DOCSLIB.ORG

Disintermediation in Question: New Economy, New Networks, New Middlemen

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Disintermediation in Question: New Economy, New Networks, New Middlemen Disintermediation in Question: New Economy, New Networks, New Middlemen Fr&l&ic Jallat and Michael J. Capek raditionally, disintermediation has been sales transactions, we defined as a development that enables intend to demonstrate T households to bypass banks and place that current Internet their savings directly with other types of financial trends go beyond Far from sidelining institutions. In the context of the Web, it has disintermediation. distributors and other come to signify the disappearance of a wide vari- Emerging new Internet ety of “middlemen,” or intermediaries, and the players are being intermediaries, e- creation of an enhanced sales network in which joined by entirely new customers deal directly with service providers. types of intermediar- business is replacing The result is supposed to be a “frictionless capi- ies, leading to the them with new ones, talism” that reduces both inefficiencies and costs. radical restructuring of The first studies on e-commerce provided industrial and com- sometimes even contradictory predictions about the impact it mercial networks. would have on intermediaries. Some suggested bolstering the number that the Internet would kill them off, while others THE INFORMATION of network players. concluded that their role would become more ECONOMY: IMPACT important than ever. Evans and Wurster (1997) ON CORPORATE pointed to a critical aspect of the e-business revo- STRATEGY lution: that the possibility of dissociating the physical flow of products and related information ew forms of commerce provided by the offers a wealth of new opportunities for reshuf- Internet represented less than 1 percent fling and reconfiguring the relationships among N of overall retail sales in the United all the participants in the value chain-suppliers, States in 1999. Nevertheless, millions are buying distributors, retailers, customers. We contend that goods and services online from work or home predictions of the imminent demise of intermedi- daily, and millions more are communicating by aries are premature, reflecting both a failure to means of these same open, universal electronic analyze the variety and importance of intermedi- systems. This rise in electronic connectivity is ary functions and, more important, the lack of an arguably the most important driver of the Infor- overall strategic view assessing the costs of ser- mation Revolution. vices intermediaries provide in the context of Over the past few years, most companies their perceived value to clients and customers. have focused on adapting their operations in Understanding the impact of e-commerce on response to the new information technology (IT). intermediaries requires an analysis of how the But even though such changes have been wide- tasks and functions of traditional economic actors spread, corporate managers-and not just those are being reformulated and rebuilt. Electronic in high-tech industries or telecommunication retailing, or e-tailing, has been a frontier for the firms-must continue to redefine their strategies development of e-commerce. By examining tradi- as the impact of e-commerce widens. For compa- tional functions provided by intermediaries in nies in virtually every industry, this means con- Disintermediation in Question: New Economy, New Networks, New Middlemen 55 ducting an ongoing reevaluation of their position extensive store ownership or traditional franchise in the value chain. arrangements. Optical scanners in each store and a centralized IS at headquarters monitor young The Strategic Importance customers’ buying trends. By collecting real-time of the Information Value Chain data at the source, Benetton can retain the ben- efits of decentralization while patrolling the rap- Information has become an ever more important idly changing preferences of its famously fickle component of a firm’s value chain. The tremen- teenage customer base. dous increase in information resources and con- 3. Firms can create special long-term nectivity available to businesses can provide ma- relationships with customers and establish jor strategic advantages, which in turn contribute more efficient retention programs. The al- to the emergence of the novel intermediary func- most one-on-one perspective enabled by Net- tions illustrated later. These advantages include: based commerce offers many ways to strengthen 1.Firms can better organize and control customer retention. Amazon.com, the Internet logistics while enhancing customer service. bookseller, illustrates how firms can use informa- In a highly competitive market, Federal Express tion about customer preferences to develop a has created a first-mover advantage, drawing on variety of programs that encourage customer the value of information its market provides by loyalty and retention, thereby creating a new and adding a tracking system for clients. The com- potentially powerful form of connection between pany created a huge database, integrating some the retailer and customer. two million packages shipped daily. It also tracks 4. Firms can use the Net to obtain better clients, trucks, and planes and provides interac- control over their retail networks and more tive features for clients. This integrated informa- contact with end users. General Motors is using tion and logistics system provides an important the Net to increase its control over the semiauto- added value for the client and a key competitive nomous dealer networks that have traditionally differentiating element for