How do Wikipedia’s processes for creating and modifying articles ever lead to high-quality results?
I believe this can best be explained by the following quote from Jimmy Wales, the founder of Wikipedia:
“The wiki model is different because it gives you an incentive when you’re writing. If you write something that annoys other people, it’s just going to be deleted. So if you want your writing to survive, you really have to strive to be cooperative and helpful.”
Wikipedia’s processes allow anybody (except for non-registered and new users) to edit, modify, delete, and restore text within articles. This allows for an open community of users where all users are essentially given the same privileges and thus, have equal rights regarding content. With an open model, people worry about graffiti, deletion, and accuracy of the information. However, these worries are addressed by the underlying fundamental element of Wikipedia: people actually use it because as a whole, they have a need for a free accurate online encyclopedia. The proof is in the pudding: the fact that millions of articles have been written by thousands of users, demonstrates that people use Wikipedia, that it works, and that there is a bone-fide need for it. Therefore, as long as people, as a whole, see value in the service, they will continue to use it and will monitor the accuracy of the content, for it is only useful to them when it contains accurate information (i.e. it is self-serving). Ultimately, it is a self-serving community that has incentives to keep it useful for its users and will therefore contribute, add value, and protect it.
Monday, March 30, 2009
Monday, March 23, 2009
Blogging at DrKW Case
What are the advantages and disadvantages of implementing internal versus external employee blogs in a corporate setting? Are there certain industries where one of these strategies makes more sense?
Some advantages of internal employee blogs are:
- Facilitate communication and collaboration between internal company divisions (ex. Marketing and R&D)
- Companies have control over what information is being entered in the blogs
- Employees can voice suggestions/recommendations without the public becoming privy
- Internal blogs can serve as company community bulletin boards to disseminate important new information/policies.
Some disadvantages of internal employee blogs are:
- Smaller user base
- Company controlled and monitored – employees may not be able to discuss “sensitive” issues
- Not open to customers (i.e. no customer feedback)
- Audience is one-sided (all company representatives…no one will play devil’s advocate with)
Some advantages of external employee blogs:
- Open to the public. This aids in idea generation for new company products/new features/new ways of doing business/etc., can obtain customer feedback, can be used as a marketing platform, can be used to identify new market opportunities, relay product information, method to address the public (i.e. public relations media outlet).
- Larger user base
Some disadvantages of external employee blogs are:
- Lack of corporate control
- Security risks
- Opportunity for corporate information leaks (i.e. secret information)
- Risk of negative publicity
It may be most appropriate to use external employee blogs in customer-focused industries where customer feedback is important such as software development, consumer electronics, and consumer entertainment. Internal employee blogs may be a better fit in industries with companies that operate using highly protected trade secrets (prevent a leak) and operate in highly criticized social/political/areas (avoid negative publicity) such as R&D firms, non-environmentally friendly manufacturing firms, and the fast food industry (unhealthy food).
Some advantages of internal employee blogs are:
- Facilitate communication and collaboration between internal company divisions (ex. Marketing and R&D)
- Companies have control over what information is being entered in the blogs
- Employees can voice suggestions/recommendations without the public becoming privy
- Internal blogs can serve as company community bulletin boards to disseminate important new information/policies.
Some disadvantages of internal employee blogs are:
- Smaller user base
- Company controlled and monitored – employees may not be able to discuss “sensitive” issues
- Not open to customers (i.e. no customer feedback)
- Audience is one-sided (all company representatives…no one will play devil’s advocate with)
Some advantages of external employee blogs:
- Open to the public. This aids in idea generation for new company products/new features/new ways of doing business/etc., can obtain customer feedback, can be used as a marketing platform, can be used to identify new market opportunities, relay product information, method to address the public (i.e. public relations media outlet).
- Larger user base
Some disadvantages of external employee blogs are:
- Lack of corporate control
- Security risks
- Opportunity for corporate information leaks (i.e. secret information)
- Risk of negative publicity
It may be most appropriate to use external employee blogs in customer-focused industries where customer feedback is important such as software development, consumer electronics, and consumer entertainment. Internal employee blogs may be a better fit in industries with companies that operate using highly protected trade secrets (prevent a leak) and operate in highly criticized social/political/areas (avoid negative publicity) such as R&D firms, non-environmentally friendly manufacturing firms, and the fast food industry (unhealthy food).
Wednesday, March 18, 2009
Apple and the digital music market
Has the digital music market irreversibly tipped in Apple’s favor?
One might have been able to make a positive claim to the above question prior to Apple’s removal of DRM. DRM provided the grounds for high switching and high homing costs, since Apple’s proprietary Fairplay DRM software was incompatible with non-Apple players and products. Apple was able to grab an 80% market share in the digital music market. A part of this advantage came from customers getting “locked in” once they purchased DRM-encoded music in AAC format through iTunes. Now that iTunes sells DRM-free music, this has removed this advantage along with the high switching and homing costs. It is expected that Apple’s iTunes will see a decreased market share in a DRM-free environment, as users will be able to obtain music content from other sources. However, it is unlikely that consumers will switch music content providers unless Apple is the only source offering DRM-free music which, would give Apple a clear advantage, since consumers prefer DRM-free music due to its universal usability and freedom from usage restrictions.
Regardless of the DRM situation and its impact on iTunes, Apple has admitted that it earns no real profits from music sales through iTunes and that Apple’s true revenue is generated by hardware sales such as iPod and iPhone sales. Therefore, Apple will continue to be a profitable and successful company as long as it continues to keep its competitive advantage derived from its customer-focused, easy-to-use, and innovative technology...not through music sales.
