exploring value creation across the firm's boundaries
DESCRIPTION
My lecture for the Univ of Utrecht KnoTRANSCRIPT
Exploring value creation across Exploring value creation across the firm’s boundariesthe firm’s boundaries
Dr. Robin Teigland, akaDr. Robin Teigland, akaKarinda Rhode in SL
Stockholm School of EconomicsStockholm School of Economicswww.knowledgenetworking.orgwww.knowledgenetworking.org
www.slideshare.net/eteiglandwww.slideshare.net/eteigland
RobinTeiglandRobinTeigland Sept 2011Sept 2011www.hhs.sewww.hhs.se
22
"...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…
33
Everyone is talking about networksEveryone is talking about networks
National Innovation Networks
FormalNetworks
Entrepreneurial Networks
Facebook. LinkedIn, Twitter Regional
Networks
Infrastructure Networks
Social Networks
FAS.research
ElectronicNetworks
InformalNetworks
Networksof Practice Networked
organization
4
Did You Know: Shift HappensDid You Know: Shift Happenshttp://www.youtube.com/watch?v=cL9Wu2kWwSY&feature=searchhttp://www.youtube.com/watch?v=cL9Wu2kWwSY&feature=search
1.1. What trends do you recognize?What trends do you recognize?
2.2. How are these trends affecting you and your How are these trends affecting you and your organization?organization?
3.3. What does this have to do with networks?What does this have to do with networks?
GrowthGrowth
TimeTime
Information and knowledge
Human absorptive capacity
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
Six degrees Six degrees of separationof separation
- Milgram, - Milgram, 19671967
77
Uncovering networks in an organizationUncovering networks in an organization
Formal organization Informal organization
Teigland et al. 2005
The wisdom of the networked crowdThe wisdom of the networked 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?
Breaking free from Breaking free from ““industrial chainsindustrial chains””??
Industrial Economy AssumptionsIndustrial Economy AssumptionsWork and private life are separateWork and private life are separateWork should be seriousWork should be seriousRoles and responsibilities are appointedRoles and responsibilities are appointedLearning occurs behind the deskLearning occurs behind the deskValue is created by firmValue is created by firm’’s employeess employeesFirms are primary source of value creationFirms are primary source of value creationCompetition is a zero-sum gameCompetition is a zero-sum gameEtc…..Etc…..
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 ImmigrantsDigital Immigrants””““Digital NativesDigital 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
“u r always on….”SoLoMo
Drivers of changeDrivers of changeIn
crease
dIn
tera
ctivity
DiGangi 2010DiGangi 2010
Building skills in virtual environmentsBuilding skills in virtual environments
My CV•Leading a virtual team of 30
individuals from across the globe•Creating and successfully executing strategies under
pressure•Managing cross-cultural conflict
without face-to-face communication
Teigland 2010
http://www.slideshare.net/helgetenno/post-digital-marketing-2009http://www.slideshare.net/helgetenno/post-digital-marketing-2009
Our economy changesOur economy changes
Pine Jr. & Gilmore 1998, 1999; DiGangi 2010DiGangi 2010
Business models
So, what happens to them?
Johnson, Christensen, and Kagermann 2008, DiGangi 2010
They evolve...
Closed model
Organizations internalize resources for value creation; restrict access to
knowledge, and protect intellectual property. DiGangi 2010DiGangi 2010
DiGangi 2010DiGangi 2010
Open model
Organizations leverage both internal and external resources for value
creation; strategically interact with environment DiGangi 2010DiGangi 2010
Access to 24x7 global workforceAccess to 24x7 global workforce
Average wage Average wage approx. USD 1.40 / approx. USD 1.40 /
hourhourhttp://www.people.fas.harvard.edu/http://www.people.fas.harvard.edu/
~drand/~drand/
A shift from being A shift from being problem solvers to solution finders problem solvers to solution finders
““Distributed groups of individuals Distributed groups of individuals focused on solving general problem focused on solving general problem
and/or developing new solution and/or developing new solution supported by computer-mediated supported by computer-mediated
communication.communication.”” Dahlander & Wallin, 2006 p. 1246Dahlander & Wallin, 2006 p. 1246
User-driven Innovation
DiGangi 2010DiGangi 2010
DiGangi 2010DiGangi 2010
““Distributed groups of individuals Distributed groups of individuals focused on solving general problem focused on solving general problem
and/or developing new solution and/or developing new solution supported by computer-mediated supported by computer-mediated
communication.communication.”” Dahlander & Wallin, 2006 p. 1246Dahlander & Wallin, 2006 p. 1246
User-driven Innovation
Co-created model
Organizations encourage flow of knowledge between internal and external resources; focus on common good where
both parties benefit DiGangi 2010DiGangi 2010
Threadless:Threadless:What came first What came first
– – the community the community
or the or the company?company?
