#Blodget and Broadcasting and Why I think TV is Over

Aside

Henry @HBlodget of Business Insider not exactly for the first time has been causing controversy – now about TV, not Facebook.And here’s a neat piece from @TerryHeaton summarizing his case and agreeing with it – to the effect that TV as we know it is falling down the same hole (my metaphor) as print journalism.

I probably agree with Blodget more than Heaton does. First thought about it seriously at a private event in London several years ago when Jeremy Hunt, who is now the UK govt minister for culture et al., and in hot water over Murdoch issues, was still in opposition. His topic was his approach, when the Conservatives got into government, to “independent” (non-BBC) television. He is a very smart fellow; it was a lively presentation. But when I got around to asking my question, which was to the effect “why do you think it has a future; everything is migrating to the web and asynchronicity, and the moreso the younger you are,” it was pretty obvious he had not thought about it.

It’s a marvel that just as the moving image bounds every further up the exponential curve of consumer demand in C21, its classic purveyors are like deer staring at that bright spot that used to sit at the center of the screen in the old days after we turned it off.

Local Media in a Postmodern World, Part CXXVIII, Henry Blodget is Right: TV is in Trouble.

via #Blodget and Broadcasting and Why I think TV is Over.

#Groupthink – public enemy number 1 as we face the future

Groupthink hasn’t worked, it’s time to embrace the maverick

Giving credence to the outlier thinkers in our midst might have avoided things like the Wall Street crash.Giving credence to the outlier thinkers in our midst might have avoided things like the Wall Street crash. Photo: AP

As the Arab spring continues to unravel into an Arab summer, the most important lesson is that hardly anyone knew it was coming. Much like the collapse of the Soviet Union, and Wall Street could it be that as much as conventional wisdom may be conventional it is not always reliably wise?

I recently hosted a conference in Washington on the future of nanotechnology. All kinds of experts were round the table talking tech and policy and business. Then one of them made a stunning statement. She was there on behalf of a big, mainstream environmentalist group. “I have never,” she stated, “been on such a diverse panel in Washington.”

There was a brief but palpable intake of air around the room. I thanked her for the compliment before adding that I was now more concerned for Washington than I was before.

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Whom do we invite round the table when the questions are big and the stakes high? It tends to be those in the centre; the mainstream thinker whose wisdom is regarded as conventional.

When will we ever learn? We are still paying for the lesson we learned from Wall Street in 2008.

Conventional wisdom can be dead wrong, even in the hands of the smartest people because they tend to agree with each other. People with way-out views are kept at arm’s-length.

Whatever the issue, if your views deviate too far from the mean, however articulate you may be, you are unlikely to get invited, funded or promoted.

We have learned a lot this past generation about the value of diversity in age, gender, and ethnicity but we have learned little about the enormous and growing value of diversity of opinion.

Of course, we do disagree about a lot of things. With friends, and with co-workers. But we live in communities of ideas that set boundaries around acceptable diversity of thinking, and make sure we keep out those who challenge our shared assumptions.

We don’t want to rehash old issues we regard as closed. We don’t want to give room to opinions we find deeply objectionable – or threatening. Most of us find it challenging to take forward our thinking when there is someone in the room always, always asking why?

So our natural tendency is to put unconscious faith in Groupthink, the tendency for everyone’s thinking to move in the same direction to the exclusion of any serious questioning.

People in management know all about this as a problem for work groups and other teams. But it is more insidious and far more dangerous on the grand scale.

What brought Wall Street down, and with it threatened the entire global order? The G-word. And on smaller scales: what led Monsanto into huge losses in the late 1990s and ensured that Europe rejected genetically-modified food? What led Detroit to near-oblivion as they insisted on producing 1950s-style autos into the 21st century? What about the power company TEPCO and the nuclear disaster that the entirely predictable tsunami sparked in Japan?

Knowledge is building very fast, disciplines are converging, globalisation is changing the ground-rules of everything. Change powered by Moore’s Law, the digitisation process and the revolution in communication is driving shifts in the technical, economic and social order that most of us strain to grasp. Yet the faster change takes place and the greater its disruptive, innovative power, the harder it will be to make good choices.

