Don Tapscott, author of Wikinomics (and others), on how the participatory web is changing how goods and services are invented, produced, marketed and distributed.
He buys into the idea that there is a new enterprise, moving from a closed hierarchy system moving to an open networked enterprise. He noted this his 1992 book: Paradigm Shift.
He identified four drivers of the change:
- Web2.0 – The new web is based on xml, which allows computation. You can access the web through devices other than a PC.
- The Net Generation – We have the first generation to grow up in the internet age. They do not have a fear of technology; they grew up on it. They don’t really use email; they view at as a formal type of communication.
- Social Revolution – flickr vs. webshots. Flickr has taken off. Myspace is killing MTV.com. Wikipedia is killing Brittanica.com. Blogger beats CNN.com.
- Economic Revolution – There is the rise of the digital conglomerates: ebay, yahoo, google, ebay, microsoft and amazon. Google is telecom provider (they are wiring SF), they are an ad agency, they are retailer, they are a hardware manufacturer.
He saw it an extended enterprise. Transaction costs and collaboration costs are being reduced so it makes more sense to break up the vertical integration. This leads to four new principles of the new business model: Peering – rather than cogs in the supply chain, Being Open – transparency of the enterprise, Sharing – intellectual property and Acting Global – why be multinational when you can be global. “If you are going to be naked you need to be buff.”
Goldcorp as an example of the new business model. His geologists could not tell him where the gold was. He took his geological data and published it on the internet for a contest. There was a $500,000 if anyone can tell him if he had any gold and if so where it was. The winner was a computer graphics company that gave him a 3D model of his mine.
What are the New Models:
- Peer Pioneers
- Ideoagoras – open markets for thoughts and ideas
- Prosumers – turn your customers into producers
- New Alexandrians – the sharing of science
- Open Platforms – example the amazon API for retailers
- Global Plant Floor – suppliers are peers
- Wiki Workplace – use collaborative tools to design internal procedures