Why Web 2.0
Peter Abramo, Ph.D. MEAPA, LLC New Orleans, FTI 2008
There Is A Focus on Innovation and Creativity
The path for a better life for ourselves is to apply the principles of entrepreneurship to life itself in order to instill hopefulness within our communities.
…”If this country (U.S.) is to reinvent its innovation capabilities for a new era, we are going to have to rethink and redesign our innovation environments.”
““We are moving from an economy…built on the logical, linear, computer like capabilities of the Information Age to an economy…built on the inventive, empathic, big-picture capabilities of what’s rising in its place – the Conceptual Age.” •Daniel H. Pink
“A new art and science we call wikinomics is emerging and consists of four powerful new ideas: openness, peering, sharing and acting globally.” •Don Tapscott and Anthony D. Williams
…”in a sea of user-created content, collaborative work, and instant access to information..the skills of critical thinking, research and evaluation are increasingly required to make sense of the world.”
…” The powerful forces that drive today’s economy come with no instructions on how to harness them… It (today’s economy) demands that we rethink how to induce the economy to grow and create good jobs.”
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Creativity Drives Our Economy
2004-Present High Speed Internet Access & Wireless Technology 1980s-90s Computers & Dial Up Internet Access
Information Exchange Rate
Seconds
Creative Economy
Minutes
Amount of Knowledge Economy
Hours
1876 Telephone 1832 Telegraph
1920s-30s TV/Radio
Information
Days
Technology Economy
Industrial Economy
Weeks
Years
Months
1450 Printing Press
Pre-Industrial Economy
Agricultural Economy
Pre 14th Century
1500
1600
1700
1800
1900
1920
1950
1980
2000
2008
Time
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The Need To Think Differently This Creative Economy Has Replaced a Knowledge Economy
The emergence of the Creative Economy… …has created a tremendous demand for communities, businesses, organizations, schools and individuals to think differently about:
•community development •economic development •education •top-line growth •personal development •careers •long-term growth •business objectives
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“The Knowledge Economy as we know it is being eclipsed by something new -- call it the Creativity Economy.”
The Need Manufactured Products, Knowledge, likeTo Think Differently is Easily Outsourced
American Knowledge Workers, whose value proposition is that they hold certain knowledge and know how to apply it, are easily replaced by less expensive foreign knowledge workers.
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The Creative Economy Intersection: Effort, Mobility, Speed and Information
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
MONTHS
Amount of time and effort to complete a task
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Level of mobility and accessibility related to a task
HOURS
SECONDS OR „REAL-TIME‟
YEARS
WEEKS
DAYS
MINUTES
Creativity is NOT a Class
1.5 Billion People Are At The Creative Economy Intersection
These Individuals Work Together to Create a Crowd
The Internet Empowers Everyone (and Forces New Ways To Think)
Collaboration Google Shared Documents
Del.icio.us Zoho Wetpaint Vyew Project Management
Basecamphq Thinkfree Communication Meebo Adium Skype Gcast Workforce
Craigslist LinkedIn Gadball
Writeboard
Yugma Zedoffice
Product Development InnoCentive
Yourencore Emachineshop
eworkmarkets
Authors Are Looking At The Impact of User-Created Content and Amateur-Experts
People are using technology to get the things they need from each other rather than traditional institutions.
Amateurs from many different fields are coming together using web-based technology to create new products and innovate existing ones.
Broad participation has reached the tipping point where mass collaboration changes how goods and services are invented, produced, marketed, and distributed.
On-Line Inventories And Capabilities Have Formed A „Long Tail‟ to Meet Individual Choice
900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 1 2 3 4 5 6 7 8
Sales/units sold
Top sellers
Niche buyers
Number of products available 9 10 11 12 13 14 15 16 17 18
19
20
21
22
23
24
25
26
27
100,000 These 100,000 books are “best sellers”
1,800,000-2,000,000 These 200,000 books are ranked low in sales BUT THEY ARE STILL SELLING
Stores Respond to Customers‟ Desires in Weeks Instead Of Months
Fast Fashion apparel companies like Zara, Hennes & Mauritze, Mango, Top Shop
2 Weeks
“In Zara's stores you can buy a trendy look but do not expect more. Well... on the other hand we do not need more in a world where everything is changing so impossibly fast. “ -Zara customer
Creators Can Eliminate Gate-Keepers
Pre-1980s
Author
Agent Publisher Editor Cover Artist Distributor Wholesaler Book Store
COST
TIME
Consumer $$$$$
1990s
Author
Self-publishing company OR
Distributor
Wholesaler
Book Store
Consumer $$$
Self-publishing company
On-line Consumer
$$
2003 onward
www.lulu.com
On-line
Author
Consumer $
Nonprofessionals Can Compete With The Professionals
Ohmynews.com You write the news.
You film the news.
You film the entertainment.
You sell (or resell) merchandise. You take credit cards.
Individuals Create the Content
13 hours of video uploaded every minute
Groups of Non-Professionals can Create (and Self Regulate)
20 18 16
RED LINE = # OF PEOPLE WRITING
35 30 25 20 15 10 5 0 Ancient Greece
Aristotle and Pliny the Elder
14 12 10 8 6 4 2 0 Middle Ages
St. Isoidore of Seville BLUE BAR = AMOUNT OF INFORMATION
18th-19th Centuries
Denis Diderot
1950s-1960s 1980s-1990s 2003-present
World Book & Funk & Wagnalls Microsoft Encarta CD
Wikipedia
280,000 volunteers creating and editing 5.3 million entries in 100 languages
Mass Participation Builds Products for Mass Use
The Web Enables Open Innovation Models
Open Innovation Providers
Pharmaceutical & other science based industries
http://innocentive.com/ http://ninesigma.com/
Business Consulting, IT & Office/Admin
http://www.guru.com/ http://www.elance.com/
Technology Services
http://www.onforce.com/ http://www.37signals.com
Institutions Need to “Remove Ownership” to Remain Vibrant
Closed Innovation Principles
The smart people must work for us.
The company that gets an innovation to the market first will win.
Open Innovation Principles
We need to work with smart people inside and outside of the company. Building the right business model is better than getting to the market first. External R&D can create significant value when added to internal R&D.
We should profit from others’ use of our IP and we should use others’ IP if it advances our business model.
To profit from R&D we must discover it, develop it, and ship it ourselves.
We should control our IP, so that our competitors don’t profit from our ideas.
If we create the most, and the best, ideas in the industry we will win.
If we make the best use of internal and external ideas we will win.
Establish a Web 2.0 Advocate in Your Community
Make sure your citizens are connected!
Have the infrastructure in place.
Help Your Companies Understand that the Rules are Changing
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Help Your Companies Develop Creative Processes so They can be Innovative
Boundary Spanning External Solutions
Interdisciplinary Approaches Amateur Involvement
Open Innovation
InnoCentive
Collaboration
Workforce and Economic Developers Must Encourage Citizens and Companies
“Cultural conditions can stifle and kill creativity. If ideas are not encouraged, or when encouraged they are ignored, the creative impulse does one of two things. It goes out, or it goes maverick. It deserts the organization or it subverts it. Creativity can work for you or against you.”
-Ken Robinson, Out of Our Minds
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Creative Ability Think Differently The Need To Will Be Amplified by the Mobile Economy
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Mobility = Flexibility
… and the ability to move.
Thank You
Peter Abramo, Ph.D.
pa@meapa.com www.meapa.com