Wikinomics is it a Sustainable Business Model?

The world where we used to read series of Britannica encyclopedias, to learn new things no longer exists. With the rapid evolution in technology, access to knowledge is now just one click of a way. The best example is Wikipedia (http://en.wikipedia.org) which is yet another magnum opus in the evolution of technology which operates based on the simple principle of collaboration. As of 27^th September 2011, 90 000 regular contributors, contribute on this free, web based, collaborative, multilingual encyclopedia project which has over 19.7 million articles and viewed by over 365 million users. People collaborate in sharing their knowledge with both philanthropic reasons and with the intention of enhancing their own reputation.

With the immense success of Wikipedia, Wiki has become synonymous to collaboration and Wikinomics is an area which contemplates on creating economies through collaboration. Don Tapscott in his book Wikinomics (http://www.amazon.com/Wikinomics-Collaboration-Changes-Everything-ebook/dp/B000QBYEH8) gives a classic example of how one of the gold mining companies which effectively used the concept of Wikinomics. The company’s geologists were not successful in finding the locations to mine for gold. Thus the CEO of the company used an online based model where he announced that he will reward $5 million to anyone who accurately located gold. 72 participants took part in this competition and the gold mining company was able to generate revenue of $ 3.4 billion.

Another classic example of collaboration is Free and Open Source Softwares (FOSS) like LINUX OS which operates on the same principle as Wikipedia where people across the glob collaborate in developing the software platform.

Wikinomics operates on four main principles of, being open, peering, sharing and acting globally. Don Trapscott identifies the wiki contributor as a “person who is willing to contribute to the system which made him”. Thus this model harnesses on talent across the globe, with significant economies in production and leveraging on social capital.

Models	Description
Ideagoras	This where people with solutions and people with problems collaborate. Example collaboration of scientists in solving problems
Prosumers	This is where consumer becomes co-innovators in building the product. Trapscott presents the classic example of 2nd life where the consumers are part an parcel of the product development and product innovation as it is the consumers whom design the 2nd life.
Open Science	This is where companies collaborating to arrive at the best solution. Classic example in the Sri Lankan context would be mobile operating companies collaboratively lobbying the regulators to stop the severe price cutting by the foreign telecommunications company.

Although this concept is evolving rapidly without monetary benefits it could be argued that the principles of being open, peering, sharing and acting globally could be challenged. Thus for this model to evolve the a proper platform a proper methodology should be developed to distribute rewards across contributors.