Crowdsourcing, Social Production and Network Economy Futures by Gerd Leonhard CEO Summit 08 Phuket

Gerd Leonhard Media Futurist

Decentralized &
Social Production
- Network Economy Futures -

Presentation
by Gerd Leonhard
www.mediafuturist.com
October 21, 2008
Phuket, Thailand

Tuesday, October 21, 2008


I am proud to be standing on the shoulders of giants such as....

Wikinomics (Don Tapscott)
The Wealth of Networks (Yochai Benkler)
Here Comes Everybody (Clay Shirky)
Crowdsourcing (Jeff Howe)
+ 850 RSS feeds ;)

Read these books!


The future is already here...

...it’s just unevenly distributed *William Gibson

Drastic role

changes are
immanent.
Service Pipe

Content Pipe
Data
Pipe


Note: This is not about technology!

Emerging cultural practices



Note: Cultural Differences
are always crucial
Tokyo

London

http://www.flickr.com/photos/bip/



After Music & Video: Books 2.0!



3000 books
published
every day


Once technology becomes dead-simple...



A crucial message from the Music World:
What happens before the Orchestra performs?


Truly connected means...

We can find out ...anything
We decide who gets to market to us
Niches are the new hits
We find out we can actually create things, too!
A large node’s actions impact everyone
We collaborate to get very large jobs done, together
We collaborate cross-time/border/nation/firm


And where is the future growth?


People are sharing like never before

Imagine this x 1000



My prediction:
2013: 50% of the world’s
‘content’ generated by the Users

User
Generated:
Content + Advertising +
Marketing + R&D ++



The old industrial production model: coordination of
resources based on managing investment, labor, or other
scarce supplies.
The result: exclusive ownership & control; large firms.
5 things have changed this:
• Virtually free and unlimited computation power
• Low cost data storage
• Increasing network bandwidth
• Ubiquitous mobile access
• Explosive ‘Culture of Participation’

The Transparency Explosion



Together, Broadband Culture and
Mobility will re-define how we
think about:
• Privacy
• Authority
• Ownership / Copyright
• Value (period) ‘Selling’ and Marketing
• R&D, and Production
• Work
• Education

Formerly

Now
Users
Audience Co-Creators
Consumer Contributors
Listener Peers
Customer Producers
Buyer Promoters...
Buyers 2.0


Service Creators
Product Creators
Content Creators
Content Users



Some related ideas on the current crisis:

‣ Talk to people - have real, 2-way conversations
with your stakeholders, partners and customers
‣ Show that you care and that you are pro-active
‣ Help people find answers and solutions
‣ Use the web’s power to reduce costs (!!!)
‣ Try some Freemium ideas (make something free
that used to cost $ - and upsell from there)

‣ Now is the time to innovate &
gain market share!


Yochai Benkler (The Wealth of Networks):

“Collaborative projects like Wikipedia and

Linux represent the next stage of

human organization”


3D printers


Downloading Products

Imagine using a software that encodes detailed
specifications of something and then seeing that object
emerge from a box on your desk no bigger than a microwave
oven... (source: ECommerce Times)

quot;This is a really powerful tool for people to be creative. A lot
of the stuff that used to be found only in an R&D laboratory
can now sit on your desktop,quot; Malone says. quot;That means if
you have the knowledge and imagination, you don't have
tons of capital to make a product.quot; Malone @ Cornell



Some masses, together, are beating ‘the Firm’



Large Ideas are not
exclusive
to large Entities
Ideas are the currency
of the Future


Powerful
Ideas will
be provided from
ANYWHERE


About
Crowd-Sourcing



Crowd-Sourcing Principles
Used to be Is / Will be

Not invented here Proudly Found Elsewhere

Local search Network search

Company Community

Firm owns all Firm earns and keeps trust



Crowd + Cloud = Our Future



AG Lafley (CEO): “P&G has about 8,500 researchers; and we
figured there are another 1.5 million similar researchers with
pertinent areas of expertise. Why not pick their brains?”

Since Lafley took over the company, its stock price has surpassed its
former highs and net profits tripled to $10bn in 2007.



So what happens when...
64% of U.S. teenagers create content online

★ They grow up and become professionals?
★ They start / run their own companies?
★ The tools of cheap production & low-cost, fast
and mobile connectivity finally become available
in the so-called developing countries?



๏ Professional amateurs only
๏ 60.000 part-time photographers
๏ 3.5 Million images and 100.000 videos
๏ 38 forum posts per minute
๏ Paid out $27 Million to creators in 2007
๏ 2 Million customers buying
๏ Sold for $50 Million to Getty Images in 2005
๏ Huge cost savings for design firms etc
๏ Great example for lower cost AND higher convenience
๏ Great example for the power of Pro-Am sourcing
๏ Non-crowdsourced incumbents find it hard to compete



Product
Development

Decision
Making

Source: Flickr hillarylmrore



Command and Control

Attract & Aggregate



What used to matter...

Cash

Location
Age
Gender

Race
Pedigree
Qualification



What matters now

Reputation
Merit Credibility

Creativity Innovation
Quality



Infinitely more than just the sum of its parts

Photo Credit: unknown.. looking!



Summary

• During the next 5 years, most of these massive shifts will
first be exploited in Asia and BRIC (and then, Europe / U.S.)
• Expect massive disruption by newly empowered, networked
& de-central Users and Pro-Ams - and embrace it!

•Disrupt or be disrupted
• Investigate social production and crowd-sourcing ideas
•Relentlessly pursue openness everywhere



Telco Futures

Content &
Data Services


Crowdsourcing, Social Production and Network Economy Futures by Gerd Leonhard CEO Summit 08 Phuket

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