Goldcorp did use the internet to mine gold: in 2000, it abandoned the industry's tradition of secrecy, making thousands of pages of complex geological data available online, and offering $575,000 in prize money to those who could successfully identify where on the Red Lake property the undiscovered veins of gold might lie. Retired geologists, graduate students and military officers around the world chipped in. They recommended 110 targets, half of which Goldcorp hadn't previously identified. Four-fifths of them turned out to contain gold. Since then, the company's value has rocketed from $100m to $9bn, and disaster has been averted.
Now the really intriguing and insightful thing is this:
The received wisdom, among western economists, was that individuals should compete in a free market: planned economies, such as Stalin's, were doomed. But in that case, why did huge companies exist, with centralised operations and planning? The Ford Motor Company was hailed as a paragon of American business, but wasn't the Soviet Union just an attempt to run a country like a big company? If capitalist theory was correct, why didn't Americans, or British people, just do business with each other as individual buyers and sellers in the open market, instead of organising themselves into firms? The answer - which won Coase a Nobel prize - is that making things requires collaboration, and finding and linking up all the people who need to collaborate costs money. Companies emerge when it becomes cheaper to gather people, tools and material under one roof, rather than to go out looking for the best deal every time you need a few hours' labour, or a part for a car. But the internet, Tapscott argues, is radically lowering the cost of collaborating. Companies - certainly big companies - are losing their raison d'etre.
An example is given of the Chinese motorcycle industry:
A "self-organised system of design and production" has emerged - the kind of system we usually associate with phenomena in cyberspace, like Wikipedia, or software released without copyright, so that others can tweak and improve it, such as the web browser Firefox. The Chinese motorcycle industry, in other words, is "open source".
A really intriguing article which may just be flagging up an important future trend of some significance. Me? I'm looking at getting the book.
The wiki way | Technology | Guardian Unlimited:
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