innovation in the social economy

INNOVATING IN THE SOCIAL ECONOMY

How social tools are transforming business &

Prof. Nick Wreden, MA, MS

education

Because its purpose is to create a customer, any business has two – and only these two – basic functions: marketing & innovation.

The Practice of ManagementPeter Drucker

• Innovation is vital for Malaysia to compete globally & achieve Vision 2020 goals• Malaysia is lagging behind• Analysis paralysis• “Too many cooks in the kitchen”• Lack of measurement, follow-through &

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96%

96%!

TODAY

2020…& BEYOND!

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• What is the Social Economy?• Innovation models & tools • How to innovate• Education in the Social Economy 019-243-5856

CONSUMER CHANGES

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Something you buy

Something you trust

Something you want

Something you prefer

Something you love

Something you experience

BRANDING CHANGES

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TECHNOLOGY CHANGES

CLOU

D

MOBILE

SOCIAL

BIG DATA

APPS

KNOWLEDGE-SHARING COLLABORATION

ENGAGEMENT

GEOLOCATION

METRICS

GAMIFICATION

PAYMENTS

COMMUNITY MANAGEMEN

T

S-COMMERCE

PERSON-ALIZATION

REAL-TIME ACCESS

SOCIAL CHANGES

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STATS & FACTS• 845 million active users

57% female; 43% male80% outside US/Canada

• Avg. user visits 40x/month• 1 out of every 5 page views• 20-23 minutes spent per visit• 1 in 7 minutes spent online are on

Facebook• 425 million mobile users• 2.7 billion “likes” daily• Avrge: 130 friends; likes 80 pages

REGIONPOPULATION

%AGEN. America

50.3

Australia 37.7Europe 27.5L. America 25.5Middle East

8.4

Africa 3.6

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Burson-Marsteller Asia Pacific, 8/2011

SOCIAL MEDIA FOR BUSINESS SEMINAR AVAILABLE!!

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MASS ECONOMY

CUSTOMER ECONOMY

SOCIAL ECONOMY

BUSINESS CHANGES

SOCIETY

WHAT IS THE SOCIAL ECONOMY?“Incorporating consumer, business & technological changes, the Social Economy represents globally inter-connected individuals & businesses leveraging social communications & networking tools to achieve mutually beneficial goals in a real-time environment.”

$

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INNOVATION MODELS & TOOLS

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INNOVATION MODELS

PROFIT

NETWORK

SUPPLY CHAIN

PROCESS

PERFORMANCE

PERSONALIZATION

SERVICE

CHANNELBRAND

CUSTOMER ENGAGEMENT

BUSINESS PRODUCT CUSTOMER

EFFICIENCY/$ DIFFERENTIATION EXPERIENCE019-243-5856

PROFIT NETWORK SUPPLY CHAIN PROCESS

PERFORMANCE PERSONALIZATION

SERVICE CHANNEL

BRANDCUSTOMER ENGAGEMENT

APPS (Freemium)

APPLE STORE

WAL-MART/TOYOTA

ZARA

FISKARS TESCO/AMAZON

ZAPPOS GROUPON LV COCA-COLA 019-243-5856

CUSTOMER

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HOW TO SEE AROUND CORNERS(HOW TO INNOVATE)

HOW TO INNOVATE

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BUILDING 20 -MIT

BELL LABSHolmdel, NJ

PIXAR HQDesigned by Steve Jobs “for random encounters”

“Steve put the mailboxes, the meetings rooms, the cafeteria, &, most insidiously and brilliantly, the bathrooms in the center—which initially drove us crazy—so that you run into everybody during the course of a day. [Jobs] realized that when people run into each other, when they make eye contact, things happen. So he made it impossible for you not to run into the rest of the company.”

- Brad BirdPixar designer, Academy Awarding winning director of The Incredibles & Ratatouille

“There’s a temptation in our networked age to think that ideas can be developed by email & iChat. That’s crazy. Creativity comes from spontaneous meetings, from random discussions. You run into someone, you ask what they’re doing, you say ‘Wow,” & soon you’re cooking up all sorts of ideas.” - Steve Jobs

DON’T GET STUCK IN THE KNOWN

“It’s not what we don’t know that hurts, it’s what we know that ain’t so.”

