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NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

Networks for thinking


Developing ideas and forming opinions in the digital age
a report from the economist intelligence Unit

SOCIAL TRENDS

NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

contents
about this report executive summary the thinking mans network Knowledge skills: five ways to thrive in the digital age Case study: How different are the young? the trust game Case study: Wikipedia The democratisation of knowledge opening up the workplace Case study: Chubb uses social networking tools to generate ideas engaging with the crowd Case study: Threadless A community of creatives the implications for innovation Case study: Lego Taking creativity online Conclusion appendix 3 5 7 8 12 13 14 15 16 18 20 21 22 23 25

the economist intelligence Unit limited 2011

NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

about this report

the economist intelligence Unit limited 2011

NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

Networks for thinking is an economist intelligence Unit report that examines the way digital tools and networks are affecting the way business people develop their ideas and thinking. the study draws on in-depth interviews with 16 leading experts and corporate leaders, as well as a global survey of almost 1,200 senior and up-and-coming executives and mBa students. rather than considering the population as a whole, it looks specifically at those who are already digitally connected (the survey itself was conducted online). the author was Dr paul Kielstra and the editor was gareth lofthouse. About the survey: a total of 1,193 executives and business school students took part in this survey, with 40% coming from Western europe, 26% from the asia-pacific region, 18% from north america and the rest from the middle east, africa, latin america and eastern europe. in terms of age, 11% were under 30, 31% in their 30s, 28% in their 40s, 18% in their 50s and 11% 60 or over. more males (78%) than females (22%) took part, but there was remarkably little difference between the genders on responses. the research was conducted between march and may 2011. Interviewees: Jagdish Belwal, Cio, tata motors Don Tapscott, author of studies on the impact of new technologies Irene Greif, head of iBms Collaborative User experience group Professor Manuel Castells, communications scholar Jim Jansen, a senior fellow at the pew internet & american life project Evan Rosen, consultant and speaker on collaboration strategy and author of the Culture of Collaboration John Seely Brown, former head of Xeroxs palo alto research Center and now co-chair of Deloittes Centre for the edge, a think tank James Knight, Cio of the Chubb group of insurance Companies Professor Mikolaj Jan Piskorski of harvard Business school Jimmy Wales, founder of Wikipedia Russell Place, chief strategy officer, Universal mcCann Lisbeth Pallesen, evp of Consumer, education and Direct, the lego group Nicholas Carr, writer on technology, culture and economics Jake Nickell, co-founder and Chief strategy officer, threadless Mark Holden, global strategy director, phD Worldwide Susan Steele, chief human resources officer, millward Brown

the economist intelligence Unit limited 2011

NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

executive summary

the internet, together with the social and business communities that it has spawned, continues to transform almost every conceivable aspect of human life. people are not only spending large chunks of the day consuming digital media, but they do so using an increasingly sophisticated blend of channels and technologies. more importantly, the new networks are also driving deeper changes in human behaviour. social media such as facebook and twitter provide an early indication of how interpersonal relationships and interactions might evolve in this environment. But, as this study reveals, digital tools are also changing the way people develop ideas, form views and make both trivial and life-changing decisions. there is, of course, already a sizeable amount of research available on how consumers are using these technologies. this research differs in that it focuses primarily on individuals in the business world, and seeks to understand how they are using the new knowledge networks to advance their ideas and thinking. it shows how the people who are driving the knowledge economy are developing new skills and capabilities based around these technologies. it also investigates the longer-term impact of these trends on corporate culture and management strategy. Key findings: Business leaders want to be digital natives too executives in the survey are enthusiastic users of digital tools and networks. the majority of respondents say they make them feel smarter and connected, whereas only a (generally

small) minority associated these technologies with negative feelings. overall internet-based networks and tools are valued more or less as strongly by older executives (40+) as by those under 30, although sometimes younger respondents use them in different ways. Business people particularly value the way the technology enables them to develop their thinking. four out of five say that they have better information to support decision-making than five years ago, and more friendships and business relationships are now maintained online than offline. the internet is seen as the best place to go for exploring ideas and new perspectives on the world, according to 72% of executives in the survey. however, the research also suggests that people feel able to use these tools more freely in their personal lives than in the workplace not surprisingly, given that many companies still discourage the use of social media. The new networks change the way we acquire knowledge and solve problems technology allows individuals to rapidly gather and combine huge quantities of information emanating from sources as varied as friends and colleagues, traditional news outlets and Youtube postings. But the quantity of information available is only part of the story. the new networks have also begun to blur the line between learning and communication. Developing knowledge increasingly involves participation in a global conversation rather than the simple absorption of data. over six in 10 respondents, for example, have contributed to an online discussion in the last year, and one

the economist intelligence Unit limited 2011

NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

third have published their own information on the internet. in return, the new technology allows them to rapidly tap insight within their existing relationships, but it also enables them to reach new sources of expertise rapidly. Just under 40% of those surveyed, for example, have directly contacted the author of something seen on the internet. In the digital world, people place a premium on information they can trust survey respondents and those interviewed identified the volume of data now available as a significant problem in itself. even more difficult was determining the quality and credibility of information online. only 16% disagreed with the statement that i sometimes struggle to know which information sources can be trusted when online. given the oceans of information now available, traditional techniques for evaluating quality, such as time-consuming analysis, are not always practical. in this environment, reputation matters even more than before. When asked what determines whether something catches your attention online, executives say that the most important factor is the credibility of the information source. They are also more questioning of authority While people still value the views of experts and credible information sources, this does not mean that their word is automatically accepted on the contrary, networks encourage people to challenge traditional authority figures. in practice, this means people will start with a trusted information provider, but then check what they find against a wide range of sources, which might include alternative information channels but also friends and colleagues. thus being a recognised expert on a topic helps you get your opinion or idea aired, but in a sceptical environment you have to re-earn your reputation almost on a daily basis. Crowdsourcing can fuel ideas, but will remain a niche activity for some time although three quarters of respondents say that their influence as consumers over companies has increased, crowdsourcing remains a niche activity, with only 3% of companies using it as a leading source of new ideas. there are, of course, innovative companies that are successfully harnessing the wisdom of the crowd, but doing so entails overcoming some sizeable hurdles. to be effective, crowdsourcing often needs to go beyond the customer base to engage a wider public, something which businesses are

less adept at than straightforward customer relations. Convincing people to provide ideas requires incentives and focus. more importantly, it requires an understanding of what makes communities flourish. The new networks favour certain types of creativity over others respondents believe that digital technology has made companies in general much more innovative, but only 15% say its biggest effect on their own jobs has been the creation of better, or more, ideas. the new networks seem to help with certain mental tasks, such as projects where groups work better than individuals. But other forms of creativity (and indeed, other types of personality) may be less suited to this environment. about half the respondents to the survey say that they prefer to find space to do their own thinking rather than brainstorming when developing ideas. obviously new information tools and strategies do not overtly forbid the lone thinker from coming up with insights, but the ubiquity of the new model and the need to engage in the networks of others could bring its own negative social pressures. these trends hold far-reaching implications for both individuals and for organisations. at the individual level, business people are increasingly using a blend of digital tools and strategies to inform their decisions and improve their knowledge. the new technology creates challenges too, of course. the sheer quantity of information available is often overwhelming, and it is becoming difficult to know what sources you can really trust. privacy issues also remain a serious concern. But despite these issues, executives of all ages generally emphasise the benefits of the new networks. the networks also hold huge potential for companies, but it seems harder to unlock their full value at an organisational level. Certainly there are a growing number of companies some profiled in this report that have found ways to harness them. But many others still view the latest technologies primarily as a threat to their ability to control information and employee performance. this often leads them to place restrictions on these tools. Whether such a policy of prohibition can be sustained is another matter. increasingly, employees and customers will expect organisations to embrace the free exchange of ideas and information that these networks were designed to deliver.

