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June 1, 2007

The Ignorance of Crowds - Nick Carr

Nick Carr may have done it again. In 2003, he wrote an article (later expanded into a book) that set the IT world spinning -- "IT Doesn't Matter" -- where he argued that IT was no longer a company strategic advantage but was becoming a commodity.

Now he has a new article out -- The Ignorance of Crowds, questioning the hype over peer production systems (of which open source is a common example):

First, peer production works best with routine or narrowly defined tasks that can be pursued simultaneously by a big crowd of people. It is not well suited to a job that requires a lot of coordination among the participants. If members of a large, informal group had to coordinate their efforts closely, their work would quickly bog down in complexity. The crowd’s size and diversity would turn from a strength to a weakness, and the speed advantage would be lost. Second, because it requires so many “eyeballs,” open source works best when the labor is donated or partially subsidized. If Linus Torvalds had had to compensate all his “eyeballs,” he would have gone broke long ago.

Third, and most important, the open source model — when it works effectively — is not as egalitarian or democratic as it is often made out to be. Linux has been successful not just because so many people have been involved, but because the crowd’s work has been filtered through a central authority who holds supreme power as a synthesizer and decision maker. As the Linux project has grown, Torvalds has gathered a hierarchy of talented software programmers around him to help manage the crowd and its contributions. It’s not a stretch to say that the Linux bureaucracy forms a cathedral that coordinates the work of the bazaar and molds it into a unified product.

. . .

But for all its breadth and popularity, Wikipedia is a deeply flawed product. Individual articles are often poorly written and badly organized, and the encyclopedia as a whole is unbalanced, skewed toward popular culture and fads. It’s hardly elitist to point out that something’s wrong with an encyclopedia when its entry on the Flintstones is twice as long as its entry on Homer. Eric Raymond himself has become one of Wikipedia’s harshest critics. “The more you look at what some of the Wikipedia contributors have done, the better [Encyclopaedia] Britannica looks,” he told the New Yorker in 2006. If Wikipedia weren’t free, it is unlikely its readers would be so forgiving of its failings.

The Linux operating system, in contrast, is renowned for its high quality. It routinely runs for months on end without crashing. What explains the difference? Wikipedia’s problems seem to stem from the fact that the encyclopedia lacks the kind of strong central authority that exerts quality control over the work of the Linux crowd. The contributions of Wikipedia’s volunteers go directly into the product without passing through any editorial filter. The process is more democratic, but the quality of the product suffers.

. . .

The bottom line is that peer production has valuable but limited applications. It can be a powerful tool, but it is no panacea. It’s a great way to find and fix problems, to collect and categorize information, or to perform any other time-consuming task that can be sped up by having lots of people with diverse perspectives working in parallel. It can also have the important added benefit of engaging customers in your innovation process, which not only allows their insights to be harnessed but also may increase their loyalty to your company.

But if peer production is a good way to mine the raw material for innovation, it doesn’t seem well suited to shaping that material into a final product. That’s a task that is still best done in the closed quarters of a cathedral, where a relatively small and formally organized group of talented professionals can collaborate closely in perfecting the fit and finish of a product. Involving a crowd in this work won’t speed it up; it will just bring delays and confusion.

The open source model is also unlikely to produce the original ideas that inspire and guide the greatest innovation efforts. That remains the realm of the individual.

Whether you agree or disagree, you have to admit that Carr will once again get us thinking.

By the way, Carr has a new book coming out -- The Big Switch: Our New Digital Destiny:

A hundred years ago, businesses began dismantling their waterwheels, steam engines, and generators. After producing their own mechanical power for centuries, they suddenly had an alternative. They could plug into the newly built electric grid and get all the electricity they needed from central stations. The cheap power pumped out by electric utilities didn't just transform how businesses operate. It set off a chain reaction of economic, social, and cultural changes that brought the modern world into existence.

Today, a new technological revolution is under way, and it's following a similar course. Companies are beginning to dismantle their private computer systems and tap into rich services delivered over the Internet. This time, it’s computing that’s turning into a utility. The shift is already remaking the computer industry, bringing new competitors like Google and Salesforce.com to the fore and threatening stalwarts like Microsoft, SAP, and Dell. But the effects will reach much further. Cheap, utility-supplied computing will ultimately change society as profoundly as cheap electricity did.

Sounds like an interesting follow on to IT Doesn't Matter.


Posted by Ken Jarboe at June 1, 2007 9:26 AM

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