Want to know how mass collaboration can save a dying business? Ever wondered how companies like Goldcorp, Amazon, and Google utilize the power of collective intelligence for remarkable results? Curious about how the digital age is reshaping traditional corporate structures and driving unprecedented value creation? Dive in to learn about the transformative power of mass collaboration in the digital era, where the future belongs to those who can adapt to the new collaborative economy.

Wikinomics: How Mass Collaboration Changes Everything

Rob McEwen, the CEO of Goldcorp Inc., faced a dire situation. The company’s Red Lake gold mine seemed exhausted, and conventional methods were failing. 

Inspired by how Linux was developed openly by a global community, McEwen decided to take a radical step. He launched the "Goldcorp Challenge," sharing all his geological data online and inviting the world to help find new gold deposits. The response was overwhelming, with participants from diverse fields identifying rich new targets, transforming Goldcorp into a billion-dollar business.

This story exemplifies the power of mass collaboration, a concept central to "Wikinomics." This new age of participation is driven by technological advancements, enabling people to collaborate on a massive scale. Platforms like MySpace, YouTube, and Wikipedia show how collective efforts can create significant value, rivaling traditional enterprises. The principles of openness, peering, sharing, and acting globally are reshaping how businesses and societies operate.

For example, Procter & Gamble sources half of its new ideas externally through networks like InnoCentive, while platforms like Skype leverage shared computing power to offer free global communication. This shift towards open, collaborative efforts is not just transforming industries but also empowering individuals worldwide to participate in the global economy.

The future belongs to those who can harness this new collaborative force. Companies and individuals must adapt to this dynamic environment, embracing transparency, global thinking, and the collective genius of open networks. This new era of mass collaboration promises unprecedented innovation and growth, but only for those who are ready to engage and co-create in this interconnected world.

Can Mass Collaboration Transform Businesses Like Goldcorp and P&G into Billion-Dollar Giants?

Cory Doctorow, a science fiction writer and co-editor of Boing Boing, inadvertently sparked a massive controversy on October 31, 2005, when he learned Sony-BMG was installing harmful DRM software on customers' computers. 

Doctorow, a fierce advocate against corporate tech abuses, used his popular blog to expose Sony's actions, which led to a public relations nightmare for the company. Sony's software not only restricted users' copying abilities but also exposed their PCs to security risks and relayed private data back to Sony.

Doctorow's proactive stance on technology and intellectual property reflects a broader shift in how content is shared and consumed in the digital age. He offers his own works as free downloads to combat obscurity rather than piracy, believing that building relationships with readers fosters loyalty and visibility. This approach is emblematic of the evolving Web, which has transformed from a passive information source to an active, participatory platform where users co-create content and communities.

The new Web, or Web 2.0, is characterized by user-generated content and collective intelligence, as seen with platforms like Flickr and Wikipedia. It’s a space where blogs have turned the Internet into a dynamic conversation and tagging systems help organize content organically. These changes have lowered barriers to entry for new businesses and fostered innovation through shared resources and open APIs.

This participatory culture aligns with the values of the Net Generation, individuals born between 1977 and 1996 who are inherently collaborative and tech-savvy. They dominate online communities like MySpace and Facebook, using these platforms not just for socializing but also for activism and peer-to-peer learning. This generation values transparency, fairness, and the ability to contribute meaningfully, which extends into their roles as consumers and workers.

In the business world, traditional corporate structures are being challenged by these new collaborative models. Companies are increasingly leveraging global talent and forming business webs to stay competitive. The global economy, with rising powers like China and India, is also forcing firms to rethink their strategies and embrace cross-border collaboration.

As we navigate this perfect storm of technology, demographics, and global economics, the key to success lies in embracing openness, participation, and innovation. Businesses that can harness the power of mass collaboration will thrive in this new era.

How Cory Doctorow's Sony Exposé and Web 2.0 Revolutionized the Digital Age

On July 7, 2005, London was rocked by four synchronized bombings. Within minutes, a Wikipedia entry about the event was created, and by the end of the day, thousands of users had contributed to a comprehensive account. This demonstrated the incredible power of peer production, a model where dispersed volunteers collaborate to create something remarkable, often surpassing traditional enterprises.

