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I think the value in being a "dumb pipe" (lol, really?) within a network of services is WILDLY underrated...
The link to Umair's original piece is here:
http://www.bubblegeneration.com/2008/01/data-is...
for example i can think of twitter as a "dumb pipe" [don't hate, twitterati;
just a figure of speech!!] because it is agnostic to the a) content and b)
medium [SMS/Web/AIR/etc] of the data flowing through it
(that's not too "dumb" ;-)
As Fred said, the information WILL flow around you if you try and restrict it. Ultimately, the more open you are to allowing data to move through your particular web service, the better off you will be in the long run.
i don't think we've seen it yet
1. First adopter types that think it's cool to be in a certain space will leave social networks once the wrong people (teachers, parents, etc.) come in -- in NYC we see this happen with clubs and bars all the time.
2. Friendship in real life isn't a binary on-or-off proposition, it's a relationship that decays without constant grooming, and that can be completely subjective. (You can ask two people independently if the other person is a friend, and get different answers.) That makes it profoundly awkward to un-friend people; it can actually be a lot easier to switch social networks entirely and start from scratch. This isn't the only reason you'd switch, but it offers a nice impetus if the friends you strongly care about start moving from Facebook to something else.
3. Re-creating a friend relationship for some people is the most fun part of a social network -- since it's the activity that's closest to grooming a friendship in real life. I find that the longer I've been on a social network the less fun I have on it. Obviously that's counter to the very real social utility aspect of these sites: I have a lot of friends inviting me to see their band play, or to see their gallery opening, and FB is useful that way. But I'm not sure that the tension will be resolved any time soon.
The reality is that it is everyone around them -- the delivery infrastructure industry (aka, the 'flow') that has it made.
What if you took Xobni one step further and not just analyzed the data for relationship awareness, but enabled the Inbox to be a conduit rather than an endpoint? Of course, this would not work with an email Inbox because setting up the filters & forwards would not be scalable at all. But a different type of Rich Inbox, that operated in a networked environment where the user felt like they were managing all interactions across their "personal DNS". A muti-faceted identity based interaction experience would give us both the feeling of home as well as the feeling of instant community.
This, however, is not a flow issue. Flow is a user experience paradigm. But first the data must be accessible before it can flow. Facebook is happy to import all your RSS feeds into its news feed, but it wont allow you to access your news feed via RSS for 'security' reasons.
Just like Microsoft Paint and Adobe Photoshop can share BMP files so that you can perform different features and functionalities on the same data, so too must applications on the web compete to become best-of-breed software manipulating user data - data the user has control of.
We shouldn't be re'creating' our identities - we should be owning them. Our trusted apps just get to borrow them for a while.
Social-networks are creating barriers to switching that have never existed in other domains of content. Don't like XYZ newspaper anymore? Buy a different one tomorrow, or view a different website and start generating pageviews elsewhere. Data-portability is important in bringing SNS back to the same level of competitiveness as other content sources.
You're right that users are more vested in the content they've created and it's harder to pick up and leave without portability. That's cause of why structurally, SNS's have enjoyed a lower degree of competition (or churn) than other most other content destinations. So portability can be seen as a return to normalcy in competitive dynamics.
but ultimately it's apps & features, not data, that drive utility & viability.
that, and revenue ;)
and umair haque is a spinmaster more than anything, as far as i can read
The networks should be competing on the basis of differentiation between the value-added services that they provide me and my social network (work collaboration, social leisure, hyperefficient communication, knowledge mining, whatever) - NOT on possession of basic data (who it is that I'm related to). Is that what you meant about flow vs. data, Fred? I see it more as a tools versus raw materials difference; capital versus service; food versus human being; oxygen versus cell type (neuron, muscle, insulin producing, fat storage, etc).
----
as for revenue, I don't see why both data store and 'flow' can't exist in the economy, just like farmers and urbanites. I need a "primary producer" service to hold my relationship data (names and addresses), and then I need all these value added services (food processing, restaurants, delivery, etc). Both are useful and if an economy develops correctly around all this, we will price the two different services as we value them, and both could/should be revenue generating (but the "tertiary sector" services may have much better margins). But I'd rather Facebook hurried the hell up and picked a side! Heading for the 'home run' of total vertical integration of its value chain seems like a stupidly ambitious/pigheaded thing to do when your workmaterial isn't food, wood, gold, silicon, but data (so easily stolen by scrapers without you ever noticing!). Same story for music labels. duh.
For the time being, and probably years to come this exercise is largely mental masturbation for the digerati. The discussion about how to value Facebook, MySpace, etc in light of this topic is the more interesting. but I'm sure we'll hear plenty about that in the months to come.