Being a recognised expert on a topic helps you get your opinion or idea aired, but in a sceptical environment you have to re-earn your reputation almost on a daily basis.

the economist intelligence Unit limited 2011

NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

the thinking mans network

Digital networks are assuming an ever greater prominence in the lives of billions of people around the world. the average american already spends two hours a day online, versus three hours watching tv. some of the newer technology channels are growing particularly fast. for example, the time spent by global consumers on social media networks had grown year-on-year by 82% by 2009, while the number of americans watching mobile video grew by 40% year-on-year by 20101. Undoubtedly this migration to digital networks is having a profound effect on the way people find and exchange information, as well as collaborate with others. What is less understood is the extent to which these tools are changing the way people develop their ideas and thinking. this has broad implications across society, not least in business. this study examines how the new networks are affecting senior business people in particular. it relies on 16 interviews with prominent experts and corporate leaders, as well as a survey of nearly 1,200 executives worldwide which looks at the impact of technology on respondents as individuals and on their organisations. although most of those surveyed are already well advanced in their careers, to obtain a wide range of ages the survey also includes a cohort of younger executives and mBa students. to understand how this group uses these digital technologies to help shape their worldview requires a detailed look at how they are informing themselves, communicating and making decisions.

The digital shift one of the most striking aspects of the research is just how positive business people of every age feel about these networks. over half of survey participants (58%) say that, as a result of digital technologies, they feel smarter. Whatever the impact of these tools on brain power itself, the availability of data online is leaving them far better informed: 88% use many more information sources and 83% have better data on which to base decisions than they did even five years ago the web dates back nearly 20 and the internet itself far longer. respondents are finding this rich trove of information online: 72% call the internet the best place to go for exploring ideas and new perspectives on the world. three quarters are spending more time online than five years ago keeping up with global events and 74% are doing so in search of news within their own industry. Jagdish Belwal, Cio of tata motors, speaks for many when he says: people are much more informed now. there used to be a lot of information asymmetry, but today if i am talking to an expert, i can quickly google and get a lot of information on what we are talking about. the search for information is part of a greater shift of life online for these business people. over half of respondents, for example, have also filed tax returns and supported charities over the internet, and 41% have volunteered to engage in some activity. it thus comes as little surprise that people are using the web to find data or that nearly every respondent has heard of Wikipedia, the free online encyclopaedia, and 83% find the site useful.

nielsen, 2010

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NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

more interesting is that the same digital tools have shifted the process of becoming informed from one of absorbing knowledge to one of participating in a global conversation. this takes several forms: 39% of those surveyed, for example, have directly contacted the author of something seen on the internet. more common is commenting online about information found there. sixty-five percent of respondents have contributed to a discussion of a political, social or business issue on the web in the last 12 months. about half that number (33%) have gone further, self-publishing their own information, often through a blog. this interactivity is not a by-product of the search for information: it is central to the internet experience. Don tapscott, co-author of Wikinomics and also author of a number of studies on the impact of new technologies on the generation currently entering the workforce, explains that individuals brought up with digital technology typically think, What good is knowledge if you dont share it? this sentiment has spread broadly among business executives, at least as individuals: 56% of respondents like that they can easily have their own say online, against just 10% who do not, and 65% like the fact that it allows mavericks or contrarians a voice. if information gathering now resembles communication, it is partly because executives are doing much more of the latter online as well. sixty-three percent feel more connected because of digital technology and over half report spending significantly more time on

knowledge skills
FIvE WayS To THRIvE IN THE DIGITaL aGE
What does the research tell us about how people can use these technologies to solve problems and enhance their careers? 1. Learn to generate the right network for the right job the ability to generate new, complex networks to help solve information needs or coordinate collaboration is a learned skill in itself. Keeping abreast of networking and communication technologies is essential, as is being willing to look for a broad range of network participants. 2. Tend your network assets its fun these networks work only because of their social context. the ability to call on a wide range of network contacts requires engagement and commitment after all, human relationships need to be nurtured and maintained. fortunately, most people find such activity enjoyable. the line is blurring between researching and learning, sharing of information and building relationships. hence, maintaining a growing social network can be central to business productivity. ideally, the question am i working, chatting, learning or having fun? should become meaningless as these activities meld into one. 3. Use the network to help you discriminate and evaluate there is now often too much information to assess it all confidently. Unfortunately people often need to evaluate the validity and trustworthiness of a multitude of sources at great speed. again, bespoke, temporary networks including credible, trusted sources, friends, colleagues or even the wisdom of the wider crowd can greatly help in this process of selection and scoring. 4. Dont forget privacy although the new networks encourage people to share information, doing too much has its own dangers. the need for some level of personal privacy and corporate secrecy has not disappeared. Balancing privacy and openness will become an increasingly important skill. 5. Know when to go it alone the new knowledge networks can help todays executives tackle many business challenges more effectively. But they are more suited to some business tasks than others. Creative tasks that require brainstorming or user input, or which involve building on others ideas, are ideally suited to the new networks. there are many other tasks or stages in the creative process that may be better addressed through introspection.

have YoU Done anY of the folloWing in the past 12 months?


seleCt all that applY. (% respondents)

Won business through contacts made via social media site

13%

added a comment to an online discussion on a political, business or social issue

65% 60% 48%


researched a medical condition Worked in a virtual team (ie, the team collaborates mainly online)

39%
Directly contacted the writer of something you have read online

37% 35% 33%


Written a review on a website (eg, customer comments on amazon) made a friend or relationship online who you go to meet in person self published your own information on a topic (eg, a blog)

the economist intelligence Unit limited 2011

NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

the internet communicating with friends and family, collaborating with colleagues and even exchanging ideas with people they do not know. as with information gathering, this represents an increase in overall activity rather than a shift to a different medium. in consequence, many more relationships are now maintained inside cyberspace than outside: respondents sustained, on average, 77 business relationships largely online compared to 53 in the traditional way, and even for personal friendships the equivalent figures are 65 to 53. although the difference decreases with age, those in their 60s still have more friends online than offline. on the business side, it is those in their 40s who have the largest percentage maintained online. the two types of contacts are not mutually exclusive. although early studies suggested that online activity decreased friendships away from the computer, more comprehensive research has found that internet sociability increases social activity offline2. in our own survey, 35% of respondents said that, in the past year, they had met someone in person to develop a relationship they started online. this does not mean that all friendships are alike either. irene greif, head of iBms Collaborative User experience group, notes: social software systems let you do better at the weak ties [the equivalent of a nodding acquaintance]. it doesnt turn them into strong ties, but it lets you keep them lively enough that it is not awkward to renew them, when you need insight from people outside your inner circle. the technology, however, has done more than provide enhanced information gathering and communication capacities. Where it has truly changed how people learn and collaborate is in the ability it provides to combine these two elements easily and seamlessly. professor manuel Castells, one of the worlds most-cited communications scholars of the last decade, explains: everybody in the digital world has the ability to select, generate and diversify networks with great ease and at very low cost. Depending on the topic, what information they are looking for and what they need, they will generate different types of networks. these networks are not just lists of friends but complex amalgamations of individuals they know personally, experts or non-experts whom they may not know, institutional information sources such as newspapers and other diverse types of data found online in numerous forms. the machine used to access all these is the same, as is

sometimes even the piece of software or website. the survey sheds light on how respondents combine different elements depending on the situation. When developing general ideas and knowledge, respondents say that their most valuable sources of information are newspapers or magazines, whether online or offline (61%), and internet search engines (59%). the search for information on political, ethical or social issues focuses much more tightly: magazines and newspapers are a leading source for 77%, but diffuse internet searches only for 25%. instead, direct conversations with family and friends (39%) and tv and radio stations (36%) grow greatly in importance. Business decisions bring together yet another constellation: there, most point to the internet search (64%) as a valuable source, followed by conversations with colleagues (58%) and only then newspapers (51%). Jim Jansen, a senior fellow at the pew internet & american life project, explains that the wide variety of information sources available allows individuals to access and, importantly, aggregate data with a variety of uses and viewpoints depending on the information problem. Sociability is the new productivity two other aspects of these networks are particularly noteworthy. the first is that they are ad hoc creations of individuals based on their own needs. as professor Castells explains: networks fundamentally are self-centred. most people in the newest generation already start with networks, but they do not conform to what these networks give. they carve out a niche. they can decide to think with others on selective projects. they do not belong to networks, networks belong to them. this does not translate into selfishness but quite the opposite. for their own networks to function, individuals must be willing to share information with and take part in those of others. evan rosen, a consultant and speaker on collaboration strategy and author of the Culture of Collaboration, explains the sort of behaviour necessary for this type of activity to work in the business world: team members of all ages must be ready to engage one another spontaneously regardless of level, role or region, via im, voice, web conference or video on the fly. no appointment is necessary. the supposedly debased online term friend could be defined as someone open to communication in this way.

