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Thoughts on Blackberry Fail
If a protein produced by a gene remix event is too different, it can't "plug in" to the zillions of networks in the cell. The same way a potential user needs reference points - "it's a bit like this, but better; oh, and it's got these features, like this. It plugs into your email client, to make it more like this" - or won't adopt it. I don't mean it has to be simple to understand the workings, necessarily; the famous Arthur C Clarke quote "any sufficiently advanced technology is indistinguishable from magic" still applies; but your new magic has to be similar to older magic, or do something simple to an existing object understood by many. Even Sir Isaac Newton famously said he was just 'a midget standing on the shoulders of giants'.
The real luminaries of this world can 'increment' by doing something totally new with existing building blocks. Make people see something in a whole new light - to go 'oh wow, I never thought of doing it that way before'. It'll seem like a huge step forwards in that industry, but in fact it'll still obey what I said above - people will have their anchor/reference points in some different industry, but that doesn't matter. People discovering web browsing on their iPhones is an example. The know what the web is, they just never dreamed it could be put on a phone so efficiently. That's a massive increment in that industry (from the non-geek's perspective), and it may seem 'like magic', but of course, the web already exists, and it already existed on mobiles. Bring huge increments to industries by cleverly spotting the opportunities to implement another industry's tech. It requires a lot of intelligence to see new uses for tech, but it's remarkably disruptive.
Oh, and some newly remixed genes plug in too well and send everything out of control - that's cancer. Sounds a bit like the 'freevirus' concept that emerged from my conversation with Alan Patrick over at Broadstuff (once your rival switches to a free, ad-supported model, even though it's ultimately unsustainable, you have to respond by also going free; the freevirus meme emerged from a bad remix, but the 'cell' (the startup) is on a life-support system (VC money) so doesn't die before the meme is passed on to another 'cell')
great insight
thanks
fred
;)
Wikipedia uses open incrementalism, but that's a simple scenario because it's an altruistic endeavour, so people are happy for their work to be modified or stolen for future revisions. There's no benefit to creating the 'ultimate' entry in wikipedia, so the hippies happily coexist.
But when you have a competitive process where even the most minor tweak of your code by someone else can see first place handed to your rival, competition is extremely intense and you make sure you explore all the angles before submitting. If you, as a contest runner, can avoid the eBay 'bid sniper' tactic of holding back your increment to the very last second, you can have a group of competitors with total attention to detail when they submit, all iterating on each others' ideas - and in this case, the winning submission was 3 orders of magnitude better than the one that kicked it off.
I'm very interested in crowdsourcing (and using it for a new mode of philanthropy) - so to hear this option, of totally open ripoff/addictive incrementalism, is very, very interesting. I might just have to 'increment' my idea with Jeff Howe's!
Anyone care to comment on how relates to 'The Long Tail' ?
I have not read your exchange with Alan Patrick, but why do you think that the ad-supported model is unsustainable? Are you referring to the entire model or just the application of the model to specific businesses?
The model has existed for a while now, and its not native to the internet. I would argue that it has proven itself sustainable.
Carlos
An unfortunate effect of supportive VCs is to shield weak (fledgling) businesses from natural selection - just like a welfare system, some argue, 'dilutes' the gene pool by curing genetic defects that are passed onto future generations. Note: I abhor eugenics and believe that in the long term a diverse gene pool is more resilient against epidemics and other challenges than a narrow one - but as a short term point of view, eugenics is correct - the species becomes less well biologically adapted to its niche; more inefficient; protection from natural selection causes evolution in reverse. Just like during the last bubble, and perhaps now, terminally sick businesses polluted the economy to a point where their inefficiency at generating money was an unsupportable load on their ecosystem - hence the crash.
Like everything in like, this is all about 2 things: equilibria, and feedback. There is an equilibrium between parents protecting and educating fledgling children through to maturity (the role of angels and VCs), and supporting leeches through to population crash. It's the same reason my parents are cutting me off as we speak - for the benefit of society, I need to learn to gather my own food.
Back to your question. The concept of the freevirus emerged because Alan and I saw profitable businesses, successfully getting people to pay them for a service they provided, attacked by novice upstarts at way, way undercut prices (free) - not just squeezing them on margins (note the big difference between $0.05c and free - as explained by Dan Ariely; well I believe that also works in reverse - if you're not free, you care about margin and equilibrium is gradually restored). These free businesses, even if run by someone who history will show grossly overestimated his ability to run his business at a profit, is still alive long enough (thanks to the overly protective financial backers) to force a response in the profitable business - and 'free' is so powerful, so disruptive, that often the only (perceived) defence against free is free (Kevin Kelly argues there are other responses. That's definitely true). Hence WSJ dropping pay wall, etc.
I see a bit too many businesses being sieged by free for so long that their reserves are weakened before the free idiot perishes. The result is a situation where both die, the customer gets used to the luxury of free, and any new entrant to the sphere, most likely his confidence boosted by some perceived 'increment' (usually to the service, not to the free business model - such is the legacy of Paul Graham and co), therefore also has to be free. The customer is the winner, bouncing from free to free service - thanks, DataPortability.org!
