Network Orchestrators

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Description

Simone Cicero:

" A recent study from OpenMatters and Deloitte[4], based on the observation of 40 years of S&P500 companies, reported that four major business models have been used so far in the history of capitalism: more in details, these business models are those of Asset Builders (firms that “build, develop, and lease physical assets to make, market, distribute, and sell physical things”), Service Providers (“hire employees who provide services to customers or produce billable hours”), Technology Creators (“developing and selling intellectual property”) and finally, Network Orchestrators.

This new breed of companies wins on the market by creating networks of peers in which participants – being prosumers, small business or partners in general – interact and play a role in a shared and internetworked value creation process. With no surprises, this research confirmed that Network Orchestrators historically achieved better financial results: bigger market value, faster growth, higher profit margins.

By surfing on the strong reductions of transaction costs mostly made possible by the ubiquity of the Internet and by leveraging existing and eventually “connected” infrastructures, inventories and network of resources, these companies can create markets that didn’t exist before. They can grow these markets into millions of participants, if not billions – by making connections and generating interactions between value producers and consumers, often shortcutting traditional middlemen and gatekeepers. These “platforms” focus on creating customer driven value – by using advanced techniques to deploy, test and measure the new – and on generating user experiences that are not only just better, but often 10x if not 100x times better (faster, easier, more enjoyable, more accessible, etc.) than the – not always existing – alternatives.

These “platforms” effectively enable what could be called a “Platform Based Peer Production” (PBPP in the rest of the document) paradigm – in contrast to the well known concept of “Commons Based Peer Production” as defined by Yochai Benkler." (http://meedabyte.com/2015/07/17/on-the-role-of-platform-based-peer-production-and-the-commons-in-the-dynamics-of-innovation/)