the economist intelligence Unit limited 2011

NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

WhiCh information soUrCe Do YoU Use most for researChing BUsiness DeCisions? please seleCt most valUaBle soUrCes.
seleCt Up to three (% respondents)

Direct conversation with colleagues

58%

internet search engines (google etc)

64%

27% 24%
Books online reference source (eg Wikipedia)

newspapers and magazines (print or online)

51%

10% 7% 6% 5% 1% 1%
twitter Blogs social networks (facebook, linkedin etc) tv and radio

Direct conversation with friends and family

online discussion forums focused on relevant topic

18%

i dont spend much time on this at all

10

the economist intelligence Unit limited 2011

NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

professor Castells summarises this networked individualism, which he calls a transformation of sociability: people are strongly individualised, but not individualistic. to accomplish their goals, they know they can be more effective by sharing information. people always start with themselves, with what they want to do and what they want to be, and at the same time very quickly they try to build networks to share, to be more effective and to be more empowered. it is a mistake to see these networks as mere tools. John seely Brown, former head of Xeroxs palo alto research Center and now co-chair of Deloittes Centre for the edge, a think tank, points out they can influence the modern sense of identity in important ways. more and more, he says, describing the process, my sense of identity is what i have created and shared with other people, and what they have done with it. i am what i create, share and others build on. the great driver of this change, however, is less the technology, which enables it, than how it makes people feel. a recent study for the BCs, the United Kingdoms Chartered institute for it, examined 35,000 records from 39 countries in the World values survey and a further 10,000 from

the British household panel survey. it found that use of information technology increased peoples sense of well-being and life satisfaction. this improvement was related to the greater sense of autonomy and control that digital technology brings. similarly, 61% of our respondents say that technology, along with the increased choice and information it provides, excites them. nor is this just the exuberance of youth: 55% of those aged 60 to 69 feel this way. for mr Brown, the element of fun is vital. in order to address the rapidly changing information and skill environment, you have to be willing to play with information. that is why the sociability of the new age is so important: you share new ideas, you receive critiques; it is a whole world of curiosity coupled with ideas. mr tapscott adds that, for younger users, the integration of fun is part of a whole new culture of collaboration, innovation and speed. We asked online are you working, learning, collaborating or having fun?they said they cant really answer because they are doing all of them at once. the kids have got it right. that is the new culture of work. however, the new opportunities for gathering and sharing information are not all fun and games: they bring heightened problems as well.

one of the biggest studies is Barry Wellman and Keith hamptons neighboring in netville: how the internet supports Community and social Capital in a Wired suburb, City & Community, December 2003, pp. 277-311.

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NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

case study
HoW DIFFERENT aRE THE yoUNG?
the generation coming into the workplace labelled variously millenials, gen-Y or generation next has grown up accustomed to digital technology, but what impact has this had? Don tapscott has written several studies of this group, which he dubbed the net generation in his 1997 book, Growing Up Digital. these kids are different, he says, because their brains are different. how you spend your time during extended adolescence is the number one variable determining the wiring of one-third of your brain. if you spend a third of your time being a passive recipient of information like baby boomers you get a certain kind of brain; if you spend time interacting, you get a different brain. in particular they have a high level of comfort with new technology, they work collaboratively and are used to minimal hierarchy. mr Brown believes that they have completely different skills. if i say give me a visual argument to most people of my generation, they freak out. i ask the same of a 25 year-old, they at least know what i am getting at. they can usually create a Youtube video through a remix. Both warn that those who see younger workers as slackers or incapable of fitting into an organisation have failed to understand the rich information and communication culture which younger individuals share. the survey shows some interesting differences between those respondents aged less than 30 and older executives. in particular, the former are more active users of social technology in their personal lives. While 35% of all respondents have, in the last year, made a friend online which they went on to meet in person, the figure is 46% for those aged 18 to 29 and the number declines with age. similarly, only 9% overall had ended a relationship via a social media site in the last 12 months, but 20% of those aged 18 to 29 had done so, although whether this is the eternal callowness of youth or an emerging social norm is difficult to say. it is, however, possible to overemphasise the differences between young and old. those under 30 in the survey are certainly more likely to call facebook and twitter useful or very useful, but these are not the only social tools. although respondents increasingly dismissed these two as overhyped as they aged, they were more interested in linkedin. more broadly, a study looking at 19 social networking sites for pingdom, a company that tracks website performance, found that the average user was 37 years old. generally, the survey does not readily support the stereotypes of technophile, adept youth contrasted with technophobe elders. although younger respondents are more likely to say that they are excited about digital technologies, they are also more likely to say that these make them anxious and confused. meanwhile, the number feeling connected or smarter does not drop dramatically with age until respondents hit their 60s or 70s. although those aged 18 to 29 are more likely than older respondents to turn to social networks and blogs for information, they also say that they are more likely to use books. internet search engines, on the other hand, appeal slightly more to the middleaged. the bigger story, however, is that these are relatively slight variations, with the rank of popularity of each information source staying mostly consistent across age groups. susan steele, chief human resources officer at millward Brown, a global market research consultancy, notes that there are some older employees who are very proficient digitally. We talk about being digital native, but that could be somebody in their 40s or 25. nicholas Carr, writer on technology, culture and economics goes further: i dont see a fundamental difference between digital natives and immigrants. We have the same genetically determined brain that acts in the same way when confronted with a new technology. although more adaptable in the first 20 years, he adds, brains continue to adapt to tools. Youth culture may well be different although that has been true for decades and therefore the young may prefer to use technology in distinct ways, but it is important not to think of old and young as binary opposites.

WhiCh of the folloWing online netWorKs WoUlD YoU DesCriBe as verY UsefUl in terms of their long-term valUe?
(% respondents) Aged 18 to 29 Aged 30 to 49 Aged 50+

Facebook

38%
Twitter

17%

11%

19%
LinkedIn

8%

7%

21%

26%

15%

Wikipedia

56%
Groupon
12%

49%

40%

4%

1%

Digg
3% 1% 0%

12

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NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

the trust game

WhiCh attriBUte Do YoU feel is most important in enaBling YoU to get the most Benefit from the internet anD online netWorKs?
(% respondents)

one cause of the modern worlds obesity epidemic is that human feeding instincts are adapted to periods of feast and famine: a steady food supply therefore presents dangers as well as benefits. much of our intellectual apparatus developed amid relative information scarcity. information abundance is therefore a problematic blessing. the most obvious difficulty is the sheer volume of information. thirty-one percent of respondents say that purchasing decisions have become more stressful because of the internet, 40% that digital technology makes them feel overloaded and nearly half (46%) that a wealth of information and options has significantly complicated workplace decisions. this is not the moaning of grumpy old luddites: the responses of those aged 18 to 29 were roughly similar to those of the entire survey. even with the technology at a Cios command, mr Belwal is not exempt from the problem: there is an overload of information, both on a personal and professional front, and improved filtering technology is growing ever more essential. similarly, James Knight, Cio of the Chubb group of insurance Companies, describes one of the essential skills of the modern workforce as the ability to bring the wealth of information all together, to get the true meaning and not get overwhelmed. an even bigger problem online is knowing what, in the great mass of data available, is credible. While 79% of respondents believe that the internet makes it more important to understand the agenda of information providers, 63% admit that they sometimes struggle to know whom to trust. only 16% never have this problem.

