6. 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
7. 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
8.
9.
10. 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
Open Source
•Communities
•Software
• Hardware
• Physibles
Convergence of…..
Finance
• Microlending/microfinance
• Crowdfunding/equity/P2P
• Non-fiat cryptocurrencies
• Mobile money/payments
11.
12. Bitcoin = The power of community +
open source + internet + CPU
• Self-organizing community of thousands of “strangers”
• Not one but many motivations (intrinsic, extrinsic)
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2263707
13. 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
Where is
the firm?
14. 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?
20. 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
The Firmvs
E.g., Microsoft
~ Created by employees within
organizational boundaries
E.g., Quirky, Local Motors
~ Created by community collaborators
regardless of affiliation
Teigland, Di Gangi, & Yetis 2012
Models of Value Creation
24. OpenSimulator: A value-creation ecosystem
Academic
Entrepreneur
Hobbyist
Large Firm
Non-profit
Local Public
Federal Public
Research Inst
SME Employee
Periphery
Teigland, Di Gangi, & Yetis 2012
USD 5.5mln in
development costs
41. From the mobility of goods
to the mobility of financial capital to …
Teigland, JVWR, 2010
...the “mobility” of labor?
42. 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/