So who should be party to the conversation? This is where the outliers come in; people who are articulate and serious, but outside the mainstream assumptions that generally drive conversations. Experts tend to resist the participation of thosewith unorthodox opinions. It needs to become the norm for them to sit round the table in every discussion. All articulate voices round the table; all the time.

This approach is hardly new. The century before last, US poet, essayist and journalist Walt Whitman asked the question his own way. “Have you learned the lessons only of those who admired you, and were tender with you, and stood aside for you? Have you not learned great lessons from those who braced themselves against you, and disputed passage with you?” In the 21st century, great value lies at the extremities of opinion; and we need to harvest it as we move through change faster than we have ever known before.

First appeared in the Sydney Morning Herald, June 9, 2011.

Read more: http://www.smh.com.au/opinion/society-and-culture/groupthink-hasnt-worked-its-time-to-embrace-the-maverick-20110609-1fuar.html#ixzz1xEjZeJnH

First, kill all the silos

Aside

Terrific post here from @ginidietrich on silos inside the C suite. Seems to me that the two greatest enemies of everything in 2012 are silos and groupthink. They do of course go together, as when we climb out of them to do allegedly creative strategy together the problems of salience et al. emerge.

The situation of the C suite atop the traditional hierarchies of a functional organization is in fact a subset of the problems we have in handling knowledge when data has exploded and the age of expertise is in a significant respect over. It’s those who bridge knowledge silos who shape what comes next. Modeling and applying this in our organizations, one would have thought, was 101.

 

Death by silo: How invisible walls are stifling your business – Blogs On Entrepreneurs – Crain’s Chicago Business.

Is #Facebook Doomed?

Perhaps the strangest feature of the Facebook Phenom is how pervasive the network has become, how much time so many people spend on it, and how little we actually talk about it. This is a taproot of the crisis in valuation that has led the stock to sink today down above the $26 mark. I’m not bearish, at least in the short-to-medium term, as Facebook is making money and may yet find ways to make a ton of money. I’m more, shall we say, weirded out by the whole situation.

I’ve touched on this before, but to sum up and move along a bit here are some key statements I would wish to defend:

1. In general, I’ve argued that social media will soon be utilities, interoperable, and therefore not capable of generating economic profit or, in consequence, justifying these very high valuations. The future is not an AOL-style walled garden named Facebook with X billion inhabitants.It is something a lot more like the USPS. Or the power grid. I don’t know how long “soon” is. But it’s soon.

2. Back to my point about lack of discussion: My suspicion is that most of the enthusiasm for the Facebook Phenom has come from two groups: Generally older people who have little first-hand experience of social media (little, not none) (Group 1); and much younger people whose entire experience has been decisively shaped by one social medium, namely Facebook (Group 2). Group 1 has generally looked to Group 2 to confirm its sense that the Facebook Phenom is a big, big deal – whether their kids or the youngest people on their staffs. This scenario offers, at the least, a rather dire approach to risk management.

3. In the article linked below, an analyst has pronounced that by 2020 Facebook will have gone the way of Yahoo – still likely a profitable enterprise, but with far lower value and in a position of strategic insignificance. He is probably correct, although his focus on the problematics of mobile may be wrong. We all know that the shift to mobile, which is more rapid than anyone expected, has proved challenging as ad revenues are much more difficult to come by in the mobile environment. My suspicion is that Facebook like the many other companies caught in the same situation will come up with some ideas that work, even if they are not obvious today. In parallel, the shift to mobile may help power the move (which I see as highly desirable and in the long term inevitable) to subscription-based social that is protective of user privacy. And, at root, while ads make a lot of sense in search, they make little in social. There are other ways in which companies can occupy social space (branded high-end content will become increasingly important, for example), but if you want to see your friends’ pics you are not ever going to be that interested in clicking links for autos.

