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What is the impact of could computing, social software and semantic web in terms of the economcs of business?
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CONNECTED PLATFORMSFOR CONNECTED APPLICATIONS
Ian Davis <[email protected]>
Chief Technology Officer, Talis
The Semantic Web
as a blue ocean
opportunity
Cloud computing, social software and the semantic web are seeding fundamental changes to the boundaries of the modern firm
In the pre-industrial era, most
goods were produced byindividuals or small groups
working together
Trading to a large market required a very large company capable of vertically integrating all its functions
http://flickr.com/photos/ccgd/57454788
Transaction costs fell as infrastructure began to
connect people
Larger markets allowed specialism
“The division of labour is limited by the extent
of the market”Adam Smith
Air travel, communications satellites
and containerisation connected the world
http://flickr.com/photos/photohome_uk/1494590209
As transaction costs plummet hugely horizontal firms like Li and Fung could flourish 2 billion items produced annually 8300 suppliers in 40 countries coordinating 2 million workers employing 8000 $7.5m revenue per employee
The Internet's huge connectivity and ubiquity has put more people in economic
contact with one another than ever before.
http://flickr.com/photos/szulat/474827440
flickr.com/photos/cipherswarm/2414578959/
Cloud computing holds the promise of allowing
businesses to scale costs with revenue.
flickr.com/photos/jurvetson/2234378275/
Social networks are enablingbusinesses to reach millions
with almost zero friction.
The Semantic Webradically changes the economics of sharing and combining information
Implication is that companiesbecome smaller and morespecialised, focussing on
creative talent,not heavy engineeing
www.flickr.com/photos/28481088@N00/399609106
Companies becomeloosely coupled.Small, efficient,
very creativeand highly networked
shared innovationTM
www.talis.com/platform