WIKINOMICS

Wikinomics

Wikinomics

Introduction

The Internet is moving into a new phase. More than connectivity, the real value of the Net today probably lies in connecting people and organizations together through blogs, Wikis, chatrooms and social networks. Mass collaboration is encouraging consumers, employees, suppliers, partners and competitors to share information and ideas. This is radically transforming the traditionally accepted business models. Vertically organized hierarchies and closed business systems are giving way to flat organizations and open platforms. It is an exciting world today of “citizen journalism,” wikis, blogs and social networks. Both individuals and companies need to change to adjust and operate effectively in this world. If they do not, they risk being left behind, even before they realize it.

Executive summary

The new world of collaboration

Collaboration is nothing new. Indeed, man is often described as a social animal. What has changed is the breadth and depth of collaboration. The tools available today empower people to take part in the global economy in a way, which would have been unthinkable a decade ago. Thus an individual can post a blog on a topic of interest, edit an entry in Wikipedia, post a picture on Flickr, post a video on youtube or take part in the Linux community's software development activities.

But it is not in the “virtual” world of dotcoms and software alone that mass collaboration is becoming the norm. Even in traditional industries like FMCG, motor cycles and automobiles, mass collaboration is encouraging innovation, coordination of the supply chain and involvement of customers in the value creation process. As the authors mention right in the first chapter, “even the oldest of old economy industries can harness this revolution to create value in unconventional ways. Companies can reach beyond their walls to sow the seeds of innovation and harvest a bountiful crop. Indeed, firms that cultivate nimble, trust based relationships with external collaborators are positioned to form vibrant business ecosystems that create value more effectively than hierarchically organized businesses.”

Plan of work

The authors refer to the emerging paradigm, “Wikinomics.” The building blocks of Wikinomics are openness, peering, sharing and acting globally. Companies will find it increasingly necessary to open themselves up to ideas from outside their boundaries. Hierarchies are being replaced by a new form of horizontal organization called peering. The need to share IP is also increasing. Maintaining and defending a proprietary system of intellectual property limits the scope to create value. By sharing IP with the larger community, there is often scope for a company to build a much bigger business.

Literature review

Companies will have to not only think globally but also act globally to effectively tap a global talent pool and a market place of new ideas.

The authors examine seven different themes in the book:

Peer pioneers - people coming together to work on projects.

Ideagoras - tapping ideas from outside

Prosumers - the blurring of distinction between producers & consumers

New Alexandrians - initiatives to share knowledge for the benefit of the community.

Platforms for participation - opening up platforms to allow the larger community to ...