moreover, the very abundance of information available has made roughly half (49%) sceptical about traditional experts or authority figures. mr Brown says: i can pull information to me on demand with brilliant ease, but now i have to think more about why i believe it. the need for critical judgement is going up even faster than access to information and is a critical part of literacy today. the technology itself, however, works against the traditional techniques used to assess the reliability of information. When asked to compare which of the following was more important in obtaining the greatest benefit from online networks, 64% ranked the power to absorb information at great speed above the ability to analyse it rigorously. to overcome issues of volume, and particularly trust, people are mixing filtering and assessment techniques that predate the internet with ones which technology enables. this involves using the same networks of sources and people which allow the gathering of so much data in the first place. to begin with, the value of expertise and a reputation for reliability are far from dead. the attribute of information which far and away attracts the most attention among survey respondents is its sources credibility (75%). similarly, various pew surveys in the Us show that people still look to newspapers for the news if online more than offline and ultimately trust their doctors on health issues. What has changed is that these experts are now only the starting point rather than the final authority. as medical professionals have famously found out over the last decade, people will challenge that expertise

64%
ability to process and absorb information at great speed

36%
ability to analyse information rigorously

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NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

case study
WIKIPEDIa THE DEMoCRaTISaTIoN oF KNoWLEDGE
Just a decade ago, Wikipedia was little more than a revolutionary idea. its model, relying on volunteer contributors to create and edit content, was completely contrary to that followed by previous encyclopaedias on and offline. Despite occasional controversy, however, the results have justified the approach. Wikipedias ability to be accessed freely and easily, general level of quality and reputation for speedy updates has made it one of the most popular reference works in the world. founder Jimmy Wales believes that the project has shown us that it is possible for the general public to get engaged and to participate in creating good, high quality content with values such as neutrality. anyone who wants to build a thriving community online can learn much from Wikipedia. although the model would be impossible without modern communication technology, one of the interesting aspects of the project is that it must deal with very basic problems of human nature in order to succeed. this is reflected in the governance model which mr Wales characterises as, to a large extent, made up of many unstated rules and conventions that have emerged historically. he believes that such complexity grows over time but is natural given the difficulties inherent in any collaborative project. You dont want to live in a police state, but you dont want to live in a crazy anarchy either. in online communities, you have to find that balance. the importance of focusing on the human does not end once a set of norms are in place. a big part of what needs to be understood, particularly by companies, is that such an enterprise is very social. You need to think in terms of community management: how do you thank people, how do you discourage disruptive contributions? those issues are non-trivial. in particular, mr Wales finds it a surprisingly common mistake that people imagine we interact differently in cyberspace and a new psychology is needed. actually, we are still just people. We like getting a kind word. all the classic things apply. Wikipedia shows, then, that new models of collaboration in information gathering and content creation will be shaped as much by age-old human behaviours as by the possibilities provided by the latest technology.

WhiCh soUrCes of aDviCe Do YoU trUst most When maKing a BUsiness DeCisions?
(% respondents)

65%
Colleagues

with their own information. ones reputation needs to be re-earned daily. mr Jansen explains: people still want credible, professional information, but they view it with a degree of scepticism. the nave acceptance of authority, if it ever existed, is not as prevalent. instead, he notes, they check what they find against a wide range of sources. professor Castells agrees: most people look for proper sources of data, be it a particular expert or newspapers, databanks or specialised organisations. then they check other sources of information, maybe colleagues, friends or acquaintances. professor mikolaj Jan piskorski of harvard Business school, an expert on online networks, explains that the use of multiple sources, including social networks, microblogs and other sites, goes beyond simple fact checking: people are not doing this blindly. they have learned how to select information carefully and pay attention to the source. survey respondents, for example, noticeably vary whom they rely on by topic. for questions of personal finances and health, experts are the most frequently trusted but in other areas, such as major business decisions, people rely equally on work colleagues. for major personal purchases, meanwhile, family and friends as well as the wisdom of the crowd expressed through online reviews and ratings are of greater importance. although people may have always turned to some of these sources, the extent to which they can now be tapped is a result of technology. professor Castells says: You can only jump from

one source of information to another because it is free, the technology is there. You spend a few minutes and you can multiply the number of networks you are using. these techniques are also far from perfect, however. they can lead to the delegation of judgement rather than the development of that capacity and may even, ironically, reduce the likelihood that new information will change perceptions. although 71% of respondents seek a wide range of views online, mr Jansen cites research indicating that on controversial issues we gravitate toward sources that support our opinion. that has been true for decades. professor Castells agrees: Ultimately, when people have checked different versions of the truth, what they were thinking about the matter already is more important than how accurate the information is. they ultimately go with what their gut feelings tell them. for experts and information sources, the challenges thrown up by the technologically enabled networked approach to information gathering may be new, but the best strategies to deal with them are ancient. the first element is getting the facts straight. Jimmy Wales, founder of Wikipedia, explains: to the extent that Wikipedia is high quality, people will trust us. the techniques are quite old-fashioned, such as guidelines about what counts as a reliable source. the second part is honesty. mark holden, global strategy Director for phD Worldwide, knows of no particular techniques of building credibility online other than you cant fake it.

61%
experts

28%
13% 13%

traditional media

family and friends Wisdom of the crowd

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opening up the workplace

There is a need for personal communication technology. People do want to use it in their official work, even though organisations are probably not so ready and dont want to give up that much control.

if the way that senior executives gather information and communicate has changed, what is the effect on the workplace? the survey suggests significant differences between the use of these networks at work and in personal life. according to respondents, the biggest impact of digital technology at work is improving their knowledge (65%). only 10% listed keeping in touch with contacts. in their personal lives, however, these same executives say the greatest benefit is the ability to keep in touch with friends (60%), with 36% citing better knowledge. some difference between work and home life is predictable. the above figures suggest, however, that the tools and techniques which executives have developed as internet users to improve collaboration and decision-making are not being fully deployed in the corporate environment. Companies do not always make it easy to do so. as mr tapscott puts it, the way that people, especially younger ones, work and interact online in their home lives runs up against the 20th century workplace. We stick them in a cubicle and we supervise them, and then we take away their tools. Dr greif, head of iBms Collaborative User experience group, adds that a lot of businesses do not understand how important it is to bring these tools in. mr Brown goes further: todays corporations are behind the times in terms of these new practices. they still harbour outmoded command and control practices with no understanding of how to establish an open context for the knowledge worker. the most prevalent example of this is the hostility which the corporate world can show toward social networking tools. a 2010 survey for the computer

security firm mcafee of 1,000 companies in 17 countries found that about half banned such sites. one firm that does is goldman sachs, even though it has invested $450 million in facebook. a blanket prohibition is a self-inflicted wound. in practice it just displaces behaviour, increasing inefficiency: those who find social networking tools an essential part of how they work may simply buy their own mobile devices for use while at the office or use less efficient networking technologies such as email. it also sends a negative message. as mr tapscott notes, banning social tools says we dont understand your way of working, and do not value it. this has a particular effect on younger employees, many of whom know no other style, but increasingly it will have an effect across all age ranges [see previous box]. such a ban is also ultimately unsustainable. mr Belwal notes: there is a need for personal communication technology. people do want to use it in their official work, even though organisations are probably not so ready and dont want to give up that much control. such technology does, however, present risks for any organisation, notably the security of its own systems and data protection. increasingly, firms are turning to in-house social tools as a solution, again with uneven results. But while safeguards are clearly needed, the key to extracting benefit from these technologies lies in the underlying culture of the firm. to begin with, companies need to adjust to the practicalities of the different work styles the technology brings. susan steele, chief human

