“If you Control the Code, you Control the World. This is the Future That Awaits us.”
-- Marc Goodman, Global Security Adviser & Futurist
Innovation ecosystems and their underlying business models are natural born network effects businesses. Network effects are going to be as dominant on emerging technologies as they were on PCs and mobile phones. Network effects also tell us why Facebook has over 2.3 billion users – because they benefit from the fact that everyone else is on Facebook.
As new business platforms emerge you really must focus on finding the core network effect on them. Any network security threats and attacks will be high profile and reinforce the importance of cyber security plans and technologies. Hackers will target well-known brands, looking for notoriety as well as money.
As a result, the security response of the business community must rise to the occasion. Any network with an Internet connection is vulnerable. Hackers are continually monitoring all ecosystems, standing just outside the doorway waiting for an expansion they can exploit.
Hackers do not care if an entity is in compliance with the latest government regulations. They only care about getting the data. Knowing about security threats is one thing. Successfully responding to them is another.
The chief hurdle for any product or service which uses the network effect is to get enough users initially so that the network effects take hold. The number of users required for significant network effects is often referred to as critical mass. When critical mass is attained, the product or service should be able to obtain many new users since its network offers utility. Experts believe this will cause numerous outbreaks of cyber attacks as companies adjust their security measures to protect their customers and consumers.
Digital existence requires technology to understand its audience. Creating a network effect requires copious quantities of user data. Stored value created by users reinforces the power of the network effect to retain users and grow market share. The dynamic also creates added user risk for the network. The dynamic makes creating user habits even more significant as investments of stored value only occur through successive mining of the user experience. Connecting thousands of assets through technology builds incredible relationships. Multiple markets, multiple industry ecosystems, on demand talent pools, inspired new behaviors will be the pathway for new digital industries, products and services. The security industry is prolific in its response to attacks from malicious hackers. However, in the digital universe, all users must remain proactive and up-to-date on the latest types of network threats and the shifting data security realities. The digital landscape is in the limelight and risk management and incident response planning are more important than ever. How an entity determines its effectiveness to prevent and respond to the digital threat matrix determines the success of its network effects ambitions.