leading and strategizing through social media into the third industrial revolution

Dr. Robin Teigland Stockholm School of Economicswww.knowledgenetworking.orgwww.slideshare.net/eteigland

@RobinTeigland September 2014

Leading and Strategizing with Social MediaInto the Third Industrial Revolution

Who am I? (LinkedIn Inmaps)

SSE

Exec Ed

Swedish IndustryResearch

WhartonStanford

McKinsey

vonorange.com

Leading into the Third Industrial Revolution

Part I Leading through Social Media

Part II Collaborative Innovation

Part III The Sharing Economy

Then…

Thx to R. Wieselfors, Ericsson for photos

…Now

Thx to R. Wieselfors, Ericsson for photos

Socialnomics 2014http://www.youtube.com/watch?v=1pahLo5TTy4

1. What is driving the growth of social media?

2. What are the benefits of social media for firms?

3. What are the leadership challenges with social media?

Most Popular Social Networking SitesJune 2014

http://www.ebizmba.com/articles/social-networking-websites

Fortune 500 Corporate Social Media Usage

http://www.slideshare.net/sncr/sncr-symposium13-smm-adoptionbarnes

Ikea and Social Media

Malmo’s Facebook showroom

https://www.youtube.com/watch?v=0TYy_3786bo

LISTEN

CONNECT

ENGAGE

ADVOCACY

Leveraging social media for value creation

Source: Peretti (2011)

Ikea and Social Media

Ikea and Social Media

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

http://slideshare.net/missrogue

http://twitter.zappos.com/

Employees should…“Be real and use [their] best judgment”

CEO Tony Hsieh

Hidden influence of social networks

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

Happy peopleIn between peopleUnhappy people

Christakis & Fowler, 2011

They even will order a pizza for you.

https://www.linkedin.com/pulse/article/20140412180309-17478387-zappos-just-sent-me-a-pizza

Acquired by Amazon for USD 1.2 bln 2009

Ensuring alignment thru McKinsey 7S

No more job listings…

https://jobs.zappos.com/insider_faq

Zappos R&D Lab

Zappo’s USD 350 mln community project

http://vegastechfund.com/

Leading into the Third Industrial Revolution

Part I Leading through Social Media

Part II Collaborative Innovation

Part III The Sharing Economy

If the rate of change on the outside (of an organization) exceeds the rate of change

on the inside, the end is near....

-Jack Welch

Increasing pace of changeFrom 1920s to 2010s

−Average lifespan of S&P 500 company fell from 67 years to 15 years

From 2000 to 2010 −40% of companies on Fortune 500 list replaced

Predictions−In next few years, 70% of Fortune 1000

companies to be replaced−By 2020, >75% of S&P 500 companies do not

exist today−By 2025, >45% of Fortune 500 companies to be

from emerging markets

Fast Company, McKinsey & Inc

Valuecreation

People• “Net generation”• 24x7 “mobile”

workforce• Knowledge via MOOCs• Sharing not consuming• Sustainability

Technology • Broadband access• The Cloud• Mobile phones• Internet of Things • Big Data• 3D printing• Robotics/AI• VR/AR

Open Source

• Software • Hardware• Physibles

Convergence of…..

Finance•

Microlending/microfinance

• Crowdfunding/equity/P2P

• Non-fiat cryptocurrencies

• Mobile money/payments

Many are stuck in our old ways …

No one knows everything, everyone knows something,

all knowledge resides in humanity.

networks.

Adapted from Lévy 1997

Six degrees of separation

- Milgram, 1967

Est. $30 mln sales

30% profit margin in commodity business

20 employees but a 24x7 global “workforce”

of 2.4 million

No internal R&D or sales & marketing

ThreadlessA platform for global community

collaboration

From clothing to home products….

GE opens up patents on Quirky

#1Innovation

Networks of relationships

Brand & Reputation

FIRM

TWhere are the sources today of

sustainable competitive advantage?

Teigland 2010

Innovation in automotive design/production“Local Motors is the place for people to

create influential vehicles together.”

http://www.youtube.com/watch?v=azCRuwtE_n0

Leading into the Third Industrial Revolution

Part I Leading through Social Media

Part II Collaborative Innovation

Part III The Sharing Economy

http://www.torbenrick.eu/blog/strategy/the-sharing-economy-is-changing-consumer-consumption/

What is the Sharing Economy?

UberGlobal platform for local community

collaboration

Launched June 2010

USD 17 bln valuation

43 countries globally

Limited physical assets

UberPop, Uber Rush, ??

UberGlobal platform for local community

collaboration

Internet – A Technical Glue

Petra Sundström

Big Data is now big money

Tomas Larsson, Sep 2012

http://hbr.org/2012/10/data-scientist-the-sexiest-job-of-the-21st-century/ar/1

DHL’s MyWays

The future is already here, it’s just not very

evenly distributed.

- William Gibson

Thomas Jefferson (1816)“Laws and institutions must go hand in hand with the progress of the human

mind.”

The problem is that the human mind itself can’t keep pace with the advances

that computers are enabling. 

http://wadhwa.com/2014/04/15/mit-technology-review-laws-and-ethics-cant-keep-pace-with-technology/

How should organizations react?

Strategic partnership

+

Internal corporate crowdfunding

iFundIT

More than 300 participantsEntry-level workers to VPs

Given $2,000 to invest over 8 week period

Choose internal projects in which to invest

“Keep your enemies close…”

Raise awareness of how to use social media

The FirmThe Collective

vs

E.g., Microsoft~ Built by employees within

organizational boundaries

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

Models of Knowledge Creation

Teigland, Di Gangi, & Yetis 2012

What’s around the corner?24x7 Global Internet Collaboration + Open Source + 3D

Printing

http://mashable.com/2013/02/13/robohand/

$60,000

$150

Available for free download on

Where is the

firm?

Some questions…

What basic assumptions about value creation will no longer hold?

What opportunities are there for your company related to the future of money, collaborative innovation, and the sharing economy?

What strategic challenges are there within the nearest 2-3 years in connection with the future of money, collaborative innovation, and the sharing economy?

What will you do tomorrow at work as a result of today’s discussion?

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

Teigland, JVWR, 2010...the “mobility” of

labor?

Robin Teiglandrobin.teigland@hhs.se

www.knowledgenetworking.org

www.slideshare.net/eteigland

www.nordicworlds.net @RobinTeigland

If you love knowledge, set it

free…

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