network

1. Computers: Group of interconnected (via cable and/or wireless) computers and peripherals that is capable of sharing software and hardware resources between many users. Internet is a global network of networks. See also local area network and wide area network.

2. Communications: Local and long-distance telephone system that connects a caller with the intended receiver via cable and/or wireless through call routing devices called switches.

3. Project planning: Graphical presentation of relationship between activities, events, and their duration. Also called flowchart or network diagram.

Network effects is the term given to systems in which the value of each user is increased as the number of users goes up. Such network effects are common on the internet; for example, eBay and Facebook. The value of some such systems is roughly in proportion to the number of connections between users, meaning that if the user base doubles, the value of the system quadruples. This also acts as a barrier to new competitors, since new users are much more likely to join your system than a smaller one that doesn't offer the same value. If your company believes it will able to leverage such network effects, it often makes sense to treat the first users as a loss leader and get big as fast as you can.

• Why Didn't Netscape Win the Browser Wars?
• The Importance of Network Effects
• Metcalfe's Law Explained