Friday, February 29, 2008

The Trend Blend Map & Social Networks


Inspired by the subway map, Nowandnext.com and Future Exploration Network have collaborated in producing a map of major trends for 2007 and beyond, across ten segments: society & culture, government & politics, work & business, media & communications, science & technology, food & drink, medicine & well-being, financial services, retail & leisure, and transport & automotive.
Each issue covers new trends, innovations and ideas, future risks and opportunities in each of these segments, as well as the key intersections between the trends.
I will see some of the more interesting trends in this landscape. You are on a little tour of 2007 with me?

I get the blue one. Let me see, it is media & communications. The first station is “Social Network”. It derives from Web.2.0. I remember.....there was a time when we had just a few channels to communicate each others, but now we have a huge choice of ways as Skype, MSN, Facebook, My Space and so on. Now the E-mail is the least popular communication. You need the time to write a long letter, to send it, and a lot of patience to receive an answer.
Now, we have social networks, private spaces where you communicate in interactive way with friends, colleagues, why not business partners. We have a space where we meet people with same interests, we discuss, and we change opinions and information, and so on... Such of ways allow us to be more socially engaged.
Many people say, that Internet make people, unsocial and uncommunicative. I don’t think so!
The social networks facilitate meetings with people who are interested in same thing like you; you are not constraint by time, space or distance. It allows us to discover more of our potential to relate to other humans by how we share and communicate on the Internet, because we all create and share in some form. The social networks help us to learn more about ourselves, more of whom we are, that it could be expressed with this new social medias.
Oh, I didn’t see!
I had arrived on the first important crossing station – “Personalisation”.
What I am crossing here? First of all, it’s the Well-being, which takes me to the “Happiness”. Yes, I’m happy because I don’t feel me lonely. It’s due to progress of Science &Technology, and thanks to
Web 2.0. I can exchange what I want with who I want, because I have free access to Society and Culture.

After I saw effects of new communication technologies in our private individual and social life, I’m asking me about the role of Social Networks in the World of Business and in organization?
Has it the future there?
So, I can take the trend of Financial Services, Retail & Leissure, or go on with Media & Communication.
Using the Mass Customisation, Digital Cash, Identity Solutions, Pop-up & speed Retail, On-line advertising and affiliation strategy you can make money with your blog or Private Space.
The Social Networks aren’t only to share information, reflexions and opinions. It could be you business.
Let’s, in first, we look at My Space.
It’s for amazing, isn’t it? You have your own Space, where you put your favourite pictures, songs, films (or all that you want depending on your interests) and your reflexions. You have an idea, you put it.
So, there are people who visit your Space, share reflexions, ideas and opinions. And naturally, there is someone, who likes your idea, he was the same ...and you have found someone to work for realisation of your idea; you have found a partner.
It’s easy, isn’t ‘it? The same thing is valuable for blogs, too.
So, I have just arrived in the station of “Globalisation”. I discover that is as Paris St.Lazare, where all of trends are crossing each others. Why is it so important, this globalisation?
Firstly, let us look what happens on the market?
The products now is launched and made instantly global, turning into global customer.
In the era of mass production, mass advertising and the online accessibility with customization, community and values, consumers wanting, demanding and expecting to play a much more active role in what was until now the producer's/brand's domain.
 Never before have had consumers enjoyed doing research and 'competitive analysis' and 'benchmarking' as much as they do now, and doing it far more diligently than most corporations do. Blame sites, blogs, forums and mags such as: Ciao, Cool Hunting...
The customers can exchange info, informing each other on the best of the best.
And as result, we find that products of companies, which are setting consumer expectations in a high level, are more fun, have better design, and are cheaper. Their customer service responds to emails, and has Skype ID. Their stuff tastes, looks, feels better. Let us gave as example Google’s way of work .
Google’s advantage resides in its democratic decision structure. It is ‘engineering-centric,’ with more than half of its total number of employees performing non-management/non-administrative tasks. Individuals with ideas for new development projects must first submit their idea to an internal mail list, where 200 of their peers provide constructive criticism before any coding takes place.
As the result Google continues to push new modules into the main lines in an attempt to occupy the centre circle and slowly becoming a metaphor of the Internet itself.
It slowly takes the role of giant, and if the bigger Microsoft being less flexible and less democratic, will not substantially change his hierarchic decision structure and open its managerial structures, he will lose a substantial market share.
It’s an example of relationship between Globalisation, Happiness, Web 2.0., Outsourcing, and Work /Life Balance.
It’s approved by what’s going on with Web & New technologies market:

