1. INNOVATING
IN THE
SOCIAL
ECONOMY
How social tools
are transforming
business & education
Prof. Nick Wreden, MA, MS

2. Because its purpose is to
create a customer, any
business has two – and
only these two – basic
functions: marketing &
innovation.
The Practice of Management
Peter
Drucker

3. • 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 &
accountability
019-243-5856

4. 96%!

5. T
O
2020…&
D
BEYOND!
A
Y
HOW? 019-243-5856

6. 019-243-5856

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

8. CONSUMER CHANGES
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9. BRANDING CHANGES
Something
Something you Something you you want
buy trust
Something you prefer
Something you Something you
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10. TECHNOLOGY CHANGES
BIG DATA
KNOWLEDGE-SHARING COLLABORATION
METRICS ENGAGEMENT
COMMUNITY APPS
MANAGEMEN
T PERSON-
ALIZATION
REAL-TIME
ACCESS
GAMIFICATION
MOBILE S-COMMERCE
GEOLOCATION
PAYMENTS

11. SOCIAL
CHANGES
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13. STATS & FACTS
• 845 million active users
POPULATION
 57% female; 43% male REGION %AGE
 80% outside US/Canada N. 50.3
• Avg. user visits 40x/month America
Australia 37.7
• 1 out of every 5 page views
Europe 27.5
• 20-23 minutes spent per visit
L. America 25.5
• 1 in 7 minutes spent online are on Middle 8.4
Facebook East
• 425 million mobile users Africa 3.6
• 2.7 billion “likes” daily
• Avrge: 130 friends; likes 80 pages 019-243-5856
February 2012

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15. SOCIAL
MEDIA FOR
BUSINESS
SEMINAR
AVAILABLE!!
Burson-
Marsteller Asia
Pacific, 8/2011
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16. BUSINESS CHANGES
MASS CUSTOMER SOCIAL
ECONOMY ECONOMY ECONOMY
SOCIETY

17. 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.” 019-243-5856

18. INNOVATION
MODELS &
TOOLS
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19. INNOVATION MODELS
BUSINESS PRODUCT CUSTOMER
SERVICE
PROFIT
PERFORMANCE CHANNE
NETWORK L
PERSONALIZATION BRAND
SUPPLY CHAIN
CUSTOMER
PROCESS ENGAGEMENT
EFFICIENCY/$ DIFFERENTIATION EXPERIENCE
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20. PROFIT NETWORK SUPPLY CHAIN PROCESS
APPS APPLE WAL- ZARA
(Freemium) STORE MART/TOY
OTA
PERFORMANCE PERSONALIZATION
FISKARS TESCO/AMAZON
CUSTOMER
SERVICE CHANNE BRAND ENGAGEMENT
L LV COCA-COLA
ZAPPOS GROUPON
019-243-5856

21. CUSTOMER
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22. HOW TO
SEE
AROUND
CORNERS
(HOW TO
INNOVATE)

24. HOW TO INNOVATE
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25. BUILDING 20 -
MIT

26. BELL LABS
Holmdel, NJ

27. PIXAR HQ
Designed by Steve Jobs “for
random encounters”

28. “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 Bird
Pixar 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

29. DON’T GET STUCK
IN THE KNOWN

30. “It’s not what
we don’t know
that hurts, it’s
what we know
that ain’t so.”
-- Will Rogers
US humorist

31. “Decades of research have
If it’s not important consistently shown that
to your customers, brainstorming groups think
of far fewer ideas than the
it’s not important same number of people
to you! who work alone & later pool
their ideas.” --Imagine: How
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Creativity Works

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34. 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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35. • 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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36. EDUCATION
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37. 019-243-5856

38. STUDENTS TODAY
• Media-savvy
• Easily distracted
• Bored with TV
• Mobile = life
• Visual > print
• Impatient
• Look to peers, not
elders
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39. MASS ECONOMY SOCIAL ECONOMY
Teacher-driven Self-directed process
Learning
transaction
Stable structures Shifting.
Knowledge that can be treated interdependent &
independently interrelated disciplines
Intelligence Individual Group
Passive recipients Active developers of
Students
of knowledge knowledge
Select, deliver & Guide insight &
Teachers test information knowledge
development
Schools Manage education Incubate learners
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40. • 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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41. 019-243-5856

42. “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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47. FLIPPED CLASSROOM
TRADITIONAL FLIPPED
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49. “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 019-243-5856

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

53. RULES FOR
INNOVATION
DOMINATION

54. KNOW
WHY IS
BETTER
THAN
KNOW
WHAT
Knowledge ≠ Power

56. BE FIERCE

57. NEW.

58. SHAMELESS
SELF-
PROMOTION

60. BUSINESS TODAY
Social
Marketing
Media

61. BUSINESS TOMORROW
Leadership
R&D
Internal
collaboration
Strategic
planning
Social
Business Marketing
Innovation
Production
HR
Supply
chain Sales
Customer
service

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

63. WEB: socialbusinessasia.com
TWITTER: @socialbizasia

65. 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.

66. EVALUATION
1. 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….