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Network Effect
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The Network Effect is a venture set up by the British Council to create and nurture networks between the next generation of European leaders. European societies face a set of challenges over the coming decades that do not lend themselves to technical, managerial solutions: from placing their economies on a sustainable low carbon footing, to managing the democratic transition of an aging population, to building cohesive communities in the face of growing social diversity. Leaders of the future, in all sectors, face these new and complex challenges in a world where the understanding of leadership itself is in flux. The Network Effect aims to respond to this challenge by providing forums for debate, a creative perspective on critical issues, and helping to build the capacity required to address them. Through a combination of learning by doing, challenging content, a teamwork approach, and networking between events, the aim is to create a sustainable network of future European leaders committed to making a difference. For more information, please surf to www.britishcouncil.org/slovakia-society-bratislava-network-effect.htm.
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For geeks and engineers The Network Effect is something approaching The Holy Grail. However, as is often the case with techies, they use complicated formulae to try and explain it, when in reality it's best understood through the medium of.restaurants! When you walk past a restaurant that is empty and the waiting staff are sitting by the bar looking at their watches, it's not so enticing. After all, it doesn't matter how good the food is - who wants to eat alone? So getting that first person through the door becomes very important.
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In the final Network Effect forum in Belfast in June 2009, young people who participated in previous forums will submit proposals of projects with the aim of bringing about a positive change to a particular debated issue. The British Council will award funding to the best project proposal.
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For marketeers scratching their heads about how to build communities or networks, the Network Effect is indeed a useful one to bear in mind. But so is the restaurant effect. The kings of MySpace, Chris De Wolfe and Tom Anderson, took the Network Effect and used it to create an empire of 150m people - slightly larger than Russia. But they knew that success wasn't all about weird and wired formulae. Culture counts. They launched the service from LA where the cool people live - because they knew that was the magic ingredient to power their online music world.
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Negative network effects result from resource limits. Consider the connection that overloads the freeway — or the competition for bandwidth. In fact, the automobile and ethernet congestion examples illustrate that there can be threshold limits. In this case, the n+1 person begins to decrease the value of a network if additional resources are not provided.
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Vertical integration reduces the effect of double marginalization... increasing welfare. On the other hand, vertical integration hinders equal competition, rendering the vertically integrated supplier a competitive advantage. Tags: Centraal Corp., welfare, integration, competitive advantage, network White papers 2002-07-09
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Network Effect