Online Business Models

From the article: "We create economic value out of information when we figure out an effective strategy that includes aggregating, filtering and connecting." 

"Filtering is what helps us deal with the vast amount of information available to us."

"...the real question is, how do we design filters that let us find our way through this particular abundance of information?

And, you know, my answer to that question has been: the only group that can catalog everything is everybody." (Clay Shirky)

We try to filter information so that we end up with something that is relevant to us – it helps us learn something, it helps us solve a problem, it helps us develop a new hypothesis about the world around us.

These are all connections – and this is what really drives value creation.

However, we can’t connect without some filtering going on. So filtering is important, and it’s a term that includes several different sub-types. I can think of at least five forms of filtering.

...we can use these ideas about filtering to help with business model innovation by changing where it takes place in the value network.

One of Shirky’s points is that since Gutenberg, the economic logic of publishing required publishers (of books, music, movies) to act as filters in order to maximise their investment.

As publishing and filtering has shifted out to human networks, publishers no longer need to fill this role.

Someone (or some network) needs to, and since that creates value, it’s something that can perhaps be monetised.

You can see this in investing. You can put money in Berkshire-Hathaway, where investment choices are run through the personal expert filter of Warren Buffett. Or you can invest in individual stocks recommended by a broker- which is filtering through an expert network. Or you can take advantage of DIY investing, where you do your own filtering, probably aided by some heuristic filters as well. Three different investing business models based on three different filtering methods."

Check this video: http://vimeo.com/8748509 

Read the full article by Tim Kastelle: http://timkastelle.org/blog/2010/04/five-forms-of-filtering