transaction costs

When we speak of groups that do the organizing..." (Shirky 2008) Shirky spoke of following a $300 telephone to the new found owner. Did the transaction of obtaining the phone decrease or increase? It is apparent that the data involved was much more valuable than the phone itself. Therefore, did the transaction cost of regaining said lost phone exceed "We use the word 'organization' to mean both the state of being organized and the its original cost? Perhaps not, as we weigh into the matter that the data was far more valuable than the hardware itself.

What is the tangible effect on transaction cost if we weigh into the matter such items as operational efficiency and employee engagement? (Jue, Marr et al. 2010) If we utilize an internal social media presence, such as Oracle did, we can understand without reservation the connection to success that our employees believe are needed. In itself, these connections may not be met via a personal interview, but left alone to its own creation; the employee appears to become more engaged in its effort to provide success to the relationship.

As Kelly stated, communication is not just a sector of the economy, communication IS the economy. (Kelly 1998) So given the phenomenal success of Amazon and eBay as an example, do their simple suggestions of what “others like you” have purchased weigh into the strategy of permissible marketing? Obviously they do as their continued success of marketing in this low cost forum will endure many profits into the future and far beyond.

References

Jue, A. L., J. A. Marr, et al. (2010). Social media at work: How networking tools propel organizational performance. San Fransico, Jossey-Bass.

               

Kelly, K. (1998). New rules for the new economy: 10 radical strategies for a connected world. New York, The Penguin Group.

               

Shirky, C. (2008). Here comes everyone. New York, Penquin Group.