Wikinomics: How Mass Collaboration Changes Everything Review

Wikinomics:How Mass Collaboration Changes Everything is one of the books recommended at a recent conference put on by a “futurist”.

Even if you don’t buy the book you can get a really cool look at the thesis by clicking through to Amazon and reading the online excerpt about the “Goldcorp Challenge”. It illustrates the concept of “Wikinomics” as does the evolution of the Linux software system.

From a marketing perspective, we see this effecting businesses already to the degree that small business website building guru’s are suggesting as much interactivty and user generated content be present as possible. We see that in the Content 2.0 module of Site Build It . But you also see it in blogs an forums that encourage interactivity. The biggest players right now are the social networking sites like MySpace and Facebook but the entrepreneurial challenge is to harness the phenomenon and “make it pay”.

Part of Wikinomics the globalization  or democratization of information.  This book is about the good that results, but it’s a two edged sword that tends to cut mostly into the revenues of small marketers while making it more efficient for consumers.  It expands the available knowledge of all participants in a transaction and thereby tends to  eliminate price inequities. It’s the ability of a used car shopper to call up Blue Book values instantly on their iPhone so that the dealer can’t pad the transaction with a few extra thousand dollars due to the customer’s lack of knowledge. The playing field is leveled, profit margins are decreased but the potential number of transactions may also be increased if a business can take advantage of participating in the wiki world.  In the used car business, firms like Car Max and other volume dealers who are playing according to Wiki World Rules may be able to play the game profitably. Smaller operators are left scratching their heads going …. “how am I going to make a living now?”

Alternatively – if an ebay seller can use the Wiki World to suddenly become a direct importer and avoid other middle men to increase his profits, then the democratization of information would be good for that marketer.

So in the niche small operators may have the advantage, especially if technology can allow them to offer customized design capabilities to their customers.

Even if you don’t buy the book, read the excerpt for  Wikinomics:How Mass Collaboration Changes Everything