Wikipedia and Linux are prime examples of peer production. Wikipedia, now the largest encyclopedia, was built entirely by volunteers. It allows anyone to edit, facilitating a dynamic and ever-evolving repository of knowledge. Linux, a free operating system, has become a cornerstone for technology companies, generating billions in revenue through associated hardware and services.

Peer production raises questions about the future of industries and how companies can leverage this model. If volunteers can create an encyclopedia or an operating system, what’s next? Companies face a choice: resist this movement like the music industry did with file sharing or embrace it as IBM did with Linux. IBM's strategic shift to support Linux not only saved costs but also positioned them as leaders in the open-source community.

Peer production relies on self-organizing communities where individuals contribute voluntarily, often driven by passion and the desire for recognition rather than monetary compensation. This model is efficient because it matches the right people to the right tasks through self-selection. For example, the California Department of Education is using a similar model to develop open-source educational materials, potentially saving millions.

The success of Wikipedia and open-source software like Linux shows that peer production works because it can. It leverages the collective intelligence and creativity of a diverse group of people, often resulting in innovative and cost-effective solutions. Companies that recognize and adapt to this model stand to gain significantly, while those that ignore it risk becoming obsolete.

IBM’s journey with open source exemplifies how a large, proprietary company can embrace openness for reinvention. By supporting open-source communities, IBM has saved costs and fostered innovation. This approach, known as collaborative outsourcing, allows companies to focus on their strengths while leveraging the collective power of peer production.

The rise of open-source business applications is redefining enterprise software. Companies like Pentaho and Medsphere are offering affordable open-source solutions, democratizing access to enterprise tools. This second wave of open source is creating new opportunities for small and medium-sized businesses to enhance productivity and efficiency.

Despite the complexity of managing open source, solutions like SpikeSource are emerging to simplify integration and support. Open-source companies are targeting underserved markets, providing robust, low-cost alternatives to proprietary software.

Critics argue that open source undermines profit, but they miss the broader ecosystem of value creation. Open source fosters innovation, reduces costs, and shifts competition to new areas. Companies like IBM have shown that contributing to shared infrastructures can lead to significant competitive advantages.

In short, peer production is transforming industries by harnessing collective intelligence and creativity. Companies must adapt to this new model, leveraging its benefits while navigating its challenges. Those who do will drive innovation and maintain a competitive edge in the rapidly evolving market landscape.

Can Peer Production Models Like Wikipedia and Linux Revolutionize Your Industry?

Louis Pasteur once said, "chance favors the prepared mind," and in the world of innovation, this couldn't be truer. Companies face challenges daily and often, the perfect solution lies with an expert somewhere in the world. However, finding this expert can be like finding a needle in a haystack. Enter Ideagoras, a modern marketplace for ideas, innovations, and specialized minds, which is transforming the way companies innovate.

Take Werner Mueller, a retired chemist from Hoechst Celanese, who turned his retirement hobby into a full-fledged consulting business thanks to Ideagoras. Mueller discovered InnoCentive, a website where companies post scientific challenges and offer cash rewards for solutions. He solved a problem for a pharmaceutical company, earning $25,000 and turning his passion into a profitable venture. 

Mueller's story is just one among many, with 90,000 scientists from 175 countries registered on InnoCentive, helping companies like Boeing, Dow, and Procter & Gamble solve complex R&D problems.

InnoCentive, launched by Eli Lilly in 2001, operates like eBay for innovation. Companies ("seekers") post problems anonymously, and scientists ("solvers") submit solutions for cash prizes. This model allows companies to tap into a global network of talent, often leading to innovative solutions they might never have considered. As InnoCentive CEO Alf Bingham puts it, "It produces a diversity of thought about the problem that can often make the solution rather unique."

Similar platforms like NineSigma, InnovationXchange Network, and YourEncore are emerging, creating a vibrant virtual marketplace for ideas. YourEncore, for instance, explicitly recruits retired scientists looking for new challenges, much like Mueller.

