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Monday, July 26, 2010

Competitive Advantage - A case for blogs and wikis

Mat Ridley in his seminal article “Humans: Why They Triumphed” has put forward an interesting argument that the dramatic progress of Homo sapiens in the recent past is not primarily on account of the increasing size of brain or dramatic increase in human intelligence. But, it has been achieved by the collective intelligence of the society arising out of continuous exchange of ideas. We have managed to build on what others have built. Sir Isaac Newton also expressed this view when he said “If I have seen further, it is only by standing on the shoulders of giants”

The progress in commutation and in communication has enlarged opportunities for people of different culture and experience to contact each other and to exchange their ideas. This has further accelerated the rate of progress. As Mr Ridley expressed brilliantly “The process of cumulative innovation that has doubled life span, cut child mortality by three-quarters and multiplied per capita income nine fold - world-wide - in little more than a century, is driven by ideas having sex”

Books, Radio, TV and even internet (web 1.0) while helping to distribute thoughts and ideas across very long distance, enabled mostly one way interaction; sort of broadcast. Email brought about fast and cheap two way communication and it exploded opportunities for human collaboration.

The recent innovation in Information technology (web 2.0 also supported by progress in mobile technologies) has brought about dramatic changes in communication by making it “two-way” enabling seamless collaboration.

Very often these tools for two-way collaboration like face book, twitter, wiki and blogs are seen by many as either as geeky or as non-serious pastime, juvenile indulgence or even waste of time. Therefore many companies and organisations prohibit access to such tools as they see these as risky distractions.

As these tools are seen as such distractions, the senior management is not giving due attention to how these concepts can alter the way we work and alter the way we collaborate. With so little interest (or so high ignorance), we are unable to harness the power of these tools.

The study by American Sociologist Mark S. Granovetter on the Strength of weak ties is quite relevant in this context. According to this study, for most people their network friends with whom they enjoy strong relationship is quite small, limited and almost culturally and intellectually incestuous in nature. Therefore it is the weak ties between groups enable us to collaborate with a more divergent set of people.

It is in this area that collaboration tools like blogs, wikis and social networks offer powerful, intuitive and convenient means. It can help us to build larger network of strong ties and build and maintain a larger network of weak ties. Wikis help in collaborative developments, Face book kind of tools helps to keep the links with a large number of friends.

Many organisations have woken up to these challenges and have established innovative ways of harnessing the power of this collaboration. The book published by Andrew McAfee, Principle Research Scientist at MIT’s Center for digital business titled Enterprise 2.0, the new collaborative tools for your organisations provides excellent insights to why and how on these tools and it is worth reading. I have drawn on the insights from this book to write this post.

At present this is relatively a new concept and not widely adopted. Therefore, those who can exploit this early will be able to build significant competitive advantage. Once this idea gets commoditized and becomes the norm for most of the players, the extent of competitive differentiation possible with this may come down.

‘If you have an apple and I have an apple and we exchange these apples then you and I will still each have one apple. But if you have an idea and I have an idea and we exchange these ideas, then each of us will have two ideas.’ — George Bernard Shaw

2 comments:

  1. Liked, George Bernard Shaw statement. The only problem is that people feel lot biased and insecured to discuss and share ideas. They like to be discreet and try to extract information from the people they are discussing so that no one gets the bigger picture of what is happening. But no one is fool to not be able to make this out. Then subsequent responses and sharing is also guarded (or sometimes avoided, delayed etc.). This creates a barrier in what blogger feels should happen.

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  2. Things have to start somewhere. If people feel that way, atleast we could consider not feeling the same way and start discussing our ideas (without any feeling of insecurity). At the most there will be few not so desirable experiences. But over a period of time things will change.

    It seems that George Bernard Shaw statement is taking more attention of the reader who commented above, than the complete blog content, which is also written very thoughtfully.

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