Collaboration and the cost of yesterday

Ronald Coase  was first to recognise and articulate the economic relationship between individuals and the co-coordinating structures necessary to organise the work of individuals, coining the term “Transaction costs” in his 1937 essay “The nature of the firm” 

Coase in his original paper  set up the theoretical framework for the huge cost reductions now possible, enabled by the tools of the web 2.0, which are gathering momentum at a huge rate.

What he did not spend too much time thinking about, because it was not relevant at the time, were the costs imposed by a redundant status quo. Cultures of organisations often require that costs to be absorbed simply because the operating environment has not evolved sufficiently to  allow the collaboration tools now available to be used to their potential, leaving co-ordinating overheads to do the work now possible with a mouse, and a bit of nouse.

The possible competitive advantage to organisations, particularly ones with widespread operations is huge, as most of the competition will have trouble making the leap.

Let them pay the cost of yesterday,  you have the opportunity to grab the future in recognising the power of the new collaboration tools.

 

About strategyaudit

StrategyAudit is a boutique strategy and marketing consultancy concentrating on the challenges of the medium sized manufacturing businesses that make up the backbone of our economy. The particular focus is on their strategic and marketing development. as well as the business and operational efficiency improvements necessary for day to day commercial survival. We not only give advice, we go down "into the weeds" to ensure and enable implementation.
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