Jagdish Belwal, Cio of tata motors

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resources officer at millward Brown, a global market research consultancy, recalls a law firm where the partners complained that their new intake of lawyers were reducing billable hours, not because they were slackers but because they got information more quickly, and finished the work faster, using im, texting and other tools. the partners could either forbid more efficient practices or find a better pricing model. more generally, companies need to accept the value of giving individuals the scope to create or tap into their personal, ad hoc information networks. according to professor piskorski, the reason why the internal use of corporate social tools often fails is straightforward and really difficult for companies to accept. You have to stop thinking about yourself as a company first. he believes that companies need to focus on creating something that will help the employee directly even if not necessarily, or quantifiably, the company. that, he adds, is a very big difference from what companies often want. Why would they do something where the benefit is not clear? more broadly, professor Castells

notes research showing that the introduction of networking technologies in hierarchical companies decreases productivity, but in flexible ones it improves it. employees, on the other hand, need to recognise that the way they use their networks at home may not translate exactly into best practice at work. one obvious issue is the retention of corporate information in an environment based on sharing. another, mr Knight says, is the informality typical of social software and that they have to understand that what you say on any network, whether the internet or even the companys intranet, can become public, and that it can last for eternity and be taken out of context. mr rosen adds: sharing videos on Youtube and tweeting isnt necessarily the kind of collaborative behaviour that creates value for organisations. it comes down to what are we sharing and why. the bigger issue is that although people are increasingly using technology-enabled collaboration, it is a relatively new ability. ms steele believes that in

case study
CHUBB USES SoCIaL NETWoRKING TooLS To GENERaTE IDEaS
trying to find the best ideas within a company of 10,000 people spread across 27 countries is a daunting task. in 2008 Chubb insurance decided to see what social networking technology could do, using it to conduct a company-wide, month-long event that encouraged the submission and discussion of ideas by all employees. the technology was relatively straightforward. the organisers were able to move from board approval of the idea to the beginning of the event itself within just three months in part because the cloud could provide highly scalable tools for such communication. as Jim Knight, the companys Cio explains: there were not many barriers except hard work. equally important to success, though, was creating an environment in which people would want to participate. efforts began with a communications campaign publicising the event internally and demonstrating that senior leadership backed it fully the board of directors even appeared in a promotional video. further, the company made clear, says mr Knight, that this was for real, not something that would vaporise by earmarking significant funds to pursue the top ideas. personal incentives were also created, including prizes such as one for the best giraffe idea that went to a person who stuck his or her neck out with an unusual suggestion. even more important, anyone whose suggestion was adopted would be eligible for a bonus depending on how much it saved money or increased income. the social networking aspect of the event allowed it to be more than an electronic suggestion box on a grand scale. During the event people could not only propose ideas, all who were interested could read, comment and develop any submitted suggestion further. this allowed rapid collaboration between sometimes previously unconnected individuals in areas where they might share expertise or interest. mr Knight recalls that at one point he saw an idea similar to one that he had also suggested so i phoned the guy. these tools promote collaboration not only from people you know. the social platform lets us search out experts and opens doors for further collaboration. in the end, more people discussed the ideas of others than submitted their own. the only real problem arising from the event, says mr Knight, was the extent of its success. the exercise produced 608 ideas, a number that he calls a little overwhelming. although it provided the most contributions of any function, participation from around the company was high, with the 1,409 participants about one in seven of all employees coming from every department and zone. the market was not ready for some ideas such as policies for death or dismemberment on a space flight but many deserved close consideration. Chubb had committed to pursue the top five submissions, which it funded with at least a million dollars per idea. all of these, notes mr Knight, have been complete successes. one in particular, a scheme to reduce delays in clinical trials by simplifying how those involved obtain liability insurance, won an innovation award from Business insurance magazine. the company has since used the same platform successfully on several occasions, including once for the it function to discuss its own efficiency and another for interns to consider how to use social networking to improve business. all told, the company says, the events have yielded over 4,000 ideas, 12 of which are yielding revenue and dozens more which have improved existing processes. Chubbs experience shows how effective relatively simple social technology can be in harvesting and developing the ideas latent in an organisation.

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the next few years probably the single biggest skill across the board is going to be collaboration. most individuals in most organisations have only started to scratch the surface of how to foster and grow these skills. the whole nature of social learning is social. it is with others, which speaks to a level of collaboration that has not been as critical as in the past. Companies will be learning at the same time as individuals. mr Brown explains that, as with any technology: it takes time to build the practices on how to use these new tools. it will require trial and

error to decide the appropriate limits on information sharing and the appropriate levels of privacy when engaged in business activity using social tools. the ongoing evolution of the tools themselves, he adds, will make the problem even harder. this might lead some companies to ban as much as possible. not only will that limit the effectiveness of employees increasingly unused to learning in any other way, it will also fail. as Dr greif says: those who can network outside and dont have technology to network inside the company are going to go outside to ask for help.

Where has the internet haD the Biggest impaCt on YoUr life?
(% respondents)

work life personal life


improving your knowledge and understanding

65%

35%

Keeping up-to-date with news and events

35%

39%

getting ideas, advice and viewpoints

32%

19%

making better decisons

22%

10%

Being more efficient with your time

20%

10%

Keeping in touch with friends or contacts

10%

60%

making new friends or contacts

5%

14%

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engaging with the crowd

A lot of clients have been reticent about the social media space because of examples where companies have got the angle of marketing wrong.

the new information environment has brought about a dramatic shift in power between companies and their customers. two-thirds of survey respondents say that digital technology and social media have increased their influence as consumers, well ahead of the number who see greater influence in other areas of life, such as over the decisions of friends (44%) or as citizens (34%). as mr Belwal puts it, with new communication tools, the power a customer holds over a company is enormous. one example of this new consumer power is the reputational damage sustained by United airlines when the song United broke my guitar went viral. Dave Carroll, a musician, after nine months of fruitlessly seeking compensation for a guitar damaged by baggage handlers, encapsulated his frustrations in a humorous music video posted on Youtube in July 2009. Carroll expected a few hits, but instead his work had 150,000 views the first day and five million within five weeks. the incident, widely reported in the media, became the topic of a harvard Business school case study. Customer service is not the only department that can expect to face new challenges as online channels become more dominant. marketers continue to experiment with new ways to engage with consumers via these channels, but it is easy to trip up in the new environment. russell place, Chief strategy officer at Universal mcCann, a communications agency, notes that a lot of clients have been reticent about the social media space because of examples where companies have got the angle of marketing wrong. mr

holden recalls how phD had to deal with negative comments about one of its own videos that went viral. he calls such reactions by stakeholders online probably the greatest and most defining representation of the new physics of marketing. people are empowered to be as vocal as they wish, or to be micro media owners themselves and shape opinion dramatically. for the online world to represent more than an untameable source of reputational danger, organisations need to communicate on the internet in the way to which consumers have become accustomed. this means learning how to manage two-way exchanges. Both mr holden and mr place have observed a shift in their agencies roles away from advertising a companys message toward one of helping companies interact with their customers. The crowd has limits in many eyes, a far more revolutionary possibility provided by the technology has to do with production rather than marketing. Crowdsourcing, or according to the mirriam Webster Dictionary the practice of obtaining needed services, ideas or content by soliciting contributions from a large group of people... could conceivably be about any sort of service but in practice tends to involve the creation of intellectual content. it also need not be online the first oxford english Dictionary in the nineteenth century benefited from 6 million postal submissions by volunteers but digital technology has greatly expanded ease of collaboration. Wikipedia is an oft-cited example of what crowdsourcing can achieve, but companies,