(One might argue that friendster or MySpace broke the barrier first. To that I say, whatever happened to the former and that the latter groups people around common interests and personal, fantasy posturing, while Facebook has gathered a more accurate picture of the graph, i.e. people's real world associations. Too bad for them, they won't be able to hold onto it.)
Seems to me there's a strong case for each of us to control our own "data" (be that our graph, our transactions, our needs etc) in our own location and provide customised rss feeds to every application/network with which we choose to interact. If the individual decides where and in what form their data flows, then the incentive for the recipient to provide "a better experience" will be crystalised and they will react.
"Imagine what happens if our Twitter Follow cloud and its Track filtering enable us to nail up and down connections in real time over XMPP. Oh wait, I can do that right now."
I am not up on the terminology in this and feel very out of the loop right now! Thanks guys!
i think while the technologies and tools -- and jargon -- have evolved, in some cases even radically, the core concepts about data-driven businesses have not changed and probably never will
and i think there are massive differences between what matters to consumers who use (or don't use) a service or product and what matters to entrepreneurs and businesses trying build scalable and fruitful data-driven business models on top of those services and products
to consumers, i think its all about:
1) features
what can i do with the service or product
2) interfaces
how easy or difficult is it for me to what i want to do? how intuitive or obscure is the service or product to use?
as for entrepreneurs and business owners, i don't think either ownership or flow matter one hoot (unless that is just updated jargon for what i am about to say). i can name many new and old mega-successful businesses that have neither (e.g. experian, abacus, gamesville, etc.). what is core is...
1) permission
have consumers given their consent for their data to used commercially, or for revenue generation?
if yes, BONSAI! congratulations, you have a business. now stop wasting ime on blog comments and go sell access to your data/demographic/userbase.
if not, hari kari. at best you will be beacon -- admired but dead. at worst you will be indicted and perhaps jailed or fined.
note: permission usually involves adequate DISCLOSURE (not just blindingly long gray "Terms of Service" texts)
2) data hygiene
is your data current - freshly and continuously freshed and updated?
is your data de-duplicated and validated and -- are your metrics and categorizations not baloney when closely inspected? and especially when used for commercial purposes and revenue generation? in other words, don't tell everyone you have 1 million monthly unique visitors when in fact youy have no idea if that is remotely true or worse, when you produce exactly one click or acquisition for a prtner despite that you ostensibly showed their message to your all of your "1 million unique visitors"
3) demographics and psychographics
not all consumers, not all users, not all social graphs, and not all data points are created equal, or equally valuable in the marketplace.
a simple example: 100,000 "young marrieds" may be worth a whole lot more than 1,000,000 "senior citizens" say, to a mortgage broker. on the other hand, the converse will true if the marketer is a casino.
at gamesville, we collected literally thousands of data points on our many many millions of registered users (with their complete knowledge and permission of course). but at some point we realized the vast majority of data points were not relevent to advertisers, who in the end really can't make ends meet micro-targeting to such granularity (they need to catch lots of fish throwing big nets otherwise their own overheads get too big).
so, what matters?
zip code (from which virtually everything else can be derived or inferred, btw)
age
gender
occupation (titles if possible)
marital status
presence of children (the more detail the better)
presence of pets (the more detail the better)
household net worth/household income
and thats pretty much it. even that much is often too much for the average marketer to consider -- after all, like any good scientific buyer, a good marketer will not want to have too many variables in any test or experiment
btw, if you want to see how much can be inferred from just yoru zip code, check out your "Prizm Cluster" here:
http://tinyurl.com/8b2vd
and note that Calritas calls this data sort "YAWYL" - "You Are Where You Live"
ownership or flow?
;)
his underlying principles are decades old, if he has a uniqueness it is that the entrenched players in the industries he targets seem to be less dense than they used to be
customers want water delivered.
it doesn't matter if you're the lord of the pipes, or the lord of the pump machines.
if you're in the business of selling water taps, water taps matter a lot.
but the customer would just love to have water teleported to them if that were possible.
it all comes down to
WHAT THE CUSTOMER WANTS
not what you want to sell them, be it pipes, water taps, pumping machines, or water taps fixing services.
value resides in getting them water in the most efficient, agreeable, familiar, cheap and convenient way possible.
however you do it, it's your problem.
this is not revolutionary at all, it's just proper engineering and marketing.
things have gotten so twisted that it's become hard to recognise where actual value resides.
it's revolutionary to call the world round and the species evolving.
there's a public for those who sell revolutions too :-)