The rise of Ideagoras signals a shift in the way companies approach R&D. Instead of relying solely on internal capabilities, companies can now access a global pool of talent, accelerating innovation and reducing costs. This new approach allows companies to ask, "What do our customers really need?" and find solutions in the global marketplace.

The traditional model of closed, internal R&D is giving way to a more open, collaborative approach. Companies like Procter & Gamble are leading the way with initiatives like "connect and develop," sourcing up to 50% of their new product ideas from outside the company. This strategy has increased P&G's R&D productivity by nearly 60% and led to the successful launch of over 100 new products.

To harness the power of Ideagoras, companies need to create a culture that supports the acquisition of external ideas and technologies. This involves refining their approach to intellectual property, sharpening their external radar, and fostering a collaborative R&D environment. Intermediaries like yet2.com and InnoCentive play a crucial role in brokering deals and increasing market liquidity.

The journey to the new innovation landscape involves embracing the principles of wikinomics—openness, peering, sharing, and acting globally. Companies that adapt to this new model will find themselves better equipped to compete in today's fast-paced, global economy. With Ideagoras, the world truly becomes your R&D department, offering unprecedented opportunities for growth and innovation.

InnoCentive and Ideagoras: Revolutionizing Global Innovation

Philip Linden and Lawrence Lessig sat in a virtual amphitheater, discussing societal rules and innovation in a groundbreaking community called Second Life. This virtual world allows over 325,000 participants to socialize, create, and transact in a user-generated environment. 

Second Life's residents, or "prosumers," not only consume content but also produce and innovate within the game. This concept of "prosumption" blurs the lines between producers and consumers, with users actively co-creating and customizing products.

One notable resident, Anshe Chung, runs a successful virtual real estate business, earning substantial real-world profits. Second Life is a testament to the power of user-generated content, with users creating nearly all the in-game elements. The platform's success highlights the potential of prosumption, where customers participate in design and production, leading to rapid innovation and strong community engagement.

The idea of prosumption isn't new; historical examples include Cornish steam-engine makers and early personal computer enthusiasts who openly shared innovations. Today, platforms like Lego's Mindstorms and Factory systems encourage users to design and share custom creations, enhancing product value and fostering vibrant communities.

However, prosumption poses challenges for companies like Apple and Sony, which face dilemmas in balancing control with customer innovation. Apple's iPod and Sony's PSP have seen extensive user modifications, leading to conflicts over business models and intellectual property. While some companies resist customer innovations, others, like Lego, embrace and incorporate user input, leading to greater product success.

The rise of prosumption also impacts the media industry, with platforms like YouTube, Slashdot, and digg democratizing content creation and distribution. These sites enable users to generate, share, and rate content, challenging traditional media models and emphasizing the importance of customer participation.

Prosumption is transforming industries, encouraging companies to involve customers in product development and innovation. By harnessing the creativity and enthusiasm of prosumer communities, businesses can drive growth and stay competitive in an increasingly collaborative economy. As prosumption becomes more prevalent, companies must adapt to this new paradigm, recognizing that customer value and engagement are key to success.

Can Second Life's Prosumers Revolutionize the Future of Innovation?

The ancient Greeks in Alexandria had a bold idea: collect all human knowledge in one place to advance science and culture. At its peak, the Great Library of Alexandria housed over half a million volumes, including works by Aristotle, Plato, and Euclid. Despite its destruction, the spirit of accumulating and sharing knowledge lives on in our digital age.

Today, we're witnessing an unprecedented explosion of information. Kevin Kelly, cofounder of Wired, reports that humans have published millions of books, articles, and other forms of media, with the total amount of human knowledge doubling every five years. Companies like Google and institutions like Harvard are digitizing vast amounts of this knowledge, creating a new universal library accessible to all.

This digital revolution is transforming how we create and share knowledge. Open-access publishing and collaborative web services are enabling global communities to tackle major scientific challenges like climate change and diseases. This new collaborative science paradigm is expected to bring about more change in the next fifty years than the last four centuries.

The concept of sharing for science isn't just academic. Companies are rethinking their R&D strategies to collaborate on precompetitive knowledge, like the SNP Consortium in pharmaceuticals, which mapped the human genome to advance personalized medicine. Such collaborations can reduce costs, speed up innovation, and ultimately benefit society.

