Friday, May 16, 2008

What is the Edge?

It won't take long for a member of Team Marcellus to start talking about the edge. Edge competencies are in the Marcellus DNA... it is what we do better than any other company in this space. So your question naturally is – what is the edge?

I am tempted to do my best Morpheus impression and tell you that everything that you see is the edge… but I am going to refrain and tell you the edge is the boundary that divides the internal and the external, the producer and the consumer; the service provider and the client… it is that very distinct (you can see it if you look hard enough) membrane through which the value/revenue osmosis happens. And the edge is where the action is at…

The internet has changed a lot of things, but the single greatest impact that the internet has had that it has changed the linear flow of what used to be called the value chain… companies are used to pushing "value" at the consumers and the consumers reciprocate by providing companies with "revenue." But in this new world of cheap interactions between consumer <-- company --> consumer value is increasingly and exponentially (referred to as the "viral effect") created at the edge… each time a consumer interacts with another consumer or with the service there is a distinct, tangible value that gets created… firms (read Google) that are able to capture and consequently leverage this value are the epitomes of hyper efficient business models. The reason that the same hyper efficiency is "el dorado" for some firms (read Microsoft) is that they are still operating with the core strategy and hence are in a strategic decay.

Wanna know – how you can avoid that strategic decay in this oblivion called online video? Well you can start by considering Marcellus…