My presentation at ITARC 2015, an international conference for IT-architects: http://itarc15.itarc2015.com/about/.

1. May 2015

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

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

4. USD 45 bln

5. Doing more with less

6. Launched March 2009
USD 41 bln valuation
In 58 countries and
hundreds of cities
Limited physical assets
Majority of taxis in NYC
Uber
Global platform for local service

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

9. 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 233, May 20)
Teigland, Yetis, Larsson 2013 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2263707

11. 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

12. 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

14. 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
• Blockchain
Open Source
• Software
• Hardware
• Physibles
Convergence of…..
Finance
• Microlending/microfinance
• Crowdfunding/equity/P2P
• Non-fiat cryptocurrencies
• Mobile money/payments
• M2M payments

15. 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?

16. From factories ….

17. ...to offices…

18. …to server halls and …

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

20. …to co-working spaces

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., Quirky, 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. Making money from your sofa

26. Knowledge through MOOCs
(Massively Open Online Courses)

28. “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

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

31. The next generation of the Internet
O’Driscoll 2009

32. Big money moving into 3D internet

33. Developing international entrepreneurs?

34. Clothes/
shoes
MODELLING
AGENCIES
Top
models
Photo-
graphers
Photo
studio
makers
Modelling
furniture
Poses and
animations
Furniture
Hair
Skins
Event
builders
MAGAZINES
MODELLING
SCHOOLS
Shop
builders
Accessories
Body
shapes
DJs
Viachka, Giovacchini, Teigland, Lindqvist 2011
Virtual
fashion
ecosystem

35. From the mobility of goods
to the mobility of financial capital to …
Teigland, JVWR, 2010
...the “mobility” of labor?

36. 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

37. Face to face meetings

38. In the meanwhile…
Increasing forces for local community

40. Dining
Clothes
Workspaces
Cars
Small machinery
Living

41. http://www.web-strategist.com/blog/
The Sharing Economy

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

43. Hoffice – a Swedish concept gone global

44. On-demand economy

46. Increasing access to capital
through crowdfunding

48. From the north of Sweden

49. DIY 3D printing becoming more commonplace…

50. Turning 3D printing into business…
http://openfabpdx.com/fffiddle/

51. 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

52. Virtual healthcare services
Ambulance drone
https://www.youtube.com/watch?v=y-rEI4bezWc

53. Rise of local currencies

54. Developing circular economies
Local materials?
Reduced consumption?
Reduced transport?

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

57. 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/

59. 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

60. 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)

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

62. The Blockchain App Stack
http://www.coindesk.com/blockchain-application-stack/

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

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

65. La’Zooz – Real-time transportsharing

66. 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/

68. Sweden’s future regions?
http://app.cotunity.com/space

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

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

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