OPEN

Keith
Woolcock of Westhill Capital writes an insightful and stimulating article
for his Flamebait column in the Telegraph today (see Virtual cities show how money will be made this
century).

He discusses the notion that cities, not nations, are the drivers of progress
and wealth in the world, rather than nations and then applies this concept to
the virtual world and to media companies.

Applying this idea to Microsoft and Google Mr Woolcock says that the former
is obsessed with generating cash from its profits while the latter generates
wealth by dint of its running a brilliant virtual city – a collective of
services, infrastructure and spaces where research, communication and commerce
can happen. That’s why, Google has won the battle for the web that Microsoft set
out to fight in 1995.

Now there are some deluded souls on Wall Street who were buying Microsoft’s
stock because they thought it was cheap and who still cling to the notion that
the company can dominate the internet. They are thinking in terms of empire and
hegemony when the Net is all about community and virtual cities.

It’s an easy mistake to make and one most media companies will continue to
make. Media companies and giants like Microsoft tie themselves in knots
worrying about how to make money out of content. The BBC is one of those who
know – a large part of the BBC’s investment will go towards creating virtual
city suburbs where citizens can create and exchange self-generated content.

This is how cities create wealth – allow them to thrive as communities,
which means not getting in the way of that most natural of human needs,
conversation. Too many big corporations are driven by the profit motive, which
makes it hard for them to be good virtual city governors.

Mr Woolcock’s support of the BBC 2.0 website redesign  is also one of
the most intelligent articulations of why the Beeb is right I’ve read so far.

Now I know that this analogy is simply a different cut of ideas that are
common currency on the web and have been ever since The Cluetrain Manifesto began
to rock our worlds, but it excites me because the analogy just really works for
me.

Cities are where the action is. City is where the talent goes and the
exciting things happen. Cities are where you base your business to be close to
communities where you can thrive and find opportunity.

technorati tags: microsoft bbc web thinking cluetrain business