As material and immaterial worlds melt,
new business opportunities arise.
M i i k k a L e i n o n e n
#melt
TheTheory

Imaginetheworldasabox
thatcontainseverythingwedo,
sense,know,andimagine.

#melt

Theboxcanbe
dividedintwo.

#melt

THIS IS THE
MATERIAL
WORLD
#melt

THIS IS THE
IMMATERIAL
WORLD
THIS IS THE
MATERIAL
WORLD
#melt

Objects
Actions
Emotions
Knowledge
Competences
#melt

Definingqualities
oftheseworlds?

SCARCITY
#melt

SCARCITY
ABUNDANCE
#melt

Immaterial can’t be
owned, boxed,
or protected.
Material can be
controlled, repeated,
and measured.
#melt

2NDMILLENNIUM
Business models of the
Business models of the
3RDMILLENNIUM
#melt

Reasons
Why companies are migrating
towards the immaterial world?
3

OUR NEEDS ARE
MORE IMMATERIAL.
1
Immaterial value has
overtaken material value as a
competetive factor.

FIERCE GLOBAL
COMPETITION IN
THE MATERIAL
WORLD.
1
2
Material world offers fewer ways
for companies to outshine their
rivals amid global competition.

TECHNOLOGY
IS MELTING THE
MATERIAL AND
IMMATERIAL
WORLD. 2
1
Networked computing enables
the creation of new services,
communication channels, and
revenue generation. Companies
no longer necessarily need to
manufacture material products.
3

How?
3
Technologyismeltingworlds?

Immaterialelements
arebecomingmoretangible.
#melt

Thinking
Immaterialelements
arebecomingmoretangible.
#melt
Emotions and thinking gain
increasingly visible and concrete
forms of existence through,
for example, the social media.

Emotions
Immaterialelements
arebecomingmoretangible.
#melt
Emotions and thinking gain
increasingly visible and concrete
forms of existence through,
for example, the social media.

Thematerialworldispushinginto
theimmaterialworld.
#melt

Information
Thematerialworldispushinginto
theimmaterialworld.
#melt
News, entertainment, and
information have begun to lose
their one-sided, material form.

Services
Thematerialworldispushinginto
theimmaterialworld.
As a company’s services
become more immaterial,
immaterial elements
like preferences become
inseparable parts of the
service.
#melt

3DPrinting?
Thematerialworldispushinginto
theimmaterialworld.
#melt
3D-printable plans and models
can be endlessly combined and
shaped in intangible form,
and traded in both intangible and
tangible forms.

Technology has caused the material and
immaterial worlds to increasingly overlap.
#melt

Technology has caused the material and
immaterial worlds to increasingly overlap.
melt
I decided to call
this new world…
#melt

Internet
melt
Melt has many names:
#melt
Data
networks
Servitization
Industrial
InternetHome
automation
Sharing
economy
Social
media
AI
Internet of
things
Digitalization

Inmeltthematerialandimmaterial
worldsinteractconstantly,
formingtwoloops.

IMMATERIAL
LOOP

MATERIAL
LOOP

Tobeutilized
astoolsfor
innovation
andstrategy,
loopsneedto
bedividedup.

For example, information can
be extracted from an object.
Elements become scalable and
can be conveniently combined
with other elements, creating
new innovation potential.
MAKES MATERIAL
ELEMENTS INTANGIBLE.
Free

Melting has always had an
effect on the material world.
For example, the digitalization
of a company’s products soon
influences the requirements
and success factors of the
entire sector.
SHAPES THE
MATERIAL WORLD.
Shape

Immaterial elements flow
towards the material world.
Flow means turning
elements into something
that can be accessed and
shared by others.
MAKES IMMATERIAL
ELEMENTS MORE TANGIBLE.
Flow

An immaterial loop amplifies
immaterial elements, thrusting
them into motion. Some
immaterial elements are
important amplifiers of the
immaterial world. Boldness
creates boldness, love creates love.
AMPLIFIES
THE IMMATERIAL WORLD.
Amplify

Letmegiveyouanexample…

Just had an
exceptionally
good run!
And the
weather
was just
perfect!
EXAMPLE
Smartphones
Control of fire, agriculture, the
wheel, printing machine, steam
machine, vaccinations…
A smartphone may not exactly
compare to these inventions, but it
does represent a key innovation that
defines our life as we know it.
#melt

Youbuy
asmartphone.1
#melt

The phone and apps
provide information.2
Information creates knowledge,
competences, and emotions.
3
Youbuy
asmartphone.1
AUTONOMOUS ENRICHMENT
Devices support human thinking and
action even when people don’t actively
produce information.
This is called
A B C
#melt

4 The phone
affects your
behavior.
#melt
AUTONOMOUS ENRICHMENT
Devices support human thinking and
action even when people don’t actively
produce information.
This is called
A B C

Your behavior
creates information.
5
PERSONAL ENRICHMENT
People generate information, which is
then enriched back by their device.
This is called
A B C
#melt

Information creates knowledge,
competences, and emotions.
6
#melt
PERSONAL ENRICHMENT
People generate information, which is
then enriched back by their device.
This is called
A B C

7
You allow the phone
to tap into your
competences and
emotions.
#melt
PERSONAL ENRICHMENT
People generate information, which is
then enriched back by their device.
This is called
A B C

8 The phone
affects your
behavior.
#melt
PERSONAL ENRICHMENT
People generate information, which is
then enriched back by their device.
This is called
A B C

SOCIAL ENRICHMENT
People produce information for each
other, which influences their
thinking and behavior.
This is called
A B C
9People share
information.
10
Information multiplies
knowledge, competences,
and emotions.
11
People share
competences,
experiences, and
emotions.
12
Other people’s
emotions and
competences affect
your behavior.
#melt

Learntoseetheloopsinyourbusiness,
andyoumayfindsomesurprisinginsight.
#melt

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Don’tfixyourstrategy.
Fixyourphilosophy.