Comments on: Web 2.0 Represents A Fundamental Rethinking Of Business, And The Theory Of The Firm http://blog.strategicheading.com/2009/01/20/web-20-represents-a-fundamental-rethinking-of-business-and-the-theory-of-the-firm/ G. Oliver Young's blog about business strategy and technology. Sat, 31 Oct 2009 14:04:17 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: The big and small of IT : Andrew McAfee’s Blog http://blog.strategicheading.com/2009/01/20/web-20-represents-a-fundamental-rethinking-of-business-and-the-theory-of-the-firm/comment-page-1/#comment-714 The big and small of IT : Andrew McAfee’s Blog Wed, 11 Feb 2009 14:15:06 +0000 http://blog.strategicheading.com/?p=364#comment-714 [...] commentsComments to this post A little while back I critiqued some claims made by Oliver Young about the impact of 2.0 technologies. I saw these claims as too broad and [...] [...] commentsComments to this post A little while back I critiqued some claims made by Oliver Young about the impact of 2.0 technologies. I saw these claims as too broad and [...]

]]> By: Harold Jarche » Preparing for Business 2.0 http://blog.strategicheading.com/2009/01/20/web-20-represents-a-fundamental-rethinking-of-business-and-the-theory-of-the-firm/comment-page-1/#comment-550 Harold Jarche » Preparing for Business 2.0 Wed, 04 Feb 2009 14:59:32 +0000 http://blog.strategicheading.com/?p=364#comment-550 [...] G. Oliver Young: I see a fundamental rethinking of the definition and function of the firm; the single biggest change since the industrial revolution. [...] [...] G. Oliver Young: I see a fundamental rethinking of the definition and function of the firm; the single biggest change since the industrial revolution. [...]

]]> By: Ajay Sanghani http://blog.strategicheading.com/2009/01/20/web-20-represents-a-fundamental-rethinking-of-business-and-the-theory-of-the-firm/comment-page-1/#comment-540 Ajay Sanghani Wed, 04 Feb 2009 04:44:59 +0000 http://blog.strategicheading.com/?p=364#comment-540 Well said Oliver. It is time organizations shift from a hierarchical structure ruled by the bosses to a more open and participatory framework. The first stage needs to be internal, where internal team has a say into the affairs of the organization, its strategy, roadmap, processes. We have built a tool that allows organizations to engage their entire team at http://www.openteams.com Well said Oliver.

It is time organizations shift from a hierarchical structure ruled by the bosses to a more open and participatory framework.

The first stage needs to be internal, where internal team has a say into the affairs of the organization, its strategy, roadmap, processes.

We have built a tool that allows organizations to engage their entire team at http://www.openteams.com

]]> By: Oliver http://blog.strategicheading.com/2009/01/20/web-20-represents-a-fundamental-rethinking-of-business-and-the-theory-of-the-firm/comment-page-1/#comment-528 Oliver Tue, 03 Feb 2009 20:04:18 +0000 http://blog.strategicheading.com/?p=364#comment-528 Hi Jon, thanks for the comment. You hit the nail on the head with your post. My (very) lightweight and flip version of that post is here: http://blog.strategicheading.com/2009/01/15/what-would-happen-if-we-replaced-every-employee-with-a-social-software-using-gen-yer/ At times I get a bit jealous of someone like Andrew McAfee and all the folks teaching MBAs. It's got to be a fascinating time to be in management research and education as well as tech research and education. Hi Jon, thanks for the comment. You hit the nail on the head with your post. My (very) lightweight and flip version of that post is here: http://blog.strategicheading.com/2009/01/15/what-would-happen-if-we-replaced-every-employee-with-a-social-software-using-gen-yer/

At times I get a bit jealous of someone like Andrew McAfee and all the folks teaching MBAs. It’s got to be a fascinating time to be in management research and education as well as tech research and education.