FedEx. At the same wielded considerable power at the retail level. By time, the database allows for better control of using its Web site to implement a more central- services at each step of the process. ized strategy, GM is forging direct links to cus- 2. Direct access to customers enables tomers at the expense of the dealer’s power. GM fh-ms to adapt products and services more can choose the dealer closest in physical proxim- rapidly to demand. Benetton, the global pur- ity to the Internet customer and have that dealer veyor of fashionable knit clothing for teens and contact the customer via email or by telephone to young adults, has built a top-rate real-time infor- consummate the sale. This system enables the mation system (IS) to handle physical and logisti- company to: cal relationships. The system has enabled the l begin to optimize the “relationship” func- firm to maintain strong controls while forgoing tion with customers and create a database that helps develop other direct contacts with them, thereby building relationships and loyalty; and Figure 1 l shift power from dealers to strengthen the Cybermediariesand Their Related Functions overall retail network, directing business among dealerships to optimize network functioning. From Intermediaries to Cybermediaries Aggregating demand and wholesale price for house- The move from traditional intermediaries to the * Aggregating suiply and traditional online suppliers new “cybermediaries” initially requires an ap- proach that breaks down the sales transaction Trust l Institutionally backed brand or guarantee-based confi- into its constituent elements and functions. When dence (eTrust: “Building a Web you can believe in” carried out either directly or via a third-party refers to the companies that have subscribed to deon- intermediary, four key functions make exchanges tology respecting a person’s private life) easier, cut the costs of carrying out the sales l Guaranteeing purchases (Amazon: “Hello! Shopping at transaction, and improve responsiveness to cus- Amazon.com is 100 percent secure--guaranteed!“) tomer needs. These four functions are: 1. Aggregation. The aggregated demand of Facilitation l Easy payment and logistics (Auto-by-Tel, E’Trade) buyers by a single intermediary, or the aggrega- l Clients fix price “levels” and unsold inventories (Priceline, Webhouse) tion of several suppliers by a distributor, are alter- I I natives to the situation in which each buyer must 1 &chiG [ l Web portals and on-site selections (AOL, Yahoo!) find a direct source of goods and each producer l Auctions (e-bay, iBazar, S/R auction) I must sell products directly to individual custom- ers. This aggregate function cuts transaction costs 56 BusinessHorizons / March-April2001 and favors economies of scale, thereby reducing e-tailing. The following three examples illustrate the asymmetry of negotiating clout between buy- a number of trends in the “new” intermediation: ers and sellers. 1. reorganizing networks by substitution; 2. Trust.Intermediaries can also provide a 2. disintermediation as the vector for creating guarantee and protect buyers (or sellers) against new types of business; and oppo~nistic and/or manipulative actions. This 3. replacing the existing supply chain with function further lowers transaction costs-particu- novel forms of reintermediation. larly important in the anonymous world of e- commerce, where mechanisms assuring confi- Reorganizing try Substitution: Amazon.com dence in the retailer, co~dentiali~, and security are not yet fully established. A related develop- Since mid-1995, the cyber bookstore Amazon.com ment is the growth of “reputation managers”- has been selling books directly via the Internet, programs that can be external (a Web site dedi- substituting direct customer contact for transac- cated to offering customer and expert opinion on tions that previously involved, perhaps, “the sites, products, and services) or internal (book bookstore around the corner.” It has gained a reviews and readers’ ratings on Amazon.com). respectable percentage
Load more

Recommended publications
  • Retail 2.0: the Future of Shopping
    RETAIL 2.0 This Report • The pandemic has seen a high-street downturn, as consumers move to e-commerce platforms. But whilst the high street may be down, it is most definitely not out • The post-COVID world provides retailers with the opportunity to renew and reinvent • OMG Futures sees a retail future where innovation is not just about wizardry and gadgetry – but also enhancing our experiences and serving our deeper needs • The Future of Shopping envisions a future where embracing and integrating with digital technologies whilst providing a unique human experience in-store can lead to a high street renaissance • This is not a report about e-commerce specifically. This is a report about the shopper of the future and what they will demand from their retail – in all its forms How it unfolds THE THE THE NOW WOW HOW The current state of The next decade in Implications for retail in 2020 retail businesses and brands WHERE WE ARE RIGHT NOW… UK Retail, December 2019 Slowest rate of 85,000 job 9169 store 350 CEO Online sales spending growth losses in retail closures replacements grew by 21% since 2010 Retail was already changing Source: Deloitte: Retail Trends 2020: Finding Purpose Through Challenge, Jan 2019 – Dec 2019 Then, the pandemic arrived… UK Retail, December 2020 Pre-pandemic online Amazon sales up 63% of consumers 36% of online shoppers sales: 20% of 40%. Announced said the way they increased frequency of In Sept, as a 12 month retail Now:30% of 7,000 more permanent obtain goods and online purchase during average, footfall for retail.
