Net Gain: Expanding Markets Through Virtual Communities
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Average Rating:
Rating:  - I cannot recommend this book enough
If your objective is to gain a solid understanding of why and how the Internet has become what it is today then this is the text for you. In clear terms it explains the key components of a successful Web venture (commercial or otherwise) through the identification of browsers aggregating towards communities. That growth on the Net is not subject to marketing gurus or advertising execs but rather through an organic evolution. Sounds a bit esoteric? Not at all, the real benefit of this book is that it breaks down each statement and supposition into clear, defined terms that can be verified through real-life examples, examples which the reader can investigate on the Net for themselves (hey, you learn by doing!). There is a very useful section on the lifecycle of a Web community and how to create one. It stresses quick entry onto the Web and gives clear advice on what the entrant should aim for at each stage of the creation of their 'community'. Best of all, through what the authours call 'Fractal Breadth' it lays out how a 'community' can expand and branch out. The Final sections of the book are especially useful in that they outline how a traditional company's infrastructure should change to accommadate a Web presence. Clear, conscise, non-insulting to the intellect and focused. Great value for money.
Rating:  - A Left Hook to the Conventional Model of Business
Net Gain posits a very deep business model, in direct contradiction to prevailing paradigms. Most executives have no idea how radically the world will change through electronic commerce. If they don't read this book soon, it will be too late for many of them to recover. I predict that at least one quarter of the dominant bricks-and-mortar category-killer retailers will be displaced by virtual communities. If you're skeptical, consider my experience trying to purchase Sony's WebTV+. I thought I would try to order it online, through Best Buy, Circuit City, etc. Guess what? All their web sites do is direct you to their local stores. So, I call my local Best Buy and find out they are out of stock, but to place a special order I must nevertheless make the trip to their store (to give them my address and credit card number!). So, I drive for 25 minutes to get to the store, waste 10 minutes finding someone who can help me, waste 25 minutes at customer service just to place an order, and spend an additional 25 minutes returning home. The whole trip took an hour and a half. Guess what? When WebTV arrives at their store, I have to go back to pick it up -- they won't deliver it to my house! Best Buy is widely considered the ascendant leader in bricks-and-mortar. Could a virtual community with online ordering deliver greater value at lower cost than Best Buy? You bet. It's only a matter of time before consumers pull the plug on this nonsense. In fact Best Buy is selling the engine of their own destruction: once Sony can reach me directly through my TV, they don't need Best Buy, Circuit City, or anyone else to push their products. Virtual communities will displace whole retail categories, to the benefit of their customers. Net Gain describes why and how this will happen. Is anyone at Best Buy reading this book?
Rating: - Worth the time reading with practical application
According to Hagel and Armstrong, virtual communities that combine content and communication can expand market opportunities, and those who form these online communities will experience commercial success. Throughout the book, the authors stressed that those organizations who wait will lose out. However, the emphasis of the book is not about making money; rather it's about forming communities, collecting information on members' preferences, interests, etc., and using that information to meet their needs. In my opinion, two of the most useful components of the book are a listing of personnel required for the implementation and maintenance of an online community, and steps needed to help managers get started in organizing a virtual community. The book is certainly worth reading, whether you are developing websites for business, education, recreation, etc. Hagel and Armstrong present valid reasons and practical suggestions for developing online communities that will help members connect, as well as seek and find.
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