The Rise of New Institutional Models and Architectures

As the Internet drops transaction and collaboration costs, we are beginning to see a change in the deep structure and architecture of most institutions in society. Take the case of the corporation: it has long been noted that the traditional vertically integrated corporation is a paradoxical beast. Capitalist titans such as Henry Ford would champion the marketplace’s virtues, yet their corporations functioned like planned economies.

For decades these corporate fortresses triumphed over competitors, but no longer. The monolithic, vertically integrated company is beginning to falter against more lithe competitors. Don Tapscott explains what smart, innovative companies are doing to address these changes in today’s Vlog, “The Rise of New Institutional Models and Architectures.”

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