Google scores against Microsoft and Yahoo due to its massive marketing data advantage
Blogs bloom, and prepare for the 2008 election
Social networks become a place where members make money
Big ad investments start streaming in
Digital ID initiates a major change that makes the web more reliable, user and investor friendly

Therefore, there is a real reason that Google, Deloitte, IBM and PricewaterhouseCoopers, Morgan Stanley and other companies actively encourage their staff to use networking sites, such as Facebook, LinkedIn, Skype.
If we take for instance Facebook, the internet portal of 2007, it is true that in many organizations Facebook is viewed as a time-waster and is often being blocked. (Assuming an employee spends an hour a day “whiling away” on Facebook, an employer would lose $6200 in productivity, according to SurfControl’s estimates. With 800,000 Australian businesses at risk, total exposure is $5 billion, the firm estimates. Australian Financial Review, “Facebook ban a little hasty”.)
The danger here is the loss of young, talented workers. (A global retail bank with 70,000 staff had received loud complaints from staff when it banned Facebook).
This was the similar story to instant messaging in financial services. (Financial market traders started using IM because it was useful, but banks were concerned about security and audit trails. Services then became available that provided secure, auditable IM).
The same thing is happening with social networks.
With the development of Internet ID and reinforce of securities, it can in fact benefit the organization from use of social networks.
So, social networking platforms such as Facebook and LinkedIn can be benefit for business, likewise there are social networking tools specifically for business.
The task is to educate the corporate sector more on the benefits of effective social networks inside and outside the organization, for the company itself and for its employees.
For instance, the Facebook’s application called Workbook, that allows employees to securely interact with their peers using Facebook . With WorkBook, employees can find and stay in touch with corporate colleagues, publish company-related news, create bookmarks to enterprise application data and securely share the bookmarks with authorized colleagues, update on status change and get general company news. Employees can freely use Facebook, with no danger of information leaking outside the organization or access being granted to unauthorized personnel.
In one step Facebook can become an enterprise application, including proprietary discussions.
The intention is to use Facebook not just internally, but also with clients and fund managers.
The use of social networks in organizations can create real competitive differentiation and profitability. Likewise as so many employees are already using online applications and web tools, the companies will prefer to offer them secure applications rather than incur the risk of things not being done well by IT. And last, but not least, using Web 2.0 tools demonstrates leadership and innovation, which attracts and retains talented staff.
Absolutely – what used to be difficult and expensive is becoming easy and inexpensive. The use of Social Networks by employees can be profitable to company.

Let us take some examples of uses of Facebook in the enterprise:

A civil engineer based in London, uses Facebook to find corporate colleagues in Asia and North America who have already solved a structural challenge she has just been assigned.
A field rep in Omaha, posts a link to an interesting article from the Wall Street Journal, so that his peers in other regions can use the information in sales presentations.
Corporate management announces a recent large deal to all employees and posts a new human resources policy to European employees.

All of that is to illustrate the deeply interconnected nature of social networks.

But, of course, there are some disadvantages:
We aware of one of the most socially transformative aspects of the web is that it not only lays everything bare, but it also has a permanent memory and what goes online lasts forever. Anyone can in a moment uncover anything that’s ever become public about you. Many employers see this is a massive boon, and scour the web for anything negative about their candidates.
So today, owing to Web 2.0 and Social Networks we become highly visible in a range of different situations, as well as expressing our opinions, open-mindedness becomes more relevant, and people can be seen more as they are rather than as the corporate persona they often assume.
It’s no wonder that many big companies use Social Networks like Second Life and recently Facebook for recruiting.
I’m looking around and I’m finding that I have just passed through the station of “Anxiety” and I go on to the next one that is “Ethics”. Here when I see the Science & technology line, which leads me to Emotionally aware machines, Biotech and Nanotech, and Web 2.0. I have good hopes that humanity will overcome difficulties with climate change, earth’s resources, poverty and famine, and diseases.
And I thank for existence of opensources concept that make possible the involvement of worldwide researchers in this process.
On the other side, I see the artificial intelligence, cloning, robotics and humans 2.0. ....and I’m afraid of the future. There is too many choices, too many information, too many discovers. Every day there is something new, I feel myself overcharged. So, I’m aware of importance of ethics and consciousness of everybody, and everyone’s capability to select the best for himself and for others.
Are we going to far and too fast? Are we will be, as in the science fictions, surrounded by clones and robots, are we will spend our time, meet our friends and loves in the virtual reality?
And in the end you have so many friends in Facebook (or in each other Social Network), but in fact, you are alone in front of a machine. You communicate, you have a contact with brains, but can you smell their parfums, can you see their eyes, can you see every little muscle’s movement and difference in their voices? Can you sense the humans in front of you?
Yes, you are more socially active, but are you more sensitive?
What we leave to next generation, are they will be so different from us, what world they live in, and so on, and so on.......
I have just arrived on the last station, “Nostalgia”, which leads me, once again, on “Anxiety”.