russell place Chief strategy officer, Universal mcCann

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such as the t-shirt maker threadless, have also benefited [see case study]. for all the hype, however, crowdsourcing remains a niche activity. although customers have a significant role in developing new ideas at 65% of companies surveyed, their input comes most often through face-to-face meetings (67%), market research (31%), or surveys (28%). only 3% of respondents list it as a leading source of new ideas at their companies. in practice, the strategy faces several constraints. to be effective, crowdsourcing needs to go beyond the customer base of most companies to engage a wider public, something which businesses are less adept at than straightforward customer relations. in our survey, for example, the general public has a significant role in idea generation at only 19% of firms, less than one third the figure for customers. effective crowdsourcing also requires that the organisation involved offer some sort of reward, whether financial, social or experiential, in return for the provision of ideas, which may well require resources better used on building customer relationships. the type of content that crowdsourcing can provide is also restricted. mr Wales notes that one reason why collaboration works at Wikipedia is that everybody has the same idea of the kind of thing an encyclopaedia should be, but collaboration on a novel about loss and
hoW Do YoU CaptUre iDeas anD inpUts from eXternal staKeholDers?
seleCt top tWo (% respondents)

redemption? im quite sceptical of such things. he adds that people are still finding out which sort of content lends itself best to such efforts. the need for specialised skills can restrict what the crowd can provide as well. the lego group, the toy company, distributes free design software which allows users to make their own creations and order the necessary components. lisbeth valther pallesen, the companys evp, Consumer, education and Direct and the member of corporate management responsible for digital offerings, says that this gives a good idea of the sorts of things that customers wish to build. it helped, for example, to show the commercial viability of a series of lego sets based on the great buildings of the world. But she adds that company products have two aims: a good final creation and an interesting building experience. the ability to integrate the latter is a learned skill which is still most likely to be found within the company. this makes the sourcing of complete products from the general public for widespread sale difficult. finally, crowdsourcing cannot simply be something added on to any company. Culture is an issue. says mr rosen: the first step for any organisation is to collaborate internally, and many skip that step. We see command-andcontrol oriented companies using crowdsourcing as a marketing gimmick.

face-to-face meetings

66%

market research

31% 28% 22% 16% 12% 11%


4%
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surveys

via external advisors and consultants market data and forecasts Company website social media Crowdsourcing applications

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case study
THREaDLESS a CoMMUNITy FoR CREaTIvES
threadless, a Chicago-headquartered t-shirt producer, has a deceptively simple business model. artists submit shirt designs via the companys website where members of the community can indicate which ones they think should be printed. those who made the selected designs on average about one in 100 are printed receive $2,000 and the satisfaction of their artwork being made available to a wider audience. this approach not only give threadless access to the ideas of numerous artists with their fingers on the pulse of changing fashion trends over 100,000 have submitted designs since the site opened but the selection process means that the shirts they print are almost certain to sell. With just $2,000 in capital and a few t-shirt patterns in 2000, by 2005 threadless had annual sales of $5 million and by 2009 revenues of $30 million worldwide. only do this with a community of like-minded people whom they trust. the key element to building that trust, says mr nickell, is trying to keep the commercial part of our website secondary to the community. the proof of this approach is a community of about 1.5 million people who use the threadless webpage as a social networking site for communication about a variety of issues, including critiquing designs before submission. mr nickell notes that many of the people who have tried to replicate the sites success are really business minded. if all of our decisions were driven by wanting to increase sales, it would be setting us up for disaster. it is really about giving artists value, so that they want to submit. such an organisation faces distinct challenges. for example, employees are required to be active participants in the process. moreover, introducing changes requires significant effort to win over the community. mr nickell notes: Communities of people are often scared of change. the company therefore tries to balance changes that take advantage of new technologies and trends with responding to feedback so that the community is part of the process. threadlesss crowdsourcing model, for all its innovation, leaves some things the same. the initial creative act has not become a social exercise. although the process provides submitters with more feedback, mr nickell notes that most designs remain the work of one or two artists at most. also, using public reactions to choose design means that selected artwork is typically more mainstream. mr nickell notes that threadless prints some less popular designs in order to support a variety of work, but the company is not a place for completely obscure stuff. overall, threadless provides a model for how companies can profit from crowdsourcing by servicing a community of content creators rather than just trawling for ideas.

If all of our decisions were driven by wanting to increase sales, it would be setting us up for disaster.
Jake nickell, co-founder and Chief strategy officer, threadless a closer look at this impressive business story, however, reveals some requirements and limitations of effective crowdsourcing. to begin with, the key to threadlesss success is that it is not, first and foremost, a business. Jake nickell, co-founder and Chief strategy officer, explains: the main value of threadless is the artist community that we have built up over the past 10 years. it is not so much about threadless becoming a successful business on top of the community, but about giving artists a voice. this is not some airy Csr platitude about stakeholders. effective crowdsourcing depends on the willingness of a huge number of people, many of whom will receive no financial reward, to share ideas. people will

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the implications for innovation

If you create a culture that suggests that people who are not connected should be treated suspiciously, then people who think best when left with their own thoughts adapt and sacrifice calm, quiet, solitary time.

technology enthusiasts often claim the new networks can boost innovation and creativity, but what evidence is there of this? Could they even suppress or disadvantage certain types of creativity? this may seem a strange question to ask given the massive amount of information and the wide range of new ideas that digital technology make available. in the survey, for example, 73% say that the internet and online communities have made business more innovative and creative, with only 10% disagreeing, none of whom necessarily feel that companies are now less innovative. in a striking contrast, however, only 15% of respondents say that the biggest change to their own jobs from these technologies has been the ability to generate better, or even more, ideas, suggesting that people may be having trouble turning information into creativity. Definitions are important here. mr Jansen explains: if you take it from the approach that more information is better, it will lead to better decisionmaking and problem-solving. the availability of things like twitter has introduced me to insights i didnt know existed. i have been able to mash those up. to me that is being creative. mr Brown goes further to say that technology is increasingly providing tools to enhance the creative process. imagination is the ability to envision a world we are not living in at the moment, he adds. We have tools to foster collective imagination, to visualise complex phenomena in ways that we never have before. in that sense, this is a golden age.

others are less sure. nicholas Carr, author of The Shallows: How the internet is changing the way we think, read, and remember differentiates between kinds of creativity. the net seems to be very good at helping certain types [of thinking], like problem solving, that reward the ability to exchange ideas with lots of people very quickly, he says. on the other hand, there is evidence that the deepest kinds of creativity come from an individuals ability to pay attention to one topic for a sustained period. that seems to be the type of creativity that leads to breakthrough ideas. he contends that the technology itself, by not rewarding such in-depth concentration, could impede the latter kind. the survey suggests that the technology does discourage the second sort of creativity to some degree, or at least does not support it well. fiftynine percent of respondents say that, to make the most of the internet, the ability to build on other peoples good ideas is more important than originating ones own. professor Castells believes that people will not generate completely new ideas over their networks. the initial approach to any problem will start in the individual mind but will be sharpened in the network. he compares the process to an academic sharing new theories informally with colleagues. Dr greif notes that today we still find that most creative activities are done face-to-face, and believes that social software needs to support this area better. the evolving networked style of working, however, may also impede the creativity of certain types of individual. When asked how they preferred to develop ideas, 51% of respondents said they liked

nicholas Carr, Writer on technology, culture and economics

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What is the Biggest area Where Digital teChnologies anD soCial meDia trenDs have ChangeD the WaY YoU go aBoUt YoUr JoB? (% respondents)

37%
more collaboration with geographically dispersed colleagues (eg international, other locations)

