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Wednesday, February 02, 2005

The New Dotcoms Of The New Rules Economy

( Via Siliconvalleywatcher) Tom Foremski writes,There is a new kind of dotcom company that will emerge during Internet 2.0 this current and very distinct emerging phase of the Internet. New-rules companies will decimate established companies in many/most sectors. And it will happen very quickly when it happens.
The characteristics of a new rules enterprise:
Excerpts with edits:
- The first rule of the newrules enterprise is that it is new, brand spanking new.
- The second rule is it is staffed by a small group of executives that know the most efficient business processes for what the venture will produce.
- The third rule is to stick as much open source/industry platform software and hardware onto the business processes as you can, creating a highly automated highly-efficient business venture with virtually free IT.
- The fourth rule is to use as much web services IT as possible.
- The fifth rule is work free for six-months to create the nucleus of the venture. It’s an atomic ventures world. It’s the $40k startup. When IT, and other infrastructure costs are so cheap and available to everyone then knowledge capital becomes the competitive differentiator—who is on your team.
- The sixth rule is don’t put anybody on the payroll unless you absolutely have to.
- The seventh rule is the venture does not go public, it stays private. It will have private investors/owners and those investors would be paid in dividends. By staying private newrules enterprises are a blackbox corporation. Competitors cannot peek inside because it is private and thus cannot benchmark their business model against it.
- The eighth rule of the newrules enterprise is that there will be a lot of intellectual property that is not patented but is kept secret.
- The ninth rule, and the most important, is that the newrules enterprise uses blogging techniques and technologies to market research/help produce and sell products and services that near-perfectly match the needs of their customer communities.
I get two messages out of this:
A. All trendy things are in this list
B. There is definitely an upturn in the valley - so much so people have once again began to glamorise the activities in the valley. Thats good news for everyone.

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