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Digital Maker-Entrepreneurs in Open Design: What Activities Make Up Their Business Model?
The business models of digital maker-entrepreneurs in open design are inextricably linked to the broader open design community. Digital makers share designs on online platforms such as Thingiverse and use digital manufacturing technology such as 3-D printing as a generative mechanism for their entrepreneurial activities. There is a general understanding of how sharing works in that community and the basic design parameters that determine the business models of these digital maker-entrepreneurs, which are based on a portfolio of activities. This study is based on in-depth interviews with 11 digital maker-entrepreneurs from the open design community. We investigate the activities that constitute their business models using activity theory as a lens with which better to understand them. This study provides a perspective on the complexity of the relationships in which these activities are embedded and analyzes the activities related to the production, distribution, and consumption of value. Finally, we examine the exchanges between digital maker-entrepreneurs in the community, shedding light on how digital maker-entrepreneurs share and exchange goods, services, and knowledge as peers. -
Sensor-Based Entrepreneurship: A Framework for Developing New Products and Services
As the Internet of Things (IoT) begins to dominate the technology landscape, there will be new products and services that will become technically and financially feasible. Internet technologies and advancements in social interaction tools have led to an increase in the use of the crowd as a provider of business solutions. Yet we have just seen a fraction of the possibilities of crowdsourcing technologies. This is because most of the development, discussion, and research around crowdsourcing has focused on active-input crowdsourcing. However, the real transformative pressure will come from passive sources of data generated primarily by developing and growing sensor technologies. This next generation of crowdsourcing will be a game changer for entrepreneurial opportunities. As crowdsourcing systems proliferate, more input will be acquired from sensors, artificial intelligence, bots, and other devices. As a result of this explosion, the variety of product and service opportunities will swell as entrepreneurs become more aware of technologies merging, such as the combination of crowdsourcing, sensors, and big data into a new type of entrepreneurship-sensor-based entrepreneurship. The purpose of this research is to contribute by, first, clarifying the next generation of crowdsourcing and, second, developing and presenting a framework to help sensor-based entrepreneurs plan, develop, and map their new products and services. -
The Internet of Things and New Business Opportunities
Since the Internet of Things (IoT) is an emerging phenomenon, there is a lack of holistic understanding of what IoT is and what business opportunities it can offer for entrepreneurs and existing companies. This article has three main parts. First, it introduces IoT as a broad, socio-technical phenomenon. As a part of this goal, the article covers various elements within the technological, physical, and socioeconomic environment that comprise IoT. Second, this article proposes two approaches for creating new business models using IoT: a sustaining approach and a disruptive approach. The article concludes with a brief reflection on the extent to which the future of IoT can be predicted. This discussion brings up the limitations of the approach for creating new business models outlined in this article and provides guidelines on how this approach should be used. The ultimate goal of this article is to stimulate thinking, creativity, and entrepreneurship in relation to the IoT. -
Civic Entrepreneurial Ecosystems: Smart City Emergence in Kansas City
Embedded between the broader fields of social and digital entrepreneurship, the concept of 'smart cities' can be conceptualized as a domain that is currently pre-paradigmatic-that is, one in which multiple yet unaligned models exist, marked by the absence of a single dominant one. Despite such shortcomings, there is a reflective similarity across ecosystems as the various players attempt to converge on a common understanding of the term smart city. The common objective of smart city implementation is to spark economic growth and social development, facilitated by collaborative dialogue and innovations in technology. We integrate theoretical lenses to explore the roles played by ecosystem actors, stakeholders, and socioeconomic and political agents in creating economic value and solving societal problems-particularly highlighting opportunities and challenges to bottom-up innovation from local entrepreneurs. -
Disruption in the Automotive Industry: A Cambrian Moment
The automotive industry is experiencing a moment of innovation. With electronics gaining importance, the need to find sustainable solutions and the rampant availability of sharing platforms, the dynamics of this sector is witnessing a paradigm shift. A host of startups is colonizing every niche of what seems to be the new architecture: shared and self-driven electric vehicles. Old incumbents and emerging startups are interacting to control key technologies and the user interfaces of the future. The mechanical machine is being converted into a computer. The connected car is creating a new ecosystem for entrepreneurial opportunities. This study analyzes a set of 156 venture-backed startups: the nature of the firms, their founders' profiles, their origins, their technological capabilities, and their investors. Our findings and conclusions are: (1) a phase of instability and vibrancy is beginning wherein multiple emerging firms compete to impose their standards, (2) the competitive battle is conducted in the digital arena, (3) disruption is led by outsiders with entrepreneurial experience and deep knowledge of digital technologies, and (4) a final winning dominant design may emerge. Entrepreneurial outsiders and outsiders coming from consumer electronics, electrical companies, and/or digital platforms have a window of opportunity to enter this new market. -
Blockchain Entrepreneurship Opportunity in the Practices of the Unbanked