4. Sorry, many smart people, but the idea that Mark Zuckerberg‘s very clever development of the Aol/MySpace enterprise will end up as a multi-billlion-member walled garden I find risible. Aside from the glow already fading from what was once almost (never quite) hip, as granny signs on, there are just too many reasons why barriers to entry will fall (or be knocked down by regulators) and basic social become part of the comms wallpaper.

Which draws attention to what I find enormously creative and popping with potential about Twitter. Facebook is very complex, keeps getting moreso, and has really only one core role. Twitter is very simple, has stayed that way, and has many roles. It’s the pathway to tomorrow. Which is one reason I hope it can be saved from the Facebook IPO fate by something a lot more creative in the financing/governance arena.

http://nigelcameron.wordpress.com/future/why-twitter-matters/

Facebook Will Disappear by 2020, Says Analyst.

Has the Social Media #Bubble Popped? #sm #IPO #Facebook

I posted earlier on the debacle of the Facebook IPO and some longer-term considerations in respect of the valuation and staying-power of these early-generation social media brands. And they are early-generation. Part of the problem we are facing is that we are in the throes of exponential change. One thing that means is that we have faced dramatic shifts, which we are tempted to see as lasting and offering us a fresh gently-rising plateau as we look ahead. The fact that the exponential, disruptive bombs are getting bigger every day is too hard to grasp. So we don’t try. So we behave dumb. (Yes, there’s a book there to explain what I’m on about; and yes, I am working on it, so there. Back off, plagiarizers, but join the convo!)

Briefly:

1. In general, this is early early days. Which makes future-scoping (a) very hard, and (b) very necessary. More of both (a) and (b) every day.

2. We’re talking about the brands/companies that have been quick out of the box in, essentially, social media round 2. Round 1 was shaped and dominated by AOL; its curious corporate survival and the bizarre Time takeover blur our capacity to reflect on how  revolutionary was Steve Case’s invention ( which has pretty much defined everything social since; Zuck owes him big. . . .). The key brands of the past decade have been awarded huge valuations on the naive assumption that the barriers to entry will remain high and that interoperability and utility status is not around the corner. Yeah, right.

3. As we look ahead, we see multiple converging streams that include “social” a la Facebook, social marketing leading to profound shifts in “social business,” CSR/social enterprise parallel and convergent developments as a subset of the foregoing, Gov. 2.0 (3.0), wholly new developments in global governance (of which more in another post), and . . . well, point is, we have just begun. It’s why Facebook and Google, qua biz model and tech trailblazers, are so important. It’s why, qua brands, they will be proved to have been relatively insignificant.

4. While we are at it: Facebook’s curious upcoming vote on a privacy change reminds us that, ultimately, social networks will be mutually owned and driven by crowd-sourced decision-making. I am actually astonished that Zuck (whom I greatly admire) has not tumbled to this. But one thing one learns is that innovators are often successful precisely because they don’t see most of the context, rather than because they do.

The future is social. But that social is not ad-driven, privacy-destroying, IP-wielding, reaping economic profit. It is in general mutualized, open-sourced, and ultimately a thrilling constantly innovating utility environment for much human activity. Getting there is messy, but since when was getting anywhere worthwhile not?

 

http://nigelcameron.wordpress.com/2012/05/21/facebook-being-dumped-says-reuters-whats-the-real-issue-well-there-are-3/

 

 

The Social Media Bubble has Popped.

#Facebook again: And Biz Models

Doc Searls has taken the critical analysis of Facebook’s value to another level, by pointing out the fundamental weakness of its ad-supported revenue model. His argument is worth serious reading.

Put a somewhat different way: We assume too readily that exponential pressures mean we can just draw lines up graph paper from anything that has started to work. It’s how startups make their pitch. It may or may not be realistic. The Groupon situation is a case in point. But more tech-focused models also face the same problem. As targeted ads get more and more targeted, especially in the unwelcome context of a “social” network where we are not generally searching for products and services, will they just run out of steam as we run out of patience?

Which brings me back (sorry) to my point: We need innovative biz models to go along with innovative services. Facebook is a social marvel. Its biz model is based on deep privacy mining. Why not a subscription-based service with mutual ownership? It will be a utility soon enough. Might as well plan from the start. Of course, this horse has now bolted, IPO-style. But perhaps a lesson can be learned.

