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To: sditto who wrote (32479)	9/28/2000 12:34:10 AM
From: Mike Buckley	Respond to of 54805

sditto, I'm not clear as to where we are heading with this project and what questions we are ultimately trying to answer. The beauty of a project such as this is that once the information about a company is provided, the investor can determine how s/he wants to apply the material. Each of us might have different goals. My unstated thinking when I first proposed the project is that the main purpose is to identify the primary characteristics of the network effects enjoyed by a given company and in the process determine the company's relative strength rising from the network effects. Having that understanding helps us form an opinion about the future value (and thus the present value) of the network. But that was just my own approach to getting a better handle on a company's network effects. Others might want to use the information in any or all of the ways you suggested. --Mike Buckley

To: sditto who wrote (32479)	9/28/2000 9:59:00 AM
From: Judith Williams	Read Replies (1) \| Respond to of 54805

sditto terrific comments. purpose Yes we do need a stated objective. Yes we are trying to hone our understanding of network effects. We will do that by taking specific companies of interest to the thread that exhibit network effects in different markets, identify those effects, linking them to their source, and see what management is doing to increase competitive advantage by exploiting them or finding ways to create additional network effects. Networks Company Participates In/Controls We could expand the description section to incorporate aspects of the business model that can create network effects. This would then tie more tightly or explicitly to the knowledge assets section as those are a primary indication that management recognizes the network effects in play, is funding them and prioritizing them. This description should also include a history of the network--what key players are involved and when they joined. Adoption Potential Unlike the description above, this section would look to key players who are not in the network and what can be done to create additional clusters and connections. You very rightly point out that it should also address the ultimate size of the network, whether the market itself is large enough to generate meaningful growth if and when critical mass is achieved. Assessing Growth recast more directly in terms of GG--barriers to entry, high switching costs, strong value chain formation, etc. Again, many thanks. Judith

To: sditto who wrote (32479)	9/28/2000 11:04:46 AM
From: areokat	Read Replies (1) \| Respond to of 54805

<<what questions we are ultimately trying to answer.>> Some Network core concepts are: 1. Of networks there shall be few. 2. Big networks are stronger than small networks ( and they become bigger?) 3.A Network in a tippy market dominates that market. 4. A company that dominates or controls a network usually obtains a larger share of the returns. If we identify a company that is in a tippy market that dominates a large network we might be looking at a company we want to invest in? Just some ideas in reaction to your question. I'm sure you could come up with more and better illustrations. Tom