10 Radical Strategies for a Connected World : Kevin Kelly
Introduction
In New Rules for the New Economy, Kevin Kelly takes the readers to an exciting trip to the evolutionary process of the economy, reinforcing how the current stage, the network economy, is affecting our lives and creating opportunities. He complements his ideas with general strategies to succeed in this new environment. This book, published in 1998, is an extended version of Kelly’s article published in Wired Magazine (1997), where Kelly is co-founder and editor.

Kelly defines the new economy as something that goes beyond just information. He says that this new economy is based on the interrelation and connectivity of nodes, creating the network economy. This network economy has three key characteristics: it is global. It is especially strong with intangible things such as ideas, information and relationships. And it is highly interlinked. He says that this new economy will lead the traditional economy of hard goods but there will be a strong relationship, since, without the hard goods, there is no way to support the soft world. However, the value creation will lie in the soft world of the network economy. To exemplify this situation, Kelly uses Microsoft as the model company of today’s time versus General Motors during the 1950’s.

The evolution of the economy and the formulation of the new rules of the current stage are cleverly explained by Kelly with biological metaphors, supporting his ideas with arguments scientifically proved. This style provides an easy understanding of the 10 rules and their general strategies in a kind of sequential evolution. Finally, Kelly defines technology as an enabler of this new economy. Its cost reduction and productivity provide the baseline to develop more efficient, faster, more interconnected, and more dynamic relationships.

Rule1: Embrace the Swarm. The Power of Decentralization.
The logic of networks
Power of decentralization
Smartness through massive dumbness

Rule-2: Increasing Returns. Self-Reinforcing Success
Value of a network increases as the square of the number of members
Self reinforcing success
Create feedback loops
Rule 3: Plentitude, Not Scarcity. Value Flows from Abundance.
Value flows from abundance
In a network, the more opportunities that are taken, the faster the new opportunities arise.
Avoid proprietary systems
Rule 4: Follow the Free. Why the Net Rewards Generosity.
The only factor becoming scarce in a world of abundance is human attention
Rule 5: Feed the Web First. Member Prosper as the Net Prospers.
Allegiances move from firms towards networks and network platforms
Focus shifts from maximizing the value of the firm to maximizing the network’s value.
Technical standards will become as important as laws.
Rule 6: Let Go at the Top. After Success, Devolution.
After success, devolution
Don’t mistake a clear view for a short distance
It is often easier to start a new organization than to change a successful old one
Rule 7: From Places to Spaces. Making a Different Kind of Big.
People inhabit places but the economy inhabits a space
zPhysical proximity (place) is replaced by interactions anytime, anywhere (space) the opportunities for intermediaries, middlemen, and mid-size niches expand greatly.
The net shifts from mass media to mess media
Rule 8: No Harmony, All Flux. Seeking Sustainable Disequilibrium.
Flux: creative force of destruction and creation at the edge of chaos
Sustainable disequilibrium requires chasing disruption without succumbing to it or retreating from it
Rule 9: Relationship Tech. Start with the Technology, End with Trust
Start with technology, end with trust
The central imperative of the network economy is to amplify relationships
Producing and consuming fuse into ‘prosuming’
The one with the smartest customers wins
Privacy is a type of conversation
Rule 10: Opportunities Before Efficiencies. Don’t Solve Problems; Seek Opportunities.
Don’t solve problems, pursue opportunities
Efficiencies are for robots, opportunities are for humans
Doing the exactly right thing next is far more fruitful than doing the same thing better

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