eZeZ 230+230+PartnerPartner
ss
40,100+40,100+CommunityCommunitymembersmembers
5,000+5,000+Customers in Customers in 130 countries130 countries
• Open source content management softwareOpen source content management software• Customers include Financial Times, Wall Customers include Financial Times, Wall Street Journal, UN, Vogue, Hitachi, 3M, MITStreet Journal, UN, Vogue, Hitachi, 3M, MIT
• 70 employees in 9 countries (US, Europe & 70 employees in 9 countries (US, Europe & Asia)Asia)
Skien, NorwaySkien, Norway
eZ PhilosophyeZ Philosophy
Connecting people who share a passion for something they do
so that they can collaborate, share ideas,
learn, and create knowledge
The backbone of eZ Systems is social The backbone of eZ Systems is social media - media - throughout the value chainthroughout the value chain
eZ provides eZ provides platforms for interaction platforms for interaction throughout its ecosystemthroughout its ecosystem
eZ Software development team
Current Research ProjectsCurrent Research Projects
04/08/204/08/233
Driven by both parties sharing their experiences and co-creating value of
network
Private-collective Community
But how to balance needs of community with needs of firm in value co-creation
model?
DiGangi et al 2010DiGangi et al 2010
Emergent organizing in VWsEmergent organizing in VWs
3333
http://slpeacetrain.org/
Collaborating with Collaborating with like-minded like-minded
individuals to pursue individuals to pursue a visiona vision
Teigland 2010Teigland 2010
http://www.flickr.com/photos/gwenette/4178487306/in/pool-peacefest
Ecosystems of activity
Some things do not changeSome things do not change
Innovation Exchange
Exchange Trust
Trust Relationships
Relationships Interaction
"E-connection is processed in the brain like an in-person connection."
http://slideshare.net/missrogue
Leadership moving forward……Leadership moving forward……
HierarchyHierarchyLinear, static, process-Linear, static, process-
based organizationbased organization
HierarchyHierarchyLinear, static, process-Linear, static, process-
based organizationbased organization
HeterarchyHeterarchyDynamic, integrated Dynamic, integrated
collaboration networks collaboration networks
HeterarchyHeterarchyDynamic, integrated Dynamic, integrated
collaboration networks collaboration networks
Teigland 2010
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 ...the ““mobilitymobility”” of labor? of labor?Teigland 2010
How do you stay in How do you stay in command command
…………while letting go of while letting go of
control?control?
Open LeadershipOpen Leadership
Having confidence and humility to give up need
to be in control, while inspiring commitment
from people to accomplish goals
Karinda RhodeKarinda Rhode
aka Robin Teiglandaka Robin [email protected]@hhs.se
www.knowledgenetworking.owww.knowledgenetworking.orgrg
www.slideshare.net/www.slideshare.net/eteiglandeteigland
www.nordicworlds.net www.nordicworlds.net RobinTeiglandRobinTeigland
Karinda RhodeKarinda Rhode
aka Robin Teiglandaka Robin [email protected]@hhs.se
www.knowledgenetworking.owww.knowledgenetworking.orgrg
www.slideshare.net/www.slideshare.net/eteiglandeteigland
www.nordicworlds.net www.nordicworlds.net RobinTeiglandRobinTeigland
Photo: Lindholm, Metro
Photo: Nordenskiö
ld
Photo: Lindqvist
If you love knowledge, set it
free…