The 3rd industrial revolution?Exploring the future of value creation

Dr. Robin Teigland Karinda Rhode in SLStockholm School of Economicswww.knowledgenetworking.orgwww.slideshare.net/eteigland

RobinTeigland

September 2012www.hhs.se

Today’s discussion

From 2010 to 2012

Into the future….

Did You Know: Shift Happenshttp://www.youtube.com/watch?v=cL9Wu2kWwSY&feature=search

1. What trends do you recognize?

2. How are these trends affecting you and your organization?

3. What does this have to do with networks?

Growth

Time

Information and knowledge

Human absorptive capacity

Human capacity cannot keep up…

Adapted from Cohen & Levinthal 1989

Big Data is now big money

Tomas Larsson, Sep 2012

”No one knows everything, everyone knows something,

all knowledge resides in humanity.”

networks

Adapted from Lévy 1997

Six degrees of separation

- Milgram, 1967

3.74 degrees of separation!

Source: Facebook

Aug 20125 mln active

monthly users in Sweden

People > 45 years becoming more active

Edison Research, 2012 - US-based study

% age group with personal profile on any social networking website

Check-ins not taking off…

How often do you check in to location services such as Foursquare or

Gowalla?

Edison Research, 2012 - US-based study

Almost never Sometimes Almost every time I go out0%

10%

20%

30%

40%

50%

60%

39%42%

18%

57%

24%

18%

20112012

Creation > curation

46% Creators: Create and post photos, videos, etc.

41% Curators: Find and post photos, videos, etc.

http://pewinternet.org/Reports/2012/Online-Pictures.aspx

Organizations span the full range of use but….

Organizational use

Employee use

No use

Ban use

One-way “broadcasting”

Allow use

Encourage use

Two-wayconversations

Teigland 2010

..the majority are

here

2010

..the majority are

here

2012

US Fortune 500 renews interest in social media

Google: 5.3 mln Twitter followers, up from 3.3 mln Coca-Cola: >51 mln Facebook fans, up from 32 mln

Pinterest: Dominated by B2C companies

Twitter Facebook Public blogs YouTube Pinterest0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

60%56%

23%

0% 0%

62%58%

23%

0% 0%

73%

66%

28%

62%

2%

201020112012

http://www.umassd.edu/cmr/studiesandresearch/2011fortune500/

Social media gaining in influence on buying decisions

Which ONE social networking site or service influences your buying decisions the most?

Edison Research, 2012 - US-based study

67% in USA do not follow a brand in social media and for those who do, no one brand

dominates

Of 332 responsesEdison Research, 2012

Think about the companies, brands, products and services

you enjoy following on social networking sites. What is the first ONE that comes to mind?

Google Glass and Fashion collaboratein short film about Diane Von Furstenburg

shot entirely with 'Glasses’

http://www.huffingtonpost.com/2012/09/13/google-glass-diane-von-furstenburg-video_n_1881484.html

Going for the Wow Effect

Hidden influence of your friends’ friends…

http://www.ted.com/talks/lang/en/nicholas_christakis_the_hidden_influence_of_social_networks.html

Happy peopleIn between peopleUnhappy people

Christakis & Fowler, 2011

How Wrapp’s friend-to-friend marketing platform drives sales

Converting online relationships to offline sales

+

http://articles.chicagotribune.com/2012-07-19/business/sns-rt-us-facebook-walmartbre86i1er-20120719_1_retail-behemoth-wal-mart-ceo-mike-duke-zuckerberg

Organizations span the full range of use but….

Organizational use

Employee use

No use

Ban use

One-way “broadcasting”

Allow use

Encourage use

Two-wayconversations

..the majority are

here

Teigland 2012

2012

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 cannot mandate social relationships

Photo: ac360.blogs.cnn.com

Wide adoption of internal use across industries

Google, Millward Brown, 2012

Use of social networking toolswithin organizations

Used for

Significantimpact

Google, Millward Brown, 2012

ExploitationImproving

existing value creation activities

ExplorationDeveloping new value creation activities

Adapted from March 1991

The wisdom of the crowd

ClosedExpensiveComplexAccurate

OpenInexpensive

SimpleClose enough

Hinton 2007

AccurateUp-to-date

30% profit margin in

commodity business

sketchstreet

From clothing to home products….

The new market place

A shift by companies from being “problem solvers” to “solution finders”

Ericsson & Augur 2011

Shifting market logic

Ericsson & Augur 2011

Into the future….

Who develops it?

Who finances it?

Who manufactures it?

The Firm

The Collective

vs

E.g., Microsoft~ Built by employees within

organizational boundaries

E.g., Linux~ Built by users and distributed freely regardless of affiliation

Models of Knowledge Creation

Teigland, Di Gangi, & Yetis 2012

“Open source” …not just about software anymore

New forms of financing

http://blog.intuit.com/trends/crowd-power-what-is-crowdfunding-infographic/

Fb daniel

Daniel BergqvistFounder http://blog.pennybridge.org/

3D printing becoming more commonplace…

…and it’s no longer just for companies

3D scanning apps

Affordable home 3D printers

Where is all this

happening?Online

Access to 24x7 global workforce

Matchmakers: USD 1bln industry

Increasing supply of freelance talent globally

https://www.elance.com/trends/talent-available

Global Online Employment ReportQ2 2012 at Elance

OpenSimulator: A value-creation ecosystem

AcademicEntrepreneurHobbyistLarge FirmNon-profitLocal PublicFederal PublicResearch InstSME EmployeePeriphery

Teigland, Di Gangi, & Yetis 2012

Here comes the Immersive Internet….

O’Driscoll 2009

What are Virtual Worlds ?

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

Platforms for unleashing creativity and revolutionizing

value creation

The number of virtual worlds and users continues to rapidly increase

http://www.slideshare.net/nicmitham/kzero-universe-q1-2012

≈1.9 bln accounts

≈100 worlds

Training and simulation for Providers of Healthcare Delivery

In hospital counseling atUniv of New England

Virtual hallucinations at UC Davis

Pharmacy training at Umeå U

Emergency training w/ SAIC

Accelerating innovation to meet global needs

Teigland et al. 2010

Integrating users in development

process

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

Cloud party on Facebook - In beta Marketplace app and Cloud Coins

https://www.facebook.com/CloudParty

≈1.4 bln VW accounts under age 16

http://www.slideshare.net/nicmitham/kzero-universe-q1-2012

225 mln

170 mln

200 mln

265 mln42 mln

Developing international entrepreneurs?

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

go there as well.” Castronova, 2006

$14.8 billion worldwide market for virtual goods in 2012E

http://www.superdataresearch.com/monetization-is-a-four-letter-word/

US$ 635,000 for a virtual 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/

• US$ 500,000 profit in 5 years by Jon “Neverdie”

Jacobs• Entropia Universe with GDP

>US$ 440 mln

The future of immersion…

http://www.bbc.com/news/technology-19568451

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

…

Steam engine

Internal combustion

engine

Microelectronics

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

Schön 2008

Third industrial revolution?

From factories to office parks to….

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

Teigland, JVWR, 2010

...the “mobility” of labor?

Some things do not change

Innovation Exchange

Exchange Trust

Trust RelationshipsRelationships Interaction

Are you ready?

Karinda Rhode

aka Robin Teiglandrobin.teigland@hhs.se

www.knowledgenetworking.org

www.slideshare.net/eteigland

www.nordicworlds.net RobinTeigland

Photo: Lindholm, Metro

Photo: Nordenskiöld

Photo: Lindqvist

If you love knowledge, set it

free…

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