28%
remote/flexible working

16%
new ways to interact with customers and potential customers

15%
ability to generate better/more ideas

to find their own space to think, and 49% liked to brainstorm with colleagues. the new networks, however, seems much more conducive to the brainstormers. several interviewees pointed out that the existence of new tools did nothing to inconvenience those who did not use them. those looking for their own space could still do so. the networked style of information gathering, however, while centred on the individual, only works if others are willing to be co-opted regularly into the ad hoc networks. as it becomes more pervasive, the cost of reluctance to take part in other peoples networks is likely to grow, to the extent that people could even incur social sanctions. mr Carr notes: if you create a culture that suggests that people who are not connected should be treated suspiciously, then people who think best when left with their own thoughts adapt and sacrifice calm, quiet, solitary time. in a world with increased levels of remote working, those who are not enamoured of networks may be treated

like those who once left the office early. finally, network technology seems to be good at promoting small, step changes, but may be less helpful in supporting the creation of breakthrough innovations. revolutionary ideas typically challenge the conventional wisdom likely to be resident in such a network. they often depend on the unusual insight of a single individual who may initially seem crazy but in retrospect turns out to be visionary. the link between creativity and the new style of working, then, is far from straightforward. at the very least, as organisations and societies develop norms of behaviour around new working styles and social tools, they need to create the ability for people to preserve their own space and opt out at times without penalty. as Dr greif warns of technology in general: the trick with tools is to make sure that you dont disadvantage the talented people. if you put in place a tool that everyone must use, the best might do worse.

case study
LEGo TaKING CREaTIvITy oNLINE
the lego brick, a staple of toy stores for over 60 years, has very little of the high tech about it. it might surprise some, therefore, that the company has significant online offerings, but lisbeth pallesen, the companys evp, Consumer, education and Direct, sees these and the traditional plastic toys meeting the same basic need providing the opportunity for creativity. the lego groups experience in pursuing this goal sheds light on aspects of how the physical and digital worlds are interacting. the shape of the product, however, was far from straightforward for the company. When you play with lego bricks, says ms pallesen, its not just about the final result but about the building experience. We know how to build a physical product. translating that Dna into the online space has been a challenge. You can only learn from interacting with the children. one result is lego Universe, a massive multi-player online game in which players, amid an overarching game narrative, can individualise the experience through, for example, developing their own piece of territory by building their own structures and creatures out of digital bricks. the company has noticed that, as with adults online, creativity is linked with communication and interaction. ms pallesen, says: the social aspect of lego Universe is very important, even with smaller children. Quite a lot of children are interested in creating something on their own and then inviting others in to show it. some tasks within the game even require children to collaborate, with facilities for creating teams and pre-agreeing rewards in the case of success. one striking difference with adults, however, is with whom players seek to collaborate. mr pallesen notes that while theoretically children around the world can play together, in practice they prefer to interact with those whom they already know from the physical world. the role of play in preparing children for the adult world hasnt changed, just the world being prepared for.

The social aspect of LEGO Universe is very important, even with smaller children.
lisbeth pallesen, evp of Consumer, education and Direct, the lego group rather than considering computer games and other toys as distinct, the companys target market integrates its online experience and its physical play. ms pallesen explains: We know that children who are very enthusiastic about lego products are also heavy users of digital applications. they are digital natives and move between the online and offline space easily. When they play with a video product, they then try to recreate it in the physical space. it is therefore ideal if a toy company can offer integrated components of both kinds.

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conclusion

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Looking to the future advances in information and communication technology have done far more than just make us more efficient at existing activities: they have changed what we do and how we accomplish basic tasks involved in informationgathering, analysis, collaboration and decisionmaking. this evolution continues and the effects multiply in new ways, from hybrid business models tapping into the benefits of the crowd to revolutions organised via facebook and publicised through twitter. even the social behaviours and norms that underpin the way people increasingly use these tools continue to evolve. technology, however, does not stand still while people adjust. the spread of smartphones combined with widespread mobile telephony the number of mobile phone numbers is fast approaching that of the human population will rapidly increase the ease of accessing networks and the number of people a single individual can draw in. the growth of cloud computing will multiply the resources which those smartphones and networks can access. networks increase in power with size. the developments described in this paper are

therefore likely to accelerate. reliance on ever-more precise and efficient ad hoc, selfgenerated networks to help with informationgathering and verification will intensify. individuals will also need to be ever more accessible to help with the networks of others, making questions of privacy all the more relevant. What shape this will take precisely is unpredictable. Will those looking for information typically mine massive databases for trends in seconds while riding a train into work? perhaps the most unlikely part of that vision is the need to take a train to some fixed place of employment. the tools will be there to allow a host of unimagined tasks. moreover, human beings remain creatures with choices, not victims of pure technological determinism. many have adopted the new technological tools because they like them. they may insist on shaping them in ways that preserve islands of non-communication and privacy as well. What is clear is that we have entered an age of knowledge networks, the power of which we are only beginning to understand.

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appendix

Do you agree or disagree with the following statements?


Rate on a scale of 1 to 5, where 1=Strongly agree and 5=Strongly disagree.
(% respondents) 1 Strongly agree 58 2 3 4 30 37 40 38 32 23 53 24 25 23 28 14 5 21 24 21 13 5 Strongly disagree 7 12 3 2 31 5 2 3 7 17 3

I use a much larger number of information sources to stay up to date than I did ve years ago I have much better data to help me make decisions than I had ve years ago

47

The internet is the best place to go for exploring ideas and new perspectives on the world
32

I sometimes struggle to know which information sources can be trusted when online
25 14

Making decisions at work has become signi cantly more complicated because of the wealth of information and options available through the internet Purchasing decisions are more stressful than before the advent of the internet
8

Open (free) access to information is a fundamental human right

How do digital technologies and increased choice and information make you feel? Select all that apply.
(% respondents) Connected
63

Excited
61

Smarter
58

Overloaded
40

Able to in uence others


34

Able to have my say


33

Part of a community
31

Confused
13

Vulnerable
12

Anxious
9

Other, please specify


7

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Which information source do you use most for developing your ideas and knowledge?
Please select most valuable sources. Select up to three. (% respondents) Newspapers and magazines (print or online)
61

Internet search engines (Google etc)


59

Books
38

Direct conversations with colleagues


37

Online reference sources (eg Wikipedia)


32

Direct conversations with Friends and family


17

TV and radio
12

Online discussion forums focused on relevant topic


11

Social networks (Facebook, Linked In etc)


9

Blogs
8

Twitter
3

I dont spend much time on this at all


0

Other, please specify


3

Which information source do you use most for deciding your stance on political, social or ethical issues?
Please select most valuable sources. Select up to three.
(% respondents)

Newspapers and magazines (print or online)


77

Direct conversations with friends and family


39

TV and radio
36

Internet search engines (Google etc)


25

Books
25

Direct conversations with colleagues


24

Online reference sources (eg Wikipedia)


12

Online discussion forums focused on relevant topic


11

Blogs
10

Social networks (Facebook, Linked In etc)


7

Twitter
3

I dont spend much time on this at all


1

Other, please specify


2

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Which information source do you use most for researching business decisions?
Please select most valuable sources. Select up to three. (% respondents) Internet search engines (Google etc)
64

Direct conversations with colleagues


58

Newspapers and magazines (print or online)


51

Online reference sources (eg Wikipedia)


27

Books
24

Online discussion forums focused on relevant topic


18

Direct conversations with friends and family


10

TV and radio
7

Blogs
6

Social networks (Facebook, Linked In etc)


5

Twitter
1

I dont spend much time on this at all


1

Other, please specify


5

Compared to ve years ago, how much time do you spend on the following activities online?
(% respondents) Keeping up with global issues and events
75 22 29 38 40 74 3 6 9 6 23 2 42 8 More The same Less

Researching potential purchases Communicating with friends and family


53

64

Collaborating with colleagues


54

Keeping up with what is happening in my industry (customers, competitors, trends) Communicating with people you do not know personally to exchange ideas
50

