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 upExperts 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!