Ross Dawson - Improving Performance & Profitability of Social Networks and their applications in the business environment.

Wednesday, February 6, 2008

The InnoCentive's Open Market Business Model

The Concept

"Crowdsourcing” is an easy way to satisfy consumers' demands; to be heard and to get free feedback at very little expense.
The “crowd sourcing”, defined by Jeff Howe, who maintains the Crowdsourcing.com blog, is "the act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it to an undefined, generally large group of people in the form of an open call". Howe is also writing a soon-to-be-released book on the topic. Another idea is to create a private community, which you can do through platforms from companies such as Innocentive. Private social networks for customer, partner and developer relationship-building and have threaded discussion and poll functionality for information-gathering.


The Company
Developed as an e-business venture by the pharmaceutical giant Eli Lily in 2001, InnoCentive, a matchmaking system that links experts to unsolved R&D problems, allowing these companies to tap the talents of a global, scientific community and to the researchers to win bonuses. With some 125,000 scientists from 175 countries registered, the company now provides on-demand solutions to innovation-hungry titans such as Boeing, Dow, DuPont, and Novartis.
InnoCentive connects companies, academic institutions, and non-profit organizations, all hungry for breakthrough innovation, with a global network of more than 125,000 of the world's brightest minds on the world's first Open Innovation Marketplace.

The problems listed are in a broad range of domains such as Engineering, Computer Science, Math, Chemistry, Life Sciences, Physical Sciences and Business, frames them as "challenge problems", and opens them up for anyone to solve them who gives cash awards for the best solution.
InnoCentive calls the scientists who attempt the problems "solvers" and the companies these problems come from as "seekers".
In 2005 InnoCentive had 34 of these "seekers", which have posted more than 200 "challenges" in 40 scientific disciplines, of which more than 58 had been solved by over 120,000 "solvers".

Quickly, the other big companies, as Dow or Procter and Gamble, who dedicates 1,7billion dollars to the R&D, understood the interest of this shape of the world research and came to join InnoCentive.
Today, InnoCentive counts about fifty customers, such today Boeing or DuPont.

The Owner
Alph Bingham, Eli Lilly's former vice - president, one of the biggest American and world pharmaceutical companies, wondered if theycould put in thousands of researchers the problems which affected the researchers of its laboratories to finalize new medicines. The idea came to him and Aaron Schacht, who in 2001 decided to realise it by investing some million dollars in a start-up on Internet called InnoCentive (contraction of Innovation Incentive, incentive to the innovation).
Thousands of diamonds spirits were all accessible thanks to Internet, a fabulous field of grey cells was within the reach of the company.
Two other companies, Dow and Procter and Gamble, joined Eli Lilly very quickly.

How does it work?
Seekers’ organizations (corporations, government agencies, and non-profit organizations, who are looking for help with product development and other business and science problems) post their challenges on the InnoCentive web site, and offer registered Solvers significant financial awards for the best solutions.
Challenges cover a wide range of industries and disciplines including Business and Entrepreneurship, Math, Computer Science, Physical Sciences, Chemistry and Life Sciences. Each InnoCentive Challenge has a solution submission deadline and is assigned a cash award that ranges from $10,000 to $100,000.
Registered InnoCentive Solvers (engineers, scientists, inventors, and business people with expertise) can open a Project Room and begin working on any Challenge they wish. The Seeker organization reviews all submissions, and issues the award to the Solver who submits the best answer.
The Project Room is a secured on-line space,which contains details and diverse requirements bound to every problem. It is there that take place the exchanges between the researchers and the members of InnoCentive responsible for the problem posed.
Seekers' and Solvers' identities are kept completely confidential and secure, and InnoCentive manages the entire IP process.

