Umair Haque / Bubblegeneration
umair haque  

 
 


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


 
Friday, November 18, 2005


Edge Competences and the Post-Network Economy

The fundamental economic shift taking place in the 21st century is the shift from cheap information to cheap coordination.

In the second half of the 20th century, thing got digitized, and then networked - the cost of information itself dropped discontinuously. This made the dominant strategy hyperspecialization - to leverage this cheap info by building core competences, which are essentially, scale economies in specialization.

Now, new technologies are making coordination discontinuously cheap - it's now increasingly possible to do things with that information, without the need to build the huge coordination mechanisms firms employ; like bosses, managers, meetings, roles, and performance assessments.

At it's heart, this is why Web 2.0 is important - it's about going beyond cheap information; about dropping the costs of coordination. This is the shift to a post-network economy; where what we do with the stuff on the network is more valuable than just being part of the network.

This is why, increasingly, competences at the edge are more valuable than at the core - they let you learn how to leverage cheap coordination, to generate new sources of value; rather than leveraging cheap information, to which returns are dropping.

MIT's $100 laptop is a nice example of another driver of this stuff - it will help drop the cost of information, and the cost of coordination (assuming it can plug into the 2.0sphere). Which is why incumbents across industries should be actively thinking about edge competences, as their core competences continue to get devalued.

-- umair // 3:36 AM // 0 comments


Comments:
Post a Comment
 

Recent Tweets







    input

    due diligence
    ventureblog
    a vc
    techblurbs
    tj's weblog
    venture chronicles
    terranova
    the big picture
    gigaom
    venchar
    bill burnham
    babak nivi
    n-c thoughts
    paidcontent
    techdirt
    slashdot
    london gsb
    mefi
    boingboing
    blort
    hardwax
    betalounge

    ing
    morgan
    chicago fed
    dallas fed
    ny fed
    imf
    world bank
    nouriel roubini

    portfolio
    contact

    mail.
    uhaque (dot) mba2003 (at) london (dot) edu

    skype.
    umair.haque

    atom feed

    technorati profile

    blog archives