Peer to Peer Networks

Peer to Peer Networks

1. Pure Network

   • egalatarian
   • voluntary
   • Hybridisation
     • Meritocratic Principle
       • leaders are most skilled and experiences members

2. Information Economics

   • property rights -> upside down
     • can share and modify but must share your changes with the community
     • no exclusion
     • open source licences / general public licences
   • Motivation similar to Entre
     • passion
     • exposure
     • status
     • experience
     • may be paid by employer (IBM, Intel)
   • Bypass traditional firm overheads
     • contracts
     • quality control
     • costs of integration
     • attract diverse talent pool

3. IBM

   • Open Source Experiment in 1990s
     • embraced open computing driven by adversity
     • donated proprietary software to OS community
     • allowed for speedy innovation, very low cost
     • competitive advantage
       • made billions by 2006
       • estimated they saved $1bn / yr in costs
   • Intrapreneurship in 1980s
     • create culture of innovation
       • New entity which is entrepreneurial set up to create PC
         • given $100m
         • outsourced op. system to Microsoft
         • PCs sold via retail outlets not IBM
     • Creative Destruction: Personal Computer replaced mainframe computing
     • adapted to thrive

4. Works Best For:

   • producing information / culture as output
   • process can be broken down into chunks

5. harness power of mass networks to create new G&S

   • harness skill, talent more efficiently than firm heirarchy