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Future of the Firm
Crowds and Networks
Peter Evans, PhD
Vice President
Center for Global Enterprise
Crowds and Climate: Mobilizing
Crowds to Develop Ideas and
Take Action on Climate Change
November 6-8, 2013
Massachusetts Institute of
Technology
Crowds, Sustainability and Firms
How large is the intersection?

Purpose

New tools
Sustainability

Crowdsourcingdigital platform

Intersection

Large
publically
traded firms

Firms
Leverage the power of internal networks
Clusters inside an organization
Without Crowdsourcing “Jam”

• Shallow networks
• Barriers to communication flows
• Strong, frequent ties within
clusters; and weaker, less
frequent ties between clusters.

Clusters inside an organization
With Crowdsourcing “Jam”

• Deeper networks
• More communication across
wide spans of clusters
• More collaboration… sharing
and testing of ideas
Network Map… GE Energy Imagination Jam*
O&G Drilling &
Production
Systems

Power Gen
Services

P&W
FNC
Function
GRC
India

GRC
Americas

GE Energy
Engineering

IP Software &
Services

GE Energy
Water

Jam comments 1, 2
525 comments
428 within Energy,
GRC and GEIP

GE Energy
Commercial Team

IP Mil/Aero
GE Energy
Global Supply
Chain

Bubble Area = # of Jam Participants
Line Thickness = # of comments
GE Energy participants
Intelligent Platform participants
Global Research Center participants

O&G
Engineering

Nuclear

281 “crossorganization”
comments

Energy
Services
Sales
O&G Energy Services

GRC Europe

* The Jam took place June-August 2011.

1. A comment was defined as a comment on an idea or a comment on another comment
2. The network diagram does not show connects across organizations outside of GE Energy business unit.
Also, diagram only shows organizations that participated in greater than 1 comment.
How many firms Jam? Still early days for most
Some of the top 500 Global are experimenting, mostly in US and Europe

Europe

China

$12 trillion

$6.6 trillion

$1.4 trillion

$0.4 trillion

$6.3 trillion

194

126

18

12

150

companies

companies

companies

companies

companies

Source: FT Global 500 June 2013
*Number and market values at 28 June 2013

India

Rest of World

US
Concluding Observations
Increase the speed of innovation
Crowdsourcing “Jams” can speed innovation by harness internal resources in new
ways. For example, it can reduce the time it takes for commercial teams to understand
customer challenges and connect them to engineers and other experts within the firm
who have the expertise and insight to create viable solutions to these challenges.
Reduce the cost of innovation
Innovation is far from free. Digital “Jams” offer a way to reduce transaction costs by
creating a common platform to communicate, enhance learning, and cut down
transaction costs. However, they must demonstrate real and consistent cost
effectiveness over conventional product innovation approaches to win adoption.
Deepen collaborative networks
Crowdsourcing platforms can deepen connections in ways that enhance collaboration,
which, in turn, can accelerate the innovation process.
Align innovation with customer needs
Crowdsourcing can provide an way to for firms harness talent pool to focus innovation
on tangible customer problems. If customers are seeking solutions around
sustainability then crowdsourcing Jams are more likely to find a market for their
innovations and incentives to expand collaborative innovation.
Future of the Firm
Crowds and Networks
Peter Evans, PhD
Vice President
Center for Global Enterprise
Crowds and Climate: Mobilizing
Crowds to Develop Ideas and
Take Action on Climate Change
November 6-8, 2013
Massachusetts Institute of
Technology

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Firms, Collective Intelligence and Sustainability : MIT Crowds and Climate Conference

  • 1. Future of the Firm Crowds and Networks Peter Evans, PhD Vice President Center for Global Enterprise Crowds and Climate: Mobilizing Crowds to Develop Ideas and Take Action on Climate Change November 6-8, 2013 Massachusetts Institute of Technology
  • 2. Crowds, Sustainability and Firms How large is the intersection? Purpose New tools Sustainability Crowdsourcingdigital platform Intersection Large publically traded firms Firms
  • 3. Leverage the power of internal networks Clusters inside an organization Without Crowdsourcing “Jam” • Shallow networks • Barriers to communication flows • Strong, frequent ties within clusters; and weaker, less frequent ties between clusters. Clusters inside an organization With Crowdsourcing “Jam” • Deeper networks • More communication across wide spans of clusters • More collaboration… sharing and testing of ideas
  • 4. Network Map… GE Energy Imagination Jam* O&G Drilling & Production Systems Power Gen Services P&W FNC Function GRC India GRC Americas GE Energy Engineering IP Software & Services GE Energy Water Jam comments 1, 2 525 comments 428 within Energy, GRC and GEIP GE Energy Commercial Team IP Mil/Aero GE Energy Global Supply Chain Bubble Area = # of Jam Participants Line Thickness = # of comments GE Energy participants Intelligent Platform participants Global Research Center participants O&G Engineering Nuclear 281 “crossorganization” comments Energy Services Sales O&G Energy Services GRC Europe * The Jam took place June-August 2011. 1. A comment was defined as a comment on an idea or a comment on another comment 2. The network diagram does not show connects across organizations outside of GE Energy business unit. Also, diagram only shows organizations that participated in greater than 1 comment.
  • 5. How many firms Jam? Still early days for most Some of the top 500 Global are experimenting, mostly in US and Europe Europe China $12 trillion $6.6 trillion $1.4 trillion $0.4 trillion $6.3 trillion 194 126 18 12 150 companies companies companies companies companies Source: FT Global 500 June 2013 *Number and market values at 28 June 2013 India Rest of World US
  • 6. Concluding Observations Increase the speed of innovation Crowdsourcing “Jams” can speed innovation by harness internal resources in new ways. For example, it can reduce the time it takes for commercial teams to understand customer challenges and connect them to engineers and other experts within the firm who have the expertise and insight to create viable solutions to these challenges. Reduce the cost of innovation Innovation is far from free. Digital “Jams” offer a way to reduce transaction costs by creating a common platform to communicate, enhance learning, and cut down transaction costs. However, they must demonstrate real and consistent cost effectiveness over conventional product innovation approaches to win adoption. Deepen collaborative networks Crowdsourcing platforms can deepen connections in ways that enhance collaboration, which, in turn, can accelerate the innovation process. Align innovation with customer needs Crowdsourcing can provide an way to for firms harness talent pool to focus innovation on tangible customer problems. If customers are seeking solutions around sustainability then crowdsourcing Jams are more likely to find a market for their innovations and incentives to expand collaborative innovation.
  • 7. Future of the Firm Crowds and Networks Peter Evans, PhD Vice President Center for Global Enterprise Crowds and Climate: Mobilizing Crowds to Develop Ideas and Take Action on Climate Change November 6-8, 2013 Massachusetts Institute of Technology