Team FRN
Antoine Woods
Darrell Boyd
Jason Griffin
Ryne Joyner
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Throughout the book we have seen many
examples of the benefits of using wikinomics.
Overall the best example of this is of Rob
McEwen, the former visionary CEO of
Goldcorp. http://www.goldcorp.com/
McEwen created a contest to get help finding
the best spots to mine on Goldcorp's property.
(example)
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The results of the contest made Goldcorp an
overnight center of excellence in Canadian
mining and now the world.
The contest allowed the company to slash the
cost of production by over 600 percent in just
four years.
The company soon stockpiled more gold than
the Bank of Canada.
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Goldcorp was able to buyout it’s biggest
competition, which gave them a huge boost in
world of gold mining.
By 2006, Goldcorp was North America’s thirdlargest gold producer
And Red lake mine became the richest gold
mine in the world.
Again, this all occurred due to one man
stepping out of the box and trying something
unproven.
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With the success of companies that use
wikinomics becoming greater, new models
have been developed to follow.
Peer producers are now applying open source
principles to create products made of bits from
operating systems… to encyclopedias.
Ideagories give companies access to a global
marketplace of ideas, innovations, and
uniquely qualified minds that they can use to
extend their problem solving capacity
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Prosumer communities can be an incredible
source of innovation if the companies give
customers the tools they need to participate in
value creation.
The New Alexandrians are ushering in a new
model of collaborative science that will lower
the cost and accelerate the pace of technological
progress in their industries.
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Platforms for participation create a global stage
where large communities of partners can create
value and, in many cases, new businesses in a
highly synergistic ecosystem.
Global plant floors harness the power of
human capital across borders and
organizational boundaries to design and
assemble physical things.
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Wiki workplaces increase innovation and
improve morale by cutting across
organizational hierarchies in all kinds of
unorthodox ways.
These new forms of peer production enable
firms to harvest knowledge, resources, and
talent on a scale that was previously
impossible.
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It’s hard for senior executives to imagine a
world where their companies could lose
control of the very resources they have
monopolized for so long.
The companies that adopt these models can
drive important changes in their industries and
rewrite the rules of competition.
But in order to do so they must first discard
some of the conventional business wisdom that
companies have used for years.
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The four principles of wikinomics; openness,
peering, sharing, and acting globally. Will
drive innovation and wealth creation to new
highs.
In the new world of wikinomics, it turns out
that just about anyone can be a leader.
Many telephone companies around the world are
in jeopardy. In the world of free internet
telephony, a major source of revenue is set to
disappear altogether.
Ex. Telephone companies are trying to compete
with Skype but failing
Telecommunication companies face a genuine business
problem. They need to salvage their investments in
maintaining and upgrading their telecommunication
infrastructures. But with free services cutting into their
revenue they have deemed their service fees they charge
customers and businesses for internet connections too
insignificant by way of compensation. So they want to
create a tired Internet with different levels of service akin to
first class, business, and coach.
CTO of BellSouth Will Smith has already
proposed to charge fees in exchange for giving
one web vendor’s traffic priority over the
traffic of a competitor.
Example: If Yahoo pays the freight, BellSouth
users will find Yahoo’s search engine works
faster than Google’s. So, in effect, BellSouth
becomes a gatekeeper for the types of services
that will thrive on the internet- and internet
where bandwidth and content delivery rights
are auctioned off to the highest bidders.
This poses a grave threat to the internet- a threat
that could extinguish the fire of innovation that
has spurred countless new businesses,
including most of the examples discussed in
this book. This is not just a war against the
open internet; it’s a war against economic
development, competitiveness, and a war
against innovation. A WAR AGAINST THE
FUTURE!!!!!!!!!!!
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Google CEO Eric Schmidt says: “Providing
tiered service is not a good strategy, it could
materially and negatively affect the adoption
rate.”
If Microsoft had launched an aggressive attack on
Linux in 1996, for example, it might not have
won , but it could have changed the future
landscape. It didn’t do that, and today it’s
busy adopting open source tactics in its
businesses as fast as it possibly can.
Some telecom companies are trying to fight the
internet back with laws and regulations to
prevent them from entering their market.
