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Sam Inkinen Open Innovation and Web 2.0

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Open Innovation, crowdsourcing, etc. The cultural requirements for
 Web 2.0 powered innovation, networking and collaboration.

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Sam Inkinen Open Innovation and Web 2.0

  1. 1. Open Innovation The cultural requirements for Web 2.0 powered innovation, networking, and collaboration Dr. Sam Inkinen Senior Researcher Finland Futures Research Centre –
  2. 2. Artist: Lotta Viitaniemi, Story: Kim Forsman & Teemu Arina Dicole Ltd.
  3. 3. Changes on the web WEB X.O
  4. 4. Web as a platform Photo: Christopher Chan
  5. 5. Software above a single device Photo: *One*
  6. 6. Data as the new Intel inside Photo: _fabrizio_
  7. 7. Harnessing collective intelligence Photo: Donna Cymek
  8. 8. Rich Internet Applications (RIA, AJAX)
  9. 9. Lightweight business models, e.g. SaaS (Software as a Service) Photo: ulterior epicure
  10. 10. Long Tail Head (20%) r we po g erin Sign lt dfi al v uire s. n eq ois R e Sales Tail (80%) Products Ref: Chris Anderson
  11. 11. “The project would have been a success if everything had gone as we planned.”
  12. 12. “Everything would Myth work out if we had the right information at the right time at the right place.”
  13. 13. Culture The integrated pattern of human knowledge, belief, and behavior that depends upon the capacity for learning and transmitting knowledge to succeeding generations. – Merriam-Webster Online Dictionary Photo: Shapeshift
  14. 14. Connecting Anonymous voting 1) Open conversation 2) Prediction markets 3) Many Minds Internet crowdsourcing 4) Ref: Cass R. Sunstein, Infotopia
  15. 15. Examples Anonymous • Kasparov vs. Internet team • Estimating temperature Voting • “Ask audience” in Who Wants to be a Millionaire • Movie ratings in IMDB • Youtube video ratings
  16. 16. Why groups can be wise? Condorcet Jury Theorem Marquis de Condorcet, 1743 - 1794
  17. 17. Wise Diversity of opinion 1) Independence 2) Decentralization 3) Crowds Aggregation 4) Ref: James Surowiecki, Wisdom of the Crowds
  18. 18. Conversation Each of them by himself may not be of good quality; but when they all come together it is possible that they may surpass – collectively and as a body, although not individually – the quality of the few best. – Aristotle on Collective Intelligence, Politics, circa 334-23 BC.
  19. 19. • Groupthink and unthinking Traps • Amplification of falsehoods • Strategic behavior • Use of heuristics • From confidence to extremism • Focus on personal prospects • Design by committee Photo: Mike9Alive
  20. 20. Design by Committee
  21. 21. Filters Weak • Surveillance filter • Mentality filter Signals • Power filter – Dr. Igor Ansoff, 1984 Photo: .supernova.
  22. 22. • Group polarization • Reputational cascades • Informational cascades Biases • Hidden profiles • Social pressures • Common knowledge effects • Algorithmic bias (e.g. Google)
  23. 23. Diversity of Thought is Accuracy of Thought
  24. 24. What doesn’t fit in? 3 2 1 Cow Chicken Grass Ref: Richard Nisbett
  25. 25. 1) Economic incentives Prediction motivate participation 2) Disclosing information is crucial for winning Markets 3) Those who do not know, will step aside
  26. 26. Ecosystem way: Internet Crowdsourcing Photo: Hugo*
  27. 27. What is Innovation? An idea becomes an innovation ■ only through wide adoption, either through: ■ centralized resources (traditional innovation) ■ decentralized resources (open innovation) commons-based peer-production
  28. 28. How’s your innovation pipeline? Photo: Pavlos Pavlidis
  29. 29. Traditional Innovation
  30. 30. Open & Organic Innovation Photo: ippei + janine
  31. 31. What kind of innovation? Challenge: Challenge: Business model new ways ecosystem innovation to capture value innovation What you innovate Changing the what Challenge: Traditional Product & be an innovation Changing service innovation product the how partner of choice development Closed Open How you innovate Source: Henry Chesbrough, 2007
  32. 32. Future Challenge In the future, organizations will compete on: Who is able to create a rich user community improving their products where users want to belong Image: Felippe Torres
  33. 33. “There’s something fundamental about organizations and leadership that makes it almost impossible for people inside a business to change their own industry. Industries are based on formats that are basically legacies of military hierarchies” Ricardo Semler Semco Kuva: GustavoG
  34. 34. “Virtually everything new seems to come from the 20 percent of their time engineers here are expected to spend on side projects. They certainly don't come out of the management team” Eric Schmidt Google CEO Kuva: GustavoG
  35. 35. Participation Inequality 1% creators 10% synthesizers 100% consumers Ref: Bradley Horowitz, Jacob Nielsen
  36. 36. Participation Power Law Ownership High Moderating Engagement Collaborating Reflecting Recommending Linking Commenting Tagging Rating Subscribing Low Reading Threshold Collective Collaborative Intelligence Intelligence (implicit creation) (explicit creation) Ref: Teemu Arina, based on Ross Mayfield
  37. 37. Winner of World Summit Award Finland 2009 in e-business & category CASE
  38. 38. portrait details + Add contact Itämerenkatu 30 A 10 jaiku FI-00180 Helsinki, Finland Teemu Arina facebook Blog: “All progress depends Skype: infe00 on the unreasonable man” Phone: +358 - 50 -555 7636 ‣ Edit details employer ‣ Upload photo Professional description CEO, founder “ I seek to understand the changing friends Dicole Oy nature of organizations as they shift from the industrial era to the knowledge Kansakoulukuja 3, 2 krs. ‣ See all intensive era. What new methods, FI-00100 Helsinki, Finland structures, skills and tools will they +358 - 50 - 555 7636 need? As an entrepreneur, programmer, +10 teacher and designer I design, build and Digitalization deliver web-based interaction grade technology (or social software) that enables people to co-create together in community stats a distributed knowledge intensive ‣ Edit employer environment.” Last online 6 minutes ago Submitted ideas 32 Comments 40 education Points received 54201 Ranking position 4. School HSE Skill profile Degree Bachelor “Technology is my sixth sense.” Other degree Knowledge kung-fu tags of interest Target degree Evil priest case Challenge Digitalization ‣ Edit education e-banking e-invoicing eu idea
  39. 39. Dicole Innovation Work Environment CASE
  40. 40. Blogs Networking Wikis Tags Seeds Media Feeds
  41. 41. Organic Enterprise Nervous system Brain Feeds, Search, APIs - Wikis, tagging - Sharing, discovering and Connecting and remixing tapping into reflections reflectons Blood system Senses Social networking, Blogs, Media - Real-time Reflection in and on action communications, Network analysis - Optimizing interaction flow Skeleton Automation, Real- time processes, Operative technologies - Back- bone for business processes Ref: Teemu Arina, Illustration: Lotta Viitaniemi
  42. 42. Command & Control should become Collaboration and Communication Photo: tashland
  43. 43. Contact Dr. Sam Inkinen Senior Researcher Photo: Markus Koljonen “Imagination is more important than knowledge.” – Albert Einstein