''Wikinomics: How Mass Collaboration Changes Everything'' is a book by
Don Tapscott
Don Tapscott (born June 1, 1947) is a Canadian business executive, author, consultant and speaker, who specializes in business strategy, organizational transformation and the role of technology in business and society. He is the CEO of the Tapsco ...
and
Anthony D. Williams, first published in December 2006. It explores how some
companies
A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specific, declared go ...
in the early 21st century have used
mass collaboration
Mass collaboration is a form of collective action that occurs when large numbers of people work independently on a single project, often modular in its nature. Such projects typically take place on the internet using social software and computer-s ...
and
open-source
Open source is source code that is made freely available for possible modification and redistribution. Products include permission to use the source code, design documents, or content of the product. The open-source model is a decentralized sof ...
technology, such as
wiki
A wiki ( ) is an online hypertext publication collaboratively edited and managed by its own audience, using a web browser. A typical wiki contains multiple pages for the subjects or scope of the project, and could be either open to the pu ...
s, to be successful.
The term 'Wikinomics' describes the effects of extensive collaboration and user-participation and how relationships between businesses and markets have changed as a result.
Concepts
According to Tapscott, the use of mass collaboration in a business environment in recent history can be seen as an extension of the trend in business to
outsource
Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity which otherwise is or could be carried out internally, i.e. in-house, and sometimes involves transferring employees and ...
: externalize formerly internal business functions to other business entities. The difference however is that instead of an organized business body brought into being specifically for a unique function, mass collaboration relies on free individual agents to come together and cooperate to improve a given operation or solve a problem. This kind of outsourcing is also referred to as
crowdsourcing
Crowdsourcing involves a large group of dispersed participants contributing or producing goods or services—including ideas, votes, micro-tasks, and finances—for payment or as volunteers. Contemporary crowdsourcing often involves digita ...
, to reflect this difference. This can be incentivized by a reward system, though it is not required.
The book also discusses seven new models of mass collaboration, including:
*
Peering
In computer networking, peering is a voluntary interconnection of administratively separate Internet networks for the purpose of exchanging traffic between the "down-stream" users of each network. Peering is settlement-free, also known as "bill-and ...
: For example, page 24, "
Marketocracy Marketocracy Capital Management, is the investment advisor for the Marketocracy family of mutual funds and uses the research generated by Marketocracy Data Services. Marketocracy has recruited over 70,000 people to manage over 100,000 model portfoli ...
employs a form of peering in a mutual fund () that harnesses the
collective intelligence
Collective intelligence (CI) is shared or group intelligence (GI) that emerges from the collaboration, collective efforts, and competition of many individuals and appears in consensus decision making. The term appears in sociobiology, politic ...
of the investment community... Though not completely open source, it is an example of how meritocratic, peer-to-peer models are seeping into an industry where
conventional wisdom
The conventional wisdom or received opinion is the body of ideas or explanations generally accepted by the public and/or by experts in a field. In religion, this is known as orthodoxy.
Etymology
The term is often credited to the economist John K ...
favors the lone super-star stock advisor."
* Ideagoras: For example, page 98, linking experts with unsolved research and development problems. The company
InnoCentive is a consulting group that encapsulates the idea of ideagoras.
*
Prosumer
A prosumer is an individual who both consumes and produces. The term is a portmanteau of the words '' producer'' and ''consumer''. Research has identified six types of prosumers: DIY prosumers, self-service prosumers, customizing prosumers, coll ...
s: For example, page 125, where it discusses the social video game
Second Life
''Second Life'' is an online multimedia platform that allows people to create an avatar for themselves and then interact with other users and user created content within a multi player online virtual world. Developed and owned by the San Fra ...
as being created by its customers. When customers are also the producers, you have the phenomenon: Prosumer.
* New Alexandrians: This idea is about the Internet and sharing knowledge.
The last chapter is written by viewers, and was opened for editing on February 5, 2007.
Central Concepts of Wikinomics in the Enterprise
According to Tapscott and Williams, these four principles are the central concepts of wikinomics in the enterprise:
#Openness, which includes not only open standards and content but also financial transparency and an open attitude towards external ideas and resources;
#Peering, which replaces hierarchical models with a more collaborative forum. Tapscott and Williams cite the development of Linux as the "quintessential example of peering";
#Sharing, which is a less proprietary approach to (among other things) products, intellectual property, bandwidth, scientific knowledge;
#Acting globally, which involves embracing globalization and ignoring "physical and geographical boundaries" at both the corporate and individual level.
Coase's Law
In the chapter ''The Perfect Storm'', the authors give an overview of the economic effects of the kind of transactions
Web 2.0
Web 2.0 (also known as participative (or participatory) web and social web) refers to websites that emphasize user-generated content, ease of use, participatory culture and interoperability (i.e., compatibility with other products, systems, and ...
permits. According to the authors,
Coase's Law (see
Ronald Coase
Ronald Harry Coase (; 29 December 1910 – 2 September 2013) was a British economist and author. Coase received a bachelor of commerce degree (1932) and a PhD from the London School of Economics, where he was a member of the faculty until 1951. ...
