N8XPmp0qGyghttp://www.youtube.com/watch?v=N8XPmp0qGyg

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

““Clearly if social activity migrates to Clearly if social activity migrates to synthetic worlds, economic activity will go synthetic worlds, economic activity will go

there as well.there as well.”” Castranova, 2006Castranova, 2006

http://www.flickr.com/photos/rodenberger/5085364909/in/pool-popartlab/#/photos/rodenberger/5085364909/in/pool-http://www.flickr.com/photos/rodenberger/5085364909/in/pool-popartlab/#/photos/rodenberger/5085364909/in/pool-1240578@N23/1240578@N23/

•US US $3 bln in virtual good sales 3 bln in virtual good sales in 2009 to grow to US in 2009 to grow to US $12 bln in 12 bln in 20122012

•US $222,000 raised at American Cancer Society Relay in Second Life

•Swedish government granted Swedish government granted bbank license to Mind Bank in 2009

•US US $3 bln in virtual good sales 3 bln in virtual good sales in 2009 to grow to US in 2009 to grow to US $12 bln in 12 bln in 20122012

•US $222,000 raised at American Cancer Society Relay in Second Life

•Swedish government granted Swedish government granted bbank license to Mind Bank in 2009

USD 635,000 for an asteroid!USD 635,000 for an 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/

USD 500,000 profit in 5 yearsUSD 500,000 profit in 5 years-Jon -Jon ““NeverdieNeverdie”” Jacobs Jacobs

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

Global marketsGlobal marketsMicropaymentsMicropayments

Microemployees Microemployees

Teigland 2010Teigland 2010

Increasing pace of VW development!Increasing pace of VW development!

VWs on VWs on stickstick

Browser-Browser-based VWsbased VWs

SeamlessnessSeamlessness

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

EverywhereEverywhere”” Expanding Expanding usesuses

For smart For smart phones and phones and tablet PCstablet PCs

“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 -Jon ““NeverdieNeverdie”” JacobsJacobs

Which professions and industriesWhich professions and industrieswill will notnot be revolutionized? be revolutionized?

70

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

What should you think about?What should you think about?

How to let go?How to let go?

How to leverage the power of How to leverage the power of networks to create value inside and networks to create value inside and outside the boundaries of the firm?outside the boundaries of the firm?

How to create a sustainable How to create a sustainable ecosystem?ecosystem?

How do you stay in How do you stay in command command

…………while letting go of while letting go of

control?control?

Open LeadershipOpen Leadership

Having confidence and humility to give up need

to be in control, while inspiring commitment

from people to accomplish goals

Karinda RhodeKarinda Rhode

aka Robin Teiglandaka Robin [email protected]@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 [email protected]@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

If you love knowledge, set it

free…

Interested in learning moreInterested in learning more??

Leveraging Networks Teigland Aug 2011 GEM64

Business

Transcript of Leveraging Networks Teigland Aug 2011 GEM64