New businesses reside in the linked economy November 11, 2008Posted by David Gillespie in business strategy, creativity, intent, strategy, technology, web 2.0.
Tags: Doc Searls, flickr, Jeff Jarvis, MySpace, Threadless, YouTube
Image via Wikipedia
I spend a lot of time with friends thinking about where tomorrow’s businesses lie, and I’m on the record that great content with good intentions and an open philosophy will be at the heart of the real money-makers in the next decade.
With that in mind, I’ve just read a fascinating post from Mark Ury who is an Experience Architect at Blast Radius. Mark ties together a few loose strands of thinking and comes out with something entirely his own. I particularly love the below principles he borrows from Jeff Jarvis…
Can applying “link economy” strategies work for “traditional” companies? Here are Jeff Jarvis’ four principles. And below is a modified version, applied to companies in pursuit of innovation:
1. All companies must be transparent. Your talent base and IP must be exposed and connected. They’re not useable unless they’re linked.
2. The recipient of IP and talent is the party responsible for monetizing them. The more you enable the flow of IP and talent AWAY from you, the more it comes BACK—with greater value and skills to monetize. Just watch how Hollywood operates.
3. A porous organization is the key to efficiency. In other words: do what you do best and link to the rest.
4. There are opportunities to add value atop the IP and talent layer. This is where one can find business opportunities: by managing abundance rather than the old model of managing scarcity. The market needs help finding the good stuff; that curation is a business opportunity.
…which he applies to Threadless during the course of the post…
The result: a business that manages abundance (t-shirt ideas), provides value through transparency (the audience becomes both editor and consumer), and values the flow of IP and talent through them—rather than by them. (Doc Searls calls this kind of value “a shift from “making money with” to “making money because.”)
Great piece. And it contains some links to some other fascinating reads on “the linked economy”. Mark also takes the time to talk about opportunities that exist around monetising the aggregation of information and content, of which Threadless is a prime example (as is Flickr, YouTube, MySpace etc.).
The idea here is this: find the verticles in seemingly well-mined markets, and you will open up doors the rest of us never knew existed.