For some reason, people really do like to try the internal market approach. It's not only on IT, companies do that with legal, accounting, any kind of creative sector (like marketing), engineering... I'm yet to see somebody try that with top management - might be a nice experiment.
Internal markets are a really nice and well tested way to gather all the flexibility and agility of a corporate environment, while losing none of the risks, transaction costs and antagonism of a real market. It's a sure way to move your company forward!
But, rants apart, I read the article as Google creating something similar to Lucent Labs, not as separating bureaucratic divisions.
Internal markets are a really nice and well tested way to gather all the flexibility and agility of a corporate environment, while losing none of the risks, transaction costs and antagonism of a real market. It's a sure way to move your company forward!
But, rants apart, I read the article as Google creating something similar to Lucent Labs, not as separating bureaucratic divisions.