Slack and Network Effects
This article discusses Slack, which is a relatively new messaging technology marketed towards businesses and professional use. The messaging application allows individuals to communicate in groups or through direct messaging. The app also affords the sharing of documents and pictures, which can be directly commented on by other members of the Slack community. In its developing stages, Slack saw a significant increase in its number of users as many professionals began adopting the new technology. However, in the increasingly crowded market for communication technologies, the popularity of Slack is currently declining. Slack faces competition from other technologies such as Facebook’s Workplace and Microsoft’s Microsoft Teams, which provide similar communication services and enterprise tools. The article notes that professionals rely on Slack and similar technologies for quick and easy access to collaborate with other employees from any location or time.
This article relates to our class discussion of networks and cascades and how new technologies spread. For example, before the introduction of Slack, professionals were using another communication technology. Once Slack appeared, a few “starters” began using this new technology. Over time, Slack’s use began to spread among many different business professionals, starting a cascade. There can be a direct benefit associated with copying the behaviors of others who have started to use Slack. If the payoff for using Slack is significant enough and a large enough number of neighbors/other professionals begin using the technology, then the benefit or payoff for using Slack may be above the threshold and the technology will be implemented and spread.
However, the article mentions that after an initial increase in consumers using the Slack technology, the percentage of Slack users began to decline. This could be due to the fact that the number of Slack’s users has not yet been pushed past the “tipping point”. If Slack does not get past its tipping point, then the product’s popularity may die out and users will not switch to using this new product. Use may instead converge towards the stable equilibrium value of zero, for example. In order to get past its tipping point, Slack needs to create a big splash in the market and generate substantial marketing.
http://www.cio.com/article/3139872/collaboration/why-slack-should-worry-about-facebook-microsoft-and-google.html