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Imagine if MapQuest had done the same thing, harnessing their users to annotate maps and directions, adding layers of value. It would have been much more difficult for competitors to enter the market just by licensing the base data. The recent introduction of Google Maps provides a living laboratory for the competition between application vendors and their data suppliers. Google’s lightweight programming model has led to the creation of numerous valueadded services in the form of mashups that link Google Maps with other internet-accessible data sources.

The architecture of the internet, and the World Wide Web, as well as of open source software projects like Linux, Apache, and Perl, is such that users pursuing their own “selfish” interests build collective value as an automatic byproduct. ” In other words, these technologies demonstrate network effects, simply through the way that they have been designed. These projects can be seen to have a natural architecture of participation. But as Amazon demonstrates, by consistent effort (as well as economic incentives such as the Associates program), it is possible to overlay such an architecture on a system that would not normally seem to possess it.

TiVo is another good example. 0. They are not web applications per se, but they leverage the power of the web platform, making it a seamless, almost invisible part of their infrastructure. Data management is most clearly the heart of their offering. They are services, not packaged applications (although in the case of iTunes, it can be used as a packaged application, managing only the user’s local data). What’s more, both TiVo and iTunes show some budding use of collective intelligence, although in each case, their experiments are at war with the IP lobby’s.

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Creative Entrepreneurship by KBS+ Ventures

by Paul

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