Bouncing back to contracts: when transactions cost plummets, contracts beat marketplaces at innovation and meaning.
Simone Cicero
Boundaryless | Business Strategy, Organization Design | Creator of the Platform Design Toolkit in 2013 | Thinkers50 Radar 2020
I 'm reflecting on this since a while.
On markets today: on one hand we're seeing ultra-specific domain models (marketplaces) and on the other end very generic/horizontal contracting platforms, such as Haier's rendanheyi and its supporting software (Cosmoplat, the EMC workbench - context).
Haier's EMC (self-managed and self-defined multi-sided smart contracts aimed at creating a certain outcome) is a kind of *evolution* of a transaction: as transaction cost plummets complex (smart) contracts can become the new transactions, reducing the need to rely on scale.
In terms of evolution:
1. We started with complicated and dumb contracts = bureaucracies: amassing suppliers, contractualize them for the long term, the only part of the transaction that was left on the market was purchasing (consumer);
2. Then we moved into the age of marketplaces where essentially the transaction is heavily modeled and scaled, the role of produced is allowed but encased/constrained in a role;
3. We're now moving into ecosystemic organizing: in this context, the transaction is much less dictated/specified. The reduction of transaction cost allows contracts to be signed easily and digitalization allows to distribute more easily revenues, equity ...making it easier to engage with and distribute skin in the game.
Leadership for Good | Host Leaders For Humanity & Business For Humanity | Good Organisations Lab
3 年Antoinette Weibel
Organizational Hacker - organizzo umani e umanizzo organizzazioni
3 年When DAOs will get around self-management principles, we're gonna have some interesting technology in this field of ours. I really recommend a listen to the recent mini series within the Brave New Work podcast.
The Richest Man in Babylon
3 年One thing that's often lost in the shuffle around ecosystematic models is the opportunities in reducing transaction costs (including reputation systems, high trust mechanisms, etc) across the entire ecosystem, whatever those touchpoints may be for any particular project or value proposition (product, service, or some kind of deliverables). This was always the promise of a well designed crypto as part of removing the friction and costs towards fluid transactions in real time.
founder @ Kopernicana | Author, OKR Performance | Business Angel
3 年Esattooooo grande Simone Cicero