online pr Uncategorized

Will zero friction ecosystems destroy value? – Broadstuff

The online world is the best friction reducing agent known to man. Implications are fairly “interesting”:

– The more your industry can go online, the lower the overall margins
– The lower the margins, the more it resolves to players who have massive scale and/or those operating at subsistence costs (did someone say User Generated Content)
– In a global market, those with the least friction lose – anyone with true “free trade” will be hollowed out by those with a few barriers.

This has some implications on ‘Net policy for countries, as it is clear that being a bit more frictitious than your trading partners may help – and it looks like we may have to build the Internet with a bit of friction included, if it is actually going to create rather than continually destroy value. One to watch…..

Also has implications for PR and journalism…..

Posted via web from Andrew’s posterous

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