    [Show full text]
  • New Strategies for the Platform Economy
    SPECIAL COLLECTION STRATEGY New Strategies for the Platform Economy To reap the rewards and avoid the risks, companies exploring a platform business model must look carefully at their partnerships and growth strategy. Brought to you by: SPRING 2021 NEW STRATEGIES FOR THE PLATFORM ECONOMY SPECIAL REPORT 1 9 17 Competing on How Healthy Is Your Platform Scaling, Platforms Business Ecosystem? Fast and Slow THE DOMINANT DIGITAL PLATFORMS are now among the world’s most phases. At each stage, there are specific early valuable — and most powerful — companies, leaving a huge swath of organizations forced indicators to look for that point to potential to play by their rules. In this new competitive environment, businesses need new ways to failure. Tracking the appropriate metrics gain advantage despite platforms’ constraints and market clout. And businesses seeking to for each stage and being alert to red flags create successful platform ecosystems find that while the rewards can be great, the helps businesses pivot to a new approach or likelihood of failure is high. This special report examines the challenges faced by both limit their losses. platform owners and participants. Platforms aiming for market dominance have typically prioritized rapid growth. The asymmetries in power and infor- attention from U.S. and European regulators, However, Max Büge and Pinar Ozcan have mation between platform owners and the whose scrutiny of dominant platforms’ found that scaling quickly is not the right businesses reliant on them have implications practices may lead to shifts in the prevailing strategy in all circumstances: Pursuing fast for the traditional levers of competitive balance of power.
    [Show full text]
  • The Dealership of Tomorrow 2.0: America’S Car Dealers Prepare for Change
    The Dealership of Tomorrow 2.0: America’s Car Dealers Prepare for Change February 2020 An independent study by Glenn Mercer Prepared for the National Automobile Dealers Association The Dealership of Tomorrow 2.0 America’s Car Dealers Prepare for Change by Glenn Mercer Introduction This report is a sequel to the original Dealership of Tomorrow: 2025 (DOT) report, issued by NADA in January 2017. The original report was commissioned by NADA in order to provide its dealer members (the franchised new-car dealers of America) perspectives on the changing automotive retailing environment. The 2017 report was intended to offer “thought starters” to assist dealers in engaging in strategic planning, looking ahead to roughly 2025.1 In early 2019 NADA determined it was time to update the report, as the environment was continuing to shift. The present document is that update: It represents the findings of new work conducted between May and December of 2019. As about two and a half years have passed since the original DOT, focused on 2025, was issued, this update looks somewhat further out, to the late 2020s. Disclaimers As before, we need to make a few things clear at the outset: 1. In every case we have tried to link our forecast to specific implications for dealers. There is much to be said about the impact of things like electric vehicles and connected cars on society, congestion, the economy, etc. But these impacts lie far beyond the scope of this report, which in its focus on dealerships is already significant in size. Readers are encouraged to turn to academic, consulting, governmental and NGO reports for discussion of these broader issues.
    [Show full text]
  • Disruptive Business Models – Challenges and Opportunities for Tax Administrations 3 C O N T E N T
    DISRUPTIVE BUSINESS MODELS CHALLENGES AND OPPORTUNITIES FOR TAX ADMINISTRATIONS WWW.IOTA-TAX.ORG Published by IOTA, 2017, Budapest Editorial Board: Miguel Silva Pinto, Neil Sawyer, Ágnes Kővágó Address: Wesselényi utca 16., H-1077, Budapest, Hungary Phone: +36 (1) 478-30-30, Email: [email protected] ISBN 978-615-00-0275-0 WWW.IOTA-TAX.ORG FOREWORD Dear Readers, This publication is founded on the presentations and debates held during the technical session of the 21st IOTA General Assembly, which took place in Kyiv, on 28-30 June 2017. The working programme addressed the changes in the economy driven by technology and multiplication of new and innovative business models. The assembly focused on how this trend is causing both challenges and opportunities for tax administrations to re-invent themselves in order to keep pace with the present and anticipate the future. The book’s structure follows the technical sessions of the assembly and the articles have been prepared by many of the speakers and include not only what they have presented but their further thoughts on the subject as well. Pekka Ruuhonen, Giorgi Tabuashvili and Gerry Harrahill, Commissioners from the Finnish, Georgian and Irish Tax Administrations provide their insights on the strategies their organisations are following to ensure the supply of better services to their taxpayers and to tackle the challenges of digital business models. Chiara Putzolu, Dirk Dierickx and Alan Carter, from the Italian, Belgian and UK’s administrations offer an insight into their country’s compliance models and methodologies to address sharing/collaborative businesses.JB Hillman from Vertex explains the potential of disruptive technologies to improve the effectiveness of tax administrations.