 

 

Doc Searls Weblog · After Facebook fails.

#Facebook being dumped, says Reuters: What’s the real issue? Well, there are 3.

US STOCKS-Wall St rebounds, but investors dump Facebook | Reuters.

 

Whether Facebook is “worth” $100bn or (as one serious voice suggests) $30bn is neither here nor there – unless, of course, you bought your stake on Friday. The P/E ratio is way out of whack with comparable companies like Google – though, as can be plausibly argued, Fb is on the way up and its biz model has yet to be fledged. But that (see below) is at least as big a problem as it is an explanation.

To my mind, three issues are at stake here.

1. The deeper we move into the digital economy, and the more digitally-powered a company or product is, the faster we may expect the forces of innovation to do their terrible work. That is, companies such as these are already aging fast. I was much amused by the blogosphere discussion last year – as IBM’s remarkable 100th anniversary was being noted  – of  “which great companies will be around 100 years from now?” The innovation process is not building vast new brands to take the place of those slipping into the sinkhole of the “old economy” 20th century. It is developing pathways of creative destruction along which products, services, brands, companies, will flow with less and less friction. Facebook may yet prove  a cash cow before it goes the way of all cash cows. I’m doubtful. But whatever the future holds, the exponential character of digital disruption will ensure it holds it more quickly and more briefly than we would anticipate. (AOL. MySpace. Oh, I know it’s different this time. It’s always different this time.)

2.  More specifically, while Mark Zuckerberg has proved remarkably adept at driving his vision and pulling around him highly competent executives to enable it, the Murdoch-style governance structure that gives him enormous power in the public company and its sparkling but remarkably undiverse board do not bode well. This is not the place for a catalog of questions around privacy and business models; suffice to suggest that the lock-down approach that has been adopted is not well-suited to rapid adaptation and response in a rapidly-changing environment. How well the founder’s vision of a company intended for social good that only incidentally plans to make money (I hope that’s a fair summary) will cope with market pressures raises a related set of problems. It is a thousand pities that (as I have argued before) a more innovative and appropriate model than IPO was not developed that would secure the social purpose of Facebook.

3. Three specific factors convince me that within X years we shall not have, say, 3 billion members of a Zuckerberg walled garden. One is interoperability, and the fact that technologically the social media experience will fast become a utility in which hacks and competitive requirements destroy the moat around the castle and in the process the option for economic profit. Second, perhaps through the deployment of anti-trust measures, global governments will not permit the emergence of a Facebook that essentially serves as a private planetary telecommunications and postal system of several billions of members reporting to one man in an office on the West Coast of the United States. Third, and more simply, while Facebook was created for college students it has been driven by teens. Teen culture moves on. And with it the culture of cool. Now everyone’s mom, dad, and grandparents are being recruited to Facebookland, it will be no hard task for the Next Cool Thing to do its thing. Oh yes, barriers to exit are presently high. But that sure isn’t cool either.

Guys, innovation in Century 21 is all about change and disruption. It’s a really bad time to be making bets on the future of terrific inventions and great new companies that have yet to deliver. Which is another reason why the IPO model, as applied to entities like that one,  may have had its day. IMHO.

Of #Work and Its #Future: #workplace #design humans and exponential #change

UNWIRED :: WORKTECH 12 New York.

I’m unpacking my thinking after one of the most stimulating days in some time – Unwired’s NYC version of their WorkTech conference that is offered around the planet.

The future of work and the workplace brings together people from real estate, architecture, interior design, human resources, and assorted other silos, with futurists who are anchored in what lies ahead. It’s a brilliant inter-disciplinary mix, and I was privileged to be invited to play a part. I was up second, following Sherry Turkle from MIT @sturkle who opened the day with her elegantly stated critique of social media and its impact (OK, I will let media be single here) on our private and business lives.  I see her and Andrew Keen @ajkeen asking some of the sharpest questions about the implications of the digital revolution for our knowledge and relationships. The faster, more complex, and more far-reaching the process of change, the more important it is to frame its challenges. Those with the hard questions tend to have the best ones. We may not buy all their answers, but that’s hardly the point. Answers are needed.

