5: FEED THE WEB FIRST
Networks in the fluid phase...
...have a different dynamic. The plethora of choices in the prestandard phase gradually reduces to two or three. Allegiances are mobile, and drift over time. During this period, networks demand the strongest commitment to their survival. Participants have to feed the web of their choice first, and the narrowing of choices allows substantial investment to spur rapid growth. The effects of plentitude and increasing returns kick in--more breeds more. Feeding the web on any of several standards still produces gains for all participants. Yet it is inevitable that only one standard will ultimately prevail while the other ones fail. The uncertainty level is nearly as high as during the prestandard phase, but the risks for being wrong are greater. Anyone who remembers the demise of 8-track audiotapes will appreciate the perils of this painful stage. Today such networks as digital photographs and desktop operating systems are in this fluid phase: Several well-established standards vie for ultimate dominance. Choose wisely!
As an analyst within the RE industry (no, I won't apologize...although, I have my suicidal moments), the transitions from technology to technology generally define the blueprint for current operating models and thus profitability curve. Therefore transitional technology is essential to what I have termed the "New Real Estate Economy." In the macro sense, technology defines models and the models then create the consumer "herd" leading to ROI. What you say is "spot-on" because there exists a kind of collectivism (often cult-like) centered upon and driven by the "gains for all participants."
Nicely stiched,
Donald Teel
e-Partner
www.ePartnerUSA.com
REALonomics
www.REALonomics.net