    [Show full text]
  • 1 Disintermediation in Business-To-Business Service Channels: Mechanisms and Challenges
    Disintermediation in Business-to-Business Service Channels: Mechanisms and Challenges Fredrik Nordin, Danilo Brozovic and Maria Holmlund Accepted for publication in Journal of Business-to-Business Marketing Abstract Purpose: The aim of this paper is to delineate a number of different disintermediation mechanisms within the context of business-to-business service channels and to identify the specific challenges associated with adopting these mechanisms. Methodology: The research was conducted in accordance with abductive reasoning, moving continuously between the empirical world of four industrial (B2B) firms and the model world. Findings: This paper delineates a choice of six disintermediation mechanisms and their attendant challenges within the context of industrial service channels. Contribution: The paper provides an original conceptualization of disintermediation, which is detached from the traditional understanding of the concept. As such, it constitutes a useful starting point for the development of a formal theory of disintermediation. Implications for practice: This paper should be useful for practitioners, because it presents various disintermediation options available to industrial firms faced by undesired intermediaries in their industrial service channels. Keywords: service, disintermediation, industrial marketing, intermediaries, servitization 1 Disintermediation in Business-to-Business Service Channels: Mechanisms and Challenges 1. Introduction “Can you help us analyze how to handle the intermediaries and service companies
    [Show full text]
  • Social & Behavioural Sciences AIMC 2017 Asia International
    The European Proceedings of Social & Behavioural Sciences EpSBS Future Academy ISSN: 2357-1330 http://dx.doi.org/10.15405/epsbs.2018.05.16 AIMC 2017 Asia International Multidisciplinary Conference THE REVIEW OF DISINTERMEDIATION STRATEGIES IN TWO SIDED MARKETPLACE Andi Desfiandi (a), Faurani Santi Singagerda (b)*, Novita Sari (c) *Corresponding author (a) Faculty of Economics and Business, IBI Darmajaya, Bandar Lampung, Lampung, Indonesia [email protected] (b) Faculty of Economics, University Sang Bumi Ruwa Jurai, Bandar Lampung, Lampung, Indonesia [email protected] (c) Faculty of Economics and Business, IBI Darmajaya, Bandar Lampung, Lampung, Indonesia [email protected] Abstract Two-sided marketplaces are the type of companies that connect external parties starting from ― vendors such as a seller, host, and driver, and at the same time customers such as buyer, renters and service user, to interact and transact inside the marketplace they had developed. This kind of marketplace often risk disintermediation which happens when users may rely on the market to find the potential problems related current and future transactions without the platform‘s involvement, paying any fees, and the platform may charge. This paper assesses all of the factors that trigger disintermediation happened in the marketplace, how sensitive the price fee or premium determines the level of potential disintermediation might occur, and also a set of strategies that can implement to reduce it. Furthermore, the theory used in assessing these factors includes Customer Lifetime Value, Customer Relationship Management, and Disintermediation theory. The arguments have led this paper to choose the recommendation to the research question as immediately assess the kind of disintermediation occur; other psychological factors can be the solution or ways to better shaped the platform, and always learn the pain point of buyer and seller.
