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					The Rise of Networked Individuals and
Their Role in the Life of Entrepreneurs

  United States Association for Small Business Entrepreneurship
  January 15, 2011
  Hilton Head, S.C.
  Lee Rainie: Director, Pew Internet Project
  Email: Lrainie@pewinternet.org


                                                         PewInternet.org
Behold the idea of networked individualism
  Barry Wellman – University of Toronto

                       The turn by people
                         from groups to
                         social networks =
                         a new social
                         operating system
                         = a new way to
                         build businesses
                         among them

                                  April 9, 2010   2
   Big societal forces pushing us toward
        networked individualism (1)
• Weaker group boundaries
  – Suburbanization
  – Fragmentation of nuclear family/changing family roles
  – Less prejudice
  – Group boundaries weaken – “Bowling Alone”
  – Media fragmentation – less cultural cohesion
  – Rise of “meritocracy” in workplaces/social structures
  – Politics, rise of “independents” – 39% of electorate
  – Religion, 44% switched from childhood denomination

                                                            3
 Big societal forces pushing us toward
      networked individualism (2)
• Spreading connectivity
   –Travel
   –Technology
   –Trade
 Big societal forces pushing us toward
      networked individualism (3)
• Rise in personal autonomy and agency
  – Free-agent nation
  – Income and wealth volatility
  – Mobility
  – Growing personal life management --
    401ks and “cafeteria” health plans
  – Expanding consumer options
Internet and
 Broadband
 Revolution




               6
70%
66%
Consequences for info ecosystem




Volume              Velocity




Vibrance             Valence /
                     Relevance
Consequences for info ecosystem




 Explosion of creators and niches
    Networked creators among internet users
•    62% are social networking site users
•    ~50% share photos
•    33% create content tags
•    32% contribute rankings and ratings
•    30% share personal creations
•    26% post comments on sites and blogs
•    15% have personal website
•    15% are content remixers
•    14% are bloggers
•    12% use Twitter
•    4% use location-sharing services
  Wireless
Connectivity
 Revolution




               12
            Cell phone owners – 85% adults
               All adults       Ages 18-29        Ages 30-49        Ages 50-64        Age 65+
100%                                                                                                           96%
90%
                                                                                                               90%
                                                                                                               85%
80%

70%

60%
                                                                                                               58%
50%

40%

30%

20%

10%

 0%
   Jan-05   Jul-05   Jan-06   Jul-06   Jan-07   Jul-07   Jan-08   Jul-08   Jan-09   Jul-09   Jan-10   Jul-10
  Mobile internet connectors – 57% adults
             All adults   Whites   Blacks   Hispanics
70%
                                                        62%
60%
                                                        59%
50%                                                     55%

40%


30%


20%


10%


0%
    New cell and wireless realities
• More than 2/3 of adults and 3/4 of teens use the cloud
• Web vs. apps struggle: 35% have apps; 24% use apps
• Features used by cell owners
   – 76% take pictures
   – 74% are texters (text overtakes talk in frequency in 2009)
   – 42% browse internet
   – 38% are email users
   – 35% are IM-ers
   – 34% record videos
   – 34% play games
   – 33% play
   – 7% participate in video calls
53% of adults own laptops –
up from 30% in 2006
50% of adults own DVRs –
up from 3% in 2002
45% of adults own MP3 players –
up from 11% in 2005

42% of adults own game consoles

6% of adults own e-book readers - Kindle

5% of adults own tablet computer - iPad
 Consequences for info ecosystem




  Anywhere              Any device



Place                        Presence

             Any time
  Social
Networking
Revolution




             18
 Consequences for info ecosystem




Social dashboard    Pervasive awareness
      So what for entrepreneurs? (1)
    They exist in a new creative ecology
• Conceiving ideas is different among networked learners
   – More self directed and less dependent on top-down
     instructions
   – Better arrayed to capture new information inputs
   – More reliant on feedback and response
   – More attuned to group outreach and group knowledge
   – More open to cross discipline insights, creating their
     own “tagged” taxonomies
   – More oriented towards people being their own
     individual nodes of production
     So what for entrepreneurs? (2)
They exist in a networked media ecology
  Attention zones      Media zones
  Continuous             Social
    partial attention    Immersive
  Deep dives             Streams
  Info-snacking          Creative /
                           participatory
                         Study / work
  Brand new marketing and sales environment
       So what for entrepreneurs (3)
Social networks play a more important role
          for marketing and sales
 • As sentries – word of mouth matters more
 • As information evaluators – they vouch
   for/discredit a business’s credibility and
   authenticity
 • As forums for action – everybody’s a
   broadcaster/publisher
               Queries???
•   Different financing?
•   Different logistics (supply chain)?
•   Different competitive environment?
•   Different mix of startups?
•   Different success/failure rates?
    – Is competence with tech a key
     indicator of success?
Why good social networks (and social
       networking) matter
•   Healthier
•   Wealthier
•   Happier
•   More civically engaged = better
    communities


                                       25
    Upheaval – 1
Gadgets and interfaces
              Changes underway
Voice, smart/semantic web, translation, natural language
  search, projectors, screens, wearable devices make
  information ….

   Pew Internet                 danah boyd
   – pervasive                  - persistent
   – portable                   - replicable
   – personal                   - scalable
   – participatory              - searchable

               COLLAPSED CONTEXTS
  Are hot future gadgets evident now?
The hot gadgets and          Hot gadgets and apps that
  applications that will       will capture the
  capture the imagination      imagination of users in
  of users in 2020 are         2020 will often come
  pretty evident today and     “out of the blue” and not
  will not take many of        have been anticipated
  today’s savviest             by many of today’s
  innovators by surprise.      savviest innovators.

    16% experts                  81% experts

                                                2010
                                        July 9, October 22, 2010   2828
 Upheaval – 2
The metaverse
The virtual world merges with real world
• Metaverse Roadmap: The internet of things
  enhances the internet of people
   – Augmented reality
   – Mirror worlds
   – Life logging
   – Virtual worlds
Upheaval – 3
The exaflood
 Age of big data and “the internet of things”
   – 50 billion connected devices by 2020?
• Exabyte: 1 billion gigabytes (1018 )
  – 2002: 5 exabytes of info on entire internet
  – 2010: 21 exabytes pass on internet per month
                     Implications
• Constant connectivity changes social patterns and info
  flows: need for real-time info/analytics
• Niches proliferate
• Media power balances shift and boundaries blur
   – Old media vs. new media
   – Producers vs. consumers
   – New intermediaries
• Influence shifts to social networks
   – Attention to info
   – Evaluation of info
   – Action on info, including creation
          Thank you!

Lee Rainie
  Director – Pew Internet Project
  Lrainie@pewinternet.org
  Twitter - @lrainie
  202-419-4500




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