Creating value through networks and social media

Dr. Robin Teigland, akaKarinda Rhode in SL

Associate ProfessorStockholm School of Economics

www.knowledgenetworking.orgwww.slideshare.net/eteigland

Photo: Lundholm, Metro

November 2009ww.sse.edu

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- You on Youtube?- No, Hulu and Itunes, but I lost the USB for my MP3.

It’s MIA, so is my GPS.- This PDF won’t show up on my LCD. - Call your ISP.- I could send them an SMS or look it up on the cookie wiki. So you on Google now?- No, Bing. - You are such a Yahoo! Oh, just got poked on Facebook.- From?- My mom wants to know if she can use Paypal for

Netflix.- Did she ever sell her Imac on Ebay?- No, but she got WiFi for the Xbox.- Can we have a real conversation now?- Sure, can we have it in Second Life?NPR, Internet’s 40th Birthday, 2009

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

v=jpEnFwiqdx8&feature=fvst

What does this mean for organizations?

Growth

Time

Information and knowledge

Human absorptive capacity

Human capacity cannot keep up…

Cohen & Levinthal 1989 5

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”No one knows everything, everyone knows something,

all knowledge resides in humanity.”

networks

Adapted from Lévy 1997

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The wisdom of the crowd

ClosedExpensiveComplexAccurate

OpenInexpensive

SimpleClose enough

Adapted from Hinton 2007

Accurate

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Leveraging external resources to find solutions and solve unsolved problems

A shift from being problem solvers to solution finders

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

…

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Steam engine

Internal combustion

engine

Microelectronics

Late 18th C Late 19th C Late 20th C

Schön 2008

Third industrial revolution?

A new workforce is appearing…

10Mahaley 2008, Merrill Lynch 1999, Beck and Wade, Prensky

“Digital Immigrants”“Digital Natives”

Company loyaltyWork ≠ Personal

Learning=Behind the desk

Professional loyaltyWork = Personal

Learning=Fun and games

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Building skills in virtual environmentsMy 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

The older generation of leadersAs of June 2009, of the Fortune 100 CEOS….2 CEOs have Twitter accounts but no activity13 CEOs on LinkedIn but only 3 have >10

connections 19 CEOs on Facebook but <15 friends75 CEOs on Wikipedia but nearly 33% of these

have limited or outdated information0% have a blog

14http://www.slideshare.net/shazza/fortune-100-ceos-and-social-media?type=presentation

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Increasing pressure on “traditional” organizations

Formal organization/ Hierarchy

Social organization /Heterarchy

Teigland et al. 2005

Top management “fears” ….What about leakage of company secrets

outside the firm?What about social overload and role

conflict?Will employees conduct good

organizational stewardship?How do we measure and validate the

value of web 2.0?Web 2.0 is of a more grassroots nature – implementation in traditional hierarchical organizations results in tension between

employees and managementHustad & Teigland 2009 17

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My company has blocked my computer from

accessing most of the social media sites. But I feel so cut off from my network. So, now I just

connect through my phone.

But…. management cannot mandate social relationships

Teigland & Hustad 2009

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Develop company guidelines for using social media internally and

externally

Trust your employees, and do not ban social media Use wikis to enable employees to create company

guidelines, eg IBM, http://www.ibm.com/blogs/zz/en/guidelines.html

Yahoo’s guidelines− Be respectful of your colleagues− Get your facts straight− Provide context to your argument− Engage in private feedback

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

Usage of Web 2.0

20McKinsey Quarterly, Sep 2009

1088 respon

Building relationships through twitter at Zappos

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Motorola Q – Creating content

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Creating new and strengthening existing relationships through Facebook

• #1 Applications Lifecycle Management (ALM) & business mashup

• 96 of Fortune 100 as customers

• 800 employees in 18 countries across globe

• Facebook Fridays: One hour every Friday on Facebook to find fun and connect with co-workers, customers, family, and friends

• Average employee age: 46• 27 year old Silicon Valley

company• >90% of employees on FB

Launching new products, stores, etc.

24http://mashable.com/2009/11/25/facebook-marketing-ikeas-genius-use-of-photo-tagging/

Informing and engaging the public

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What about business results?Survey of 1700 execs worldwide by McKinseyValue from Web 2.0 internal use (%

respondents)• Increased speed of knowledge access – 68%• Reduced communication costs – 54%• Improved access to knowledge experts – 43%• Reduced travel costs – 40%• Improved employee satisfaction – 35%• Decreased time to market for products/services

and increased innovation – 25%• Increased revenue – 14%

Increased impact if web 2.0 integrated into employees daily work activities

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McKinsey Quarterly, Sep 2009

http://www.digitalbuzzblog.com/social-media-roi-examples-video-by-socialnomics/

Intuit’s Brainstorm

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http://billives.typepad.com/portals_and_km/2009/10/intuit-brainstorm-offers-innovation-management.html

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http://bits.blogs.nytimes.com/2009/06/12/dell-has-earned-3-million-from-twitter/

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The speed of information: The power of social media

http://www.youtube.com/watch?v=t8XxcOj3Seo Fortune, Rey 2008

Monitor social media sites and react in a timely fashion

30Friedman 2009

31http://www.socialmedia.biz/2009/11/02/why-i-love-public-transportation-and-hate-hp/

But check out HP’s

responsiveness!

NextMuni.com

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http://mashable.com/2009/09/29/social-media-transportation/

34http://blog.ted.com/2009/03/sixth_sense_demo.php

Towards 3D InternetLe

vel o

f Int

erac

tion

Time

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

SENSORY3D Internet

ThinkingSecondLife, There

Active Worlds, Entropia,

SimsOnline, Club Penguin, Habbo,

ToonTown,World of Warcraft,

3D planets, VSlide,

Protosphere

Hamilton 2008 35

The future of 3D internet

Before the first plate of aluminum is even bent for production, the

passengers will have flown the plane, the crew will have serviced the plane,

and the pilots will have flown the plane.

CEO of Boeing supplier

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Innovation workshops bring together users from across the globe

What are the implications for 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

Learn how to become an SL Fashion Designer at Fashiontech.wordpress.com/ 42

Which professions will be revolutionized?

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Tomorrow’s education & training?

Improving virtual teaming cross-cultural skillsDesigned by Duke CE and SSE inworld

Task: To build a bridge in your virtual team

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

...the “mobility” of labor?

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DNAug 20, 1996

So, what does all this mean?

Organizations have to ….develop their employees’ network leadership

skills to build their networks globally - both inside and

out leverage social media

− To win the war for talent − To innovate for continuous competitive

advantage− To build their reputation and brand

cultivate an open, knowledge sharing culture47

If you love knowledge, set it free…

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Tremendous opportunities!!!!

Thanks and see you in world!

Karinda Rhode

aka Robin Teiglandrobin.teigland@hhs.se

www.knowledgenetworking.org

www.slideshare.net/eteigland

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Photo: Lindholm, Metro