Tom Malone gave a very interesting keynote focusing on a new shift in big business that has resulted in the economies of scale we are used to with the creativity one gets from small business. Scale and freedom. How did we get here? Part of it is a technological shift decreasing the costs of coordination. Part of it is that people gain satisfaction in participating in a community and in creating value. The technology makes the shift possible, but people make it happen.

Tom draws out an interesting example around this shift in business. First, he looks at society. First we had decentralized bands that together make decisions for each other. Then, with the development of writing, it became possible for larger areas to be connected through a central power that would make decisions for all - kingdoms. Next, with the advancement of the printing press, literacy spread and people could be informed enough to contribute to decisions - democracy.

The shift in business follows the same decentralized -> centralized -> decentralized but connected shift.

At first we had small businesses where everyone could help out. Next, big businesses achieving economies of scale and working in a hierarchical environment. Now, we have the opportunity for decentralized decision making with "empowerment, outsourced, networked organizations."

The technologies of coordination make it possible for people to be empowered with greater decision making. This makes them more motivated and creative. And creates the value and innovation that lead to today's success.

Not all companies will, or should, move to this business model. For knowledge-based businesses, it makes sense. It also makes sense for knowledge units in production-based businesses. There are also many points of variance along the way from centralized to decentralized decision making - it's not an all or none type of thing.

Some interesting points:
1. Standards can create and foster decentralized decision making and freedom - the Internet
2. You gain power when you give it away

The innovations we make now will continue to be, in some ways, technological ones. But those with greatest impact on business will be innovations in the ways we organize ourselves. Personal innovations. It all drives down to people. It's something we all need to remember, in this scenario and others. It's not the technology that makes collaboration possible. It's people. People collaborate by nature. Technology is only a facilitator.