Even in drug discovery, where costs and risks are high, there's potential for open-source models. Initiatives like the Human Genome Project have shown that sharing information can lead to breakthroughs. Similarly, Intel's open university network leverages academic partnerships to foster innovation while spreading costs and risks.

To sustain this momentum, we need to balance public and private interests in intellectual property. A robust public domain is crucial for ongoing innovation. Companies that embrace openness and collaboration, while protecting their core assets, are likely to thrive.

In essence, the new Alexandrians of today are building a foundation of shared knowledge that will drive future economic and technological progress, much like the original library aimed to do millennia ago.

Digital Renaissance: Kevin Kelly and the Revival of Alexandria's Knowledge Legacy

In May 2005, Paul Rademacher was searching for a house in Silicon Valley. Frustrated with the endless Google maps, he created housingmaps, a mashup combining Craigslist listings with Google Maps. This innovative tool, though simple, was one of the first mashups and quickly gained popularity, leading to a surge in similar applications.

Mashups, like housingmaps, are just the beginning of a new era of open platforms for participation, where large communities collaborate to create value. Companies like Amazon, Google, and eBay have embraced this by opening their APIs, enabling developers to build value-adding applications. For instance, 40% of goods on eBay are uploaded by third-party stores using eBay as a sales channel, and Amazon has 140,000 developers creating new offerings using its product database and payment services.

An inspiring story of the power of open platforms is the PeopleFinder project after Hurricane Katrina. Volunteers created Katrinalist, a central repository of survivor information, in just four days, helping reunite families and save lives. This grassroots effort outperformed official response teams, demonstrating the potential of mass collaboration.

Platforms like Google Maps have inspired countless mashups, from pinpointing crime sites to finding cheap gas. The BBC has also joined the trend with its Backstage project, inviting developers to create new services using BBC content. This approach is not limited to tech companies; governments can also benefit by making public data accessible for new applications, as seen with the Environmental Defense Fund's Scorecard and Neighborhood Knowledge California (NKCA).

Amazon is a prime example of harnessing open platforms for commerce. Its community of developers and associates drives innovation and growth. Amazon's APIs allow developers to create new applications, and its affiliate programs generate significant revenue. By opening its platforms, Amazon has created a dynamic ecosystem that continually pushes the boundaries of innovation.

The success of open platforms relies on creating incentive systems that reward all participants. Companies like Amazon have mastered this by offering commissions and support to developers. As the new Web evolves, platforms for participation will become standard, and the companies that effectively harness this power will lead the way in innovation and growth.

In short, open platforms for participation represent a new business model that thrives on mass collaboration. By embracing openness, companies can create vibrant ecosystems that drive innovation and growth, attracting a loyal base of innovators and partners.

Did Paul Rademacher’s Housingmaps Launch the Era of Open Platforms?

In rural Ghana, students are crafting designs for affordable mobile refrigeration units, aiming to transform local manufacturing using a $25,000 fab lab from MIT. Across the globe in India, villagers utilize similar fab labs to produce machine parts and diagnostic tools, while in Norway, shepherds and fishermen employ these labs' wireless devices to track livestock and boats. 

These fab labs, as described by MIT Professor Neil Gershenfeld, could revolutionize production by enabling anyone to manufacture goods at home, akin to how computers democratized information access.

This vision aligns with the rise of a global plant floor, where collaboration and open-source methods are reshaping how goods are designed and assembled. No longer are massive multinationals the sole producers; instead, a network of decentralized firms collaborates to innovate and manufacture. 

This shift is evident in industries like automotive and aerospace, where companies like BMW and Boeing leverage global networks of suppliers and partners to co-create vehicles and aircraft. Boeing's 787 Dreamliner, for instance, is a product of global collaboration, with components sourced and assembled worldwide.

In China, the motorcycle industry exemplifies this collaborative manufacturing model. In Chongqing, a hub for motorcycle production, a network of firms cooperates to design and produce bikes at competitive prices, often outperforming Japanese counterparts. This modular approach allows for rapid innovation and cost reduction, challenging traditional manufacturing paradigms.

