My ppt for Nordic Financial Unions Annual Conference in May 2015 in Hurdalsjoen, Norway. Feel free to use. http://nordicfinancialunions.org/

1. May 2015

2. Halloween in Nashville, 1974

3. Then…
Thx to R. Wieselfors, Ericsson for photos

4. …Now
Thx to R. Wieselfors, Ericsson for photos

5. USD 45 bln

6. Doing more with less

7. Banking is essential,
but banks are not.
Bill Gates

8. 2014 Fintech Investment:
USD 12.2 bln globally and USD 1.5 bln in Europe

9. In just the past few years in Stockholm…
Company Founded Business
Klarna 2005 E-commerce payment services
MyLoan 2006 Loan broker
Trustly 2008 Online payments
TrustBuddy 2009 P2P lending
iZettle 2010 Mobile payments
FundedByMe 2011 Crowdfunding, crowd equity
Kivra 2011 Digital mailbox
Tink 2012 Personal finance
Safello 2013 Cryptocurrency exchange
KnCMiner 2013 Cryptocurrency mining equipment
Toborrow 2013 P2P lending for companies

10. Within 6 years:
Challenging the
fiat money
system?
Bitcoin = The power of community +
open source + internet + CPU
• Open source project on SourceForge in Jan 2009
• Original source code by “Satoshi Nakamoto” – pseudonym?
• Developed by self-organizing community of thousands of
strangers across globe
• Approx USD 3.3 bln market cap and 105,000 daily
transactions (1 BTC = USD 235, May 29)
Teigland, Yetis, Larsson 2013 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2263707

12. If the rate of change on the
outside (of an organization)
exceeds the rate of change on
the inside, the end is near....
-Jack Welch

13. Increasing pace of change
 From 1920s to 2010s
− Average lifespan of S&P 500 company fell from 67
years to 15 years
 Predictions
− In next few years, 70% of Fortune 1000 companies to
be replaced
− By 2020, >75% of S&P 500 companies do not exist
today
− By 2025, >45% of Fortune 500 companies to be from
emerging markets
Fast Company, McKinsey & Inc

15. People
• “Net generation”
• 24x7 “mobile” workforce
• Knowledge via MOOCs
• Sharing not consuming
• Sustainability
Technology
• Broadband access
• The Cloud
• Mobile phones
• Internet of Things
• Big Data
• 3D printing
• Robotics/AI
• VR/AR
• Holography
• Blockchain
Open Source
• Software
• Hardware
• Physibles
Convergence of…..
Finance
• Microlending/microfinance
• Crowdfunding/equity/P2P
• Non-fiat cryptocurrencies
• Mobile money/payments
• M2M payments

16. History tends to repeat itself….
Innovation, financial crisis, industrial revolution, …
Steam
engine
Internal
combustion
engine
Internet
Microelectronics
Late 18th C Late 19th C Late 20th C
Schön 2008
Third
industrial
revolution?

17. From factories ….

18. ...to offices…

19. …to server halls and …

20. …third spaces
• US: 40% of workforce freelancers
• Sweden: 700,000 to 900,000 F-skatt in past 10 years

21. Jobs that did not exist 10 years ago
 iOS/Android developer
 Social media manager
 UI/UX designer
 Big data architect
 Cloud services specialist
 Digital marketing specialist
 Sustainability expert
 Zumba instructor
 Beach body coach
http://talent.linkedin.com/blog/index.php/2014/01/top-10-job-titles-that-didnt-exist-5-years-ago-infographic

22. No one knows everything,
everyone knows something,
all knowledge resides in humanity.networks.
Adapted from Lévy 1997
Six degrees of
separation
- Milgram, 1967

23. Community
Platform
HierarchicalFirmvs
E.g., GE, Ford
~ Created by employees within
organizational boundaries
E.g., Local Motors
~ Created by community collaborators
regardless of affiliation
Teigland, Di Gangi, & Yetis 2012
Models of Value Creation

24. Est. $30 mln sales
30% profit margin in
commodity business
20 employees but a
24x7 global “workforce” of
2.4 million
No internal R&D or
sales & marketing
Threadless
A platform for global community collaboration

