The phase transition of markets and organizations: The new intelligence and entrepreneurial frontier

Markets and bureaucratic organizations have been undergoing a phase transition, due to IT innovations and the emergence and proliferation of the Internet and ubiquitous computing. Markets are increasingly embedded in networks of conversations, which allow different actors to adjust their thoughts and actions as they seek to acquire and integrate market and nonmarket resources to cocreate value. The new organizational mandate is to provide the adaptive and flexible structures that let customers, employees, and suppliers interface with the firm to cocreate value. Three generic platform types emerging in organizations such as service engagement platforms, innovation platforms, and exchange platforms, are able to sense, anticipate, and respond to customers and suppliers. Enterprises that become more entrepreneurial and recognize that products will increasingly emerge outside the organizations that make product components, will have an advantage in creating wealth.