    [Show full text]
  • Car-As-A-Service Medium-Term Opportunities for Fleet Management Solution Providers 2 Roland Berger Focus – Car-As-A-Service
    January 2018 Car-as-a-Service Medium-term opportunities for fleet management solution providers 2 Roland Berger Focus – Car-as-a-Service Management summary From around 2030 we are likely to see autonomous elec- In this paper we examine how the tric vehicles widely used on our roads. This will create a market is changing. We dispel some of clear role for fleet management solution providers, run- ning the autonomous fleet right across the vehicle life- the common myths about what those cycle, from procurement to re-marketing, and providing changes mean for fleet management additional services such as aftermarket services and in- solution providers. In particular, we surance. But what about the next ten to fifteen years? In the medium term, fleet management solution providers look in detail at the new opportunities need to carve out a clear strategy for themselves – a strat- offered by the Car-as-a-Service trend egy that will help them survive rapid changes such as new mobility trends, digitalization and electrification. and used vehicles. We believe that the medium-term prospects for companies These trends, we believe, are opportunities not threats. in this sector are highly positive, as long The "Car-as-a-Service" model, which includes phenomena such as ride hailing, car sharing and car pooling, will lead as they take a proactive approach to the to a major increase in the volume of fleets and in overall changing environment. To help them vehicle usership. Fleet management solution providers on their way, we make some practical are ideally placed to benefit from this development.
    [Show full text]
  • Surviving in a Digital Economy a Study of the Consultant Brokerage Industry
    Surviving in a digital economy A study of the consultant brokerage industry Andreas Pettersson Industrial and Management Engineering, master's level 2018 Luleå University of Technology Department of Business Administration, Technology and Social Sciences SUMMARY Purpose - The purpose of this master thesis is to identify critical factors and create guidelines for traditional consultant brokerage firms to stay competitive in a digital economy. Methodology - This qualitative study with an abductive approach, gathered data primary from semi-structured interviews. A total 18 interviews were conducted with travel agency executives as well as buyers, sellers, and matchmakers of consultant services. Collected data were analyzed using thematic coding. Findings - The main findings of this show that traditional matchmakers can take actions to stay competitive if a digital platform enters the market. In addition, the study suggests proactive and reactive measures that organizations can take to address these disruptive forces. Theoretical implications - The study will provide an understanding of consultant brokerage and their function as a matchmaker in the marketplace. Besides, it will provide an insight into how some traditional matchmakers can survive in a digital economy. Practical implications - This thesis will provide managers with concrete guidelines on how to react in the event of disintermediation of a matchmaker market. Keywords - Disintermediation, Business strategy, Reintermediation, Matchmakers, Intermediates, Consultants, Brokers Paper type - Master thesis ACKNOWLEDGMENTS This master thesis is written by Andreas Pettersson and concludes the author's studies in Industrial and Management Engineering with a focus on innovation and strategic business development. I would like to thank my supervisor, Mats Westerberg, and fellow students at Luleå University of Technology for their constructive criticism, discussions, and guidance throughout this thesis.
    [Show full text]
  • Information and the Potential for Disruption in Consumer Lending
    NBER WORKING PAPER SERIES PEER-TO-PEER CROWDFUNDING: INFORMATION AND THE POTENTIAL FOR DISRUPTION IN CONSUMER LENDING Adair Morse Working Paper 20899 http://www.nber.org/papers/w20899 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 January 2015 I thank David Scharfstein and Francesco D’Acunto for very helpful comments. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer- reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2015 by Adair Morse. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Peer-to-Peer Crowdfunding: Information and the Potential for Disruption in Consumer Lending Adair Morse NBER Working Paper No. 20899 January 2015 JEL No. G24 ABSTRACT Can peer-to-peer lending (P2P) crowdfunding disintermediate and mitigate information frictions in lending such that choices and outcomes for at least some borrowers and investors are improved? I offer a framing of issues and survey the nascent literature on P2P. On the investor side, P2P disintermediates an asset class of consumer loans, and investors seem to capture some rents associated with the removal of the cost of that financial intermediation. Risk and portfolio choice questions linger prior to any inference. On the borrower side, evidence suggests that proximate knowledge (direct or inferred) unearths soft information, and by implication, P2P should be able to offer pricing and/or access benefits to potential borrowers.
    [Show full text]
  • Disintermediation Effects in the Music Business – a Return to Old Times?
