Graph-based Books
Prior to starting infovark, I read everything I could get my hands on regarding the Web 2.0 phenomenon. Even though I felt immersed in the trend already, I wanted to make sure I understood what other people were reading about it. I also wanted to make sure that I was hearing directly from the primary sources, rather than indirectly through blogs or reviews.
I recently loaned our principal investor several of those books. After putting together the reading list, it occurred to me that I ought to post it to our blog as well. I plan for this to be the first part of an irregular series. To start us off, we have two essential books: The Tipping Point by Malcolm Gladwell and Chris Anderson’s The Long Tail.
Feeling a Bit Tipsy
The Tipping Point describes a contagious situation where a system rapidly changes to a new state. The tipping point can be a “didn’t see that coming” moment, when something finally achieves critical mass and explodes onto the scene. Whether it’s a sleeper movie that suddenly becomes the film of the year, or a previously obscure product that’s now a household name, the Tipping Point describes how that dynamic transition occurs. It’s the classic snowball effect: Each flake, on its own, adds an insignificant amount of mass to the rolling ball. Over time however, those changes can compound into an unstoppable avalanche.

Figure 1: The Tipping Point
The Tipping Point is relevant to Enterprise 2.0 in two ways. First, obviously, is that software companies like infovark want to create a tipping point situation in the adoption of our products. But Gladwell’s book is a description of the phenomenon, not an instruction manual.
The second, more important reason, is that systems that gather, store and search data often experience network effects. Most Enterprise 2.0 systems fit this category, and ours is no exception. Our products need to scale rapidly so that we can harness these effects to return meaningful, relevant results. The crucial trick for getting the adoption rates we want is our ability to employ statistical tricks (and a few smart guesses) to bring that tipping point moment — the moment when someone says, “Wow, this thing is reading my mind!” — as close as possible to the out-of-the-box experience.
…And Pussycats
The second graph-based book, the Long Tail, describes a major shift in the way retailers think about selling their goods. For the last 50 years, product manufacturers have focused on the hits — those few products that achieve mass-market success. In today’s Internet economy, the cost of sales and inventory are dramatically lower. Retailers don’t need to be as choosy about their stock, opening up a large space for niche products to flourish. Taken as a whole, there can be as much money in niche products — in the long tail — as in selling mass market goods. Companies that have figured this out can derived tremendous value from serving these previously under-served consumers.

Figure 2: The Long Tail
The catch is in the phrase “taken as a whole.” To get the benefits of The Long Tail, you have to have a meaningful and interesting way of aggregating the preferences of many, many niche markets. And in this case, the market for information is little different than the market for products. Wikipedia succeeds as an aggregator of information by trading authoritativeness (scholarly writing and professional editing) for an unmatched breadth of articles contributed by the general public. You won’t find many articles related to animated television series in a typical encyclopedia, but you can find details about Josie and the Pussycats on Wikipedia, including their signature lyric: “Long Tails… and Ears for Hats!”
The Long Tail also holds lessons for us. Creating enterprise portals, automated workflow systems, and other broad-brush systems is an Enterprise 1.0 approach. Enterprise 2.0 systems must recognize that organizations are composed of teams of specialists. Each team and each individual will have a different view of the organization, and each is responsible for making different contributions to the collective effort. An Enterprise 2.0 approach must tap the Long Tail of corporate knowledge and expertise and deliver custom-tailored results.
(P.S. Thanks to Brian Shaler, whose CrappyGraphs.com helped illustrate this review.)
