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Don Tapscott on mass collaboration

This is not really an article, but I think this video applies itself readily to the collaboration module that we studied in class. Macrowikinomics is a book written by Don Tapscott and Anthony D. Williams about the evolving modes of problem solving through the use of the collaborating on the Internet. They argue that the collaboration efforts facilitated by our online networks can not only fundamentally change the economy but all of society and that the companies who are able to embrace this new phenomenon will be able to succeed. They are noticing that these types of outward looking collaboration efforts are increasingly becoming a common place in business and societal changes.

Don highlights a number of situations where companies have very successfully collaborated. In China a group of parts manufacturers were able to pool their resources in order to form a motorcycle manufacturing cooperative. A collaboration effort made possible through the Internet.

He also mentioned Proctor and Gambles Ideagora and how they are able to successfully collaborate outside of their company. Noting that 50% of their innovation comes from outside. Instead of having the “Not invented here syndrome” they profess to having the “Proudly Found Elsewhere” syndrome. Scientists inside the company are compensated to look for the best innovations.
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Fiat and Chrysler. Collaborate or lose.

At this crucial time in Fiat’s history, they are forced to either collaborate effectively or die out. Just recently the Italian car company Fiat purchased a large portion of Chrysler through an international deal to save the company from bankruptcy. The two automakers, both struggling regionally, will come together to create a global competitor. The expanded production facilities means that they will be able to produce cars anywhere in the world, reducing shipping costs. For this vision to successfully occur, the two companies need to effectively transfer knowledge and integrate product lines. On the engineering side, the old Chrysler cars and Fiat cars need to be outfitted with the best of the two technologies. On the operations side, new efficient means of production needs to be planned out to fully utilize all the new resources to mitigate costs.
Fiat also has a few difficult decisions to make at their home in Italy. Do they continue to produce cars in Italy, a place where they are losing money, or move production else where and risk the backlash of Italian employees. Their current plan is to expand production in exchange for a new pay structure that would allow Fiat more flexibility in compensation.