Networks and the Next Economy

PWC Deals Exchange April 26, 2018 How is the economy changing? What are the implications for business? What does technology now make possible that was previously impossible? We have to let go of the maps that are steering us wrong In 1625, we thought California was an island In 2018, we still think in terms of standalone firms. We need to think about every company as if it is a network Networks and the Nature of the Firm "The existence of high transaction costs outside firms led to the emergence of the firm as we know it, and management as we know it….The reverse side of Coase's argument is as important: If the (transaction) costs of exchanging value in the society at large go down drastically as is happening today [because of networks], the form and logic of economic and organizational entities necessarily need to change! The mainstream firm, as we have known it, becomes the more expensive alternative."Esko