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.


 
Monday, October 02, 2006

Edge Patterns: Closed to Open


Netflix decides to pioneer open innovation in media by offering a $1 mil prize for improving it's recommendation engine.

To do so, crucially, it's opening access to it's enormous dataset - it is shifting viscerally from closed to open.

A deep lesson is being taught by Netflix: in a post-network economy where value creation outside the boundaries of the firm is exploding, staying closed will, more and more often, be a dominated strategy.

Put this move in context: how different is it from what Innocentive does for cosmetics/pharma/etc? Not different at all. The point is that new economic patterns are sweeping across the economy like a tsunami, reshaping value chains, and redefining dominant strategies.

Shifting from closed to open is the most basic of these new patterns.

-- umair // 2:48 PM // 0 comments


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