As industries embrace this collaborative spirit, companies are learning to focus on core competencies, share risks and costs, and harness the collective expertise of global partners. The transformation is evident in the evolution of the supply chain into a value network, where suppliers are viewed as partners rather than mere vendors. This shift promises not only efficiency and innovation but also a new era of manufacturing where creativity and collaboration drive the production of the world's goods.

MIT Fab Labs & Global Collaboration: Revolutionizing Manufacturing from Ghana to Boeing

When Robert Stephens graduated in computer science in 1994, he initially wanted to start a consultancy but ended up in computer repair due to budget constraints. Recognizing a demand for technical support, he founded Geek Squad, a quirky, branded service to help consumers manage their tech issues. 

Geek Squad’s unique branding and effective service led to its acquisition by Best Buy in 2002. From 60 employees and $3 million in revenue, Geek Squad now boasts 12,000 agents and nearly $1 billion in revenue under Best Buy.

Geek Squad’s success is fueled by innovative internal collaboration using wikis, video games, and other tools to brainstorm, manage projects, and socialize. This approach has fostered a dynamic and engaged workforce, contributing to both product innovation and marketing.

An interesting story Stephens shared involved Geek Squad agents using the online game Battlefield 2 to stay connected and share work tips, leading Stephens to adjust his strategy to support the agents' organic ways of collaborating.

Beyond Geek Squad, Best Buy has embraced bottom-up innovation, prominently illustrated by store manager Gil Dennis’s idea for the GM Forum, which allowed store managers to share insights directly with executives. This initiative has become integral to Best Buy’s customer-centric strategy.

Socialtext CEO Ross Mayfield highlighted the broader trend of using wikis and other social computing tools for workplace collaboration, emphasizing that these technologies adapt to user habits and foster trust. Examples from companies like Hewlett-Packard and Xerox show how wikis can improve efficiency and innovation.

The author predicts a shift towards more decentralized, self-organizing workplaces leveraging these new tools and the incoming Net Generation's collaborative ethos. This transformation promises greater agility, innovation, and competitive advantage for companies that embrace it.

How Did Geek Squad's Quirky Beginnings Lead to Best Buy's Billion-Dollar Innovation?

Imagine a world where a small mining company defies tradition, transforming an industry by sharing its secrets with the world. This is the story of Goldcorp under Rob McEwen, who dared to release proprietary geological data online, sparking a global treasure hunt for gold. This bold move turned Goldcorp into a powerhouse, slashing production costs and amassing wealth.

Goldcorp's tale raises intriguing questions: What if more companies embraced collaboration and external input? Could industries revolutionize by tapping into a diverse pool of global talent? The answer lies in new business models driven by collaboration, such as crowdsourced innovation, peer production, and customer-driven creation. These models enable companies to harness external knowledge and talent, driving growth and competitiveness.

Yet, this collaborative shift faces criticism. Some argue that democratized digital content flattens culture, undermines expertise, and threatens intellectual property rights. However, the vast web of user-generated content offers a chance to discover hidden gems and nurture creativity on an unprecedented scale. The true challenge is finding a balance between traditional gatekeeping and embracing the creative chaos.

Moreover, industries like media and telecommunications grapple with the innovator's dilemma, facing threats from free content and services. Some companies resist change, clinging to outdated models, while others like Nettwerk Records and Radiohead embrace the new reality, finding ways to monetize emotional connections and user participation.

At the heart of this transformation is the Internet itself—a platform of innovation, not control. Attempts to tier the Internet threaten its openness and the very essence of progress. Leaders must rethink their strategies, embracing collaboration to stay ahead in a world where stability is dead.

In this new era, the choice is clear: adapt and thrive with collaborative innovation, or risk falling behind as the tide of progress sweeps forward. As paradigms shift, leaders must shed conventional thinking and embrace the power of collaborative minds. The time to act is now.

Rob McEwen's Goldcorp Gamble: Revolutionizing Mining Through Open Secrets

In February 2007, Novartis, a Swiss pharmaceutical giant, took an unprecedented step in the industry by releasing millions of dollars worth of genetic data on type 2 diabetes to the public for free. This move aimed to harness global expertise to expedite the development of new medicines. 