I’ve never labeled myself a futurist, but for a long time my focus has been on what lies ahead – and our problem in preparing for it. So I was second up, and my theme was that problem. It’s best illustrated with what I call The Kink. That is, we look back and see exponential change, a steep curve. We look ahead and we smooth things out – it’s hard to grasp the idea that the future will see changes greater and faster than the past, so we kink the curve. The Kink is today, always today. Another way of putting it:  We look back and see the Big Bang. We look ahead and see Steady State. And it’s here, in The Kink, that there lies the core problem of global risk.

More of that another time (there’s a book brewing); for now, some reflections on the future of work in light of yesterday’s insights.

Some things seem very plain.

1. As I stated in my presentation, the implications of AI/humanoid robotics have been far too little examined. This offers a special case of the problem of innovation destroying jobs faster than it creates new ones. My view is that robotics will remove many categories of job from the economy. Some high-level jobs (surgery) and many lower-level – not just manufacturing but nursing aides, cleaning, driving, retail – all kinds of assistive roles – will be completed by machines.

2. In general, the trend toward career changing/contractor self-employed status/project work will continue. It will drive the need for benefit provision (health, retirement) that is not employment-related (an American alternative to single-payer European-style provision may emerge from a revivified labor union movement shaped for professionals/knowledge workers). It will provide companies with far more flexibility, and knowledge workers, especially, with opportunity.

3. Bricks-and-mortar workplaces will decline in significance year by year. We heard at WorkPlace two interesting contrasts from leading-edge companies adapting to the new tech/social environment – moving into a “thin” approach to the office. At GSK, telecommuting is encouraged, personal workspaces are being replaced with a variety of shared and private work areas, and the trad notion of “going to the office”  is in decay. At Google, we were told, while the cubicles are endlessly re-arrangeable (legos came to mind), people do not telecommute and they have personal workspaces.

The Fordist approach to office environments, like the closely-related persistence of Peter Principle approaches to advancement, have outlived their logic. It’s plain to me that form will follow function, and that the coffee-shop experience will be more the typical future work environment for “white collar” workers than anything we would now recognize as a business environment. With rapid advances in all aspects of communications technologies and 3-D avatars, for example, turning video-conferencing into something far more effectively replicating the meeting-room environment, there will be a slow and finally dramatic decline in the company office. Brands will wish to maintain locations and buildings, but they will have less and less to do with the actual operations of the corporation. Outsourcing to other nations, now so common, will be followed by outsourcing to machines/machine intelligence and the use of shared spaces by workers.

It’s a surprise to me that the spread of traditional shared office suites, incubator start-up facilities, and collaborative spaces somewhere between the two, have not made the obvious leap to the coffee-house environment  where millions of workers (including this one) spend much of their productive time. I foresee Barnes and Noble, for example, not simply with small Starbucks cafes attached, but co-locating with Fedex/Kinkos and hourly hire agencies, with private meeting rooms also, to offer a full-service commercial experience to individuals and small groups in the heart of our communities.

Telecommuting, aside from its unappealing  name, has too much been seen as the option of “working from home.” Many of us do not function well in contexts in which we are either entirely alone, or where we have family distractions. And yet whether we have a convenient and congenial coffee house around is a matter of chance. And they don’t print and may be too noisy for calls.

Point is: While it has taken longer than was anticipated (like the “paperless office,” which is in fact being slowly realized, not least thanks to the cloud), digital has destroyed much of the significance of location. While the security issues, not least, will occupy attention as these transitions tale place, we are moving toward a situation in which knowledge workers and the entire white collar class cease to commute long distances, and work in informal environments within their own communities.

And, as with much else, this will happen faster than most of us anticipate. Those who do anticipate will, of course, win. And if as a community we can also engage in serious anticipation, some of the ill-effects that would otherwise flow (such as the benefits issue) can be mitigated.