Compared to ve years ago, how much time do you spend on the following activities o ine?
(% respondents) Keeping up with global issues and events
25 44 40 19 60 23 56 42 50 31 45 21 21 35 35 More The same Less

Researching potential purchases


15

Communicating with friends and family Collaborating with colleagues Keeping up with what is happening in my industry (customers, competitors, trends)
23

Communicating with people you do not know personally to exchange ideas


15

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NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

Do you feel digital technology and social media advances give you more or less in uence over the following areas?
(% respondents) Business decisions at your company
52 46 2 67 34 60 44 51 54 38 31 2 6 5 8 More The same Less

Companies whose products and services you buy Policy adopted by government Personal decisions made by your friends and family Your companys reputation

What determines whether something catches your attention online? Select up to three.
(% respondents) Comes from a credible source
75

Is well communicated and easily understood


45

Is original, creative
41

Resonates with other things youve read and heard


24

Features prominently on results from a search engine


22

Is personalised to your own needs and interests


21

Is clever
20

Is widely discussed in the traditional media


10

Is widely discussed in online networks


10

Is interactive (ie, allows you to interact or contribute in some way)


8

Is fun and entertaining


6

Is hugely visible (eg due to high pro le advertising etc)


2

Have you used the internet or social media to do any of the following activities? Select all that apply.
(% respondents) Support a charity
57

File a tax return


53

Communicate directly with an authority gure


47

Volunteer for something


41

Support a campaign against government activity


31

Support a campaign against corporate activities


21

Vote in an election
20

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NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

Have you done any of the following in the past 12 months? Select all that apply.
(% respondents) Added a comment to an online discussion on a political, business or social issue
65

Researched a medical condition


60

Worked in a virtual team (ie, the team collaborates mainly online)


48

Directly contacted the writer of something you have read online


39

Written a review on a website (eg, customer comments on Amazon)


37

Made a friend or relationship online who you go on to meet in person


35

Self published your own information on a topic (eg, a blog)


33

Won business through a contact made via a social media site


13

Ended a friendship or relationship via social media site


9

Found a new job through a social media site


7

How many people are you connected to via the following means?
(% respondents) 0-20 35 20-40 40-60 60-80 28 19 43 19 15 10 6 7 13 8 14 7 80-100 14 6 6 4 100-150 6 6 5 150-200 5 3 4 2 31 200+ 8 10 7 12

Friendships mainly sustained through face-to-face Friendships mainly sustained online Traditional business networks (trade associations, clubs etc) Online business networks
36

35

How would you describe your attitude to the following online networks in terms of their long-term value?
(% respondents) Facebook
17 32 20 22 13 35 47 19 36 9 45 13 9 37 5 14 11 6 2 55 71 Very useful now Useful now More useful in the future Overhyped Dont know it

Twitter Linked in Wikipedia Groupon


4

14 8 7

12 13

15

Digg
1

Which sources of advice do you trust most when making decisions in the following areas? Select all that apply.
(% respondents) Family and friends
48

Traditional media
25

Experts
54

Wisdom of the crowd (eg, number of positive reviews)


11

Colleagues
17

When developing ideas, which one of the following statements best re ects the way you work? I prefer to...
(% respondents) Find my own space for thinking time
51

Brainstorm with colleagues


49

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NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

To what degree are the following external stakeholders involved in developing new ideas in your organisation?
Rate on a scale of 1 to 5, where 1=Major involvement and 5=No involvement. (% respondents) Customers
31 33 42 25 24 17 23 25 29 21 24 24 23 20 19 12 25 18 18 24 12 10 6 4 30 17 30 16 25 1 Major involvement 2 3 4 5 No involvement

Business partners and suppliers General public


6

20 14

Policymakers and regulators


17

Interest/lobby groups
5

Investors/shareholders Think tanks


11

How do you capture ideas and inputs from these external stakeholders? Select up to two.
(% respondents) Face-to-face meetings
66

Market research
31

Surveys
28

Via external advisors and consultants


22

Market data and forecasts


16

Company website
12

Social Media
11

Crowdsourcing applications
3

What is the biggest area where digital technologies and social media trends have changed the way you go about your job?
(% respondents) More collaboration with geographically dispersed colleagues (eg international, other locations)
37

Remote/ exible working


28

New ways to interact with customers and potential customers


16

Ability to generate better/more ideas


15

More open dialogue between senior management and employees


4

Do you agree or disagree with the following statements?


Rate on a scale of 1 to 5, where 1=Strongly agree and 5=Strongly disagree. (% respondents) The internet and online communities have increased the rate of business innovation
42 40 43 45 35 29 44 40 23 29 21 20 20 14 31 61 61 8 2 4 2 8 2 1 Strongly agree 2 3 4 5 Strongly disagree

Changes in digital technology have forced me to more frequently update the skills needed for my job
30

Because of increased inter-connectedness at work, I feel there are a wider range of people I can call on for help
28

The internet and online communities make businesses more productive


26

The internet and online communities make businesses more innovative and creative Free online information sources have improved business decision-making in my organisation
27

30

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NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

Which attribute do you feel is most important in enabling you to get the most bene t from the Internet and online networks?
(% respondents) a) Being willing to explore a wider range of sources and ideas
61

OR b) being able to pinpoint what you want rapidly


39

Which attribute do you feel is most important in enabling you to get the most bene t from the Internet and online networks?
(% respondents) a) The ability to multitask
70

OR b) The ability to tune out distractions and focus on one activity


30

Which attribute do you feel is most important in enabling you to get the most bene t from the Internet and online networks?
(% respondents) a) The ability to originate good ideas
41

OR b) the ability to build and communicate around other peoples good ideas
59

Which attribute do you feel is most important in enabling you to get the most bene t from the Internet and online networks?
(% respondents) a) Ability to process and absorb information at great speed
64

OR b) the ability to analyse information rigorously


36

In which region are you personally based?


(% respondents) Western Europe
40

Asia-Paci c
26

North America
18

Middle East and Africa


7

Latin America
5

Eastern Europe
5

What are your organisations global annual revenues in US dollars?


(% respondents) $250m or less
51

$250m to $500m
10

$500m to $1bn
10

$1bn to $5bn
9

$5bn to $10bn
5

$10bn or more
14

31

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NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

Which of the following best describes your job title?


(% respondents) Board member
4

CEO/President/Managing director
17

CFO/Treasurer/Comptroller
4

CIO/Technology director
2

Other C-level executive


4

SVP/VP/Director
10

Head of business unit


7

Head of department
11

Manager
22

Other
18

What is your primary industry?


(% respondents) Professional services
17

Financial services
16

IT and technology
11

Education
8

Government/Public sector
7

Healthcare, pharmaceuticals and biotechnology


5

Entertainment, media and publishing


5

Manufacturing
5

Telecommunications
4

Construction and real estate


3

Consumer goods
3

Oil, gas and natural resources


3

Transportation, travel and tourism


3

Aerospace/Defence
2

Agriculture and agribusiness


2

Retailing
2

Logistics and distribution


2

Power & utilities


1

Automotive
1

Chemicals
1

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NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

What are your main functional roles? Select up to three.


(% respondents) Strategy and business development
35

General management
31

Marketing and sales


20

Finance
17

Information and research


14

Operations and production


13

IT
10

Customer service
10

R&D
8

Risk
7

Human resources
4

Legal
4

Supply-chain management
4

Procurement
3

Other
9

Are you:
(% respondents) Male
78

Female
22

In which age range are you?


(% respondents) 18 to 29
11

30 to 39
31

40 to 49
28

50 to 59
18

60 to 69
8

70+
3

33

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NET WORKS FOR THINKING Developing iDeas anD forming opinions in the Digital age

Whilst every effort has been taken to verify the accuracy of this information, neither the economist intelligence Unit ltd. nor the sponsor of this report can accept any responsibility or liability for reliance by any person on this white paper or any of the information, opinions or conclusions set out in the white paper.

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