The Pareto principle, also known as the 80-20 rule, suggests that companies derive 80% of their value from just 20% of their products, customers or ideas. This might be due to the high transactional cost of typical corporate collaboration, through traditional communication channels to leverage business knowledge. The long tail of that curve, that 80% of uncertain value generators, is typically unexplored. Organizations need to reduce the transactional cost of corporate collaboration, allowing themselves to embrace and explore the rejected 80% of their value generators.
Argues, among other things, how social networking technologies can lower the collaboration transaction costs in organizations, by moving sharing and cross-pollination from top-down structures to the now familiar paradigms of web 2.0. Does not offer solutions for getting your organization’s 20% onboard.