Clay Shirky @ the World Bank
Internet guru Clay Shirky, author of Here Comes Everybody, was at the World Bank last week to share his take on collaboration and new technologies. His main piece of advice for the Bank: "when someone knocks at your door with the next great big collaboration idea that will cost a million dollars, ask them to go outside for a walk and come back until the price tag is closer to 100,000 USD". New technologies have dramatically reduced the cost of failure: trying a new approach is now cheaper than convening a stakeholder meeting to discuss whether a proposed solution might work or not. This week, Gartner actually suggested that 5,000 USD is a realistic estimate for the cost of a collaboration trial.
And, of course, it is not only that the cost of failure has gone down: entry costs have plummeted, too. In the web 2.0 world, one can feed off existing infrastructures to get people to collaborate or campaign for a cause. No need, for example, to create a social networking site of your own -- you can just use Facebook. And once you succeed in getting people together, the cost of empowering them with information and coordinating their efforts are also minimal: as Shirky put it, social networks are "transaction costs lowering machines".
In the Development 2.0 world, there are fewer and fewer justifications for the "not invented here" syndrome and massive budgets spent to develop proprietory IT solutions. The challenge to adopt a try and test it approach that is open to failure and appropriation of solutions developed by others is not a technological one: it's first and foremost an issue of organisational culture.
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There’s a great African proverb: “If you want to travel fast, travel alone. If you want to travel far, travel together”. New technology offers exciting opportunities to do both. According to Linqia ( http://www.linqia.com ), a search engine for online communities and groups, there are 40 million groups across over 1,000 communities with more than 250 million members worldwide. Harnessing this new energy for connecting online, with a clear social purpose (such as fighting world poverty), has huge potential. Business Fights Poverty ( http://www.businessfightspoverty.org ), a professional network that has grown in its first three months since launching to close to 500 members from 65 countries, is just one example. Business Fights Poverty is free to join and – hosted on Ning ( http://www.ning.com ), the popular social networking platform – is virtually free to run. New technology has turned the economics of collaboration on its head.
Posted by: Zahid Torres-Rahman | May 21, 2008 5:04:03 PM
Although it is true that the costs to build something has went down drastically, it is still questionable whether $5,000 can accomplish anything. It is not expensive to build a community, with the help of Ning you can do it for free in couple of hours, so what? Community by itself is useless, only users bring value to the community, and attracting and keeping users is extremely expensive.
Obviously, there are thousands of forums, wikis and other collaborative engines on the net. This means three things. 1, it is easy to create them, 2, most of them have just a dozen of members, and 3, in order for them to become market leaders they need a lot of resources. David Silver, an investment guru and author of numerous books on start-ups still argues that in order to build a powerful network you need $300,000.
It is great to get $10,000 from somebody to build a collaborative platform, but this number most likely will not do much in terms of making your platform sustainable.
Michael Loban
Social Entrepreneurship Digest Editor
ShareProudly.com
Posted by: Michael | Jun 1, 2008 11:59:17 PM