]]> By: Jon Husband http://blog.strategicheading.com/2009/01/20/web-20-represents-a-fundamental-rethinking-of-business-and-the-theory-of-the-firm/comment-page-1/#comment-525 Jon Husband Tue, 03 Feb 2009 19:16:03 +0000 http://blog.strategicheading.com/?p=364#comment-525 I've been thinking about this for a while too ... example: <a href="http://www.theappgap.com/will-enterprise-20-drive-management-innovation.html" rel="nofollow">"Will Enterprise 2.0 Drive Management Innovation ?"</a> I’ve been thinking about this for a while too … example: “Will Enterprise 2.0 Drive Management Innovation ?”

]]> By: Tom Powell http://blog.strategicheading.com/2009/01/20/web-20-represents-a-fundamental-rethinking-of-business-and-the-theory-of-the-firm/comment-page-1/#comment-356 Tom Powell Thu, 29 Jan 2009 05:35:00 +0000 http://blog.strategicheading.com/?p=364#comment-356 Aaaah, now you're really hitting into my territory. This reminds me of a post I wrote a while back related to this topic (http://coinnovative.com/user-led-innovation-report-the-australians-get-it/) in which I discussed a report called "User-led Innovation: A New Framework for Co-creating Business and Social Value" (http://www.smartinternet.com.au/ArticleDocuments/121/User_Led_Innovation_A_New_Framework_for_Co-creating_Business_and_Social_Value.pdf.aspx). And THAT also references a book by Eric Von Hippel called Democratizing Innovation. (Oh and another related post: http://coinnovative.com/part-3-digital-suggestion-box-how-big-corporations-are-asking-for-help/) To Andrew McAfee's point, no we should not be overly optimistic about the future, pessimistic about the past and, yes, these concepts have been around but the tools to execute on them as well as the mindset of an engaged consumer-base (or prosumer, if you prefer) have been improving rapidly. I generally agree with the thrust of Oliver's argument here. Firms have been moving towards a more open stance in the last decades and enterprise 2.0 tech -- which has made progress but has a long way to go -- will help them become more so as time goes on. While on the subject: this also seems to skirt near the edge of another idea: that in a knowledge based economy in which outside innovation tools, outsourcing, APIs, specialized services that plug right into your infrastructure (or soon will), etc. become more refined and prevalent, the size of the knowledge based firm will likely decrease as well. Intuitively, it seems the marginal return due to economies of scale turn negative much, much earlier in a knowledge based company in relation to old industrial era firms. Yet time and time again we see (knowledge) firms grow far too large and crumble under their own weight and inefficiency. Smaller, more open, and more responsive companies... sounds pretty good to me. Guess you just have to help them implement all this stuff, huh? Aaaah, now you’re really hitting into my territory. This reminds me of a post I wrote a while back related to this topic (http://coinnovative.com/user-led-innovation-report-the-australians-get-it/) in which I discussed a report called “User-led Innovation: A New Framework for Co-creating Business and Social Value” (http://www.smartinternet.com.au/ArticleDocuments/121/User_Led_Innovation_A_New_Framework_for_Co-creating_Business_and_Social_Value.pdf.aspx). And THAT also references a book by Eric Von Hippel called Democratizing Innovation. (Oh and another related post: http://coinnovative.com/part-3-digital-suggestion-box-how-big-corporations-are-asking-for-help/)

To Andrew McAfee’s point, no we should not be overly optimistic about the future, pessimistic about the past and, yes, these concepts have been around but the tools to execute on them as well as the mindset of an engaged consumer-base (or prosumer, if you prefer) have been improving rapidly.

I generally agree with the thrust of Oliver’s argument here. Firms have been moving towards a more open stance in the last decades and enterprise 2.0 tech — which has made progress but has a long way to go — will help them become more so as time goes on.

While on the subject: this also seems to skirt near the edge of another idea: that in a knowledge based economy in which outside innovation tools, outsourcing, APIs, specialized services that plug right into your infrastructure (or soon will), etc. become more refined and prevalent, the size of the knowledge based firm will likely decrease as well. Intuitively, it seems the marginal return due to economies of scale turn negative much, much earlier in a knowledge based company in relation to old industrial era firms. Yet time and time again we see (knowledge) firms grow far too large and crumble under their own weight and inefficiency.

