Old industries rely on expert opinions to guide consumers, but experts can make mistakes or be biased. The new model aggregates opinions from many users to tap into collective wisdom instead of having any single expert in charge. This decentralized approach allows for data-driven solutions, lower costs by removing middlemen, and increased profits by engaging more niche interests.

2. 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”

3. 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”

4. How?

5. Start with the heart

6. Build community

7. Make it fun!

8. Make it work!