Old industry is governed by experts
Old model:
An “expert” tells you what is good
Examples:
Zagat (food)
Roger and Ebert (movie reviews)
NY Times review (books)
Subprime lending (banks)
expert at center
user at the edge
Problem:
Experts screw up
Experts can be bribed
Experts don't represent the “long tail”

In new model no one is in charge
New model:
Collective wisdom is the expert
Examples:
Yelp (food)
Netflix (movies)
Amazon Reviews (books)
P2P Lending, Alibaba (banks)
winners are aggregators
Solution:
Solutions are data driven
Cost savings as you remove middlemen
Profit as you engage “long tail”

How?

Start with the heart

Build community

Make it fun!

Make it work!