Today, Don Tapscott, author of “Wikinomics” presented a keynote about how mass-collaboration is changing the way that value is created in the world economy. This stems from both software functionality and network economies of scale. Obviously the enablement of new forms of economic co-operation is also a factor at continuing to drive specialisation. Tapscott quotes Carr’s “IT does matter” and mentions that he has often debated with him, which is hard because Carr is good, but he (Tapscott) says “I have an advantage in this debate, he’s wrong”. The last three days has made me question about how one can innovate in corporate IT.
He told a story about being on TV, “Surfing the Net” and his kids cut him down to size by suggesting it was on par with surfing the TV or fridge. “I’m browsing the fridge for content!”. (I thought this was really funny, but my kids tell me its not!) Amongst the younger generation, time online is at the expense of TV, and online activity is today a more creative & participatory act than watching TV, going to the Movies or a Play, or using the early web. The drive to participation makes all content collaborative and he has banned the term “web site” due to the owning author implications.
He then examined what Google, Ebay and Amazon really are, and argued that they are digital conglomerates. Google sells ads, which makes it a media company, but its also a retailer, broker and bank. “This is not a bubble!”. The creation and existence of new-age conglomerates, requires the examination of why a firm exists. Classically, its about transaction costs and the benefits of specialisation. As people cease to be labour in a knowldege economy and accounting costs drop to zero, the costs of doing business across the corporate firewall drop and business have created extended enterprises and latterly business webs. The next transformation will be mass collaboration and peer-production. (Interestingly, Tapscott quoted a mutual fund example of a folksonomy based co-operative, but I didn’t write it down. Can any readers add those they know as comments?)
He summarised his presentation with an examination of the seven new business models he’s identified as enabling in the new world of mass collaborations and pointing to his use of a Wiki to develop the ideas, much to the chagrin of his publishers, who are trying to work out how and if they can publish a volume two. They shouldn’t worry, I certainly intend to check out the wiki and probably get the book.