How *WE* Are Smarter Than *ME*:How *WE* Are Smarter Than *ME*:An In-Depth Look Into An In-Depth Look Into WikinomicsWikinomics

Briefing to:Briefing to:STC Washington DC ChapterSTC Washington DC Chapter

March 26, 2009March 26, 2009

Julia Loughran, loughran@thoughtlink.com

What’s Everyone Talking What’s Everyone Talking About?About?

What’s Everyone Talking What’s Everyone Talking About?About?

Time’s Person of the Year: 2006Time’s Person of the Year: 2006

First, a video to set the stageFirst, a video to set the stage

http://www.youtube.com/watch?v=LlqU1o3NmSw

US Now

http://www.whitehouse.gov/openforquestions/

Today’s Online Town Meeting:

Can Mass Collaboration Can Mass Collaboration Change the World?Change the World?

The Obama ‘08 iPhone AppCall Friends: Your contacts prioritized by key battleground statesCall Stats: See nationwide Obama '08 Call Friends totals compare your calls to leading callers.Get Involved: Find and contact your local Obama HQReceive Updates: Receive the latest news and announcements via text messages or email.News: Browse complete campaign news coverageLocal Events: Find local events, share by email and get mapsMedia: Browse videos and photos from the campaignIssues: Get clear facts about Barack Obama and Joe Biden's plan

What we’ll talk aboutWhat we’ll talk about

What is What is WikinomicsWikinomics Web 2.0 TechnologiesWeb 2.0 Technologies Case StudiesCase Studies How to Change Your Business ModelHow to Change Your Business Model Benefits/PitfallsBenefits/Pitfalls

Wikinomics? What is it?Wikinomics? What is it?

How and Why? The How and Why? The Proliferation of Low-Cost Proliferation of Low-Cost Collaboration InfrastucturesCollaboration Infrastuctures Internet telephone (e.g., Skype)Internet telephone (e.g., Skype) Open Source SoftwareOpen Source Software Global outsourcing platformsGlobal outsourcing platforms WikisWikis Blogs/audio blogs/photo blogsBlogs/audio blogs/photo blogs Podcasts/YouTubePodcasts/YouTube E-mail listsE-mail lists High-speed data accessHigh-speed data access

New Competitive PrinciplesNew Competitive Principles

Openness – towards networking, sharing Openness – towards networking, sharing and encouraging self-organizationand encouraging self-organization

Peering – horizontal vs. hierarchical, peer-Peering – horizontal vs. hierarchical, peer-to-peerto-peer

Sharing – lifting IP, trademarks, copyright Sharing – lifting IP, trademarks, copyright and patents to expanding markets and and patents to expanding markets and creating new opportunitiescreating new opportunities

Acting Globally – eliminating geographical Acting Globally – eliminating geographical barriers, monitoring business internationally, barriers, monitoring business internationally, and tapping a larger global talent pooland tapping a larger global talent pool

Evolving Org StructuresEvolving Org Structures

http://darmano.typepad.com/logic_emotion/2006/07/human_hierarchy.html

Results from 49 Respondents (Survey Monkey)

New, Customer Driven FocusNew, Customer Driven Focus

Who is responsible?Who is responsible?

The Net Generation (1977-1996)The Net Generation (1977-1996) Modus operandi: NetworkingModus operandi: Networking Skeptical of authoritySkeptical of authority Self-confidenceSelf-confidence Value individual rightsValue individual rights Strong sense of social and civic responsibilityStrong sense of social and civic responsibility Norms: Speed, freedom, openness, Norms: Speed, freedom, openness,

innovation, mobility, authenticity and innovation, mobility, authenticity and playfulnessplayfulness

What we’ll talk aboutWhat we’ll talk about

What is What is WikinomicsWikinomics Web 2.0 TechnologiesWeb 2.0 Technologies Case StudiesCase Studies How to Change Your Business ModelHow to Change Your Business Model Benefits/PitfallsBenefits/Pitfalls

Web 2.0 TechnologiesWeb 2.0 Technologies

Old web: Sites, clicks, eyeballsOld web: Sites, clicks, eyeballs New web: communities, participation, New web: communities, participation,

peeringpeering– Building a business on Amazon or eBayBuilding a business on Amazon or eBay– Producing video clips for YouTube (vlogging)Producing video clips for YouTube (vlogging)– Creating community around your Flickr photo Creating community around your Flickr photo

collectioncollection– Editing a Wikipedia entryEditing a Wikipedia entry– Many, many more possibilities!Many, many more possibilities!– Web Syndication (RSS)Web Syndication (RSS)– Open APIs and Mash-UpsOpen APIs and Mash-Ups

Some Examples of the Some Examples of the New WebNew Web

MIT’s OpenCourseWare – MIT’s OpenCourseWare – ocw.mit.eduocw.mit.edu Scorecard – Scorecard – www.scorecard.orgwww.scorecard.org www.TakingITGlobal.orgwww.TakingITGlobal.org www.OurRaceCar.comwww.OurRaceCar.com

