One Theory to Rule Them All

Esko Kilpi, May 02, 2016
Commentary by Stephen Downes

I think there's a point to this post, which is why I'm linking to it, but I think it could probably have been explained more clearly. Essentially the argument is this: companies have shifted their thinking from treating other agencies as 'externalities' to thinking of them as the network. This shift in thinking is important, because it reflects a change from thinking of them as a net cost to thinking of them as the most effective way to produce certain business outcomes. "What assets were for the industrial firm, network effects are for the post-industrial firm." These network effects reflect a value of a company that is far greater than the assets it may hold. Apple's position, for example, as the centre of a network of developers is far greater than it would be if it had all these developers in-house.

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