The problem, also, is that the Internet is the most globalised economic sphere man has ever known. And the differences in wage demands (but not skills) means that the US is a terrible place to play with fire/free. It just can't sustain a freevirus epidemic nearly as long, unless it starts outsourcing big time. And as we see from the paper on Google's internal prediction markets, physical proximity is very important.
Because the Internet isn't a US-hermetic ecosystem, I don't think free can ever find a stable equilibrium there (or here in the UK - or anywhere in the developed world) - certainly not on the scale we're experimenting with it at the moment. The economy needs to be generating companies in need of advertising, as well as eyeball farmers. Someone, at some point, has to dip into my pockets for cash. I'm the Napster generation - we're idealistic hackers in the most plastic (as in, ability to build tools) environment man has ever known, and we're hooked on Free. If for-profit enterprises some day soon find they can't offer their service for free, and ask us for money, and we can't find another VC-funded startup that will - we'll just build it for ourselves and run it as a nonprofit.
These are exceedingly fertile times for innovation and experimentation - as is any period in nature when natural selection is paused; weird and funky mutants nobody imagined can come about whereas they couldn't - so let's celebrate it, and the VCs betting on coming out of the freevirus epidemic with winners amongst the rubble. But let's enjoy it whilst it lasts. China and the rest of BRIC may not give us the opportunity for a third bubble. Two Renaissances in the space of 2 decades is pretty luxurious for any civilization, don't you think?
I should say, this is just spiel/theory. It may be that this isn't a bubble and that advertising really is growing fast enough, for the long term enough, to support all these businesses trying to use the same business model. It didn't last time. Time will tell.
Not that this has any great impact on your argument \ thesis.
I do feel you make some great points about a VC’s animal husbandry role in developing businesses. This also provides great fodder for the revenge unintended consequences on the greater systems – ie: ‘Free Virus’.
I've heard it said that every startup is a theory to be tested. (i.e., can we make technology that does x? and can we make a profit off of it?) Following that analogy, I think only businesses who've proven their theory can really afford to do any significant planning for the next stepping stone.
Think of the way online communication transforms the way "knowledge" is produced - from books to articles to blog posts to Twitter posts. A book tries to encompass a coherent system of interconnected ideas in one controled move - a Twitter post is only a "verse" in a never ending con-versation.
But then again - we have Umair calling for a revolution... :)
-Roman
Thanks
fred
bizarre like someone hacked into my feed. I'll see if I can delete the
thing. No idea how I'd do that though
fred
The key point is that this approach allows you to leverage a lot of pre-existing goodness and do your own triangulation off someone else's offering; the triangle in this case being the vendor, their user community and your iteration of same.
In any event, I have found this approach effective. Here is a link to the methodology:
Start in the Middle
http://thenetworkgarden.com/weblog/2006/03/star...
Cheers,
Mark
How are you?
You mention trinagulation by checking multiple audience measurement/rating services such as Alexa, Quantcast and Compete. We've made something to help you do just that. Check out http://mediakit.pubmatic.com, it's a directory of traffic, audience, and eventually advertising inventory stats for the top 1,000,000 sites on the Web. Would love your feedback.
http://www.newyorker.com/talk/financial/2008/05...
The "innovations" around iPods/iPhones/AppleTV have existed for years prior, but Jobs' talent has been in the re-packaging of technologies from a user-experience - including the experience of being marketed to - perspective.
Needless to say, he's completely turned Apple around through such steady incrementalism.
However there are different paths - notably exaptation. Taking a technology out of its natural environment and applying it in a different environment - the microprocessor was never intended for the desktop, HTTP was never intended as an advertising medium. You can make major steps in invention and innovation. I suppose I am saying the same thing a Phillipe.
Finally there is a BIG point to remember - the big steps will tend to come from the public purse (NASA, Military spending, CERN....) This I find interesting in an environment that abhors socialism.
in trouble
But I am not sure that's true anymore
Because there are some doctors that scuba dive and there are platforms like
ning that allow an entrepreneur to serve them without much capital
investment
fred
I was going to quibble with you about calling my post a rant but being included in the same company as Winer and O'Reilly certainly left me with little to complain about. :)
BTW, I will be in NYC on June 16/17, would look forward to an opportunity to finally meet up.
fred
And I appreciate the Tim O'Reilly video (especially the ending, where he talks about doing something big and important and that matters) and for his reading of Rilke's The Man Watching.
As I mentioned in a tweet last night, that's the second mention of the poem in my world this week. In the first, a friend said my poem "An Unwelcome Guest," reminded her of Rilke's poem and now O'Reilly's good reading on top of his message.
Wow. Worlds converging, triangulating, and colliding in a very positive way. Thanks again.
Oh, you can read my poem here: http://tinyurl.com/49l8ff
Do NOT build a walled garden where you try to anticipate and codify every possible relationship or user interaction.
Ever notice how Twitter is just way more *fun* than Facebook? It's because Twitter is a playground and Facebook is an office job. I posted about this here: http://nathanbowers.com/design/why-twitter-is-1...
Filtering & listening to twitter, we've become part of the "twitter system". The river of thoughts may be incremental, but our action based on those thoughts is big bang in scope. IOW, we're not putting out incremental versions of software, we're working through incremental versions of vision.
Our action of coding (manifestation) is a giant leap, speeding us along to reaching as high as we can toward the "star" Laz mentions. Spike Climate Events involve more than the grand cycle of weather :))