Ariba looks like a winner because it is becoming a Reed network, more option value than Sarnoff and Metcalfe networks
Source: Adapted from David Reed
*N= the number of terminals/ users on the network
‘Broadcast’, high quality content
Interactions and transactions
Collaboration and new content creation
Notes:
Connecting networks creates substantial value through increased potential for one-to-one and one-to-many interactions/ transactions
Connecting the networks adds no value to existing “broadcasts. It only provide a larger audience to receive non-interactive content
Connecting networks and creating host venues for communities creates increasing returns to the network by multi-party, simultaneous or near simultaneous communication, transactions and content creation