leading and strategizing through social media into the third industrial revolution
DESCRIPTION
Presentation on social media and the transformation of value creation for CEOs and top level execs in Sweden in September 2014.TRANSCRIPT
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 [email protected]
www.knowledgenetworking.org
www.slideshare.net/eteigland
www.nordicworlds.net @RobinTeigland
If you love knowledge, set it
free…
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