Umair Haque / Bubblegeneration
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Design principles for 21st century companies, markets, and economies. Foreword by Gary Hamel. Coming January 4th. Pre-order at Amazon.


 
Wednesday, January 18, 2006


Managing the Edge, Simulation Economy Edition

Learning to manage the new modes of coordination that exist outside the boundaries of firms is no mean feat - it's much bigger than simply publishing (which is just the most visible example).

Consider this example - "gold farmers", or essentially, organized arbitrageurs, on WoW. How can firms "manage" this?

It's not enough just to kick them out; the economic forces at work are powerful, and create strong incentives for arbs to keep on arbing at even a relatively large cost to themselves.

What's needed, I think, is a deep understanding of how different these new modes of coordination - in this case, a virtual economy - really are from firms. You can't really "manage" them - at least in the traditional sense of the word. That's the starting point - and it's why more corporate players find themselves unable to create value at the edge.

-- umair // 3:50 AM // 0 comments


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