SurveyMonkey ResultsSurveyMonkey Results

Top 3 Answers:– Viewed a YouTube Video: 98%– Participated on e-mail lists: 92%– Used Wikipedia: 92%– Read a blog or wiki: 88%

Bottom 3 Answers:– Contributed to Open Source Software: 4%– Written a Wikipedia Definition: 10%– Used Digg.com: 12%

Social Networking SitesSocial Networking Sites

Answer Options Response Percent Response Count

Linked-In 93% 40

Facebook 60.5% 26

Plaxo 44.2% 19

MeetUp 18.6% 8

MySpace 14.0% 6

Second Life 9.3% 4

Friendster 7% 3

Spoke 0.0% 0

Ryze 2.3% 1

Classmates 11.6% 5

Flickr 11.6% 5

Orkut 0.0% 0

Twitter 23.3% 10

answered question 43

skipped question 7

Social Networking SitesSocial Networking Sites

Programmable WebProgrammable WebWinners and LosersWinners and Losers

Wikipedia beat BrittanicaWikipedia beat Brittanica Blogger beat CNNBlogger beat CNN Epinions beat Consumer ReportsEpinions beat Consumer Reports Google Maps beat MaqQuestsGoogle Maps beat MaqQuests MySpace beat FriendsterMySpace beat Friendster Craigslist beat MonsterCraigslist beat Monster Mozilla Firefox gaining on IE BrowserMozilla Firefox gaining on IE Browser

BlogsBlogs

Technorati (Technorati (www.technorati.orgwww.technorati.org)) Ice Rocket (Ice Rocket (www.icerocket.comwww.icerocket.com) ) Blogosphere – Over 120 milllion blogs! Blogosphere – Over 120 milllion blogs!

(English speaking) Over 72M Chinese blogs!(English speaking) Over 72M Chinese blogs!– Running conversationRunning conversation– More noise in an oversaturated environmentMore noise in an oversaturated environment– Some blogs readership bigger some than Some blogs readership bigger some than

newspapersnewspapers– Richer and more engaging: audio and video Richer and more engaging: audio and video

postsposts

Your network is your filterYour network is your filter

The Global BrainThe Global Brain Tagging – Metadata (e.g., Flickr)Tagging – Metadata (e.g., Flickr) Del.icio.us (Del.icio.us (http://del.icio.us/http://del.icio.us/)) Amazon (Amazon (www.amazon.comwww.amazon.com)) Google (Google (www.google.comwww.google.com)) 43 Things 43 Things

(43things.com)/43places/43people(43things.com)/43places/43people … … and many of these companies have and many of these companies have

opened up their APIs so users can create opened up their APIs so users can create new features!new features!

What we’ll talk aboutWhat we’ll talk about

What is What is WikinomicsWikinomics Web 2.0 TechnologiesWeb 2.0 Technologies Case StudiesCase Studies How to Change Your Business ModelHow to Change Your Business Model Benefits/PitfallsBenefits/Pitfalls

Current TVCurrent TV

Peer-to-peer newsPeer-to-peer news Produced and programmed in Produced and programmed in

collaboration with its audiencecollaboration with its audience Leading model of interactive viewer Leading model of interactive viewer

created content (VC2)created content (VC2) Over 51 million viewersOver 51 million viewers Comcast, DirecTV, Dish, Sky, Virgin Comcast, DirecTV, Dish, Sky, Virgin

Media CableMedia Cable

The Goldcorp Challenge: Took place The Goldcorp Challenge: Took place online August 2000 – March 2001.online August 2000 – March 2001.

Shared over 400 megabytes of Shared over 400 megabytes of proprietary geological dataproprietary geological data

$575,000 prize money$575,000 prize money Over 1,000 virtual prospectorsOver 1,000 virtual prospectors Shaved 203 years off exploration timeShaved 203 years off exploration time Went from 100 million to $9 billionWent from 100 million to $9 billion

Online research collaboration companyOnline research collaboration company Seekers: Companies, academic institutions, Seekers: Companies, academic institutions,

non-profit organizations post their non-profit organizations post their challengeschallenges

Solvers: more than 160,000 of the world’s Solvers: more than 160,000 of the world’s greatest minds greatest minds

Innocentive manages the IP processInnocentive manages the IP process Completed $9 M in Series A funding; Completed $9 M in Series A funding;

currently using $6.5M of Series B financingcurrently using $6.5M of Series B financing www.innocentive.comwww.innocentive.com

takingitglobal.org takingitglobal.org ““a platform to support collaboration among a platform to support collaboration among

young people in developing projects … young people in developing projects … understanding issues and influencing the understanding issues and influencing the decision-making process”decision-making process”

Next task: Reforming EducationNext task: Reforming Education Students and teachers collaborating across Students and teachers collaborating across

the globethe globe

What we’ll talk aboutWhat we’ll talk about

What is What is WikinomicsWikinomics Web 2.0 TechnologiesWeb 2.0 Technologies Case StudiesCase Studies How to Change Your Business ModelHow to Change Your Business Model Benefits/PitfallsBenefits/Pitfalls

How to Change Your How to Change Your Business?Business?

