The document discusses how the semantic web, cloud computing, and social software are transforming modern business structures, allowing for smaller, more specialized companies that focus on creativity rather than heavy engineering. It highlights how reduced transaction costs and increased connectivity enable firms to thrive in larger markets. The implication is a shift towards loosely coupled, networked businesses that prioritize innovation and efficiency.

1. CONNECTED PLATFORMS FOR CONNECTED APPLICATIONS Ian Davis <ian.davis@talis.com> Chief Technology Officer, Talis

2. The Semantic Web as a blue ocean opportunity Cloud computing, social software and the semantic web are seeding fundamental changes to the boundaries of the modern firm

3. In the pre-industrial era, most goods were produced by individuals or small groups working together

4. Trading to a large market required a very large company capable of vertically integrating all its functions

6. http://flickr.com/photos/ccgd/57454788 Transaction costs fell as infrastructure began to connect people

7. Larger markets allowed specialism “ The division of labour is limited by the extent of the market ” Adam Smith

9. Air travel, communications satellites and containerisation connected the world http://flickr.com/photos/photohome_uk/1494590209

10. As transaction costs plummet hugely horizontal firms like Li and Fung could flourish 2 billion items produced annually 8300 suppliers in 40 countries coordinating 2 million workers employing 8000 $7.5m revenue per employee

12. The Internet's huge connectivity and ubiquity has put more people in economic contact with one another than ever before. http://flickr.com/photos/szulat/474827440

14. flickr.com/photos/cipherswarm/2414578959/ Cloud computing holds the promise of allowing businesses to scale costs with revenue.

15. flickr.com/photos/jurvetson/2234378275/ Social networks are enabling businesses to reach millions with almost zero friction.

16. The Semantic Web radically changes the economics of sharing and combining information

18. Implication is that companies become smaller and more specialised, focussing on creative talent, not heavy engineeing

19. www.flickr.com/photos/28481088@N00/399609106 Companies become loosely coupled. Small, efficient, very creative and highly networked

20. shared innovation TM www.talis.com/platform