It also allows individuals to communicate and share information, experience, and ideas with others.

 

Wikinomics

Notes from: Tapscott, D. & Williams, A. (2006). Wikinomics (Intro & Chapter 1). New York: Portfolio.

Abstract

Wikinomics studies the economic shift from hierarchical corporate structure to “open source” peer production by “prosumers”. This change is described as wikinomics; an economy where the billion dollar (previously million before the interaction) corporations interact with individuals to rapidly expand knowledge and industry. The growth of Goldcorp using the paradigm of Linux to outsource company knowledge to expand gold mining is used as the starting example to show wikinomics in action. The idea of mass collaboration is rising out of this paradigm shift allowing individuals to organize themselves and work to create “dynamic new goods and services”. The power of these low cost collaborative structures allows for quick dissemination of information and dynamic interaction. Amateurism in media and computer donation such as FightAids@home initiative pave the way for more shifts in the economy where the individual participates on a large scale. The antithesis of this economic shift is discussed as well as potential political implications for large corporations and government. As barriers to entry to most industry dissolve, people need to think globally and collaboratively. The principles of wikinomics, including openness, peering, sharing and acting globally, are all advanced. Thriving in this economy with the use of the World Wide Web is held forth as the only way to stay afloat and truly take advantage of the paradigm shift, which not only allows corperations make use the web as a resource for aiding their own company through pooling of knowledge, but also in reaching target consumers via new media.

Outline - Introduction

1. Hierarchies are seemingly diminishing in favor of community-based collaborations.
2. Many media consumers are adopting the "blogosphere", and becoming "prosumers" along the way.
3. Companies are encouraging and benefiting from the emergence of such collaborations.

Outline - Chapter 1: Wikinomics, The Art & Science of Peer Production

The New World of Wikinomics

A new age is upon us, due to technological innovation, shift in demographics, business and the world, that allows for active participation in collaboration at almost every level; from invention, production, marketing and distribution. The effect of this mass collaboration, collaboration on a global scale, is opportunity for all connected parties; the corporation to the individual. New accessibility puts the necessary tools for collaboration at everyone’s fingertips. The “Peer Production” model of innovation and creation is the result of open collaboration for the sake of growth and innovation within and across industries. Recent examples include: MySpace, Linux, YouTube, and WikiPedia.

The Weapons of Mass Collaboration

With the rise of new technologies and software, individuals and small companies are cocreating and coproducing products and tapping into the market to appeal and satisfy to costumers. These technologies are altering the business model and threatening to destroy those who are unwilling to accept and adapt to the change.

1. The internet has allowed this new mass collaboration by sharing technologies and communication abilities previously only available to large companies.

2. Professionalism continues to face increasing competition from 'amateurs' and 'collaborators'.

3. Users are sharing not just ideas but processes and computing power as well, using innovative technological solutions to capitalize on the distributed resources of volunteers.

4. The sharing community model of mass collaboration is bringing about more dispersal of intellectual property and knowledge assets to farther reaches than ever before. This has impacted speed of creation and speed "to market", and puts the pressure on the need to harness the power of collaborations as a top business priority.

5. The diversity of interest groups utilizing the power of collaboration is helping to hammer home the message that the new paradigm is a force that is not only to be reckoned with, but it's just getting started reordering the world. We've only passed the tip of the iceberg so far.

6. This is not simply a tide of woe and change, but also a powerful force to be harnessed by smart, forward-thinking companies and businesses.

Promise and Peril

There are positive and negative aspects to mass collaboration. Mass collaboration allow companies to expand their knowledge and grow their companies by soliciting new ideas and feedback from various contributers. The negative aspect of this idea is that some companies will be unable to stay abreast of changes in technology and will suffer from this. "The new participation will also cause great upheaval, dislocation and danger for societies..."! Danger for both the large companies and the citizens. Those skeptical of the interests of large companies question whether or not the average citizen will be exploited. However the accessibility of the participation to the social issues will be more efficient and more easy. We can even assume this one more step closer the the direct democracy.

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The New Promise of Collaboration

Peer production will "harness human skill, ingenuity, and intelligence more efficiently and effectively...." With collaboration firms will be able to get opnions and knowledge from other experts outside their networks. This will create more information available to the firms and create stronger products. Peer production is essential to collaboration, and by firms becoming more open, collaboration will lead to greater knowledge and more accomplishments. On the other hand, peer collaboration also creates direct competition between the peer collaborators and companies. By this way the demand of the customers will be supplied not only by limited business partners but also by mass collaboration firms that are highly advantageous.

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The Principals of Wikinomics

1. A new kind of business is on the horizon: "one that opens its doors to the world, co-innovates with everyone...shares resources...harnesses the power of mass collaboration...and behaves as a truly global firm".
2. Traditional business practices are being deemed "insufficient, and in some cases, completely inappropriate".
3. Wikinomics is based on four things: openness, peering, sharing, and acting globally.

Being Open

Mass Collaboration thrives on an open forum of individuals bringing their diverse experiences to the forefront. Large companies must also be open to accepting this new approach in order to flourish in the new economy. Companies that are engage in mass collaboration will result in the profit of creative ideas and knowledge without limited boundaries and restrictions.

Peering

A new form of organization known as peering is replacing more traditional hierarchical forms. Peering allows for different individuals to have more input in the creation of information goods. It also allow individuals to communicate and share information, experiences, and ideas with others. Peering is successful because it collects expertise from people from a variety of areas and serves as a valuable tool in wealth creation. The lack of traditional hierarchies allows people to contribute because they feel more like equals.

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Sharing

A practice that is breaking down barriers of common conceptions of the inherent value of exclusive intellectual property. Sharring allows businesses, scientists, individuals, etc., to collaborate and comment on possible solutions to problems of similar interest. Sharing of intectual property is necessary to foster a success collaborative effort. Certain industries have taken a defensive stance on IP sharing, most notably the music industry. These industries see IP sharing as a threat to their existing business models. Digitization of music and video allow creation and distribution to become both easy and cheep.

Acting Globablly

Companies and even individuals will need to know the world, including its markets, technologies, and peoples. Those that dont know will find themselves handicapped, unable to compete in a business world that is unrecognizable by today standards.

When computers run fast enough, and the bandwidth is there, everything that is remote feels local. You do not need to be present in the room to participate.

Thriving in a World of Wikinomics

To keep one's head above water, four principles must be used: openness, peering, sharing, and acting globally. The more information we are willing to share with one another for a just cause, the better of a world we will live in. Collectively, we will accomplish more, discover more, invent more, therefore, making us a more powerful society and global force. The important thing is for organizations and societies to continue to innovate. The speed and scope of change is intensifying. Political and legal shifts loom.

A New Way of Thinking and Acting

The hierarchal nature of mass media and business is becoming a thing of the past. Wikinomics observes the practice of mass collabaration in order to achieve a common goal. Rather than a single producer, the creative input of a large group of people is collected in efforts to tap into more minds, and reach a more global audience.

Related Links

On this wiki

• Some notes on Benkler (A related reading)

Elsewhere on the web

• Entry on Dan Tapscott from Wikipedia
• Goldcorp
• Wiki While you Work from Microsoft TechNet

Where does this go...?