
An important edition to the ever-expanding Wiki-world, the book Wikinomics, by Dan Tapscott and Anthony D. Williams, looks set to become the new bible for the business community.
The philosophy behind Wikinomics dates back to the 1930s when western economists decided that individuals should compete in a free market and that planned economies (such as Stalin’s) were doomed to failure.
A young socialist academic, by the name of Ronald Coase, disagreed with the economists, arguing that if this was the case, why did huge companies exist with centralized operations and planning. His theory, for which he won a Nobel Prize, was that making things requires collaboration and as a result, companies emerge because the cheapest way to collaborate is to gather human resources, tools and materials under one roof.
In Wikinomics, the authors discuss the ways in which mass collaboration continues to change the methods that companies are using to harness skills and knowledge to innovate and increase funds.
The more successful companies share information and resources and focus their efforts on four powerful new ideas: openness, peering, sharing and acting globally.
And now that the internet is radically lowering the cost of collaborating, big companies are losing their edge and small ones can compete without the need to become a massive organization.
“Collaboration can occur on an astronomical scale, so if you can create an encyclopedia with a bunch of people, could you create a mutual fund, a motorcycle?” asks Tapscott.
Wikinomics gives several examples of such successful, wikinomic ventures, including the Chinese motorcycle industry, which has tripled its output in 10 years thanks to the online collaboration of hundreds of small firms.
If there are any criticisms to be made of this book, it is that it presents no downsides to the wiki world whatsoever and may leave less discerning readers unaware of the fact that wiki is anything less than perfect.
The book fails to mention why some wiki movements have worked and others have not, or that wikis cannot be trusted for solid information on politics, news and history. The authors are also quick to dismiss worries that wikis can devolve when a smart mob develops a kind of “mass stupidity” (giving the example of the Stalinist movement).
However, criticisms aside, Wikinomics is an ideal starting point for organizations that want to formalize their collective intelligence and could really help businesses to move forward.
For further information or to contribute to the Wikinomics playbook, the first peer-produced guide to business in the 21st Century, check out the authors’ website, www.wikinomics.com.
(Review by Ashley Baldwin for www.marceloiniarra.com )