-- Will RogersUS humorist

If it’s not important to your customers, it’s not important to you!

“Decades of research have consistently shown that brainstorming groups think of far fewer ideas than the same number of people who work alone & later pool their ideas.” --Imagine: How Creativity Works019-243-5856

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Young executive: “I suppose after that set of mistakes you will want to fire me.”Tom Watson, Sr.: “Not at all, young man, we have just spent a couple of million dollars educating you.”

“Failure, and how companies deal with failure, is a very big part of innovation. Failures caused by sloppiness or laziness are bad. But if employees try something that was worth trying & fail, & if they are open about it, & if they learn from that failure, that is a good thing.” - Judy Estrin

Author, “Closing the Innovation Gap” & founder of 7 tech firms

"The most successful people tend to be those with the most failures.” - Dr. Dean Keith Simonton,

Author of 500+ studies & 12 books on creativity & innovation

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• Reward “heroic failures”• Include innovation

in performance reviews• Give people time

(& even budget) to think & experiment• Make environment

conducive to innovation

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EDUCATION019-243-5856

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STUDENTS TODAY• Media-savvy• Easily distracted• Bored with TV• Mobile = life• Visual > print• Impatient• Look to peers, not

elders

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MASS ECONOMY SOCIAL ECONOMY

Learning Teacher-driven transaction

Self-directed process

KnowledgeStable structures that can be treated independently

Shifting. interdependent & interrelated disciplines

Intelligence Individual Group

Students Passive recipients of knowledge

Active developers of knowledge

TeachersSelect, deliver & test information

Guide insight & knowledge development

Schools Manage education Incubate learners

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• Increases role of social networks in learning• Facilitates peer-

to-peer learning• Facilitates rise of

amateur experts• Enables access to

IQ of all types, anywhere• Elevates

importance of DIY learning

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“If you want to teach people a new way of thinking, don't bother trying to teach them. Instead, give them a tool, the use of which will lead to new ways of thinking.- R. Buckminster Fuller

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FLIPPED CLASSROOMTRADITIONAL FLIPPED

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“FLIPPED” ADVANTAGES

• Students take responsibility for own learning• Students can go thru curriculum at their own

pace & review as needed• Turns classroom from “stand-and-deliver” to a

learning community• From passive listening to engagement

• Students work with supervision in classroom, not alone by themselves at home• Parents can see & get involved in learning• Analytics

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•Udemy: Allows anyone to build an online course. Goal is to enable anyone to teach & learn online•Minerva (starting 2014): Focused on skills, not knowledge.

Skills include: critical thinking, use of data, understanding complex systems & leading through effective communication. Will use a flipped classroom•MIT: Seeks to make all course materials used in classes

freely available on Web.• Stanford School of Engineering: Offering some of its most

popular engineering classes free on Web.

•Khan Academy: Mission: Provide a free “world-class education to anyone anywhere.” • Course Hero: Videos & articles,

quizzes, tests, final exam

4RULES FOR

INNOVATIONDOMINATION

KNOW WHY IS BETTER THAN KNOW WHATKnowledge ≠ Power

BE FIERCE

NEW.

SHAMELESS SELF-PROMOTION

Social Media Marketing

BUSINESS TODAY

Social Business

Innovation

Leadership

Internal collaboration

Marketing

HR

SalesCustomer service

R&D

Supply chain

Production

Strategic planning

BUSINESS TOMORROW

SOCIAL BUSINESS RISESIBM: Strategic initiativeMIT & Deloitte: SB “Innovation Hub”McKinsey & Co.: “Big Idea”Forrester: 61% annual growth rate to $6.4 billion market by 2016California Institute of Social Business @ Calif. State UniversityFast Company: “Move Over Social Media; Here Comes Social Business”

WEB: socialbusinessasia.comTWITTER: @socialbizasia

THANK YOU!Email: nickwreden@gmail.com

Presentation copy: mayamin@ic.utm.my

PERSONAL USE ONLY! PLEASE DO NOT POST ON SOCIAL NETWORKS OR SLIDE-SHARING SITES.

EVALUATION1. If I had given this talk, I would have …….

2. If I had given this talk, I would NOT have ……

3. (OPTIONAL) To be innovative, Malaysia must….