    Disintermediation effects in the music business – A return to old times? Abstract The paper makes a brief historical review of the evolution of the music industry over time, contextualizing the technological aftermath in the industry’s current reality. Business models and success factors of the traditional entities within the music industry's landscape are suffering significant change. In a reality afforded by easy access to networked global communications, disintermediation effects are succeeding, in what appears to be a comeback to the old days of music business, when artists had control and a more self-sufficient and autonomous role in business. The paper argues that the relation between artist and consumer, which was once direct, grew overtime to accommodate intermediaries, due to promotion and distribution needs. Furthermore, it suggests that new business models are arising, that encompass elements of the traditional value chains and that can constitute the alternative to support a direct and successful relation between artist and consumer. Keywords: Intermediation, music business models, direct-to-fan Contact info: Francisco Bernardo Luis Gustavo Martins [email protected] [email protected] School of Arts - Catholic CITAR - Research Centre for University of Portugal, Science and Technology of the R. Diogo Botelho, 1327, Arts 4169-005 Porto, Portugal School of Arts - Catholic +351 226196200 University of Portugal, R. Diogo Botelho, 1327, 4169-005 Porto, Portugal +351 226196200 1 Introduction With the advent of the digital revolution and the Internet, business models and success factors of the traditional players within the music industry's landscape have suffered a significant change. In this reality afforded by easy access to networked global communications, and with the maturation of Web technologies, disintermediation effects are succeeding (Chircu & Kauffman, 1999), in what appears to be a comeback to the old days of music business, when artists had control and a more self-sufficient and autonomous role in business.
    [Show full text]
  • An Analysis of the Origins of Collaborative Consumption and Its Implications for Marketing
    Academy of Marketing Studies Journal Volume 21, Number 1, 2017 AN ANALYSIS OF THE ORIGINS OF COLLABORATIVE CONSUMPTION AND ITS IMPLICATIONS FOR MARKETING Myriam Ertz, University of Quebec in Chicoutimi Fabien Durif, University of Quebec in Montreal Manon Arcand, University of Quebec in Montreal ABSTRACT Collaborative Consumption (CC) is currently subject to many debates and controversies. From a more conceptual perspective, more intense studies and considerations of collaborative consumption schemes, may potentially reposition marketing. This article is a first step into that direction. It reviews the key macro developments which led to the (re-)emergence of collaborativity in consumption / production. An inter-disciplinary analytic framework revealed that Collaborative Consumption results from tightly technological, economic, political and societal changes, namely: (1) The web transformed consumers’ relationship to objects; (2) advanced economies are becoming more efficient through collaborative exchanges; (3) the withering of the State and its increased adjustment to the market ethos led citizens to mutate from political militants into engaged consumers; (4) consumers view consumption as central projects in their lives. INTRODUCTION Collaborative Consumption (CC) is a fast-growing social phenomenon. Considering solely web-enabled leasing schemes (e.g. Airbnb, Uber), approximately 40% of the American adult population has already engaged in a form of CC (Critical Vision and Crowd Companies, 2014). When including gift-giving, barter and second-hand marketplaces either offline or online (Botsman and Rogers, 2010), about 98% of French consumers had performed CC in the last years (ADEME, 2012). This trend is expected to continue to grow, especially among younger generations of consumers known as “Millenials” (Clark, 2012).
    [Show full text]
  • Decentralization: an Incomplete Ambition
    Decentralization: An Incomplete Ambition Nathan Schneider University of Colorado Boulder PREPRINT Journal of Cultural Economy (2019) https://doi.org/10.1080/17530350.2019.1589553 Decentralization is a term widely used in a variety of contexts, particularly in political science and discourses surrounding the Internet. It is popular today among advocates of blockchain tech- nology. While frequently employed as if it were a technical term, decentralization more reliably appears to operate as a rhetorical strategy that directs attention toward some aspects of a proposed social order and away from others. It is called for far more than it is theorized or consistently defined. This non-specificity has served to draw diverse participants into common political and technological projects. Yet even the most apparently decentral- ized systems have shown the capacity to produce economically and structurally centralized outcomes. The rhetoric of decentral- ization thus obscures other aspects of the re-ordering it claims to describe. It steers attention from where concentrations of power are operating, deferring worthwhile debate about how such power should operate. For decentralization to be a reliable concept in formulating future social arrangements and related technologies, it should come with high standards of specificity. It also can- not substitute for anticipating centralization with appropriate mechanisms of accountability. This article has benefited from substantive feedback by Ugo Biggeri, Andrew Calabrese, Gabriella Coleman, Bob Haugen, Travis Higgins, Brent Hueth, Carla Ilten, Janne M. Korhonen, Vince Kuraitis, Rhys Lindmark, Mor- shed Mannan, Taylor Nelms, Sam Pospischil, Adrienne Russell, and Philip Sheldrake, as well as anonymous reviewers. 1 Introductory rituals There is a common practice, in examinations of decentralization such as this, to begin by expressing dismay at the want of rigor surrounding usage of the term.
    [Show full text]