 

 

 

#California and Destiny: #Valley #DC #China #Innovation #Singularity #TED et al.

As news keeps coming in of California’s decline – budget, public schooling, even the UC system –  some strategic stock-taking is in order.

I have written before of the disastrous divide between the culture of Silicon Valley and that of Washington, DC. Here’s a sample: http://nigelcameron.wordpress.com/risk/the-valleydc-divide/ Part of what I note is that one thing these two highly geographical communities have in common is their mutual disinterest. They are culturally as far apart as any entities in the United States; indeed (as I suggested in the aforementioned commentary) in the Solar System. The nation’s creative powerhouse and its seat of government are seemingly unbridgeable.

I sat in the office of a well-known Valley VC some time back discussing this predicament, and he offered me two reflections that I shall not easily forget. First, “we see Washington as a European city;” and, secondly, “when I look out of the window I see China.”

Well, OK, let’s work with that for the moment. Let California be California. If its interest in engaging in the transformation of these United States runs no further than technology and commercial enterprise, what of the state? As California crumbles, it also hosts most of the self-proclaimed hotbeds of ideas and smart people – quite apart from, though inter-related with, the Valley community itself. Like TED. Singularity University (oddly perched on a NASA campus). The Singularity Institute. (Both homage a Kurzweil.)And a host of other futures-focused centers and projects. On it goes.

But how much interest do they have in what takes place in Sacramento? Is their other-worldliness (OK, I have also written of technoculture a la SxSW, which epitomizes it, as a new fundamentalism) – is it a federal disengagement or does it pertain also in the shambling state they mostly call home? (Yep – SxSW is a Fundamentalist Bible Camp –http://nigelcameron.wordpress.com/2011/03/22/sxsw-nxne-and-the-new-fundamentalism-a-perspective-from-the-analog-polis-of-a-digital-people/)

My concern here is this: California is the United States’ border with China. This is true on several levels. And just as we need to revivify this nation by bringing to a common focus our government and our creativity, we need also to engage with full force the fact that this faux-European nation in the 21st century will live or die by its engagement with Asia. Some time back I suggested we move Camp David to Menlo Park for a start. The President could, I think, do that in a memo. (Main response I got was complaints from Valley friends about the traffic holdups that would ensue.) But in the long term the issue is when, not whether, the federal government is relocated to the west coast. The prosperity and geopolitical status of the United States hinge in part on when and how that transition takes place. The United States has dwelt for two centuries in Europe. In the third, its home will lie increasingly as a Pacific power.

Point is: the Valley culture and the creativity and far-sightedness it represents are the keys to leveraging the democratic and humane values of this nation into the third millennium and across the Asian continent. I am no naive technophile; what I am arguing is that a failure to engage vigorously with the technological future will gravely set back both our values and our prowess. And technology developments must be grounded in a healthy polis.

So, California, what about it? Revamp the state with the smartest and wealthiest and most creative to whom you are home. And give this ailing nation a bridgehead into what comes next.

 

 

 

 

 

 

Jerry Brown: California Needs Cuts ‘Far Greater’ Than Originally Expected.

California’s Golden Opportunity – #innovation #China

 

Dire budgetary news from California has become as tedious and predictable as the latest on its educational failings, tumbling from the top ranks of American higher education to way down the rankings. We know part of the reason, which is tax initiatives that ave crimped the state’s ability to undergird what were once world-leading educational initiatives. There are of course other reasons, which include dumb teacher unions and state representatives unable to offer leadership.

But there is a wider point to be noted. California stands ready to serve as the linchpin of the emerging global Pacific order; the U.S. representative that offers the fulcrum to the Pacific states as the world’s leading center of entrepreneurship. Is this happening?

Silicon Valley, earth’s chief creative organ, is as detached from the Pacific as it is from the continental body of the United States. Its denizens need to discover interest and enthusiasm for both the polity of their nation and the opportunities of their ocean if they are to take the lead in the most consequent generation that earth has yet seen.

 

 

Huge New Shortfall Predicted in California Budget – NYTimes.com.