John Hagel III - Net Gain: Expanding Markets Through Virtual Communities

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title	:	Net Gain : Expanding Markets Through Virtual Communities
author	:	Hagel, John.; Armstrong, Arthur.
publisher	:	Harvard Business School Press
isbn10 | asin	:	0875847595
print isbn13	:	9780875847597
ebook isbn13	:	9780585118864
language	:	English
subject	Internet marketing, Customer relations.
publication date	:	1997
lcc	:	HF5415.1265.H34 1997eb
ddc	:	658.8/00285/467
subject	:	Internet marketing, Customer relations.

Page iii Net Gain Expanding Markets through Virtual Communities John Hagel III Arthur G. Armstrong Harvard Business School Press Boston, Massachusetts

Page iv Copyright 1997 by McKinsey &Company, Inc. All rights reserved Printed in the United States of America 01 00 99 10 9 8 Library of Congress Cataloging-in-Publication Data Hagel, John. Net gain: expanding markets through virtual communities / John Hagel III, Arthur Armstrong. p. cm. Includes index. ISBN 0-87584-759-5 (alk. paper) 1. Internet marketing. 2. Customer relations. I. Armstrong, Arthur. II. Title. HF5415.1265.H34 1997 658.8'00285'467dc 2096-41597 CIP The paper used in this publication meets the requirements of the American National Standard for Permanence of Paper for Printed Library Materials Z39.49-1984.

Page v We dedicate this book, with love, to Jane, Rebecca, and Rachel, and to Kathy and Emily, whose contribution to this endeavor was their unflagging encouragement and the time we would have otherwise spent with them. "One man gives freely yet gains even more. Another withholds unduly, but comes to poverty." Proverbs 11:24

Page vii CONTENTS Preface ix Part I: The Real Value of Virtual Communities Chapter 1: The Race Belongs to the Swift 2 Chapter 2: Reversing Markets: How Customers Gain 16 Chapter 3: The New Economics of Virtual Communities 41 Chapter 4: The Shape of Things to Come 82 Part II: Building a Virtual Community Chapter 5: Choosing the Way in 112 Chapter 6: Laying the Foundation: Getting to Critical Mass 131 Chapter 7: The Gardener's Touch: Managing Organic Growth 150 Chapter 8: Equipping the Community: Choosing the Right Technology 171 Part III: Positioning to Win the Broader Game Chapter 9: Rethinking Functional Management 186 Chapter 10: Reshaping Markets and Organizations 203 Management Agenda 217 Further Reading 221 Index 225 About the Authors 239

Page ix PREFACE Our interest in virtual communities has evolved over many yearsa veritable eternity in "Net" time. It began in the late 1980s, when we observed the emergence and growth of The Well, a vibrant, engaging on-line community of leading-edge thinkers at the intersection of technological and cultural change. The focus on bulletin boards and e-mail within The Well drove home the message that networks are ultimately about the connections they create between people. It also underscored the importance of a new form of content generated by The Well's members as they interacted on-line. Over time, the accumulated postings to the bulletin boards in The Well became a treasure trove of information that drew in more people and led them, in turn, to comment on and contribute to the community's cumulative knowledge. Through The Well, we also became aware of a vast, highly fragmented underground culture of independent bulletin boards operating via the telephone network. Established and maintainedusually on a part-time basis in a spare bedroom or garageby people passionate about a particular topic, these bulletin boards had become on-line gathering places for others who shared their interest. Sports, role-playing games, diabetes, gun collecting, plumbing supplies, politics, relationships, stock investmentsthe range of topics appeared endless. Thousands of such bulletin boards were in existence, and although most involved mere hundreds of members, in aggregate they were drawing in millions of domestic and international participants.

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