1.
March 2013
www.hhs.se

2.
"...when the rate of change
outside an organization is
greater than the rate of change
inside, the end is near...."
Jack Welch…

3.
Increasing pace of change
 Of original Forbes 100 in 1917
- 61 companies ceased to exist by 1987
- 18 of remaining 39 underperformed market by 20%
- Only 2 beat market index (GE & Eastman Kodak)
- Only 1 (1%) today!
 Average S&P 500 company lifespan
− 1920s – 67 years
− 2010s – 15 years
 Dr. Richard Foster, Yale, Sept 2012
− Today's rate of change is at faster pace than ever
− By 2020 prediction is > 75% of S&P 500 will be
companies we do not know about today
http://www.fastcompany.com/3001444/what-zara-pg-and-berlitz-know-about-agility

4.
A Big Bang in the Information Universe
2.7Bln
daily comments and
”likes” on Facebook
500Mln
daily posts on Twitter
and Weibo combined
200k
videos uploaded to
YouTube daily
http://en.wikipedia.org/wiki/Internet, Tomas Larsson, 2012

5.
Big Data is now big money
http://hbr.org/2012/10/data-scientist-
the-sexiest-job-of-the-21st-century/ar/1

6.
”No one knows everything,
everyone knows something,
all knowledge resides in humanity.”networks
Adapted from Lévy 1997
Six degrees of
separation
- Milgram, 1967

7.
Yet we are stuck in our old ways at work…

8.
If only we knew what we know…..

9.
Challenges
•Overly connected people
•Invisible network silos
•Poor awareness of expertise
•Network outliersU.S.
Brazil
Angola
Saudi
Arabia
Canada
U.K.
Nigeria
U.S.Gulf of
Mexico
Brazil
Angola
UK
Canada
Saudi Arabia
Nigeria
U.S.
Brazil
Angola
Saudi
Arabia
Canada
U.K.
Nigeria
U.S.Gulf of
Mexico
Brazil
Angola
UK
Canada
Saudi Arabia
Nigeria
U.S.
Brazil
Angola
Saudi
Arabia
Canada
U.K.
Nigeria
U.S.
Brazil
Angola
Saudi
Arabia
Canada
U.K.
Nigeria
U.S.Gulf of
Mexico
Brazil
Angola
UK
Canada
Saudi Arabia
Nigeria
Networked collaboration brings results
Gulf of
Mexico
Brazil
Angola
UK
Canada
Saudi
Arabia
Nigeria
Gulf of
Mexico
Brazil
Angola
UK
Canada
Saudi
Arabia
Nigeria
Business results
•Poor quality cost down 66%
•Operational productivity up 10%
•New product revenue up 22%
•Customer satisfaction up 24%
Cross 2010
Before
After

10.
Closed networks lead to failure
http://www.enronexplorer.com/focus/19185#
Ken Lay
CEO of Enron

11.
Exploitation
Improving existing
value creation
activities
Exploration
Developing new
value creation
activities
Adapted from March 1991

12.
DEMO!
From problems solvers to solution finders
Open innovation in health care
$100mln
open innovation
challenge
500 submissions

13.
Where have the traditional sources of
sustainable competitive advantage been?
#1
Innovation
Networks of
relationships
Brand &
Reputation
FIRM
Kaye 1993

14.
#1
Innovation
Networks of
relationships
Brand &
Reputation
FIRM
T
Where are tomorrow’s sources of
sustainable competitive advantage?
Teigland 2010

15.
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

16.
Shifting market logic
Adapted from Ericsson & Augur 2011
Economies
of scope
and reach

17.
What’s around the corner?
24x7 Global Internet Collaboration + Open Source + 3D Printing
http://mashable.com/2013/02/13/robohand/
$60,000
$150
Available for free
download on

18.
The Firm
The Collectivevs
E.g., Microsoft
~ Built by employees within
organizational boundaries
E.g., Linux
~ Built by users and distributed
freely regardless of affiliation
Models of Value Creation
Teigland, Di Gangi, & Yetis 2012

19.
Some things do not change
Innovation Exchange
Exchange Trust
Trust Relationships
Relationships Interaction

20.
What should you think about?
How to let go of control?
How to enhance networked collaboration
inside your organization?
How to engage the “crowd” outside your
organization?

21.
Karinda Rhode
aka Robin Teigland
robin.teigland@hhs.se
www.knowledgenetworking.org
www.slideshare.net/eteigland
www.nordicworlds.net
RobinTeigland
Photo: Lindholm, Metro
Photo:
Nordenskiöld
Photo:
Lindqvist
If you love knowledge,
set it free…