Start on-line communitiesStart on-line communities Increase openness/transparencyIncrease openness/transparency Use customers to market products/servicesUse customers to market products/services Release early and collect feedbackRelease early and collect feedback Create new, innovative relationships with customersCreate new, innovative relationships with customers Increase collaboration opportunities (B-Webs)Increase collaboration opportunities (B-Webs)

What we’ll talk aboutWhat we’ll talk about

What is What is WikinomicsWikinomics Web 2.0 TechnologiesWeb 2.0 Technologies Case StudiesCase Studies How to Change Your Business ModelHow to Change Your Business Model Benefits/PitfallsBenefits/Pitfalls

BenefitsBenefits

Faster innovationFaster innovation Web-enabled transparencyWeb-enabled transparency Build more powerful networksBuild more powerful networks

PitfallsPitfalls

Accuracy/ValidationAccuracy/Validation Must embrace constant change and Must embrace constant change and

renewalrenewal More vulnerable to terrorism and More vulnerable to terrorism and

criminal networkscriminal networks The worry of “Mass Mediocracy”The worry of “Mass Mediocracy”

Survey: What are the best Survey: What are the best ways to build trust?ways to build trust? Transparency; Open CommunicationTransparency; Open Communication I think you build trust by sharing valuable information. .. A I think you build trust by sharing valuable information. .. A

partnership can only work if you are willing to share and collaborate.partnership can only work if you are willing to share and collaborate. Communicate; do what you say you will doCommunicate; do what you say you will do transparency, reducing formal structures, increasing interactionstransparency, reducing formal structures, increasing interactions Communicate, communicate, communicate … trust is built upon Communicate, communicate, communicate … trust is built upon

clarity of understanding of the goals and consistent execution against clarity of understanding of the goals and consistent execution against the planthe plan

Information moves rapidly. It must be valuable, accurate and Information moves rapidly. It must be valuable, accurate and transparent. Motivations and goals must be clear.transparent. Motivations and goals must be clear.

trust employees with flexible work arrangements. "do what you say trust employees with flexible work arrangements. "do what you say you will do" is the best way to build trust.you will do" is the best way to build trust.

Communicate clearly about expectations, requirements, constraints, Communicate clearly about expectations, requirements, constraints, deliverables AND follow through on those communications.deliverables AND follow through on those communications.

HONESTY, TRANSPARENCY, COMMUNICATIONSHONESTY, TRANSPARENCY, COMMUNICATIONS

Survey Thoughts on Web 2.0Survey Thoughts on Web 2.0

Change will happen faster Change will happen faster Better communication and process Better communication and process Blurring the boundaries between work and leisure Blurring the boundaries between work and leisure Not sure yet. Would like to have more confidence in the Not sure yet. Would like to have more confidence in the

information and conduct of people I find on the Internet information and conduct of people I find on the Internet Wow! I'm only sure that our world will not be the same! Wow! I'm only sure that our world will not be the same! Already generated so much content it's overwhelming. Need Already generated so much content it's overwhelming. Need

3.0 to manage it all. 3.0 to manage it all. Much --- most? -- user generated contact is boring, juvenile, Much --- most? -- user generated contact is boring, juvenile,

repetitive, illiterate, and an utter waste of time.repetitive, illiterate, and an utter waste of time.

Warnings!Warnings!

““A world where only the connected will A world where only the connected will survive”survive”

““Harness the new collaboration or Harness the new collaboration or perish”perish”

““To innovate and succeed, the new To innovate and succeed, the new mass collaboration must become part mass collaboration must become part of every leader’s playbook and lexicon”of every leader’s playbook and lexicon”

““Radical sharing is a win-win for Radical sharing is a win-win for everyone”everyone”

Warnings ContinuedWarnings Continued

““Winning companies will need to know Winning companies will need to know the world, including its markets, the world, including its markets, technologies and peoples”technologies and peoples”

““Collaborate or perish!”Collaborate or perish!” ““The immutable, standalone Web site The immutable, standalone Web site

is dead”is dead” ““If you are not on Facebook – you If you are not on Facebook – you

don’t exist”don’t exist”

What do you think??What do you think??

Is Web 2.0, mass Is Web 2.0, mass collaboration, and collaboration, and participation leading to participation leading to increased creativity increased creativity and innovation?and innovation?

Or, are these Or, are these technologies making technologies making people attention people attention deficits, who can’t deficits, who can’t spell, can’t finish a spell, can’t finish a book, and promoting book, and promoting group think?group think?