“They push the traditional business software out to the edge of the network, because they are so powerful,” he said.

Key things to address:

  • Peer production – already affected software
  • Owning your classes of data – data becomes the competitive advantage
  • New
    distribution models – building a website and driving people there is
    very 20th Century.
  • You need to get you products wherever your customers
    are
  • Social systems – allow customers to be aware of each other and collaborate. You need this to get the first two points

Power has shifted from institutions to communities of individuals. The network enables this.

Customers are now part of the product – the most important part. This is part of the network effects – a platform is more valuable the more people
who use it. Build a potent network effect, you win. Use open APIs to
grow it.

But the biggest problem is changing our thinking – we need to unlearn our thinking about where the value is.

You need to reimagine your products and services for the 2.0 era, but there are significant hurdles to overcome:

  • How do you disrupt yourself?
  • Not invented here.
  • Fear of failure.
  • Deeply ingrained 1.0 culture
  • Low level of 2.0 understanding