I read Wikinomics for a class this summer, but this time around I couldn’t help but think of Facebook’s new applications. Earlier this year, Facebook opened up their website so that people and companies could add applications and users could add them to their profiles.

I find the influx of Facebook applications and their popularity to be absolutely amazing. Facebook was already popular as it was–in a way, it was a giant collaborative effort where every member had their own profile, participated in groups, and had multiple networks of friends, family, classmates, and colleagues. But what Facebook had obviously wasn’t enough. The Facebook Applications show the need for more–more interaction, more collaboration, and having some kind of impact on the wikinomony (wiki+economy). In August alone, over 14 million users used the various Facebook applications.

14 million users…but how successful has it actually been? A closer look at the long tail shows that a very small number of Facebook’s applications have even been successful. Regardless of this fact, however, stands the notion that the very idea of Facebook third party applications are necessary to keep Facebook alive amidst the sea of Wikinomics.

Tapscott and Williams rightfully argue in Wikinomics that the “heart of MySpace is the personalized profile. Members fill them with interests, tastes, and values, supplemented by music, photos, and video clips that make their profiles even more appealing.” (p. 29) Facebook went from having more static pages with fairly basic questions to adopting the MySpace way of social networking. Customizing facebook pages with the third party applications is where the bar is, and Facebook sought to surpass it.

I think that Facebook’s pursuit of the third party applications is exactly what has brought its value up over the past six months. In September of 2007, Microsoft bought out 1.6% of Facebook for $240 million, meaning the actual price of Facebook is billions of dollars. Had Facebook remained the way it was–sans third party applications–I doubt their numbers would be able to go that high.

Wikinomics stresses that collaboration is happening not only on a social or social networking level, but more importantly on an economic level. The four basic ideas of Wikinomics–peering, sharing, openness, and acting globally–are all evident in Facebook and its new applications. Non-Facebook third party application developers are the very essence of crowdsourcing and mass collaboration.

So what does this mean for the future of Facebook? Wikinomics is the name of the game, and Facebook has to continue to allow Facebook applications to enter their space. But when is too many Facebook aplications simply. . .too much? There is already an overload and the long tail has already made itself noticeable. Facebook must stay on top of mass collaboration to stay ahead of their competitors and thrive in the market.

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