Brilliant article on BusinessWeek online: The Power Of Us. The journalist takes a closer look at the democratization of industry, in others words at the emergence of an economy of the people, by the people, for the people.
Most telling, traditional companies, from Procter & Gamble Co. (PG ) to Dow Chemical Co., are beginning to flock to the virtual commons, too. The potential benefits are enormous. If companies can open themselves up to contributions from enthusiastic customers and partners, that should help them create products and services faster, with fewer duds — and at far lower cost, with far less risk. LEGO Group uses the Net to identify and rally its most enthusiastic customers to help it design and market more effectively. Eli Lilly & Co. (LLY ), Hewlett-Packard Co. (HP ), and others are running “prediction markets” that extract collective wisdom from online crowds, which help gauge whether the government will approve a drug or how well a product will sell.
At the same time, peer power presents difficult challenges for anyone invested in the status quo. Corporations, those citadels of command-and-control, may be in for the biggest jolt. Increasingly, they will have to contend with ad hoc groups of customers who have the power to join forces online to get what they want. Indeed, customers are creating what they want themselves — designing their own software with colleagues, for instance, and declaring their opinions via blogs instead of waiting for newspapers to print their letters.
… What’s driving all this togetherness? More than anything, an emerging generation of Net technologies. They include file-sharing, blogs, group-edited sites called wikis, and social networking services…
Also, read some comments on The Tech Beat.