25. “Local Motors is the place for people to create
influential vehicles together.”
https://localmotors.com/microfactory/
• 1000x cheaper to produce new car model
• 5-22x faster production, depending on vehicle

27. Local Motors and GE team up
From economies of scale
to economies of creativity?

28. In the meanwhile…
Increasing forces for local community

30. Dining
Clothes
Workspaces
Cars
Small machinery
Living

31. Hoffice –
Sharing your home with local freelancers
Structured working process

32. Hoffice – a Swedish concept gone global

34. Increasing access to capital
through all forms of crowdfunding

36. From the north of Sweden

37. DIY 3D printing becoming more commonplace…

38. Making 3D printers on her boat

39. Where is the firm?
24x7 Global Internet Collaboration + Open Source + 3D Printing
http://mashable.com/2013/02/13/robohand/
$60,000
$150
Available for free
download on
$45

40. Developing circular economies
Local materials?
Reduced consumption?
Reduced transport?
Fueled by local “money”?
And by IoT?

41. Today > 6000 complementary currencies
 Many community-based
currencies
 In cooperation with fiat
currencies
 Benefits
− Counterbalance banks
− Create means of exchange
− Promote resilience of local
community
http://www.lietaer.com/writings/books/rethinking-money-by-bernard-lietaer-and-jacqui-dunne/

42. Rise of local currencies

44. From “trusted”, centralized human authorities
to trustless, decentralized networks
IBM Institute for Business Value (PDF)

45. What is Bitcoin?
Is it ….
 A currency?
 An investment?
But it is definitely much more than “a coin”…
 A ledger (the blockchain)
 A software development platform
 A P2P network for monetary and non-
monetary asset transactions
Returning the internet to its roots as a
decentralized P2P system?
http://thenextweb.com/insider/2014/02/15/bitcoin-platform-currency/

47. IoT and smart contracts
 Smart property
− Ownership attached to asset/property and can be verified
 Smart contracts
− Run on blockchain technology, execute legal rules
between two entities: people, organizations, machines
− Trustless because no center, no one in middle – the
network is the middleman
− Example: I run a private weather station using neighbors’
sensors. Smart contracts enable payment to neighbors
for data sent from their sensors to my weather station.
− But time will tell… uses we cannot imagine today.
https://www.youtube.com/watch?v=JsC4ptn2Aik

48. Emerging companies in IoT/Blockchain space
Enables decentralized electronic
security via keyless access
protocol for smart property
(Ethereum)
Manages payment addresses
assigned to each IoT device for
M2M sale of data (Bitcoin)
Enables sensors to have private
key to participate in blockchain
(Bitcoin)

49. Ethereum: Next gen Bitcoin protocol?
http://www.wired.com/2014/01/ethereum/

50. They do not own the assets, but they have
a center that can be disrupted by the
blockchain technology and
cryptocurrencies

51. Moving towards a true Sharing Economy?
Blockchain
Sharing
Economy
IoT
P2P/M2M
Micropayments

52. Thomas Jefferson (1816)
“Laws and institutions must go hand in hand
with the progress of the human mind.”
The problem is that the human mind itself
can’t keep pace with the advances that
computers are enabling.
http://wadhwa.com/2014/04/15/mit-technology-review-laws-and-ethics-cant-keep-pace-with-technology/

54. Some questions…
• Will we see a parallel to other industries, e.g.,
music, software, newspaper, books?
• How to learn about new developments such as
crowdfunding, P2P lending, cryptocurrencies,
mobile payment systems?
• Will “trusted” third parties no longer be needed
since trust can be mediated through networks,
which are self-regulating?
• What basic assumptions will no longer hold, e.g.,
do we need money?
• How to turn threat into opportunity?

55. The future is already here,
it’s just not very evenly
distributed.
- William Gibson

56. Want to learn more?
Join our funnovation workshops
funnovation.se

57. Robin Teigland
robin.teigland@hhs.se
www.knowledgenetworking.org
www.slideshare.net/eteigland
funnovation.se
@RobinTeigland
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