Metcalfe's Law (now called “the network effect”) is the core value proposition of CollabWorks

Metcalfe's law states that the value of a telecommunications network is proportional to the number of users of the systems. Taking an example from telephony, if only one person had a phone, the system wouldn't be very useful, but as more phones are added, the value of the network increases dramatically.

The Internet itself and several social sites, including Wikipedia, eBay and Skype are clear examples of network effects – the more that participate the more value for all the participants. Several important books have been written in the past three that describe the evolution of society, consumerism, and business as a result of the network effect. Included among them are: The Long Tail, Open Business Models, Wikinomics, The Wisdom of Crowds, and The Starfish and the Spider. CollabWorks is the catalyst that enables the network effect for business. CollabWorks provides the infrastructure to make mass customization profitable at the business level.

By developing shared interests and collaborative projects among enterprises, CollabWorks fosters “demand pull” market opportunities where enterprises develop consolidated requirements and suppliers serve the enterprise group via defined projects. Solutions that work as stated by users (enterprise customers) are accumulated and shared among the CollabWorks members. Natural economics forces from fewer process steps to solve a problem in turn produces the network effect as each new member clearly understand they much to gain and to contribute by joining the network.