Two billion people in developing economies have limited or no access to formal financial services, creating cause for substantial research interest in financial inclusion as a complex multidimensional phenomenon. Digital finance technologies, including blockchain, have empowered a type of crescive entrepreneurship that seeks opportunities in relation to financially excluded individuals. This article hypothesizes that nonmonetary causal factors and informal financial practices play a major role in habits of the financially excluded, which would favor blockchain's disintermediation features over the incumbent approach. After applying fuzzy-set Qualitative Comparative Analysis (fsQCA) to determine the conditions related to financial practice and motivations that explain the absence of a formal bank account, I prescribe five sensitivities that blockchain entrepreneurs need to consider when targeting this segment. The value of this article's approach extends well beyond traditional unisystemic views for financial inclusion, as blockchain-based entrepreneurial opportunities emerge to reveal alternative forms of disintermediated financial services, which we exemplify in startups modeling informal practices. Blockchain entrepreneurship can generate semi-formal financial services that bring financial aspirations closer to people. My perspective is relevant to blockchain entrepreneurs who aim to understand the practices of the unbanked as source information for the development of innovative solutions. -
From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry
There is undoubtedly hype around drones and their applications for private and professional users. Based on a brief overview of the development of the drone industry in recent years, this article examines the co-evolution of drone technology and the entrepreneurial activity linked to it. Our results highlight the industry emergence described as concept validation, including product as well as market growth with different phases of technological meaning change. We argue that further steps are needed to develop drones from nice toys to professional tools-from photography and filming applications to inspection services and large cargo logistics. For innovation managers and entrepreneurs, we describe what triggers the emergence of a technology and attracts the needed actors to unleash its transformative potential. Our research is based on industry reports, news, and market studies as well as interviews with four industry actors. -
Haas Research on Leadership: An Introduction
Once each decade, California Management Review (CMR) publishes a special issue that features research by faculty at the Haas School of Business at University of California, Berkeley. Our 40th anniversary issue, published 20 years ago, highlighted research on Knowledge Management. CMR's 50th anniversary issue featured cutting-edge research on Innovation. In our 60th anniversary issue, we present new research that focuses on Leadership. -
How to Improve the Accuracy and Reduce the Cost of Personnel Selection
One of the clearest lessons to emerge from decades of research on personnel selection is that the traditional face-to-face job interview is terrible for predicting future job performance. The sad truth is that no selection tool is perfect, and future performance cannot be predicted precisely, but the traditional interview is particularly bad. Fortunately, it is easy to improve the predictive validity of the job interview by structuring it around hard-to-fake tests of key skills and abilities that actually predict future performance. There are also other tools as accurate as a structured interview and substantially less expensive to administer. -
Creating Incentives for Innovation
In an era of fast-paced technological change, innovation has become a business imperative. But it is not easy to make experimentation and risk-taking an integral part of an organization's business practice. This article describes a model for motivating innovation based on probability theory and experimental evidence. This research indicates that corporate leaders should create a culture that tolerates early failure and rewards long-term performance, and employees from the CEO down must be given incentives to innovate. These lessons are broadly applicable in fields beyond business, such as scientific research and the academic world. -
The Multisector Career Arc: The Importance of Cross-Sector Affiliations
This article examines the extent to which current leaders from each of the three sectors (public, private, and nonprofit) have had meaningful cross-sector experience either through full-time employment or through service on boards/commissions or other forms of affiliation. Almost half of all leaders profiled had at least one multisector affiliation and about 15% had four or more. It also explores the costs and benefits of such experiences to them and their organization. Almost every leader interviewed described a logical, but serendipitous path that created a unique, unforeseeable, and often very rewarding set of opportunities and experiences. Their profiles also suggest the emergence of a new career path in which leaders garner developmentally rich, career-accelerating experiences, often in parallel, by virtue of part-time cross-sector affiliations in addition to traditional employment. -
Language as a Window into Culture
Culture is assumed to play a pivotal role in organizational success and failure. In contrast to prevailing top-down perspectives, this article proposes an approach to studying culture that accounts for myriad organizational subcultures, how individuals fit into those subcultures, and the causes and consequences of shifts in culture and cultural fit. The language through which people communicate with colleagues offers a powerful lens for studying cultural dynamics and its relationship to individual, group, and organizational success. This article describes a burgeoning stream of research that uses language as a window into culture and discusses its implications for managerial practice. -
Changing the Narrative: Women as Negotiators-and Leaders
The reasons for women's relatively slow ascension in the workplace have been a matter of considerable debate. This article explores why so much remains misunderstood about the challenges women face and why negative stereotypes-specifically, the view that women are innately poor advocates for themselves-persist. In fact, women possess unique advantages as negotiators, including greater cooperativeness and stronger ethics. But often those strengths are overlooked or severely undervalued. This article presents practical strategies for managers and negotiators of both genders to close the performance gaps and calls for changing the narrative on what it means to be a successful negotiator. -
Who's Really Doing the Work? The Impact of Group Size on Over-Claiming of Responsibility
People often believe that they do more than their fair share of work. This tendency plays out across daily life, from married couples to workplace collaborations. While the inclination to "over-claim" credit is pervasive and has potentially serious consequences, little is known about the factors that make it more or less likely to occur. This article considers two predictors-group size and the role of indirect participants, such as supervisors, teachers, coaches, and office assistants-on the phenomenon known as over-claiming. It offers practical steps for individuals, managers, and organizations to take to moderate the damaging effects of over-claiming. -
Charles Schwab Corp. in 2017
By almost any measure, Charles Schwab Corp. appeared to be killing it in 2017. The wealth management, banking, custody and brokerage firm's stock was trading near its all-time high. It was posting unprecedented levels of new client accounts, net new client assets, revenues and profits and had a record $3.12 trillion in client assets under management. Schwab was taking customers and assets from old-line wire houses like Morgan Stanley, while fending off challenges from young Fintech upstarts by being a fast follower. Despite its relatively large size, Schwab saw itself as a disruptor. Schwab was attracting more net new assets than any other publicly traded full-service investment firm and its operating costs were lower than competitors like Merrill Lynch and Morgan Stanley. Still, there was no doubt that challenges loomed on the horizon. For example, how could Schwab maintain or improve trust in an era of intense cyber-threats and increasingly sophisticated technology that some consumers found invasive or even creepy? Were its products elegant and simple enough? In the era of Uber and Amazon, customers' expectations were rising. And what if a big tech company like Google or Amazon started to move onto Schwab's turf? Key to staying ahead, CEO Walt Bettinger felt, was maintaining a laser focus on the customer, and being willing to cannibalize Schwab itself to find new growth. Schwab, he thought, had repeatedly proved its willingness to do so over the previous four decades, most recently by introducing a robo-advising product. "Disruption occurs when someone listens more carefully to customers, or better anticipates what customers might want before they even realize it themselves. Most companies are disrupted because they lack the will and courage to disrupt themselves first," Bettinger said. Could Schwab stay vigilant and keep up that courage? Or was it already being disrupted and didn't realize it? -
General Electric in 2017: Naming and Claiming the Industrial Internet
From 2010 to 2017, General Electric pivoted from an industrial behemoth to a data-driven tech company by incorporating big data analytics across all of their subsidiaries. As the world's first "digital industrial" company, it named and the Industrial Internet - the "internet of things" for manufacturing - and is poised to win big in the future, as the current CEO, Jeff Immelt, hands over the reins to his predecessor, John Flannery. -
The CEO of Kronos on Launching an Unlimited Vacation Policy
Technology has made it possible for employees to be plugged in around the clock, even when they're "on vacation." In view of this reality, Kronos launched its open vacation policy in early 2016. To Ain's surprise, some employees were very unhappy about it, largely for three reasons: Because the new policy required individuals to work out time off with their supervisors, some managers thought their jobs would become more difficult. Some employees who had been banking unused vacation time resented the loss of a bundle of cash when they retired. And some felt that it was unfair for new hires to get as much vacation as they themselves had earned over time. But Kronos now considers the switch a success--and 2016 was financially the company's best year ever. -
The Best-Performing CEOs in the World 2017
More than 15 years ago Jim Collins, the author of the management best seller "Good to Great," introduced the flywheel as a metaphor for the enduring power of strong business leadership. A company achieves excellence, he wrote, by "relentlessly pushing a giant heavy flywheel in one direction, turn upon turn, building momentum until a point of breakthrough." The power of momentum is evident in HBR's 2017 ranking of the world's best-performing CEOs--the 100 leaders who have delivered top results on both financial and ESG measures over their entire tenures, which average 17 years. Heading this year's list--his first time in that spot--is Pablo Isla of Inditex, the parent of several retail fashion chains including Zara and Pull&Bear. In an accompanying interview with HBR senior editor Daniel McGinn, Isla discusses some of the factors--a flat structure and an informal management style; "proximity sourcing," or production close to home; and a continual focus on sustainability--that have propelled the company's success. -
What Everyone Gets Wrong About Change Management
Corporate transformations still have a miserable success rate: About three-quarters of change efforts either fail to deliver the anticipated benefits or are abandoned entirely. And because flawed implementation is most often blamed for such failures, organizations have focused on improving execution. But poor execution is only part of the problem; the authors' four-year study of 62 corporate transformations suggests that misdiagnosis is equally to blame. Before worrying about how to change, they write, executive teams need to figure out what to change--in particular, what to change first. They can do this by fully understanding three things: the catalyst for transformation, the organization's underlying quest (is it global presence, customer focus, nimbleness, innovation, or sustainability?), and the leadership capabilities needed to see it through. J.C. Penney, Norske Skog, Acer, and other classic cases illustrate the authors' points, and the article includes a "quest audit" to help companies identify their transformation priorities. -
Turning Potential into Success: The Missing Link in Leadership-Development
Most leadership development programs aren't working. Only 24% of senior executives at firms that have them consider them to be a success. Companies must take a more scientific approach to turning their raw talent into leaders, say three authors from Egon Zehnder, which has been measuring executive potential for 30 years. Begin by identifying which of seven key leadership competencies (results orientation, strategic orientation, collaboration and influence, team leadership, developing organizational capabilities, change leadership, and market understanding) are critical to your top roles. Next, assess employees' potential by looking at five predictors of strong competencies (motivation, curiosity, insight, engagement, and determination) and then map people's potential to role requirements to see how far they can go. Last, to help them get there, provide the right coaching and development opportunities.