When they wrote the book, “Wikinomics: How Mass Collaboration Changes Everything,” Don Tapscott was in Toronto and Anthony Williams was in London.
And their trans-Atlantic relationship is at the heart of the premise of their book that delves into the evolution and promise of mass collaboration, buoyed by the Internet. They coined the term “Wikinomics” to explain an emerging economic paradigm that combines economics and the online encyclopedia Wikipedia, a zeitgeist of our times written and edited by anyone. Tapscott and Williams believe that this new model can be used to conduct and bolster business and industry with collaboration and sharing that they call “peering,” one of the four pillars of Wikinomics. As they posit, all innovation is, ultimately, the result of something cumulative.
Wikinomics is based on four ideas: Openness, Peering, Sharing, and Acting Globally. Mass collaboration in business is an outgrowth of the outsourcing trend, but relies on individuals to join forces cooperatively to solve problems or bolster existing operations. The Internet, with its limitless landscape and ability to be accessed practically anywhere in the world, levels geographic boundaries and allows people to collaborate and communicate in this way in a real time environment, while harnessing the power of people all over the world.
A prime example of Wikinomics at work, detailed in the book, occurred when Goldcorp, knowing that their 55,000 acres contained untapped resources “thirty times the amount Goldcorp was currently mining!,” turned to the masses for help. Company geologists could not figure out where to look, so they posted on the Internet a half-century of geological data and offered $575,000 for the best ideas about who to find and extract gold.
Amazingly, the contest led to 55 new drilling targets, with 80% being successful. According to Tappscott and Williams, “In fact, since the challenge was initiated, an astounding eight million ounces of gold have been found” and in just four years Goldcorp’s cost of production dropped 600%.
This example shows how and why the theory of Wikinomics works. Firstly, in the posting of geological data back to 1948, we see how the Internet makes it simple and inexpensive to post large amount of data and information. Once this information is out there, motivated individuals with expertise can be challenged to solve a problem. The power of the aggregate is greater than of the individual, and the Internet and Wikinomics offers a venue that makes this possible.