) governs the expansion of a business:
A firm will tend to expand until the cost of organizing an extra transaction within the firm become equal to the costs of carrying out the same transaction on the open market.[Wikinomics: How Mass Collaboration Changes Everything, 56]
However, because of the changing usage patterns of Internet technologies, the cost of transactions has dropped so significantly that the authors assert that the market is better described by an inversion of Coase's Law. That is:
A firm will tend to expand until the cost of carrying out an extra transaction on the open market become equal to the costs of organizing the same transaction within the firm.
Thus, the authors think that with the costs of communicating dramatically dropping, firms who do not change their current structures will perish. Companies who utilize mass collaboration will dominate their respective markets.
Reception
A review of this book in the ''Harvard Business Review'' states "like its title, the book's prose can fall into breathless hype." A review of this book in ''Choice'' recommends the book for "general readers and practitioners," but cautions that the authors "present an optimistic overview of successful collaborations and business ventures", "use unique terms (e.g.,
marketocracy Marketocracy Capital Management, is the investment advisor for the Marketocracy family of mutual funds and uses the research generated by Marketocracy Data Services. Marketocracy has recruited over 70,000 people to manage over 100,000 model portfoli ...
, prosumption,
knowledge commons
The term "knowledge commons" refers to information, data, and content that is collectively owned and managed by a community of users, particularly over the Internet. What distinguishes a knowledge commons from a commons of shared physical resources ...
)", should have given "more consideration
othe darker sides of human motivation as well as
groupthink
Groupthink is a psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome. Cohesiveness, or the desire for cohesiveness ...
and mass mediocrity", and "primarily draw on their own observations of businesses and trends for the ideas presented".
Tapscott and Williams released a followup to Wikinomics, titled ''Macrowikinomics: Rebooting Business and the World'', on September 28, 2010.
See also
*
Business Intelligence 2.0 (BI 2.0)
*
Cory Doctorow
Cory Efram Doctorow (; born July 17, 1971) is a Canadian-British blogger, journalist, and science fiction author who served as co-editor of the blog ''Boing Boing''. He is an activist in favour of liberalising copyright laws and a proponent of ...
*
Demand-side learning
*
File sharing
File sharing is the practice of distributing or providing access to digital media, such as computer programs, multimedia (audio, images and video), documents or electronic books. Common methods of storage, transmission and dispersion include r ...
*
Financial crisis
A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and man ...
* ''
Free: The Future of a Radical Price'', by Chris Anderson
*
FreeBSD
FreeBSD is a free and open-source Unix-like operating system descended from the Berkeley Software Distribution (BSD), which was based on Research Unix. The first version of FreeBSD was released in 1993. In 2005, FreeBSD was the most popular ...
*
Human-based computation
Human-based computation (HBC), human-assisted computation, ubiquitous human computing or distributed thinking (by analogy to distributed computing) is a computer science technique in which a machine performs its function by outsourcing certain ste ...
*
Linux
Linux ( or ) is a family of open-source Unix-like operating systems based on the Linux kernel, an operating system kernel first released on September 17, 1991, by Linus Torvalds. Linux is typically packaged as a Linux distribution, which ...
*
Mutualism
*
Open business
Open business is an approach to enterprise that draws on ideas from openness movements like free software, open source, open content and open tools and standards. The approach places value on transparency, stakeholder inclusion, and accountabili ...
*
Open-source economics
Open-source economics is an economic platform based on open collaboration for the production of software, services, or other products.
First applied to the open-source software industry, this economic model may be applied to a wide range of ent ...
*
Participatory organization
A participatory organization is an organization which is built based on public participation rather than their contract obligations.
Types
Different types of participatory organizations are possible including production companies, membership orga ...
*
Stigmergy
Stigmergy ( ) is a mechanism of indirect coordination, through the environment, between agents or actions. The principle is that the trace left in the environment by an individual action stimulates the performance of a succeeding action by the sa ...
* ''
The Cathedral and the Bazaar
''The Cathedral and the Bazaar: Musings on Linux and Open Source by an Accidental Revolutionary'' (abbreviated ''CatB'') is an essay, and later a book, by Eric S. Raymond on software engineering methods, based on his observations of the Linux k ...
'', an essay by Eric S. Raymond on software engineering methods
*
Theory of value
References
External links
* {{official website, http://wikinomics.com/book
''Mass collaboration could change way companies operate'' article in ''
USA Today
''USA Today'' (stylized in all uppercase) is an American daily middle-market newspaper and news broadcasting company. Founded by Al Neuharth on September 15, 1982, the newspaper operates from Gannett's corporate headquarters in Tysons, Virgini ...
''
Website for the public to create the "unwritten chapter"Abstract: Don Tapscott - Wikinomics: Winning with the enterprise 2.0Make Room, Wikipedia: Internet-based Collaboration Could Change the Way We Do Business, February 21, 2007 article on ''
ttp://pcworld.ca PCWorld.ca'
The Cult of the Amateur New York Times' Book Review on Andrew Keen's criticism of Web 2.0 philosophy
Review by Roger Parry in ''Management Today'' August 2007
;Videos
2007-02-26 Don Tapscott 82 minute presentation on Wikinomics hosted o
Google Videoan
Internet Archive(mpeg4 and Windows Media Player)
2007-01-25 Don Tapscott 45 minute presentation on Wikinomics hosted b
The Canadian Club (Windows Media Player only)
2006-11-08 Don Tapscott 3 minute preview of Wikinomicsto ZDNet.
2006 non-fiction books
Business books
Works about the information economy
Wiki concepts