InnoCentive provides a consultancy service to enable its clients to make the most of its "solver" network. "Science advisers" and "problem definers" help clients to identify a challenge appropriate for posting on its network. They make sure that the classic legal, scientific and commercial requirements are verified .
They then estimate an appropriate award fee by determining the complexity of the problem, the resources required find a solution, and the value transferred to the company. InnoCentive forces its "seeker" companies to agree to intellectual property audits, so that once a solution is provided to the company it can guarantee that the intellectual property is not used if the company decides not to award it.
The problems are put on-line on the site with a summary of the demand, a deadline of answer and the amount of the reward attributed to the best solution (between $2000 and 100 000).
To post a challenge, the “seeker” pays a deposit to InnoCentive, generally around $2000.

InnoCentive also provides a consultancy service to its network of "solvers". Its "science experts" provide feedback to explain the terms of the challenges as well as why submitted solutions may be deficient. It provides the logistic and legal framework for maintaining their control over the intellectual property until its sale to the seeker company.

Approximately 40 % of the problems were resolved, according to Darren Carroll, CEO d' InnoCentive. The site asserts that this formula constitutes a " very good solution for products "intermediaries" in the creation of a new product or a medicine ".

The most important Competitors offering similar services are NineSigma, Yet2.com, YourEncore, IdeaCrossing and Crowdspirits.

Today InnoCentive, concludes partnerships with numerous companies and has around thirty customers.

Seekers
The statistics show that 75% to 95% of patented technologies stay on the shelf and go to waste and 90% of all products fail. With rising technology development costs and increasingly shorter product life cycles, the risk of innovation is almost certain. In other words, the opportunity to recoup the investment got even shorter. Having own innovation business model, and community aligned is more important.
So, the solution is in a new emerging open business model. Companies big and small are learning that many of their best ideas, approaches, and solutions come from the outside.
Moreover, by adopting the open innovation model, companies can dramatically reduce the pitfalls, costs, and risks associated with closed innovation.

Tapping into the Solver community of Innocentive can generate more potential ideas and solutions, enabling companies to produce advanced products, accelerate their development cycles and stay ahead of the competition through innovation and faster time to market.
So, using the crowdsourcing approach saves both time and money. The estimates time savings are to be about 50% faster than it would be if he used internal staffers. For Eli Lilly, for example, InnoCentive makes more than its number of researchers triple without having them as employees. What offers InnoCentive, it is not the replacement of the efforts of R&D of companies, but a complement.

In short the Advantages for companies seeker are:

Speed up time to market
Reduce the risk of innovation
Less risk guessing what the market wants
Integrated community innovation
Some of the best ideas and solutions are outside of your organization
Lower the R&D and operating costs
Supplement company’s R&D
Tap into the virtual R&D community
Shared IP can create a formidable barrier to entry


Sovers
This formula allows the scientists to receive a public recognition and a financial reward to have resolved the challenges of R&D. But defy doesn’t consist in the cash awards only, because most of scientists do that for the pleasure of intellectual work they do. They make a significant impact to the global community with innovative, creative solutions to tough problems, because the solution today could contribute to the breakthrough inventions of tomorrow.
In addition, solvers enjoy the independence that comes from choosing what they want to work on, when they want to do it, and are generously rewarded for their success.

Partners
InnoCentive, concludes partnerships with numerous non-profit companies as the Rockefeller Foundation Global Giving, The Oil Spill Recovery Institute and Charley’ Fund, which will provide funding to adapt this open innovation model to change the world and influence the lives of people everywhere by applying the planet’s human creativity and intelligence to solving the most important challenges as poverty, famine and climate change.
By combining technology, economic incentives, and human ingenuity, they see the possibility to resolve these problems better, faster, and cheaper than ever before possible.

For instance, in December 2006 InnoCentive signed an agreement with the Rockefeller Foundation to add a non-profit area designed to generate science and technology solutions to pressing problems in the developing world.

Resources

Commissions of the transfer of the rights of intellectual property
Commissions of the payment [ask to the company between 60 and 100 % of the reward offered in conformance with the payment for its service].


The open innovation model is a new progressive alternative that gives many advantages for employees, investors, communities, customers and the people all around the world.
In the one hand it exemplifies a new kind of corporation where returns to its investors and employees come hand in hand with extraordinary benefits for mankind. That’s why, I think it is sustainable because the future of humanity and the planet is in a progressive evolution and to solve its problems. And the way to do it is the Research and Development.

