Posted by: shrikantmantri | November 17, 2008

Collective Intelligence Principals

In order for this concept to happen, four principles need to exist. These are openness, peering, sharing and acting globally.

Openness – During the early ages of the communications technology, people and companies are reluctant to share ideas, intellectual property and encourage self-motivation. The reason for this is these resources provide the edge over competitors. Now people and companies tend to loosen hold over these resources because they reap more benefits in doing so. By allowing others to share ideas and bid for franchising, their products are able to gain significant improvement and scrutiny through collaboration.

Peering – This is a form of horizontal organization with the capacity to create information technology and physical products. One example is the ‘opening up’ of the Linux program where users are free to modify and develop it provided that they made it available for others. Participants in this form of collective intelligence have different motivations for contributing, but the results achieved are for the improvement of a product or service. As quoted, “Peering succeeds because it leverages self-organization – a style of production that works more effectively than hierarchical management for certain tasks.”

Sharing – This principle has been the subject of debate for many, with the question being “Should there be no laws against distribution of intellectual property?” Research has shown that more and more companies have started to share some, while maintaining some degree of control over others, like potential and critical patent rights. This is because companies have realized that by limiting all their intellectual property, they are shutting out all possible opportunities. Sharing some has allowed them to expand their market and bring products out more quickly.

Acting Globally – The emergence of communication technology has prompted the rise of global companies, or e-Commerce. E-Commerce has allowed individuals to set up businesses at almost no or low overhead costs. As the influence of the Internet is widespread, a globally integrated company would have no geographical boundaries. They would also have global connections, allowing them to gain access to new markets, ideas and technology. Therefore it is important for firms to stay globally competitive and updated or they will face a declining rate of clientele



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