The third industrial revolution? The third industrial revolution? Leveraging social media and the immersive Leveraging social media and the immersive

internet for new value creation activities internet for new value creation activities

Dr. Robin Teigland, akaDr. Robin Teigland, aka

Karinda Rhode in SLKarinda Rhode in SL

Associate ProfessorAssociate Professor

Stockholm School of EconomicsStockholm School of Economics

www.knowledgenetworking.orgwww.knowledgenetworking.org

www.slideshare.net/eteiglandwww.slideshare.net/eteigland

Photo: Lundholm, Metro

September 2010September 2010ww.sse.eduww.sse.edu

2

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

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

Jack Welch…Jack Welch…

3

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

6 degrees of separation

Everybody is connected to everybody else by no more than six degrees of separation.

“Small World Phenomenon” by sociologist Stanley Milgram, 1967

Leveraging external resources to find Leveraging external resources to find solutions and solve unsolved problemssolutions and solve unsolved problems

From 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?

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 Immigrants”Digital Immigrants”““Digital Natives”Digital 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

Adapted from FredCavazza.net

..using social media to learn, solve problems, and develop new ideas

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

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Increasing pressure on Increasing pressure on “traditional” organizations“traditional” organizations

Formal organization/ Formal organization/ Hierarchy Hierarchy

Social organization /Social organization /HeterarchyHeterarchy

Teigland et al. 2005Teigland et al. 2005

Organizations span the full range of use but….

Organizational useOrganizational use

Employee useEmployee use

No use

Ban use

One-way “broadcasting”

Allow use

Encourage use

Two-wayconversations

..the majority are

here

Teigland 2010

Positive return on social Positive return on social media for INC 500 media for INC 500

companiescompanies

Barnes & Mattsson 2009Barnes & Mattsson 2009

No

Yes88%

12%

If you use social media, has it been successful (hits, comments, leads, sales)?

Using social media to strengthen Using social media to strengthen relationshipsrelationships

•#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•29 year old Silicon Valley

company• >90% of employees on FB

Some things do not changeSome things do not change

Innovation Exchange

Exchange Trust

Trust Relationships

Relationships Interaction

#1

InnovationInnovationNetworks of Networks of relationshipsrelationships

Brand & Brand & ReputationReputation

FIRM

Where are the sources of Where are the sources of sustainable competitive advantage?sustainable competitive advantage?

Teigland 2010

eZeZ 230+230+PartnerPartner

ss

30,000+30,000+CommunityCommunitymembersmembers

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

• #1 open source content management #1 open source content management softwaresoftware

• Customers include UN, Vogue, Hitachi, 3M, Customers include UN, Vogue, Hitachi, 3M, MITMIT

• 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

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Using twitter as a leadership toolUsing twitter as a leadership tool

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

http://slideshare.net/missrogue

Here comes the Immersive InternetHere comes the Immersive Internet

O’Driscoll 2009O’Driscoll 2009

““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.” CastranovaCastranova

http://www.youtube.com/watch?v=-ahqjBeknT0http://www.youtube.com/watch?v=-ahqjBeknT025

•USD 3 bln in virtual USD 3 bln in virtual goods sales in 2009, to goods sales in 2009, to grow to USD 12 bln in grow to USD 12 bln in 20122012

•Swedish government Swedish government granted bgranted bank license to Mind Bank in 2009

•USD 330,000 for virtual USD 330,000 for virtual space station in 2010space station in 2010

•USD 3 bln in virtual USD 3 bln in virtual goods sales in 2009, to goods sales in 2009, to grow to USD 12 bln in grow to USD 12 bln in 20122012

•Swedish government Swedish government granted bgranted bank license to Mind Bank in 2009

•USD 330,000 for virtual USD 330,000 for virtual space station in 2010space station in 2010

Innovation workshops bring together Innovation workshops bring together users from across the globeusers from across the globe

Giovacchini et al. 2009Giovacchini et al. 2009

Integrating the Integrating the users in the users in the

development development processprocess

Avapreneurs and Born VirtualsAvapreneurs and Born Virtuals

Teigland 2010Teigland 2010

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

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

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

How to open up your organization?How to open up your organization?

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?

Interested in learning more Interested in learning more about Virtual about Virtual Worlds?Worlds?

Thanks and Thanks and see you in world!see you in world!

Karinda RhodeKarinda Rhode

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

www.knowledgenetworking.www.knowledgenetworking.orgorg

www.slideshare.net/www.slideshare.net/eteigland eteigland

Thanks and Thanks and see you in world!see you in world!

Karinda RhodeKarinda Rhode

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

www.knowledgenetworking.www.knowledgenetworking.orgorg

www.slideshare.net/www.slideshare.net/eteigland eteigland

Photo: Lindholm, Metro

If you love knowledge, set it free…