Apple has been able to keep its dominant share in the portable digital music player market by continually releasing newer, better, versions of its iPods. A replacement mentality among consumers has emerged. Consumers have been replacing their older iPods for newly released versions thus, allowing Apple to defeat stagnant sales within a saturated market. Additionally, Apple’s iPhone has been the next product line extension of its digital music players and includes an integrated mini-computer and cell phone. With over 17 million iPhone sales within 2yrs, the iPhone has seen impressive growth and has placed Apple in the lead for the mobile digital music market.
One might have been able to make a positive claim to the above question prior to Apple’s removal of DRM. DRM provided the grounds for high switching and high homing costs, since Apple’s proprietary Fairplay DRM software was incompatible with non-Apple players and products. Apple was able to grab an 80% market share in the digital music market. A part of this advantage came from customers getting “locked in” once they purchased DRM-encoded music in AAC format through iTunes. Now that iTunes sells DRM-free music, this has removed this advantage along with the high switching and homing costs. It is expected that Apple’s iTunes will see a decreased market share in a DRM-free environment, as users will be able to obtain music content from other sources. However, it is unlikely that consumers will switch music content providers unless Apple is the only source offering DRM-free music which, would give Apple a clear advantage, since consumers prefer DRM-free music due to its universal usability and freedom from usage restrictions.
Regardless of the DRM situation and its impact on iTunes, Apple has admitted that it earns no real profits from music sales through iTunes and that Apple’s true revenue is generated by hardware sales such as iPod and iPhone sales. Therefore, Apple will continue to be a profitable and successful company as long as it continues to keep its competitive advantage derived from its customer-focused, easy-to-use, and innovative technology...not through music sales.
Apple has been able to keep its dominant share in the portable digital music player market by continually releasing newer, better, versions of its iPods. A replacement mentality among consumers has emerged. Consumers have been replacing their older iPods for newly released versions thus, allowing Apple to defeat stagnant sales within a saturated market. Additionally, Apple’s iPhone has been the next product line extension of its digital music players and includes an integrated mini-computer and cell phone. With over 17 million iPhone sales within 2yrs, the iPhone has seen impressive growth and has placed Apple in the lead for the mobile digital music market.
Monday, March 2, 2009
Brightcove Case
What are the strengths and weaknesses of Brightcove’s business model?
Strengths:
Integrated model with four components - four sides are publishers, advertisers, affiliates, and consumers (multi-sided network).
Multiple Potential revenue sources - Advertising, platform operations, content licensing and distribution, etc.
Syndicated Marketplace - gives the potential to make money at the Brightcove site and any other sites with Brightcove-enabled video content. This strategy helps hurdle the networking effects in an attempt to gain a wider acceptance, similar to a licensing strategy.
Market Niche directed towards providing a solution for content providers. By offering content providers a total package for offering online video, Brightcove has positioned itself in a unique way.
Potential first-mover advantage - Brightcove has begun to service a market that is subject to winner-take-all. If it can become fully operational, it may be able to leverage its first-mover advantage to help place it as a top contender for the market and potentially as the winner in the future.
Weaknesses:
Low-barriers to entry - Providing a platform for “internet tv” is easy and fairly inexpensive. This leads to increased competition, which in turn leads to lower profitability.
Competitors - Several strong competitors exist in the marketplace (Google, YouTube, Amazon, Yahoo, www.revver.com, www.roo.com, etc.)
Massive Amount of Resources - The business model requires a large amount of resources (time, money, skilled employees, etc.) in order to build the complete business.
Complex business model - The business model is made up of many moving parts (multi-sided) and needs all parts in order to function (network must be adopted by all parties involved).
Subject to the “Penguin Effect” - have to get all four parties involved, nobody will join without the others. Who will join first?
Difficult to implement - It is difficult to implement portions of the business model in phases; essentially, it must all be done at once (an all-or-none strategy).
Strengths:
Integrated model with four components - four sides are publishers, advertisers, affiliates, and consumers (multi-sided network).
Multiple Potential revenue sources - Advertising, platform operations, content licensing and distribution, etc.
Syndicated Marketplace - gives the potential to make money at the Brightcove site and any other sites with Brightcove-enabled video content. This strategy helps hurdle the networking effects in an attempt to gain a wider acceptance, similar to a licensing strategy.
Market Niche directed towards providing a solution for content providers. By offering content providers a total package for offering online video, Brightcove has positioned itself in a unique way.
Potential first-mover advantage - Brightcove has begun to service a market that is subject to winner-take-all. If it can become fully operational, it may be able to leverage its first-mover advantage to help place it as a top contender for the market and potentially as the winner in the future.
Weaknesses:
Low-barriers to entry - Providing a platform for “internet tv” is easy and fairly inexpensive. This leads to increased competition, which in turn leads to lower profitability.
Competitors - Several strong competitors exist in the marketplace (Google, YouTube, Amazon, Yahoo, www.revver.com, www.roo.com, etc.)
Massive Amount of Resources - The business model requires a large amount of resources (time, money, skilled employees, etc.) in order to build the complete business.
Complex business model - The business model is made up of many moving parts (multi-sided) and needs all parts in order to function (network must be adopted by all parties involved).
Subject to the “Penguin Effect” - have to get all four parties involved, nobody will join without the others. Who will join first?
Difficult to implement - It is difficult to implement portions of the business model in phases; essentially, it must all be done at once (an all-or-none strategy).
Subscribe to:
Posts (Atom)