Pro iPhone, corporate social networks and import substitution

I remember a conversation with my old friend Pavel Eyges when he was director of the Russian representative office of McAfee. I shared with Pavel the ideas of creating our company , that we would be engaged in the socialization of business, promote corporate social networks, and Pavel tried to understand what would encourage people to take and change their habits from the old methods of work to new ones. And as always, the conversation of two men again went on the iPhone. The fact is that when they were born in 2007, there were not that many fans of Apple products. But their proposal was so much simpler, more convenient and more understandable, that people switched to them almost painlessly. Scientifically, the iPhone has created an area of ​​reduced transaction costs.

Let's take a closer look at the theory of transaction costs and how it relates to corporate social networks.
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According to institutional economics, transaction costs are interpreted as “the costs of collecting and processing information, the costs of negotiating and making decisions, the costs of control and legal protection of contract execution”. For example, solving the problem of disrupting supplies, replacing poor quality raw materials, finding a new partner, negotiating costs and concluding a contract, protecting property rights. These are transaction costs (*).

In economics, the transaction costs theorem is: “If property rights are clearly specified and transaction costs are zero, then the structure of production will remain unchanged regardless of changes in the distribution of property rights, if we ignore the income effect.” In the ordinary human language, the theorem can be formulated as follows: “If we don’t have to agree on anything between us, then it doesn't matter where someone’s.

The interesting things start when the transaction costs are not zero and their size and structure begin to affect the redistribution of rights. Applying the physical analogy with friction, we can say that the flow of resources (assets) flow to where viscosity is lower (internal friction). Translated into the language of the entrepreneur, we get the following statement: "If it is easier to negotiate with me, they will negotiate with me." If I can reduce my transaction costs in relation to others, then I get benefits that lead to a natural redistribution of rights in my favor. I do not take away the rights of others - they give them themselves, because it is profitable. That is, if an organization creates an environment with lower transaction costs, resources, assets and people will naturally flow there.

Let's give an example. In order to more actively develop the domestic business, our state can:

• form an area of ​​low transaction costs for Russian producers within themselves (simplify procedures and standards, secure business);
  
  
• reduce the transaction costs of switching to a new business model (convincing Russian businessmen that the new rules will not constantly change, reduce costs when receiving targeted loans);
  
  
• increase the level of external transaction costs (prohibit the import of imported products, increase barriers (for example, SES) on the import of imported products).
  
  

I suggest that we leave outside the framework of this article and not comment on what our state does or does not do. There are other forums and blogs for this. And we will look at how this is reflected in part of our favorite topic - the socialization of business.

Observation number 1. Corporate social network itself is a system that creates an area with lower transaction costs. Indeed, the opportunity to receive and provide feedback without hierarchical barriers, convenient search throughout the organization, the opportunity to ask the community, even without knowing who will answer - these are activities that make the organization more transparent, and therefore remove internal uncertainty.

According to the theory, assets, including new ideas, flow into the zone of low transaction costs. This is partly why the corporate social network is a convenient platform within the organization for experimentation, innovation, and the generation of ideas.

Observation number 2. Producers of corporate social networks are well aware that it is impossible to force people to work in a corporate social network, because the user's personal consent is necessary. For people to start using a corporate social network, they need to see that it’s easier for them to do the same work in the new system. Therefore, manufacturers of corporate social networks make it so that direct users and entire organizations receive a minimum of transaction costs associated with the transition from the old system to the new one. For example:

• practically nothing is required to deploy the system for the organization ;
  
  
• long free use is offered;
  
  
• The interface is made as simple, convenient and familiar as possible, so that a minimum of training is required
  
  
• there is a simple search throughout the organization, which is not the case with any other modern IT system;
  
  
• there is integration with the corporate user authorization system, so that even an extra login / password does not become an obstacle for new users.
  
  

Some people do it better, others do it worse, but the trend is visible.

Observation number 3. A sharp increase in the transaction costs of the old system may give an additional impetus to the transition to a new one. For example, when the e-mail system started up, the local computer, which had all your work, was broken, the e-mail box marked “for all” was full, and ideas were needed to import substitutions. In general, you can use the right moment.

Vladimir Ivanitsa Facebook | LinkedIn

(*) The article uses materials from the cycle “ In Search of IT Efficiency ” Vladimir Ananina.

Ps. If we talk about communications, the communication transaction should be related to achieving clarity of meaning, when both sides of the communication decided that they understood each other. Thus, the total cost of a communication transaction will be the cost of creating the information block itself, which you want to send, plus the cost of carrying out a communication transaction, that is, a TEC .