A report by : Rashid Saad Siddiqui Sohaib Saleem Siddiqui

1. A report by: • Rashid SaadSiddiqui • SohaibSaleemSiddiqui

2. Introduction to the book • Wikinomics: How Mass Collaboration Changes Everything is a book by Don Tapscottand Anthony D. Williams. • published in December 2006 • explores how some companies in the early 21st century have used mass collaboration (also called peer production) and open-source technology, such as wikis, to be successful. • wiki is a website whose users can add, modify, or delete its content via a web browser using a simplified markup language or a rich-text editor. Wikis are powered by wiki software. • Wikis may serve many different purposes, such as knowledge management.

3. Key concepts • Wikinomics is based on four ideas: Openness, Peering, Sharing, and Acting Globally. • The use of mass collaboration in a business environment can be seen as an extension of the trend in business to outsource: externalize formerly internal business functions to other business entities. • 7 new models of Mass Collaboration. • Coase's Law

4. Wikinomics – Pathway to success • it will not be sufficient to simply intensify existing management strategies. • Leaders must think differently about how to compete and be profitable, and embrace a new art and science of collaboration we call wikinomics. • This is more than open source, social networking, so called crowdsourcing, smart mobs, crowd wisdom, or other ideas that touch upon the subject. • we are talking about deep changes in the structure and modus operandi of the corporation and economy, based on new competitive principles such as openness, peering, sharing, and acting globally.

5. 7 new models of mass collaboration • peer pioneers (chapter 3) • ideagoras (chapter 4) • prosumers (chapter 5) • new Alexandrians (chapter 6) • platforms for participation (chapter 7) • global plant floor (chapter 8) • wiki workplace (chapter 9). • These models of competition all have one thing in common: ‘These new forms . . . enable firms to harvest external knowledge, resources, and scale that were all previously impossible.

6. Notable Examples • Rob McEwen, the Goldcorp, Inc. CEO, former investment banker, and gold mining newbie, who used open source tactics and an online competition to breathe new life into a struggling business cobbled by the rules of an old-fashioned industry. • Flickr, Second Life, YouTube, and other thriving online communities that transcend social networking to pioneer a new form of collaborative production that will revolutionize markets and firms. • Smart, multibillion dollar companies like Procter & Gamble that cultivate nimble, trust-based relationships with external collaborators to form vibrant business ecosystems that create value more effectively than hierarchically organized businesses. • harnessing mass collaboration to create real value for participants and enjoying phenomenal successes as a result

7. Inversion of 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 permits. According to the authors, Coase's Law 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. • 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.

8. Wikinomics Playbook • The Wikinomics Playbook, has only fifteen words: “Join us in peer producing the definitive guide to the twenty-first-century corporation on www.wikinomics.com.”

9. External sources • http://www.youtube.com/watch?v=uCLGNZL9n3E