Mark Fishman, president of Novartis Institutes for BioMedical Research, emphasized that unlocking diabetes-related genes was just the beginning, and translating these findings into new drugs required global collaboration. By sharing their data, Novartis aimed to tap into a broader pool of talent and insights, boosting their R&D efforts and fostering closer ties with the academic community.

This approach encapsulates the principles of wikinomics, which include openness, peering, sharing, and acting globally. By thinking beyond their 98,000 employees, Novartis leveraged a wider network of individuals and organizations to achieve their business goals. They shared intellectual property to build relationships and stimulate progress in research, while retaining some proprietary insights to maintain a competitive edge.

Other companies, like Amazon and P&G, have also embraced openness to drive innovation and growth. P&G's transformation from a secretive company to an open innovation powerhouse in the early 2000s led to hundreds of new products and revitalized its business. Similarly, platforms like Facebook and Mozilla's Firefox have thrived by fostering user collaboration and innovation.

IBM's involvement with the Linux community and Mozilla's success with Firefox exemplify the power of peer production. These companies harness global talent, leading to significant cost savings and innovative products. Mozilla's Firefox, developed by a small team with contributions from a vast volunteer community, has captured a significant market share from Microsoft's Internet Explorer.

Sharing and openness have proven beneficial in various sectors. The California Department of Education's open-source textbooks saved taxpayers millions, while open-source drug discovery initiatives by organizations like the Bill and Melinda Gates Foundation have advanced research on neglected diseases.

To thrive in this new era of mass collaboration, companies must embrace openness, foster internal and external collaboration, and adapt to new business paradigms. Engaging in collaborative communities requires new skills and a willingness to share control and responsibility. As the landscape of business evolves, harnessing the principles of wikinomics will be key to achieving growth and innovation.

Can Novartis' Bold Move to Share Genetic Data Revolutionize Diabetes Research?

By openly sharing data and inviting global participation, companies can tap into diverse expertise and achieve remarkable results. This approach was exemplified by Goldcorp's "Goldcorp Challenge," which transformed their business by leveraging collective intelligence.

The concept of mass collaboration is central to the evolving digital landscape, where user-generated content and open platforms like Wikipedia, YouTube, and Linux drive unprecedented value creation. Businesses are increasingly sourcing ideas and solutions externally, fostering innovation through open networks and collaborative efforts.

This participatory culture, embraced by the tech-savvy Net Generation, is reshaping traditional corporate structures. Companies are leveraging global talent and forming business webs to stay competitive, driven by the principles of openness, peering, sharing, and acting globally.

Peer production models, demonstrated by Wikipedia and open-source software, highlight the efficiency and innovation that can arise from self-organizing communities. These models challenge traditional industries, prompting companies to either resist or embrace the shift towards open collaboration.

The rise of ideagoras, or marketplaces for ideas, further underscores the shift towards open innovation. Platforms like InnoCentive enable companies to solve complex problems by tapping into a global pool of experts, accelerating R&D and reducing costs. This approach reflects a broader trend towards open R&D and the sharing of precompetitive knowledge to drive progress.

Prosumption, where consumers actively co-create products, is also transforming industries. This blurring of lines between producers and consumers fosters rapid innovation and strong community engagement, as seen in platforms like Second Life and user-customized products from companies like Lego.

The digital age's explosion of information is reminiscent of the Great Library of Alexandria, with initiatives to digitize vast amounts of knowledge creating a new universal library. Collaborative science and open-access publishing are enabling global communities to tackle major challenges, promising more change in the next fifty years than in the last four centuries.

Open platforms for participation, like those used by Amazon and Google, are driving innovation by enabling mass collaboration. These platforms create vibrant ecosystems that attract innovators and partners, demonstrating the power of openness in fostering growth.

Ultimately, the future belongs to those who can harness mass collaboration and adapt to the new collaborative economy. Embracing openness, transparency, and global thinking will be key to driving innovation and maintaining a competitive edge in today's interconnected world.

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