Hidden Networks

Some companies have hidden networks that yield network effects not apparent in the usual metrics.

Many of the most important internet projects are based on so-called network effects, which means that the network gains more value to its users when more people participate in the platform. Examples include Wikipedia, Facebook and bitcoin. In some cases, a hidden network exerts delayed effects; in other cases, a company builds an incomplete network – often, as a strategic choice. In time, when the network effects begin to reveal themselves or the final pieces of the network fall into place, the network’s actual strength becomes evident.

Hidden networks...