The Power of the Value Net
So the basic idea of a value chain for e-knowledge
must be expanded to the notion of a value net. Some refer to this
as a value web, a value stream, or a value constellation. This value
net will be non-linear and orthogonal. It will accommodate the many
new sources of value that will result from the new services required
to create e-knowledge aggregations, repositories, and marketplaces.
The value net will deconstruct and reconstruct the basic value propositions
and cost/price structures for e-knowledge of all kinds.
To a great extent, much e-content will become a commodity,
and its unit price will dropparticularly where it is already
purposed for modularity and interoperability. We know from experience
that existing Internet-based accessibility to knowledge resources
has reduced unit prices, slashing the profitability of content providers
serving their traditional customers. Finding new markets for their
e-knowledge and creating new, value-added knowledge products is
a critical challenge for traditional knowledge providers confronting
the e-Knowledge Economy.
Reaching, Attracting and Serving New Markets. The
communication capacity of the Internet to reach new markets is not
enough to assure success. In order to truly attract new markets
(and hold onto old markets) e-knowledge providers must add genuine
value to e-knowledge resources. They must create versions of knowledge
resources that are especially suited to online media and create
new, compelling experiences for the user. Online versions of news
media demonstrate this principle, as they are tailored for the online
environment and create new experiences that enable the customer
to engage news coverage more effectively.
In networks we find self reinforced, virtuous
cycles. Each additional member increases the networks value,
which in turn attracts new members, which in turn increases value,
in a spiral of benefits.
Kevin Kelly, 1997