May 2011 Third Industrial Revolution

May 2011May 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

Adapted from FredCavazza.net

“u r always on….”

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

Drivers of changeDrivers of changeIn

crease

dIn

tera

ctivity

DiGangi 2010DiGangi 2010

The wisdom of the crowdThe wisdom of the crowd

ClosedClosedExpensiveExpensiveComplexComplexAccurateAccurate

OpenOpenInexpensiveInexpensive

SimpleSimpleClose enoughClose enough

Hinton 2007

AccurateAccurate

The rise of the Collaboration EconomyThe rise of the Collaboration Economy

http://www.fastcompany.com/magazine/155/the-sharing-economy.html?page=0%2C0

• Peer-to-peer financial-lending market: $5 billion by 2013

• Car-sharing revenues in North America: $3.3 billion by 2016

• Sharing economy, in toto: $110 billion-plus market

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?

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

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


Co-created model

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

both parties benefit DiGangi 2010DiGangi 2010

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

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

network

Private-collective Community

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

eZ Software development team

Threadless:Threadless:What came first What came first

– – the community the community

or the or the company?company?

Transparency, transparency, transparencyTransparency, transparency, transparency

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

Core Value #6: "Build Open and Honest

Relationships with Communication

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…

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

> 560 mln VW users under age 15> 560 mln VW users under age 15

http://www.slideshare.net/nicmitham/kzero-radar-q1-2011?from=ss_embed

Practicing international entrepreneurshipPracticing international entrepreneurship

““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 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

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

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

Teigland, JVWR, 2010Teigland, JVWR, 2010

...the “mobility” of ...the “mobility” of labor?labor?

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

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?

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??

May 2011 Third Industrial Revolution

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Transcript of May 2011 Third Industrial Revolution