However, I am a little reserved because there are some Limits that have to be resolved.
At first,there is a problem with possibility of verification of the real skills of solvers and their identity.

For example, Ninesigma and YourEncore check up the solvers’ CV, but it doesn’t the case for everybody.
In second, the mode of payment of contributors - solvers also asks questions. On the base, the start-up collects the reward paid by the company seeker, and then pays its solver. At InnoCentive, "solvers" touch until 50 % of the reward. But most of the start-ups do not even clarify the amount of the percentage.
And finally, the subject of the respect for the rights of intellectual property doesn’t seem very clear.
For example, at YourEncore, they are given up to the company customer. The solver even has to sign a commitment "which covers any conflict of interest, confidentiality and transfer of rights ".
Things are even vaguer at Idea Crossing, because everything depends on the good will of the company. Solvers give up their rights against "royalties, some money or an employment ". As for the site Crowdspirit, it leaves inventors and company to manage this question between them.
So, it seems to me that there are things for the model lasts in the time.

It’s true that thanks to the Net, the open innovation model revolutionized the way of leading the R&D. As the Senior Managing Director of Eli Lilly Darren Carroll said:
“There is in the world more than a million PhD in biology and in chemistry, but no company and no university can make work on its account more than 1 % of this talented base. Imagine the increase of productivity which could take place if companies were capable of emphasizing in their profit this intellectual power.”
One of the means to accomplish this is making use of an idea marketplace that connects the knowledge of over 120.000 scientists to companies in need of innovation. And it’s possible only in the virtual world.

From my point of view many company in all industries that need of novelties would be interested in this new way to innovation as engineering, biotechnology, pharmaceutics as well as the industries of automobiles and food.


Wednesday, January 23, 2008

The Social Entrepreneurship

Social Entrepreneur and Social Entrepreneurship

Today, more and more universities, public, private and nonprofits organizations and foundations promote, support and encourage social entrepreneurship initiatives all around the world. The programs focused on educating and training of social entrepreneurs enter in big number of universities and business schools.

Organizations as Ashoka (have been funded, advised, and supported to 1,400 social entrepreneurs in 46 countries during the past 20 years) look for those who can get the challenge and can make the world a better place for everyone on our planet.

Youth organizations and programs promote these efforts through a variety of incentives to young people.
For example YouthXchange is a training kit of UNEP (United Nations Environment Program) designed to reach the 15 to 25 years old global consumer class. YouthXchange attempts to make youth aware of the global imbalances in access to the basic needs and the impact of unsustainable lifestyles on economy, society and environment. It incorporates the relationship between economics, environmental fairness, and social justice so as to encourage youth to take shared responsibility for their society and participate in the creation of a better future.

Fast Company Magazine annually publishes a list of the 25 best social entrepreneurs which they define as organizations "using the disciplines of the corporate world to tackle daunting social problems."

What's the reason for all that movement?

Let's look at statistics:
Consumption of electricity from space and water heating is on the rise, as well as paper consumption and waste generation. In 40 years, global food consumption and production increased 2, 5 times. From 1960 to 2000 water use increased 2 times and wood consumption – 3 times.
Out of 4 billion people in the south, nearly 60% lack basic sanitation, almost 30% have not access to clean water and 25% do not have adequate housing. 14% of the world population goes hungry every day and malnutrition claims 10 million lives annually. 30% of the world’s population continues to lack regular access to essential drugs, with over 50% living in Africa and Asia.
Indeed, the world’s 20% richest people consume nearly 75% of natural resources. The wealth of the world’s 225 richest individuals equals the annual income of the poorest 47% of the world’s population, or 2.5 billion people.

But what is Social Entrepreneur and what he can do?
Social entrepreneur solve social problem by creating innovative solutions to change society for the better and uses entrepreneurial principles to organize, create, manage and then implements them on a large scale.
His ideas must be user-friendly, understandable, ethical, and engage widespread support in order to maximize the number of local people that will stand up. (Research in bio fuels, renewable energies, Fair Trade)

So,this is a real business because social entrepreneurs must be financially sustainable and finance themselves through revenues generated from their own activities to encompass financial and social returns which attract investors.
Examples are venture-capital firms looking for investing in portfolios of businesses that deliver commercial solutions to social problems.

So, all that makes me think that is a new business challenge that develops and gains speed and have great future.