The best route is to move early to participate in
building a brand-new business. By joining
with a community of new innovators, you
might end up at the front of the parade. This is
what Red Hat and IBM have done with Linux.
www.redhat.com
In order to be successful in today’s economy
businesses must not remain stagnate. They
have to be willing to adapt to technology.
“Blacksmiths weeping in their beer about their
inability to sell hoseshoes in the era of
railroads, doesn’t make horseshoes more
popular. Blacksmiths learning how to become
auto mechanics, on the other hand, puts food
on their table.”—Cory Doctorrow, Blogger/SciFi Writer
A growing number of smart companies are
learning that openness is a force for growth
and competitiveness. Amazon, eBay, flickr
open up their applications and business
infrastructures to increase the speed, scope,
and success of innovation.
Proctor and Gamble
Had not been open to the idea of openness, this
led to a near death experience in early 2000.
Profits were down and its stock was going
downward.
Their Solution
Putting more money into internal R&D wasn’t
working, so……….
The company opened up and outsourced about
50% of its new innovation from outside the
company. They constantly search for new
innovations using InnoCentive, NineSigma,
and yet2.com.
French Government
Vs
Ipod
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Boeing reached beyond its walls to cocreate the
787 with a network of partners that stretches
over six countries. It gave up control over a
large proportion of the thousands of
components that make up its airplane and
sacrificed some critical engineering knowledge.
In the process Boeing is transitioning into a
smaller, more capable workforce that is honing
new skills to manage a globally distributed
team made up of different companies, cultures
and disciplines.
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Flickr started in 2003 as an online multiplayer
game in which the phototrading feature was
almost an after thought. Once it took off it
changed the direction of the company. Soon
hundreds of thousands of members were
uploading, annotating , and commenting on
each other’s photos
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The secret to successful peering is building a
critical mass of participants that attracts more
and more people
Few projects survive without ongoing funding
and support and a core group of leaders that
provide guidance and manage interactions
For example the ongoing development of
Wikipedia relies heavily on the vision, values,
and commitment of Jimmy Wales and a core of
Wikipedians
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An important part of creating critical mass
involves cooperating to supply the open
standards, shared IP, legal foundations and
collaborative infrastructures that will support
the innovation process.
The Apache web server would be nowhere if
not for the leadership and resources IBM
dedicated to help establish it
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The SNP Consortium took over a year to flesh
out its model of collaborative research and
development
In the end the collaborative research effort
more than repaid the time and effort required
to get the processes right by dramatically
lowering their cost and speeding the industry
toward a new era of personalized medicine
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Providing the right for everyone to enjoy
noncommercial benefits keeps the barriers to
participation low.
Reserving the right to appropriate private
returns to those who make substantial
contributions will reward those who put in the
most effort
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There are written and unwritten rules that
govern issues such as communications,
appropriation, and the form and manner of
contribution.
Firms that want to participate in peer
production need to understand and abide by
the norms that govern the community
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IBM chose evolution when it decided to join,
not fight, peer production.
The firm did study open source and set
appropriate goals to guide its activities, but it
learned how to succeed through trial and error.
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Engaging in collaborative communities means
ceding some control, sharing responsibility,
embracing transparency, managing conflict,
and accepting that successful projects will take
on a life of their own
It means learning new skill sets that emphasize
building trust, honoring commitments,
changing dynamically, and sharing decision
making with peers
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Mass collaboration is the new way for people
to socialize, entertain, innovate, and transact in
self organizing peer to peer communities of
their choosing
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Peering is giving away software and resources
to support them (IBM and Linux specialize in
this)
Ultimately harnesses human skill, ingenuity,
and intelligence more efficiently and effectively
than before.
Saves on development costs and generates
billions in revenue from Linux-related services
and hardware for IBM.
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Linden Labs enables users to “co-create”
Second Life (It produces less than 1% of the
actual game content)
They in turn give scripting tools to users
This allows users to basically create their own
virtual world
Second Life has a $100 million turnover
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Focuses on lowering costs, building
communities, and accelerating discovery
California Department of Education saved
taxpayers $400 million a year by open sourcing
its textbooks
More companies and organizations are looking
towards open sourcing. (Bill and Melinda
Gates Foundation)
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Sharing rules of thumb: