melt - the theory
TRANSCRIPT
As material and immaterial worlds melt, new business opportunities arise.
M i i k k a L e i n o n e n
#melt The Theory
Imagine the world as a box that contains everything we do,
sense, know, and imagine.
#melt
The box can be divided in two.
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THIS IS THE MATERIAL WORLD
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THIS IS THE IMMATERIAL
WORLD
THIS IS THE MATERIAL WORLD
#melt
ObjectsActions
Emotions
KnowledgeCompetences
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Defining qualities of these worlds?
SCARCITY
#melt
SCARCITY
ABUNDANCE
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Immaterial can’t be owned, boxed, or protected.
Material can be controlled, repeated,
and measured.
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2NDMILLENNIUM
Business models of the
Business models of the
3RDMILLENNIUM
#melt
Reasons Why companies are migrating towards the immaterial world?
3
OUR NEEDS ARE MORE IMMATERIAL.
1
Immaterial value has overtaken material value as a
competetive factor.
FIERCE GLOBAL COMPETITION IN THE MATERIAL
WORLD.
1
2Material world offers fewer ways for companies to outshine their rivals amid global competition.
TECHNOLOGY IS MELTING THE MATERIAL AND
IMMATERIAL WORLD. 2
1
Networked computing enables the creation of new services,
communication channels, and revenue generation. Companies
no longer necessarily need to manufacture material products.
3
How?3
Technology is melting worlds?
Immaterial elements are becoming more tangible.
#melt
Thinking
Immaterial elements are becoming more tangible.
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Emotions and thinking gain increasingly visible and concrete
forms of existence through, for example, the social media.
Emotions
Immaterial elements are becoming more tangible.
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Emotions and thinking gain increasingly visible and concrete
forms of existence through, for example, the social media.
The material world is pushing into the immaterial world.
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Information
The material world is pushing into the immaterial world.
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News, entertainment, and information have begun to lose their one-sided, material form.
Services
The material world is pushing into the immaterial world.
As a company’s services become more immaterial,
immaterial elements like preferences become inseparable parts of the
service.
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3D Printing?
The material world is pushing into the immaterial world.
#melt
3D-printable plans and models can be endlessly combined and
shaped in intangible form, and traded in both intangible and
tangible forms.
Technology has caused the material and immaterial worlds to increasingly overlap.
#melt
Technology has caused the material and immaterial worlds to increasingly overlap.
melt
I decided to call this new world…
#melt
Internet
melt
Melt has many names:
#melt
Data networks
Servitization
Industrial InternetHome
automation
Sharing economy
Social media
AIInternet of
things
Digitalization
In melt the material and immaterial worlds interact constantly,
forming two loops.
IMMATERIAL
LOOP
MATERIAL LOOP
To be utilized as tools for innovation
and strategy, loops need to be divided up.
For example, information can be extracted from an object.
Elements become scalable and can be conveniently combined with other elements, creating
new innovation potential.
MAKES MATERIAL ELEMENTS INTANGIBLE.
Free
Melting has always had an effect on the material world.
For example, the digitalization of a company’s products soon influences the requirements
and success factors of the entire sector.
SHAPES THE MATERIAL WORLD.
Shape
Immaterial elements flow towards the material world.
Flow means turning elements into something that can be accessed and
shared by others.
MAKES IMMATERIAL ELEMENTS MORE TANGIBLE.
Flow
An immaterial loop amplifies immaterial elements, thrusting
them into motion. Some immaterial elements are
important amplifiers of the immaterial world. Boldness
creates boldness, love creates love.
AMPLIFIES THE IMMATERIAL WORLD.
Amplify
Let me give you an example…
Just had an exceptionally good run! And the weather was just perfect!
EXAMPLE
SmartphonesControl of fire, agriculture, the wheel, printing machine, steam machine, vaccinations… A smartphone may not exactly compare to these inventions, but it does represent a key innovation that defines our life as we know it.
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You buya smartphone.1
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The phone and apps provide information.2
Information creates knowledge, competences, and emotions.3
You buya smartphone.1
AUTONOMOUS ENRICHMENTDevices support human thinking and
action even when people don’t actively produce information.
This is calledA B C
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4 The phone affects your behavior.
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AUTONOMOUS ENRICHMENTDevices support human thinking and
action even when people don’t actively produce information.
This is calledA B C
Your behavior creates information. 5
PERSONAL ENRICHMENTPeople generate information, which is
then enriched back by their device.
This is calledA B C
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Information creates knowledge, competences, and emotions.6
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PERSONAL ENRICHMENTPeople generate information, which is
then enriched back by their device.
This is calledA B C
7You allow the phone to tap into your
competences and emotions.
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PERSONAL ENRICHMENTPeople generate information, which is
then enriched back by their device.
This is calledA B C
8 The phone affects your behavior.
#melt
PERSONAL ENRICHMENTPeople generate information, which is
then enriched back by their device.
This is calledA B C
SOCIAL ENRICHMENTPeople produce information for each
other, which influences their thinking and behavior.
This is calledA B C
9People share information.
10Information multiplies knowledge, competences, and emotions.
11People share competences, experiences, and emotions.
12Other people’s emotions and competences affect your behavior.
#melt
Learn to see the loops in your business, and you may find some surprising insight.
#melt
WWW.MIIKKALEINONEN.COM
You are now familiar with the basic theory behind melt.
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You may copy, modify and use these ideas as you wish.
Don’t fix your strategy. Fix your philosophy.