Tuesday, October 27, 2009

Companies that harness the power of the network will win

Very interesting deck from Sean Parker - one of the driving forces behind Facebook - in which he argues:

"The companies that harness the power of the networks will dominate the internet"

Regulars here will find that rings very familiar (hence my book, The Power of the Network).

Here's his deck (hat-tip to @msamayoa ) which has been sparking comments galore at Techcrunch

Sean Parker's Web 2.0 Summit Presentation

I agree with all the sentiment. Couple of points though. I didn't see a slide on Reed's law (the 2n formula which explains the exponential value growth in large networks - particularly ones with humans involved and which also explains the dominance of niche groups over lowest common denominator hits in a networked world).

Here's one of my more recent decks which includes the Reed's law explanations:

Also, you can make the case for Google being a people-powered connector all of its own - getting connections beyond the silo is what really counts (when one extra node on the network doubles its value) so search is still very very important in that regard - which I blogged about here.

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The rate of change is so rapid it's difficult for one person to keep up to speed. Let's pool our thoughts, share our reactions and, who knows, even reach some shared conclusions worth arriving at?