Smaller, more open, and more responsive companies… sounds pretty good to me. Guess you just have to help them implement all this stuff, huh?

]]> By: Recent Links on Ma.gnolia at Fast Wonder Blog: Consulting, Online Communities, and Social Media http://blog.strategicheading.com/2009/01/20/web-20-represents-a-fundamental-rethinking-of-business-and-the-theory-of-the-firm/comment-page-1/#comment-268 Recent Links on Ma.gnolia at Fast Wonder Blog: Consulting, Online Communities, and Social Media Sat, 24 Jan 2009 08:05:17 +0000 http://blog.strategicheading.com/?p=364#comment-268 [...] Strategic heading by G. Oliver Young [...] [...] Strategic heading by G. Oliver Young [...]

]]> By: Ethan Bauley http://blog.strategicheading.com/2009/01/20/web-20-represents-a-fundamental-rethinking-of-business-and-the-theory-of-the-firm/comment-page-1/#comment-263 Ethan Bauley Fri, 23 Jan 2009 23:32:42 +0000 http://blog.strategicheading.com/?p=364#comment-263 Oliver, Have you read Yochai Benkler's work? - Ethan Oliver,

Have you read Yochai Benkler’s work?

- Ethan

]]> By: Challenges of ‘open systems’ for creating value « Think Much - by Penny Edwards http://blog.strategicheading.com/2009/01/20/web-20-represents-a-fundamental-rethinking-of-business-and-the-theory-of-the-firm/comment-page-1/#comment-256 Challenges of ‘open systems’ for creating value « Think Much - by Penny Edwards Fri, 23 Jan 2009 09:38:13 +0000 http://blog.strategicheading.com/?p=364#comment-256 [...] 23 2009 by Penny Oliver Young has kicked off an interesting debate with his post “Web 2.0 Represents A Fundamental Rethinking Of Business, And The Theory Of The Firm.” Young believes that “[o]ver the next 10 to 15 years, on the back of social software, we will [...] [...] 23 2009 by Penny Oliver Young has kicked off an interesting debate with his post “Web 2.0 Represents A Fundamental Rethinking Of Business, And The Theory Of The Firm.” Young believes that “[o]ver the next 10 to 15 years, on the back of social software, we will [...]

]]> By: Sean Lew http://blog.strategicheading.com/2009/01/20/web-20-represents-a-fundamental-rethinking-of-business-and-the-theory-of-the-firm/comment-page-1/#comment-251 Sean Lew Fri, 23 Jan 2009 00:35:34 +0000 http://blog.strategicheading.com/?p=364#comment-251 Great post. I totally agree with your statement "I see a fundamental rethinking of the definition and function of the firm; the single biggest change since the industrial revolution." I am stoked about this exciting theory based discussion. The nature of the firm is a great explanation of where Web 2.0 will get us to and its a theory to show that collaboration with other organisations can be helpful to the firm. However, what I found with Coase's theory is that it doesn't tell me how to get there. Collaborating with external organisations (and internally) can be very tricky. What I found is that theories like institutional theory, social network analysis, social capital theory, intellectual capital theory are great theories to guide us to our final objective. I also think that the above theories will be a great start in answering your proposed research paper. Feel free to get in touch if you would like to discuss more. Great post. I totally agree with your statement “I see a fundamental rethinking of the definition and function of the firm; the single biggest change since the industrial revolution.”

I am stoked about this exciting theory based discussion. The nature of the firm is a great explanation of where Web 2.0 will get us to and its a theory to show that collaboration with other organisations can be helpful to the firm. However, what I found with Coase’s theory is that it doesn’t tell me how to get there.

Collaborating with external organisations (and internally) can be very tricky. What I found is that theories like institutional theory, social network analysis, social capital theory, intellectual capital theory are great theories to guide us to our final objective. I also think that the above theories will be a great start in answering your proposed research paper.

Feel free to get in touch if you would like to discuss more.

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